Effects Of Leadership Style On Management Of An Organization

Introduction

1.1 Background of the Study

The formula for good management of Small and Medium Scale Enterprises (SMEs) is simple enough to develop a sound plan, design appropriate organizational structure, to implement the plans and monitoring the performance of the business. But these activities are easier said than done. According to Lawal, Kio and Adebayo (2000), good leadership is a pre-requisite for effective accomplishment of these tasks. However, they opined that an entrepreneur has different leadership roles to play; he is the chief risk bearer, chief administrator and strategy implementer, crises solver, figure head, spokes person, policy maker.

Stoner and Gilbert (2001), stressed that an understanding of leadership is important to small and medium scale enterprises (SMEs) because leadership binds subordinates to work together and stimulate employees motivation. Also, leadership assists in management development and training, effective leadership provides the building block for organizational performance. It is absolutely essential to the survival and growth of every organization.
Baumback (1992) cited in Lawal, et al (2000:97-120) pointed out that sometimes, an entrepreneur in most cases who is the leader in SMEs needs to be authoritarian in style, for example takes all his decisions, issues instructions and expects others to carry them out without question or debate, and sometimes, a participative style, (where the entrepreneur makes decision on the basis of consensus or agreement) works best. However, leadership roles of small and medium scale enterprises (SMEs) may be highly visible and extensive, time committed, while at times, the leadership roles may be less demanding and require a brief ceremonial performance with the details delegated to subordinates.Leadership styles have diverse effects on variables such as flexibility, standards, rewards, clarity and commitment and in some cases on organizational climates as the behaviour of the leader produce motivation mechanisms which have effect on the conduct of individual’s performance in the organization, (Shamir, et al. 2006). Thus, the essence of leadership is followership. Effective leadership is the extent to which a leader constantly and progressively leads and directs his or her followers, towards organizational performance.

However, swift changes in the business environment, organizational structures, technology and life styles are introducing a considerable rethinking of leadership development. Leadership concerns the ability to influence the behaviour of others to move accord with the desire of the leader and pursuit of goals (Low and Jiang, 2004). Modern businesses face bigger challenges due to rapidly changing world. These challenges comprise socio- cultural, economic, technological legal and regulatory, environmental and ethical issues (Toor, et al. 2007).In several instances, people use the term “manager” and “leader” in the same context. Therefore, a clear difference should be recognized between leadership and management and more specifically leaders andmanagers. Mowson (2001) believes that leaders may not excel at management and what is more often the case, managers do not necessarily make great leaders.

Leadership, as Kotler (1990) argues, is more about establishing direction, aligning people, motivating and inspiring others. Leadership is concerned with long-term outcomes and future goals of the organization. Leadership is more about people and less about tasks. Leaders often put many of the same skills and interest to good use but often to better effect because they focus on areas such as discovering solutions (not problems) managing changing conditions, excelling in spite of organizational structures, and inspiring personnel to achieve their goals.
As Nwachukwu (1988) put it, a leader is the most influential person in an organization who provides direction, guides group activities and ensures that group objectives are attained. Leaders act to help a group achieve objectives with the maximum application of its capabilities. They do not stand behind group to push and to produce; they place themselves before the group as they facilitate progress and inspire the group to accomplish organizational goals (Koontz et al, 1980).The importance of a leader in an organization then cannot be undermined. As Iyoha and Ailoje (1996) pointed out, without leadership, an organization is but a module of men than machines. It is the human factors which binds a group together and motivate it towards goals. Therefore, the efficacy of any organization thus lies on the leader.

Leadership style plays an important role in shaping the behaviour and attitude of the members of an organization. In recent years, the study of leadership has drawn more attention due to its role in the failure or success of an organization. Over the years, scholars and researchers have not been unanimous on the most appropriate style of leadership in organization and these has led to the formulation of several theories that could bring about organizational efficiency and effectiveness. Though some scholars have argued that no particular leadership style is the best, the level of participation of workers in the decisions that affect them or the organization as a whole will spur them to better commitment to the realization of set goals. Comparatively, participation provides outstanding long term results which are by no means far better than effective short term results.

1.2 Statement of the Problem

Leadership style of management is a pre-requisite for effective accomplishment in organizations. The leadership styles determine the level of subordinate participation in decision making and the way an organization is run administratively. Organizations which are low in efficiency tend to have leaders who are highly bossy. Decision making is centered on them alone. Participation in decision making creates an individual’s mental and emotional involvement in a group situation which encourages him or her to contribute to group goals and share responsibility for them (Chruden and Sherman, 1975).

The problem with most small and medium scale enterprises (SMEs) is that the leaders are not democratic in their relationship with their subordinate. In fact, leaders in most small and medium enterprises are usually authoritarian in style. They dictate the tune and have the administration of the organization centered on them. The need for subordinate to participate in decision making is not a passing fancy. It is rooted deep in the culture of free men around the world and it is no doubt the basic drive in men.

Another problem affecting leadership style in small and medium scale enterprises is the competence of the leaders so appointed. In most cases, some of their appointments lack merit. What becomes of such organization is having competent leaders who lack the abilities or capacities to use the appropriate leadership style to lead the members to attain set goals or objectives. Thus, what are usually found in some of these organizations are “round pegs in a square hole” rather than “round pegs in round holes”. Once this situation arises, there will be utterances in the way such leaders behave or administers the organization and these will in-turn affect the goals of the organization.

1.3 Objective of the Study

The broad objective of this study is to examine the effects of leadership style on management of an organization using Govanni Marbles and Granities Ltd in Nigeria as a case case study. Specifically, the study seeks to:

To examine the effect of leadership style on employees morale in Govanni Marbles and Granities Ltd in Nigeria.

To examine the effect of leadership style on employees efficiency in Govanni Marbles and Granities Ltd in Nigeria

To examine the impact of autocratic leadership style on small and medium enterprises in Nigeria.

To examine the relationship between the managers’ leadership style and employees commitment in small and medium enterprises in Nigeria.

1.4 Research Questions

Does the leadership style has any significant effect on employees morale in enterprises in Govanni Marbles and Granities Ltd in Nigeria?

Does the leadership style has any significant effect on employees efficiency in Govanni Marbles and Granities Ltd in Nigeria?

What is the impact of autocratic leadership style on Govanni Marbles and Granities Ltd in Nigeria?

Is there any significant relationship between the managers’ leadership style and employees commitment in Govanni Marbles and Granities Ltd in Nigeria?

1.5 Research Hypotheses

Ho: There is no significant relationship between leadership style and organizational performance.

Ha: There is a significant relationship between leadership style and organizational performance.

1.6 Significance of the Study

As such, the completion of this study will provide understanding of the concept present so as 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.

1.7 Scope of the Study

This study covered the effects of leadership style on management of an organization. The study will further discuss the effect of leadership style on employees morale in Govanni Marbles and Granities Ltd in Nigeria, the effect of leadership style on employees efficiency in Govanni Marbles and Granities Ltd in Nigeria, the impact of autocratic leadership style on small and medium enterprises in Nigeria and the relationship between the managers’ leadership style and employees commitment in small and medium enterprises in Nigeria. The respondents for this study will be obtained from employees of Govanni Marbles and Granities Ltd in Asaba, Delta State.

1.8 Limitations of Study

Financial Constraint

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection through the internet, questionnaire and interview.

Time Constraint

The researcher simultaneously engaged in this study with other academic work. This consequently cut down on the time devoted for the research work.

1.9 Definition of Terms

Employee:

This is a person who paid to work under the supervision of a manager or an employer.

Motivation:

Motivation involves all the activities which give rise to the behaviour aimed at satisfying one or another kind of want.

Leadership:

This is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent.

Leadership Style:

This is the manner and approach of providing direction, implementing plan and motivating people

Productivity:

This is the rate at which a company produces goods and the amount produced compared with how much time and the amount which was used for the production.

1.10 Organization of the Studies

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.