THE IMPACT OF LEADERSHIP ON EMPLOYEE PERFORMANCE A CASE STUDY OF PHCN

ABSTRACT

Employee performance is an importance building block of an organization but leadership is Central to the effectiveness of any organization. Leadership is geared at guiding and supervising the on the job performance and responsibilities of subordinates to achieve organizational goal. No organization could stand the test of time without effective leadership and leadership structure. This study investigated the impact of leadership on employee performance with particular reference to PHCN. Primary and secondary data was used. Five research questions and two hypothesis guided the study with the population of 160 respondents. Simple percentage was used to analyze the data generated. The study revealed that the leadership style of leaders  and  participation  of  employee  in  decision  making impacts  positively on  employee  performance. Recommendations were made among which is that leadership development programs should be encouraged to help build leadership qualities among individuals with an organization.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

In an organization, there are two discernable groups of workers – the superiors and the subordinates. The superiors or managers are require to guide and at the same time motivate the subordinates by raising their zeal to carry out their assigned tasks. This is the managerial function of directing which is concerned with the human factor of the organization and whose process  is  to   initiate  and  move  subordinates   to  act  in accordance  with  the  planned  mission of  the organization.  It involves guiding and supervising the on-the-job performance and responsibilities of subordinates. Management authors see directing  as  involving  three (3) elements  namely leadership, motivation and communication. Therefore, leadership is a factor in the managerial function of directing aimed at organizational performance.

To lead means to guide, conduct, direct, proceed and to show the way, by doing what you want others to do first. Conceptually leadership can be defined as the ability

to lead. Copper and William (1990), leadership is the act of process of influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals. It is also the process of influencing others to work willingly and to the best of their capabilities towards the goals of the leader. Leadership involves the ability to use different forms of power to influence employee behaviours in a number of ways either positively or negatively. Leadership involves others, in other words, leadership involves followers. The followers may be superior, peers as well as subordinates. By their willingness to follow, accept direction from the leader, group members help define the leader’s status and make the leadership process possible. Leadership is a narrower  activity, a tool of management and a technique for influencing people in an organization. Managerial ability is always an asset to the leader who can acquire it.

Employee performance is an important building block of an organization. Organization cannot progress by one or two individual’s efforts but by the collective efforts of all

members of the organization performance is a multi-dimensional construct aimed to achieve results and have a strong link to strategic goals of the organization. (Mwita, 2000). Performance is a vital feature of an organization. Leaders at all the level have to input their efforts and make maximum use of the abilities which sometimes are produced under supervision or without it. Latest  studies  provide  that  organizations  invest  heavily  in Human Resource Development interventions to updates and skill employees inorder to attain job performance. Currently leadership is widely recognized and verified through research. Leaders can influence the people and motivate them (Popper,

2005).  Effective leadership increases human   capability and ensures competitive advantages. Leadership helps in identifying and managing team where group development and specifically personal development and growth of managers also take place.

Leadership is  a core issue in Nigeria both at  the Federal, State and Local Government. It transcedes every level. Bad leadership leads to disintegration, anarchy and

chaos. Leadership is essential to the prosperity, productivity, survival and performance or otherwise of any organization.

1.2    STATEMENT OF THE PROBLEM

Management effectiveness refers to how best organizational goals are achieved. The role of a leader in the effective mobilization of available resource is crucial. Leadership constitutes an important aspect of group or organizational behaviour. Concepts like Mob or Crowd simply defines an assembly of people without leadership structure and anarchy describes a group with apparent leadership disintegration. This shows that leadership is very important in an organization in order  to  achieve  productivity.  Power  Holding  Company  of Nigeria (PHCN) is employer of labour. These employees cannot function  efficiently,  effectively  and  innovatively  without leadership for leadership has a major influence on employee’s performance Conger, J.E. and Wiliam S.A. (1990:13). This work seeks to investigate why PHCN has suffered low productivity,

inefficiency and lack of growth   for decades now which has hamper the attainment of its set goal.

1.3    OBJECTIVES OF THE STUDY

1.To ascertain the impact of leadership on employee performance.

2.To appraise the leadership style of leaders in PHCN.

3.To identify those constraints faced by leaders in PHCN that militate against effective leadership.

4.To determine the qualities of an effective and ineffective leader.

5.To determine the factors that influences the bad attitude to work by the employee.

6.To on the basis of study findings, recommend on how employee performance can be enhanced through effective leadership.

1.4    RESEARCH QUESTION

1.Is there any relationship between leadership and employee performance?

2.Are there factors that militate against effective leadership in

PHCN?

3.Are  employee  satisfied  with  the  leadership  styles  of  their leaders?

4.What is the relationship between management and employee in PHCN?

5.Are there factors that influences poor attitude to work by the employees?

1.5    RESEARCH HYPOTHESIS

The hypotheses being tested in this research study are as follow:

Ho:There is no positive relationship between leadership style

and performance.

Hi:There is a positive relationship between leadership style and performance.

Ho:There is no positive relationship between participation and

employee performance.

Hi:There is a positive relationship between participation and employee performance.

1.6    SIGNIFICANCE OF THE STUDY

Leadership is central to the effectiveness of an organization. Employees at  all levels of  an organization can exercise leadership which can exercise leadership which can take any forms. Numerous studies have been conducted in attempts to understand its nature but the findings of this study will help government and policy makers to choose and make policies that will ensure an effective leadership program that will help identify and build leadership qualities among individuals within  an organization. This work will encourage professionals in the field of management to take advantage of findings on why the Nigeria public service does not perform excellently the objectives of establishing it and develop and establish models and management ethics which our leaders will use to enhance employee performance. The study will be of utmost help to other students and people who might wish to carry out other research work in this field.

1.7    SCOPE AND LIMITATION OF STUDY

1.7.1 Scope of the Study

The scope of this research is limited to determining the impact  of  leadership  on  employee  performance  in  (PHCN) Power Holding Company of Nigeria Enugu Zone.

1.7.2 Limitation of this Study

In the course of carrying out this research the following constraint were encountered.

1.Financial limitation

Due to the high financial involvement of this research work, the researcher has narrowed the study to just Enugu Zone of Power Holding Company of Nigeria of reduce cost.

2.Inadequate Time

This constitute the major limitation of this research study. It is because of the fact that this research work must be combined with studying, lectures and examination.

3.Information

Some of the information required by the researcher could not be revealed by the staff because of its sensitivity.

1.8    DEFINITION OF TERMS

1.Effectiveness

The degree to which an  organization attains its goals  or the ability of a system as a whole to effect intended result. Hallreigel et al (2001).

2.Efficiency

Doing the right thing with the minimum cost.

3.Employee

A person who is employed in her productive activity for a remuneration.

4.Management

Management  is  defined  as  the  process  of  combining  and utilizing of, or allocating an organization’s input (men, materials, money) by planning, organizing, directing and controlling for the purpose of producing

output (tangible/intangible) desired by consumers so that the organizational   objectives   are   accomplished   (Akpala,

1990).

5.Performance

The degree of an accomplishment of a notable action.

6.Productivity

A measure of the efficiency of production. A ratio of output to input.

7.Public Policy

Government programme of action which shows the various degree of goal articulation and normative regulation of government activities.

1.9HISTORICAL BACKGROUND OF POWER HOLDING COMPANY OF NIGERIA (PHCN).

Power Holding Company of Nigeria (PHCN) is formally known as National Electric Power Authority is owned by the Federal Government of Nigeria to generate, transmit and distribute  electricity  to  the  populace.  In  1898  electricity was generated in the City of Lagos after the installation of the

first generating plant. In 1946, the Nigeria government electricity undertaking was establishe within the then public works department to take over the responsibility of electricity supply to Lagos Area. In 1950, a central body was established by the Legislature Council Ordinance No. 15 of 1950 which transfer red electricity supply and development to the care of the central body known as Electricity Corporation of Nigeria (ECN). Other bodies were licensed also to generate electricity in some locations in Nigeria, Nigeria Electricity Supply Company (NESCO) in Jos and the African Timber and Plywood Limited in Sapele were those significant among such.

The first 132KV – transmission line under management of ECN was commissioned  in July, 1961. In 1962, another body known as Niger Dam Authority was established by an Act of Parliament. The authority was responsible for the construction and maintenance of dams and other works on the River Niger and elsewhere generating electricity b y means of water supply thereby improving navigation. National Electricity Power Authority (NEPA) was established in April 1972 with the amalgamation of the former Electricity Corporation of Nigeria (ECN) and the Niger Dams Authority with the headquarters in Lagos.

As a government parastatal, its employee and consumer seriously hampered NEPA’s operations due to several government directive and fraudulent activities. In order to reduce this anormaly, the authority was granted partial autonomy as a quasi-commercialized organization in 1992. While this gesture has granted some powers to the authority if it is still under the control of the government hence the authority could still not take some necessary, drastic and for reaching measures to improve its revenue collection and reduce the incidence of fraudulent activities.

Like most state owned enterprises, NEPA has suffered from severe under-funding and under capitalization, inappropriate capital structure, excessive executive interference and sub-optimality and decision making.

NEPA equipments are subjected to vandalism and theft by group of Cabals in different part of the country. The hydro power stations suffer from low water level during dry and the generation output capabilities of thermal stations are often   hampered by the shortage of fuel equipments are expensive to repair, mostly due to their obsolete status. NEPA as a government ran entity enjoyed alot of financial transfer, subsidies, grants and tax and import duty raivers from the government were counter productive for NEPA’s efficiency. It resulted in an under-developed and unmotivated manpower and lack of will to operate as a profitable entity. NEPA was formally changed to Power Holding Company of Niger (PHCN) in January, 2004 in  readiness for privatization . To provide the legal framework for the restructuring of Electric Supply (ESI), the Electric Power Sector reform bill was signed into law on the 11th of March, 2005. The bill seeks to provide for the formation of successor companies to take over the functions, assets, liabilities and staff of PHCN; development competitive electricity markets,  establish  the  Nigeria  Electricity  Regulatory Commission provide for the licensing and regulation of the generation, transmission distribution and supply of electricity; enforce such matters as performance standards, consumer rights and obligations provide for determination of tariffs and to provide for matters connected with or incidental to the for going. An initial Holding Company (IHC) has been incorporated one the 31st May 2005. PHCN has eight major Power Supply Stations that generates electricity. It has a Central National control centre and through the centre is able to pool together all the electricity generated and transmitted from the various power station before distributing to customers PHCN Enugu Zone was opened many decades ago. The office is responsible for the distribution and sales of electricity to Enugu and its environment. The office maintains an undertaking office in many local government areas of Enugu States. It has all the department as any other PHCN office in the country and it departments is headed by a manager.

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