ABSTACT
This study assessed the impact of strategic leadership style on organizational performance in selected organizations in Enugu State metropolis. The need for the study arose as a result of the continued search for a best leadership style that could be successful in most situations of management especially now in Nigeria when there is rampant incidence of impeachment in our public offices. Although many leadership styles are available yet the problem lingers. In the light of the above, this study specifically investigated the impact of strategic leadership style on these performance variables: Productivity, Profitability, Efficiency and Competitiveness, Innovation and Learning status, and Customer/Staff Relationship on the Organizational Performance. This work which main objective is to determine the impact of strategic leadership style on organizational performance in Nigeria has its specific objectives as: to determine the impact of authoritative leadership style on productivity; determine the impact of coercive leadership style on profitability; assess the impact of democratic leadership style on the efficiency and competitiveness of an organization; ascertain the impact of coaching leadership style on innovation and learning status of an organization and to assess the impact of affiliative leadership style on customer /staff relationship was done having obtained a sample size of 380 personnel from a total selected population of 7460 of the 3 selected organizations in Enugu State of Nigeria. Survey design was used and data were collected through the use of questionnaire and analysis of these data and interpretation of results using Simple Linear Regression Analysis yielded the following findings which aligns with the objectives of the study: Authoritative leadership style as well as coercive leadership style impact positively on the productivity and profitability of organizations of study respectively. In the same vein, Democratic, Coaching and Affiliative leadership styles impact positively on efficiency and competitiveness, innovation and learning status and customer/staff relationship in organizations of study and in our conclusion, we stressed the importance of managers’/leaders’ knowledge of flexing leadership styles, to be able to achieve their strategic goals in their various organizations. Based on our findings, this study recommends that modern managers/leaders should be very knowledgeable of strategic leadership styles and be able to put them to use in order to be able to achieve goals of organizations in varying situations especially when the goals attainment is measured against specific success variables. We also recommend that leaders should examine situations properly to be able to adopt suitable styles and achieve set strategic goals.
1.1 Background to the Study
CHAPTER ONE INTRODUCTION
Leadership style can be strategic when it is adopted to address a given problem at a point in time. As in International Business Machine Company (IBM), United State of America in 1993, when the CEO Louis Gerstner effected a complete turnaround on the company’s dwindling state of economy using what he called ‘driving strategy into action at IBM’ ‘Changelogic’; In SB. Moeller (2005:96), a study of ‘Acquiring Firm Returns in the Recent Merger Wave’; Again in KM. Lehn and M. Zhao (2006:105), ‘CEO Turnover After Acquisitions: Bad Bidders Fired’? And in Kim, Chan and Renee Mauborgne (2003:114) ‘Creating New Market Space’. Strategic leadership styles were used in all these cases to record particular success. So we can safely speculate that a leadership style can become strategic at any given point in time of adoption provided it is geared toward achieving a set target. Leadership is often credited for the success or failure of organizational operations. Leadership styles and practices that work well in one culture may not necessarily be effective in another. For instance, the leadership approach used by Nigerian managers would not necessarily be the same as that adopted in other parts of the world.
Effective leadership tends to be very situation – specific and culture – oriented but adequate motivation, suitable work environment, compensation and efficient communication between managers and subordinates play a good role in achieving excellent organizational performance. It is some researchers’ opinion that most problems affecting organizational performance in Nigeria businesses are workers` poor attitude to work, inefficiency as well as ineffectiveness of leaders, (Udofia 2009, Abe 2010). Others are of the view that organizations in Nigeria are managed through leadership styles strange to typical Nigerian culture (Minogue, 1997). In an attempt to address this issue, some works of management scholars attempting to establish the relationship between leadership styles and organizational performance were examined. In Fielder (1967),
contingency model where leadership behaviour is matched to three factors in the situation, the nature of the relationship between the leader and the members, the extent to which tasks are highly structured and the position power of the leader. The appropriate leader behaviour that is, whether task – oriented or relationship – oriented depends on the combination of these three aspects in any situation. This study is based on the relationship between style and performance in existing organizations in different contexts. Goleman (2000), reports the results of some researches carried out by Hay/McBer who sampled almost 20 % of a data base of 20,000 executives. The results were analyzed to identify six different leadership styles namely Coercive, Authoritative, Affiliative, Democratic, Pacesetting, and Coaching Leadership Styles. Goleman reports that leaders with the best results do not rely on only one leadership style. There are divergent views to these studies. These notwithstanding, empirical evidence on how each of the leadership styles already mentioned impacts on organizational performance was lacking. One cannot measure the success or failure of each of these styles on the various performance variables which include Productivity, Profitability, Efficiency and Competitiveness, Innovation and Learning Status, Customer/Staff Relationship. Leadership qualities can be largely developed but sometimes they are inate. As a result of this, the contention still exists as to whether great leaders are born or made.
The two leadership functions, task – related and group – maintenance, tend to be expressed in two different leadership styles. Managers who have a task – oriented style closely supervise employees to be sure that the task is performed satisfactorily. Getting the job done is more important to them than employee’s growth or personal satisfaction. Managers with an employee
– oriented style try to motivate rather than control subordinates. They seek friendly, trusting and respectful relationship with employees, who are often allowed to participate in decisions that affect them (Ile, 1999). Leadership style in a managerial context is the general way a leader behaves towards subordinates in the pursuit of organizational objectives. They include the degree
to which managers delegate authority, modes of power manager employs, and his or her relative concern for human relationship or task orientation (Edem, 2002). Inyang, (2006) see leadership, styles as unique ways or manners to carrying out leadership functions of motivating and integrating employees with the organization to achieve organization’s objectives. The effectiveness of the leadership styles adopted by managers at work is central in the management of organization.
Etuk (1995), observes that failure or success of organization is due to the leadership styles adopted in managing the organization, which affect the subordinates, customers and agencies within and outside the organization. Khan, (1989) opines that, corporate success depends directly upon the style of the Chief executive. It is really the style of the chief executive that builds corporate culture, which in turn, create the necessary work culture conducive for management. Though, sustained organizational achievement can never be a one-man affair. The leader is the only one who plays the crucial role of creating culture, which channels collective energy for corporate growth and success. Effective leaders are capable of flexing their styles to meet the demands of the situation. Normally some leaders may have to shift into more of a directive mode when faced with a crises, but they make clear what they are doing and why. Poor leaders change their style arbitrarily so that their team members are confused and do not know what to do next. Good leaders may flex their styles when dealing with individual team members according to their characteristics. Some people need more positive directions than others. Others respond best if they are involved in decision making with their supervisors. But there is a limit to the degree of flexibility that should be used. It is unwise to differentiate too much between the ways in which individuals are treated or to be inconsistent in one’s approach (Armstrong, 2012).
Agboli and Chikwendu, (2006) are of the opinion that there may be no leadership style that could be effective in every situation, so there has to be modifications so that different work situations take different leadership styles so that employees and leaders alike may perform optimally.
1.2 Statement of the Problem
Research shows that different leaders have styles, and each of these styles has a way it impacts reformations and creating organizational culture which affects organizational performance and commitment (Goleman, 2000). In today’s leadership purpose in Nigeria, in the areas of responsibility and accountability, leaders in most business organizations have failed. The leadership process demanding a leader to account for his or her failures or successes in a tenure of office with regard to leadership styles adopted is not in place. ‘Anything goes’ because nobody is responsible for actions taken nor is interested in the outcome. All interest is on the ‘share the national cake’ ‘slogan. Impact of strategic leadership style which would have been in use by leaders in determining degree of failure or success in achieving such goals as high productivity, profitability, efficiency and competitiveness, innovation and learning status, degree of customer/staff relationship is not known . Leaders have no established method of measuring these variables which will account for good leadership styles. It therefore becomes necessary for this study to address this gap through the efforts in assessing the impact of strategic leadership style on the performance of selected organizations in Enugu State metropolis which include
Nigeria Bottling Company Plc. 9th Mile Corner Enugu, Emenite Nigeria Ltd. Enugu and Enugu
State University Teaching Hospital GRA Parklane Enugu.
It has been noted also that the most common problems affecting organizational performance and other institutions include poor attitude to work among the workforce, inefficiency, ineffectiveness and inconsistency in the part of the leaders in most places. It is a thing of regret that many of our organizations fold up few years after assuming operation while some that manage to survive do not often show any reasonable degree of growth over the years. African Vanguard (2009), citing Manufacturers Association of Nigeria (MAN) indicates that 820 manufacturing companies closed down within nine years of off-take. According to them and World Bank (2000), there is low standard of living in Nigeria, high level of poverty and illiteracy
are also responsible for low level of productivity in Nigeria manufacturing sector, even though there is development in economy.
1.3 Objectives of the Study
This study generally seeks to assess the impact of strategic leadership styles on organizational performance in selected organizations in Enugu State metropolis.
The study will however pursue the following specific objectives, to:
(i) Examine the impact of authoritative leadership style on the productivity of organizations of study.
(ii) Determine the impact of coercive leadership style on the profitability of organizations of study.
(iii)Ascertain the impact of democratic leadership style on the efficiency and competitiveness of organizations of study.
(iv)Assess the impact of coaching leadership style on the innovation and learning status of organizations of study.
(v) Ascertain the impact of affiliative leadership style on customer/staff relationship in organizations of study.
1.4 Research Questions
The following research questions are designed to guide the study:
(i) What are the impacts of authoritative leadership style on the productivity of organizations of study?
(ii) What are the impacts of coercive leadership style on the profitability of organizations of study?
(iii)What is the impact of democratic leadership style on the efficiency and competitiveness of organizations of study?
(iv)What are the effects of coaching leadership style on the innovation and learning status of organizations of study?
(v) What are the effects of affiliative leadership style on customer/staff relationship in organizations of study?
1.5 Research Hypotheses
Drawing from the statement of the problem, research objectives and research questions, we formulated the following hypotheses for testing as the fulcrum upon which our data collection, analysis and conclusion are based.
Ha: 1. Authoritative leadership style has impact on the productivity of an organization. Ha: 2. Coercive leadership style has impact on the profitability of an organization.
Ha: 3. Democratic leadership style has impact on the efficiency and competitiveness of an organization.
Ha: 4. Coaching leadership style has impact on the innovation and learning status of an organization.
Ha: 5. Affiliative leadership style has impact on customer/staff relationship in an organization.
1.6 Significance of the Study
This research on the impact of strategic leadership styles on organizational performance in selected organizations in Enugu State metropolis exposed various strategic leadership styles and their applications to managers/leaders to tackle different issues arising from different situations in their organizations.
Based on this fact, managers, leaders and supervisors of various leadership levels shall benefit from the work. The study, serves as a working manual to aid the managers/leaders in making the best choice of the strategic leadership styles available to them and in the application of such styles towards better performance of their organizations. The work is also of an immense value to
the management scholars who may wish to advance on this research work for fact finding. Non management scholars are not left out. They will all benefit greatly both in knowledge acquisition and in using the work as a guide for further research work in related areas. We benefit by way of being exposed to facts surrounding the subject matter of the study and will have this work as a guide in our future researches in related subjects. Both the practicing and intending managers of organizations may not afford to miss the findings of this work as a result of its enormous value to them in their day-to-day administration of tasks in their organizations. It is a working manual for success in organizations’ performance. The policy makers in organizations shall find the work an invaluable material in making decisions pertaining to economic structuring of their organizations and decisions concerning performance of various organizations in Nigeria.
1.7 Scope of the Study
The study is focused on the assessment of impact of the strategic leadership styles on organizational performance in selected organizations in Enugu State metropolis. Three organizations which were selected for the study are Nigeria Bottling Company Plc. (NBC Nig. Ltd.), Emenite Nigeria Limited and Enugu State University Teaching Hospital.
1.8 Limitations of the Study
The main constraints of this study include the fact that most journals were not easily accessible. This actually reduced the number of journals available to us. However we were still able to access quite a good number of journals for our work. Respondents were reluctant to fill questionnaire. Some will even expect us to pay some money to this effect. It took us a huge amount of time to convince these respondents to fill questionnaire without paying money to them. Some will claim that he/she has no time to spare for such activity. However, after some repeated trials, we succeeded to a reasonable extent.
Some limitations were associated to our study sample including the nature of questionnaire. These occasioned limits to information flow because more would have been obtained, but for the limits in sample size (Population representation) and our limiting questions (Closed Questionnaire). In spite of these, we were still able to conclude the work successfully.
This material content is developed to serve as a GUIDE for students to conduct academic research
IMPACT OF STRATEGIC LEADERSHIP STYLES ON PERFORMANCE OF SELECTED ORGANIZATIONS IN ENUGU STATE METROPOLIS
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