LEADERSHIP BEHAVIOUR AND EMPLOYEE PERFORMANCE IN BUSINESS ORGANIZATIONS IN NIGERIA

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ABSTRACT

The study examines leadership behaviours and employee performance. The main objective of the study is to examine the relationship between democratic leadership behaviour and employee performance, to examine the relationship between autocratic leadership behaviour and employee’s effectiveness and to examine the relationship between participative leadership behaviour and employee’s efficiency. The study was designed to focus on business organization, where primary data, via questionnaire were collected. The researcher adopted simple random sampling technique. The population of the study was made to be one hundred (100), the reason for this choice is that concrete and adequate information relating to the study under investigation resides among the people randomly selected. The Yaro Yemen’s formula was used to determine the sample size of 80, the simple percentage was used to analyse the research question. The study reveals that there is a relationship between democratic leadership and employee performance; that there is a relationship between autocratic leadership behaviour and employee performance; that there is a relationship between participative leadership and employee performance; that there is a relationship between laissez-faire leadership behaviour and employee performance. Based on the findings of the study Recommendations are made; that democratic leadership style should be encouraged; Autocratic leadership style should be avoided, amongst others.

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                                                TABLE OF CONTENTS                                                                                                                                                                                                                                                             PAGE

TITLE PAGE       –        –        –        –        –        –        –        –        –        i

ABSTRACT        –        –        –        –        –        –        –        –        –        ii

CERTIFICATION         –        –        –        –        –        –        –        –        iii

DEDICATION     –        –        –        –        –        –        –        –        –        iv

ACKNOWLEDGEMENTS     –        –        –        –        –        –        –        v

TABLE OF CONTENTS        –        –        –        –        –        –        –        vi

CHAPTER ONE

INTRODUCTION        

1.1     BACKGROUND OF THE STUDY –        –        –        –        –        1

1.2     STATEMENT OF THE PROBLEM –        –        –        –        –        4

1.3     OBJECTIVES OF THE STUDY      –        –        –        –        –        5

1.4     RESEARCH QUESTI1.3ONS          –        –        –        –        –        –        5

1.5     SIGNIFICANCE OF THE STUDY  –        –        –        –        –        6

1.6     SCOPE OF THE STUDY       –        –        –        –        –        –        7

1.7     LIMITATION OF THE STUDY       –        –        –        –        –        8

1.8     DEFINITION OF TERMS      –        –        –        –        –        –        8

CHAPTER TWO

LITERATURE REVIEW

2.1     CONCEPTUAL FRAMEWORK      –        –        –        –        –        11

2.1.1  CONCEPT OF LEADERSHIP BEHAVIOUR     –        –        –        11

2.1.2  DIMENSION OF LEADERSHIP BEHAVIOUR –        –        –        15

2.1.3  EMPLOYEE PERFORMANCE       –        –        –        –        –        19

2.1.4  MEASUREMENT OF EMPLOYEE PERFORMANCE         –        –        20

2.1.5  LEADERSHIP BEHAVIOUR AND EMPLOYEE JOB                   PERFORMANCE          –        –        –        –        –        –        –        –        22

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2.2     THEORETICAL FRAMEWORK     –        –        –        –        –        24

2.3     EMPIRICAL REVIEW  –        –        –        –        –        –        –        30

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     RESEARCH DESIGN   –        –        –        –        –        –        –        34

3.2     POPULATION OF THE STUDY     –        –        –        –        –        35

3.3     SAMPLE SIZE     –        –        –        –        –        –        –        –        35

3.4     SAMPLE TECHNIQUES       –        –        –        –        –        –        36

3.5     QUESTIONNAIRE DESIGN –        –        –        –        –        –        37

3.6     METHOD OF DATA COLLECTION        –        –        –        –        37

3.7     METHODS OF DATAANALYSIS –        –        –        –        –        39

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS      

4.1     QUESTIONNAIRE ADMINISTRATION AND RETRIEVAL        –        42

4.2     DATA ANALYSIS        –        –        –        –        –        –        –        43

4.3     DISCUSSION OF FINDINGS          –        –        –        –        –        –        49

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1     SUMMARY         –        –        –        –        –        –        –        –        52

5.2     CONCLUSION    –        –        –        –        –        –        –        –        52

5.3     RECOMMENDATION –        –        –        –        –        –        –        53

          REFERENCES

APPENDIX I

APPENDIX II

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CHAPTER 1

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Performance in business organizations has been strongly influenced by the rise of the balanced scorecard framework. It is common for managers to use the balanced scorecard framework to clarify the goals of an organization, to identify how to track them, and to structure the mechanisms by which interventions will be triggered. Performance is an increasingly important concept used to ensure that the private sector has a positive impact on communities, employees and consumers. This is especially so in geographies where basic governance, the rule of law and accountability mechanisms are lacking or limited, (Hilmer, 1994). Performance, also commonly referred to as enterprise performance management or business performance management (BPM), is a business methodology that promotes the ongoing tracking and measurement of the performance of an entire organization as a whole (as opposed to a specific department or business unit, or even an individual employee), (Hoover, 2006). In the recent past years, leadership has engaged as a new effective approach for managing the employees and organization at large. The traditional concept of personnel administration has gradually replaced with the human resource management. This give importance to the strategic integration of new leadership behaviours into effective management of employees and to improve the employee performance. Kenneth and Heresy Hersey P, Blanchard KH (1988) assert that; “The effective leader must be a good diagnostician and adopt behaviour to meet the demands of the situation in which they operate. different leadership behaviours are used that fit to employees on the basis of amount of directions, empowerment, and decision making power. An administrative phenomenon reflects the contingency of leadership, and behaviour, situation and performance criteria have been left to suffocate on their own. As a result, employee performance was affected due to lack of proper direction and application of strategic behaviour in managing daily duties.

In past, the previous study investigated performance phenomena and how it was affected by various variables such as: Leadership, and with its different leadership behaviours such as participative, autocratic, and democratic. It was noted that, in most studies, the concept of participative approach was highly lacking yet in the data collected, it was noted that this approach was critical to the sustainability of leadership processes especially in large work environments. All in all, the history of leadership and how it affects performance of employees dates as back as early as the 17th century where towards the end of that century we started noticing a shift from treating humans as machines and rather see them as human capital necessary for the achievement of different work tasks (Carter, 2008).

In this study, there are different leadership behaviours such as autocratic, democratic, Participative and transactional which taken as independent variables and Subordinate performance would be taken as dependent variable. A conceptual model is developed on the basis of their relationship with a view to analyze which one leadership behaviour is most appropriate to improve the performance of subordinates an organization. Consequently, performance was operationally perceived as: executing defined duties, meeting deadlines, team input, and achieving departmental goals. The above should lead to efficiency, specialization, effective feedback and good organizational relations.

Both terms (leadership and employee performance) cohesion should be proved through behaviours and approaches in attempt to cause efficiency which variable in this study was leadership and indeed Carter M. (2008) defined leadership as the ability to employ managerial competencies to organized performance processes by inspiring, igniting and motivating teams to meet set organizational goals. From the foregoing therefore, the study seeks to examine the relationship between leadership behaviour and employee performance in some business organization in Nigeria.

1.2     STATEMENT OF THE PROBLEM

Employee performance includes executing defined duties, meeting deadlines, employee competency, and effectiveness and efficiency in doing work. Various organizations need strong leadership behaviours that stimulate the employee performance. Some organizations face the problems: Poor innovation, Low productivity, Inability to meet performance targets and Inability to achieve departmental goal. This problem happens due to lack of strategic interventions of specific leadership behaviours to the particular situations that was predicted as the problem at hand. This problem was continuously affecting subordinate performance. That’s why study investigates how leadership behaviour stimulates performance of employee’s.

It is believed that an effective organization rooted from the propellers or on the business leaders. The idea of effective leadership is also adopted in the world of multinational firms. Employees also perceived that there is a need of a leader who should not only have to lead people but also be effective. So, they need an effective leader who can lead the people toward the changes and performance improvement. Therefore, this study examines the relationship between leadership behaviour and employee performance in some business organization in Nigeria.

1.3     OBJECTIVES OF THE STUDY

The main objective of the study is to examine leadership behaviour and employee performance in business organization in Nigeria. The specific objectives are as follows:

1.       To examine the relationship between democratic leadership behaviour and employee performance.

2.       To examine the relationship between autocratic leadership behaviour and employee’s effectiveness.

3.       To examine the relationship between participative leadership behaviour and employee’s efficiency.

1.4     RESEARCH QUESTIONS

Based on the objectives of the study, the following research questions will be answered.

1.       To what extent does democratic leadership behaviour influence employee’s performance?

2.       To what extent does autocratic leadership behaviour impact on employee’s effectiveness?

3.       To what extent does participative leadership behaviour influence employee’s efficiency?

1.5     SIGNIFICANCE OF THE STUDY

As such, the completion of this dissertation will provide understanding of the concept present to generate data and information that every planner could use in order to come up with strategies, plans and designs that will strategically position them in the highly competitive, diverse, and complex business environment that is experienced at present.

By fulfilling the aims that were stated in the objectives section, this study will be helpful for other researchers who may be focusing on understanding the concept of effective leadership. The notable significance of this study is the possibility that other researchers may be able to use the findings in this study for future studies that will create a huge impact on society. This study finding can be used for other findings that might prove to be helpful in introducing changes to the business.

The present study findings have been significant in number of ways. It has been contributed to the body of knowledge by; since the present area is highly under researched in Nigeria and developing countries. No study has been found to investigate leadership behaviours on employee performance. So, present study suppose that the findings of the present study will be of immense help to the management of Nigerian organizations especially in oil firms and those in developing countries in general to answer the long-standing question of how to enhance employee performance.

1.6     SCOPE OF THE STUDY

The scope of this study is delimited into the followings:

Content Scope: The specific areas of employee performance the study investigated include; productivity, efficiency and effectiveness.  Whereas, the areas of leadership behaviour include democratic, autocratic participative and laissez-faire.

Geographical scope: This study covers an examination of leadership behaviour and employee performance.

Unit of Analysis: This is a macro study because it is interested in ascertaining the sustainability of an organization in this direction. Hence, it is a micro level study.

In carrying out an investigation of this native the researcher must be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

Thirdly, poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed. Lastly, poor measurement instrument.

1.7     LIMITATIONS OF THE STUDY

In the course of the study, I encountered some limitations namely;

       Inadequate resources to carry out all the research I would have like to.

       The respondents (employees) were not forth-coming in giving information.

       The respondents (employees) also did not answer the questionnaires given to them on time which slowed down the time for completion of the studies.

1.8     DEFINITION OF TERMS

AUTOCRATIC LEADERSHIP BEHAVIOUR

Authoritarian behaviour does not permit effective performance in the organization. This behaviour of leadership tends to generate from private owned organization which are ruined by their owners.

DEMOCRATIC LEADERSHIP BEHAVIOUR

Democratic behaviour of leadership takes into consideration the wishes and of the followers or subordinates in the decision-making process.

          EFFECTIVENESS

Effectiveness is the capability of producing a desired result or the ability to produce desired output.

EFFICIENCY

It is the ability to avoid wasting materials and time in doing something or in producing a desired result.

          EMPLOYEES

A person employed for wages or salary, especially at non-executive level.

LAISSEZ-FAIRE LEADERSHIP BEHAVIOUR

This also means “allow to do as they like” in this behaviour, the leader exercise very little control or influence over the subordinates. In the organization, employees are assigned some responsibilities and left alone to decide on how to accomplish the tasks.

LEADERSHIP 

The action of leading a group of people or an organization, or the ability to do this.

PARTICIPATIVE LEADERSHIP BEHAVIOUR

The participative behaviour is centered on the relationship between the leader and the employees of the organization.

PERFORMANCE 

The action or process of performing a task or function.

PRODUCTIVITY

It is the measure of how well resources are brought together in organization and utilized for accomplishing a set of goals. It involves reaching the highest level of performance with the least expenditure of resources.

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