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PARTICIPATIVE
LEADERSHIP STYLE AND ITS EFFECT ON ORGANIATIONAL PERFORMANCE
CHAPTER ONE
1.0 Introduction
Leadership is a complex research area across all sectors be
it private or public. There is ambiguity over which styles and behaviors are
the most effective for organizational performance. There are difficulties in
linking LG Finances leadership styles with organisational performance since LG
Finance’s performance measures are affected by multiple confounding factors.
This research however, aims to see whether there is a link between leadership
styles and LG Finance’s performance.
For the past five years LG Finances has been experiencing a
decrease in output due to factors such as poor employee performance, poor
motivational strategies, reduced staff morale, and unavailability of resources.
It was assumed that the decreased output might be as a result of the leadership
styles being used by LG Finances. Given such a background, researcher saw it
possible to carry out a research to see whether there is a link between
leadership styles and organizational performance.
In a bid to improve performance, managers at LG Finances
employed a combined and coordinated system of managing human resource and their
performance to accomplish the goals of the organisations. However, this seemed
not to have changed anything as it was observed by the researcher that the
organization was experiencing slow growth rate due to rapid staff turnover.
Performance management approach was adopted in order to monitor employees'
performance in line with the goals of the organization.
Performance Standards were measured in terms of efficiency
and effectiveness based on discipline, punctuality, quality of work, quantity
of work and time taken to accomplish a task. It was also measured by the number
of complaints from Customers, compliments from the Customers, time taken to
attend to Customers by employees.
According to Lawal,A.A.(1993) Leadership is the process of
influencing others to work willingly toward an organizational goal with
confidence. “leadership is generally defined simply as the process of
influencing people to direct their efforts towards achievement of some
particular goal or goals”. According to Koontz, et,al (1985), “Leadership is
generally defined simply as the art of influencing people so that they will
strive willingly towards the achievement of group goals”. This concept can be
enlarging to include not only willingness to work but with zeal and confidence.
Nwachukwu,C.C.(2000), sees “Leadership simply as an act that
involves influencing others to act toward the attainment of a
goal”.Ubeku,A.A.(1975)define leadership as the act of motivating or causing
people to perform certain task intended to achieve specified objectives.
Leadership is the act of making things happen rather than letting things
happen. This the leader does by exerting both intrinsic and extrinsic
influences on the group. Even though leadership is the most visible of’ the
management functions. Largely because it deals so much with people. It has
variedly been referred to as directly, commanding, guiding, Inspiring,
initiating, and activating. However, all stand for the same purpose whatever
denotation used. The user, as the striking feature of all suggest a
relationship through which one person influences the behaviour of other people.
Sikula,A.F.(1996).Leadership has different meanings to
various authors. Some have interpreted leaders in simple term such as the
influence, the art or process of influencing people so that they will strive
willingly and enthusiastically towards achievement of group goals (Koontz,et,al
(1978).
The emphasis of this definition is that ideally, people
should be encouraged to develop not only willingness to Work but also
willingness to work with zeal and confidence.Leadership has also been interpreted
more specifically as the use of authority in decision making exercised as an
attribute of position, personal knowledge or wisdom .Ejiofor,P.(1989) defined
leadership as a social influence process in which the leader seeks voluntary
participation of subordinates in an effort to reach organizational objectives.
Similarly, Tennenbaun et,al (I968) defined leadership as interpersonal
influence exercised in situations and directed through the communication,
towards the attainment of’ a specific goal(s). Adebakin and Gbadamosi (1996)
defined leadership as the process of influencing and directing the activities
of an organized group towards the achievement of the group of organization set
objectives.The foregoing Lions show leadership been based on function of’
personality, behavioural category, the role of’ a leader and their ability to
achieve effective performance from others, the interpersonal behaviour and the
process of’ communications.
Despite these variations, there are at least three important
implications of’ these definitions. Firstly, leadership is a process engaged in
by certain individual (leaders). It is an on—going activity in an organization.
Secondly, it involves other people in form of subordinates
who by their willingness are influenced by the leader.
Therefore, the subordinates formalize the leader’s authority
by making leadership process possible. Thirdly, the aim of’ leadership is
accomplishment of goal and objectives, a pointer that the leaders attempt at
influencing the subordinate are directional and therefore aim at level of
achievement.
1.1 Background of the Study.
Participative leadership is defined as the process of making
joint decisions or at least sharing influence in decision making by the
superior and his or her subordinates (Somech, 2005). It is not relatively a new
concept because it has a rich and varied history. It began to flourish in the
1980s in the guise of management policy initiatives inspired by the new
excellence movement and rise of human resources management (Beardwell and
Holden, 1997). It has many potential benefits. It is likely to increase the
quality of the decisions (Scully et al., 1995); to contribute to the quality of
employees’ work lives (Somech, 2002); to promote employees’ motivation to work
(Armenakis et al., 1993; Locke and Lutham, 1990; Yammarino and Naughton, 1992)
and to increase employee satisfaction and organisational commitment (Smylie,
Lazarus and Brownlee-Congers, 1996).
Moreover, in team situations, using a participative
leadership style is important because it leads to high levels of team outcomes
(Sagie et al., 2002), and solicits different ideas from team members
(Katzenbach and Smith, 1993). These scholars reflect a widely shared notion
that participative leadership has a great utility in organisational and team
effectiveness. It values the employee more than it does to the job, and such
leadership behaviour is likely to engender increased organisational commitment
among employees (Bass, 1981). The work attitudes of male workers favours a directive
way of leading with the focus on performance whilst that of female workers on
the other hand, favours a participative way of leading with the focus on
sub-ordinate’s commitment (Werner et al., 2007). These different attitudes
toward work are the characteristic of gender (Heilman et al., 1995). The
understanding of gender as an important feature of work behaviour has become
increasingly important in African organisations than ever before (Ijeoma,
2010). With the advent of women in organizations, the study of organisational
behaviour has extended to encompass the male and female work behaviour (Deal
and Stevenson, 1998). However, there are relatively few written significant
variations between men and women (Kunkel and Burleson, 1999).
Leadership is an important area in management that occupies
of central position in our every day life.
It involves the still of leading and dealing with people. One thing among human group is that there is
always a leader otherwise the group cannot live to achieve its purpose.
The success in leading a group is contingent upon both
leaders ability to held power effectively and the existence of an opportunistic
situation. The problems which result
within organizational members disagree on both the nature of the goals of which
people aspire, and the art of leadership.
Leadership as we use to term in this work refers to behaviour undertaken
within the context of an organization that influence the ways in which other
organizational members behave. It could
be observed that leadership and management envisages deeply into what the
organization can achieve if the quality of recognition is accorded to
them. Leadership has been propounded to
include the source of influence that are built into position in an
organizational hierarchy. These include
organizational sanctioned rewards and punishment authority and also export
power. It could be seen however that
subordinates within the organization, though not all seen to enjoy the
influence that exist all over the above organizational hierarchy provided by
them in the organization.
Leadership is very essential in organization because
achievements and results occur vis-Ã -vis the tracts being projected by
leader. Leadership includes the ultimate
source of power but has the positive ability in persuading other individual and
to be innovative in decision making.
Problems are sound to occur within every noted organization. Decision making is found to generate
conflicts in whatever they are doing to achieve organizational goal. In the light, the notions of leadership act
are these which help a given organization in meeting those stated objectives
(Barelas 1960).
In general terms, the act of controlling other people consist
of uncertainty reduction which entails making the kind choice that permits the
organization to proceed towards its objectives despite various kind of internal
and external challenges.
Note: That in the
society today, not only the presence of reward (positive and negative) or the
incentive appraisal could induce productivity but the feeling of
belongingness. Further expressions like,
is it my father’s work? “They can
dismiss me, I don’t care”, “why should I kill myself for them”? There are some of the uncountable expressions
often used by Nigeria workers to show that attitude to work. Whenever any of these expression are heard,
one will readily know that something is wrong somewhere in the entire system,
so meaningful economics development, growth and self reliance would not be
obtained where unsuitable leadership style is in place, therefore, how far an
organization succeeds in achieving its goals depends to a large extent on how
the management and workers relationship are handled in the organization, and
this effect workers psychological expectation.
In the light of the foregoing, this study aim is to look at the leadership
style, the organization should adopt to attain better performance. The work will also try to examine the
philosophy of leadership and its functional relationship with workers
performance in a manufacturing firm.
Therefore, to discover more means of finding a lasting solution to the
numerous problems facing leadership styles on workers performance. The increasing force of competition have
awakened the minds of organizational management to develop and acquire new
technique and mechanism to increase the level of organizational efficiency and
effectiveness. This task requires
resources of the organization involved in production namely – money, material
and labour which need to be confirmed appropriately for effective performance.
1.2 Statement of the Problem
Leadership style has become a very crucial area of
management. In fact, it has attracted
the attention of many management scientists who have actually delved into the
difficult task of writing about the subject in the management literature.
Improper leadership qualities within the organization have a
negative impact on the subordinates as well as the achievement of the
organization objectives.
For a long time, due to many factors, including the
‘hegemonic’ nature of communication in Nigeria, youths had little opportunity
to be active in governance, or make their views heard. However, with
improvement in communication technology, the status quo appears to be changed.
An effective leader influences followers in a desired manner
to achieve desired goals. Different leadership styles may affect organizational
effectiveness or performance.
Transformational leadership is a stronger predictor of both
job satisfaction and overall satisfaction. In the study it was concluded that
organizational performance is influenced by a competitive and innovative
culture. Organizational Culture is influenced by leadership style and
consequently, leadership style affects organizational performance. So this research work is set to find its
effects on the organizational performance.
1.3 Objective of the Study
The main focal point and idea of this research work is
centered on the research topic itself which is on participative leadership
style and its effect on organizational performance. Other objective the
research will cover in this work are:
i. To
ascertain the conflicts and challenges on participative leadership style within
the organization.
ii. To
investigate the core reasons why the organization performance is positive or
negative.
iii. To
highlight the benefits of participative leadership style on the performance off
an organization.
iv. To
access how zenith bank Wukari has been managing its organization in terms of
its performance, do the participative leadership style have any effect or not
to their performance.
v. To
critically evaluate the nature of leadership styles as it affects workers
performance in Zenith Bank Wukari, Taraba State.
1.4 Research questions
The research work is guided with same research question,
which will be administered and distributed among the researchers area of study
which are the respondents to this research project and these comprise followers
and management and leaders of Zenith Bank Wukari. Sample research question are:
1. Is there any
conflicts in the participative leadership style in management Zenith Bank
Wukari?
2. Is there any
significant relationship between high organizational performance and
participative leadership style in Wukari Zenith bank branch?
3. What method of
leadership style would you prefer over the participative leadership style in
improving the organizational performance?
4. Is there any
effective and efficient leadership styles existing in Zenith Bank Wukari?
1.5 Research hypotheses.
The researcher formed some of the hypothesis which will be
tested to support this study. The hypothesis will be tested at 0.05 level of
significance using the chi-square method and correlation analysis of the SPSS
report sheet.
The research hypothesis are as follows.
Hypothesis 1: there is a significance relationship in
participative leadership style and the organizational performance of Zenith
Bank Wukari.
Hypothesis 2: There is significant correlation on
participative leadership style and the followers on performance improvement.
1.6 Scope of the Study.
This research work will cover the two Zenith bank located at
Wukari LGA of Taraba State for the course of this research and this study is on
participative leadership style and its effect on organizational performance.
1.7 limitations of the Study
A lot of militating constraints were encountered during the
course of this write up. They are:-
Inaccessibility to some documents, which arose due to
security, imposed on some of the organization documents by the management. It
was not also possible to make an in-dept study of these documents, which would
have helped in the development of the project work.
Time was a major limitation to this write up, there wasn’t
enough time to study the details of the various field of the information
department of the organization unavailability of textbook needed for this write
– up was not found in the institution library.
1.8 Significance of the Study.
This research work will present in a precise manner, the
importance of participative leadership style and its effect on organizational
performance.It is believed that the findings of this research work should
provide detailed information on the effects of participative leadership
stylemethods in obtaining a high organizational performance. It is also
expected that the study will benefit the leaders and also the followers,
researchers and the organization in general.
The findings of the study should be useful to the management
of the organization. It is expected that the findings will expose theleaders to
the importance of participative leadership style to organization performance.
By this exposure the management and the leaders they could acknowledge the
advantage participative leadership style over other style of leadership. It is
possible that by this outcome the leaders and the management would
realistically adjust to the application of participative leadership style in
achieving greater and high performance in organization. In turn, the followers
would have real focus for better performance and achievements in their duties.
Subsequently, it will go a long way to enhance the business
administration students’ effectiveness in the society by being capable of
carrying out what they have learned, thereby contributing to the building up of
the organization at any level and where they find themselves.
The research will also be beneficial to the researcher. This
is because the study will expose the researcher to so many related areas in the
course of carrying out his research. This will enhance the researcher’s
experience, knowledge and understanding on participative leadership style.
1.9 Operational Definitions of Terms
Leadership: The process of directing and inspiring employee
to perform task and oriented activities of the organization.
Style: The various behavior patterns favoured by leaders
during the process of directing and influencing employee.
Productivity: The act of carrying out an action or a piece of
work.
Motivation: The force that influence, enthusian, direct
employee energy towards the attainment of set objectives.
Autocratic: One who rules by his own power without seeking
the opinion of his subordinate.
Democratic: One who adheres to, or promote individual
participation as a principle.
Laissez faire: A leader general principle of no interference
with the free action of his subordinate.
Organization: Are artificially contrived structures with
procedures and objectives defining the responsibilities and highlighting who
does what type of job task.
Reward: Feeling of satisfaction derived from achieving
recognition and competence.
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