Impact Of Leadership And Organizational Behaviour On Employees Productivity
(A Case Study Of Diamon Bank Plc, Enugu Branch)
Leadership and organizational behavior significantly influence employee productivity within a company. Effective leadership fosters a culture of motivation, clear communication, and trust, which in turn enhances employee morale and commitment to their work. When leaders exhibit traits such as empathy, decisiveness, and vision, they inspire employees to perform at their best. Additionally, organizational behavior plays a crucial role by shaping the work environment, including factors like team dynamics, organizational structure, and job satisfaction. By promoting teamwork, providing opportunities for skill development, and creating a supportive atmosphere, organizational behavior contributes to higher levels of productivity among employees. Furthermore, strategies such as performance feedback, recognition programs, and work-life balance initiatives can further boost productivity by addressing employee needs and fostering a sense of belonging within the organization. In essence, effective leadership and positive organizational behavior create an environment where employees feel valued, empowered, and motivated to contribute their best efforts, ultimately driving productivity and success.
In modern society, economic prosperity and progress depend largely on the
quality of leadership. This is true of nation states as it is of individuals or
generate among policy makers, corporate executives and investors are largely
justified. Leadership is very essential in an organization because achievements
and results occur corollary to the traits being projected by the leader. The
major aim of every organization is to grow. The relationship between the
management and employees has a great impact to that effect. Employees will be
expecting to earn higher so as to sustain their living while the management will
be expecting employee to work had so as to see that the objectives of the
organization is realized. Organizational behaviour is more or less a pure
psychology attached to the institutional companies and applicable to achieve
organisational goals. It constitutes the activities of an organisation that can be
observed by another organisation or by experimental instruments. The research
work will focus on the leadership and effects of leadership style, appraisal and
organisational behaviour of management and employees. The work is made up
of five chapters. In the first chapter we will discuss about the general ideas of
leadership, organisational behaviour and its effects on management and
employee. In the second chapter we shall look into the literature review, we
shall look into various authors who have researched on the leadership styles,
appraisal and organisational behaviour of management and employees. In
chapter three, we will present research methodology while chapter four will be
presentation of data analysis. We shall also interpret the data and test the
hypothesis and finally, chapter five will be summaries, findings and
recommendation.
Title page
Certification
Dedication
Acknowledgement
Abstract
Table of content
Chapter One
Introduction
1.1 General ideal leadership 1
1.2 Brief history of diamond bank plc 6
1.3 Statement of problem and sub problem 8
1.4 Research problem oriented hypothesis 9
1.5 Objective of the study 10
1.6 Significance of the study 11
1.7 Limitations of the study 12
Chapter Two
Literature Review
2.1 Theoretical frame work of the study 14
2.2 Historical background 25
2.3 Current literature on theories postulated above42
Chapter Three:
Research Methodology
3.1 Nature and design of the study 50
3.2 Sources of data 50
3.3 Population of the study 51
3.4 Determination of the sample size 51
3.5 Technique for collection of data53
3.6 Method of data analysis 54
Chapter Four:
Presentation of Data
4.1 Presentation of data and analysis of data 56
4.2 Interview result 72
4.3 Test of hypothesis 74
4.4 Interpretation of hypothesis81
Chapter Five:
Summary of Findings, Conclusions and Recommendations
5.1 Findings 82
5.2 Summary 86
5.3 Recommendation 87
Bibliography 86
Appendix 88
INTRODUCTION
GENERAL IDEA OF LEADERSHIP
Leadership is a process in which a leader attempts to influence his or her
followers to establish and accomplish a goal or goals.
LEADERSHIP
The capacity to lead others: command, lead.
An act or instance of guiding: direction, guidance, lead, management. See
affect/ineffectiveness.
Leadership is the process through which an individual tries to influence another
individual or a group of individuals to accomplish a goal. Leadership is valued
in our culture, especially when it helps to achieve goals that are beneficial to the
population, such as the enactment of effective preventive health policies. An
individual with leadership qualities can also improve an organization and the
individuals in it, whether it be a teacher who works to get better teaching
materials and after school programs or an employee who develops new ideas
and products and influences others to invest in them.
Leadership can be exhibited in a variety of ways and circumstances. Mothers
and fathers show leadership in raising their children with good values and
organization that has growth and forward looking has a good leadership and vis
a vis a bad or deteriorating organization has a bad leadership.
Leadership is always related to the situation. There is a growing awareness that
is a continuous interaction between the factors presents in any given situation,
including for example, the personal characteristics of the leader, the tasks, the
environment, the technology, the attitudes, motivation and behaviour of the
followers and so on.
1.2 BRIEF HISTORY OF SIAMOND BANK PLC
Diamond Bank Plc began as a private limited liability company on March 21,
1991 (the company was incorporated on December 20, 1990). Ten years later,
in February 2001, it became a universal bank. In January 2005, following a
highly successful Private Placement share offer which substantially raised the
Bank’s equity base, Diamond Bank became a public limited company. In May
2005, the Bank was listed on The Nigerian Stock Exchange. Moreover, in
January 2008, Diamond Bank’s Global Depositary Receipts (GDR) was listed
on the Professional Securities Market of the London Stock Exchange. The first
bank in Africa to record that feat.
Today, Diamond Bank is one of the leading banks in Nigeria respected for its
excellent service delivery, driven by innovation and operating on the most
advanced banking technology platform in the market. Diamond Bank has over
the years leveraged on its underlying resilience to grow its asset base and to
successfully retain its key business relationships. And like a diamond, our
strength makes us even more valued and valuable. Diamond Bank has won
several awards including the prestigious “Most Improved Bank of the Year”-
Thisday Newspapers, “Best Bank in Mergers & Acquisition”.
We have retained excellent banking relationships with a number of well-known
international banks, allowing us to provide a bouquet of world class banking
services to suit the business needs of our clients. These international banking
partners include Citibank; HSBC Bank; ANZ Banking Group; ING BHF Bank
AG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank;
Commerzbank; and Nordea Bank Plc.
In 2008, and to ensure we grow with the needs of our customers, we streamlined
our operations into three distinct strategic business segments: Retail banking,
Corporate Banking, and Public sector.
Diamond Bank continues to develop and to build on its core competencies. By
continually cutting from the rough, we have improved our services and our
banking facilities. Like cutting from a rough gem to create a diamond of the
finest quality, we are proud to have become a gem of a bank.
1.3 STATEMENT OF THE PROBLEM AND SUB PROBLEM
The design of the investigation is to elicit the effect of the different leadership
styles in finance oriented and services oriented organization in order to
determine its distinct impact on the organizational behaviour of management
and employees in the case organization.
SUB PROBLEM I: The purpose of the study is to evaluate the factors of
leadership (the traits: intelligence, initiative, imagination, communication, the
skills, analytical, diagnostic, conceptual, the status, recognition and the
situation) culture in the case organisation with the view to calculate their
contribution in attaining organisational objective. (Contribution to efficiency
and growth in profit).
SUB PROBLEM II: The object on the inquiry is to ascertain the most
favourable leadership style amongst autocratic, democratic, paternalistic, and
laissez faire, used in the case organisation to determine its influence on
management and employees.
SUB PROBLEM III: The intention of the investigation is to compare the
relationship (positive or negative) between leadership and organisational
behaviour in the finance and service oriented organisation to identify the effect
on work performance.
SUB PROBLEM IV: The purpose of the study is to correlate the leadership
style to organisational behaviour of management and employees in DIAMOND
BANK to decide the trend and influence of leadership style on the
organisational behaviour of management and employees.
1.4 RESEARCH PROBLEM ORIENTED HYPOTHESIS
In aiming to go on with the stated problem of study, the following research
problem oriented hypotheses are revealed.
HYPOTHSIS I: Leadership style that display intelligence, initiative and
communication traits, analytical, diagnostic and conceptual skills, recognition
and situation, contributes certainly to attaining organisational efficiency and
growth in point.
HYPOTHESIS II: The leadership style that has no monopoly of authority
improves interpersonal relationship that employee oriented determines positive
reaction in form of contribution to decision making, punctuality and work to
achieve company goals.
HYPOTHSIS III: Positive relationship between leadership and organisational
behaviour in the case of organisation will increase the work performance.
HYPOTHESIS IV: Positive correlation between the leadership style and
organisational behaviour in and DIAMOND BANK will lead to increase
performance to achieve organisational objectives and goals.
1.5 OBJECTIVE OF THE STUDY
Research is basically aimed at determining ones view of related studies at every
time.
In the course of studying the aforementioned subject on the leadership style: one
will be able to determine those areas where the different types of leadership
styles have contributed immensely to organisation goals.
For the purpose of this study, the behaviour of the management and employees
can be viewed as endogenous as well as exogenous. The researcher will
therefore proceed to express and state those objectives which the study is
expected to accomplish. They are as follows:
a. The value of the different factor of leadership (the leaders traits, skills
and subordinates reaction, status, recognition and the prevailing situation)
in finance oriented as well as service oriented organisation.
b. To critically evaluate the nature of leadership in affecting work
performance
c. To determine the effect of leadership style and their basic relationship
with organisational behaviour
d. To highlight the adoption of any best leadership style that will suit the
organisation for effective productivity
e. To inquire the extent leadership has been affecting decision making and
organisational effectiveness
f. To appraise any possible relationship and comparison on the effect of
leadership styles on organisational behaviour
Furthermore, the research will assist future researchers in finding possible
solutions to the best leadership style after monitoring organisational behaviour
found in management and employees in different organisation.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study is basically a definite scope which will help elicit
all the problems and effect of different leadership styles. Also, it will assist in
highlighting how management and employees react under stereotyped
condition.
In addition, all the aforementioned and determined effects, problems and
solutions will be critically viewed to serve as possible recommendations to
today‘s manager who may be willing to employ a particular leadership style. It
will forestall a better situation for the leader to select best type of leadership
system.
1.7 LIMITATIONS OF THE STUDY
In pursing this investigation and study, lots of impediments and obstruction
were encountered as the research progressed. All these impediments brought
about a conspicuous clause with the research work. They include, lack of
relevant data due to poor respondent, time constraint and financial conditions.
Lack of relevant data: The design of the study was negatively affected by the
nature of respondent, which was projected by the workers within the case
organisation. The non challant attitude of most employees approached, sample
of the studying population was discouraging relevant information needed for
the research was not made available easily to the researcher while the available
information were censored before being allowed to be used.
A. TIME CONSTRAINT: Time was also limited to the researcher in
carrying out the study effectively and efficiently. Time constraint was
experienced under dual stages. One was with the sample under population
study. They either schedule appointment that they cannot meet up with or
complain of limited time within their work though they are willing to
respond.
In addition, the other was with the researcher. The research is being
carried out within limited semester time table, which include the
understudy of other aspect of the course being read. This created a
situation of not rescheduling meetings for more comprehensive
interviews as may have been required.
B. FINANCIAL CONDITION: Financial condition prevailing within the
economic system was a serious impediment. This includes transportation
fare to and from school to the case organisations. Also that of extracting
the essential information either through printing or photocopying of
relevant materials. Finance, thus contributed immensely to limit the entire
scope of the research.
Although all these obstructions were envisaged and experienced, efforts
were made to carry on with the research to achieve the expected and
desired result
Leadership and organizational behavior have a significant impact on employee productivity. Effective leadership and a positive organizational culture can enhance productivity, while poor leadership and dysfunctional organizational behavior can hinder it. Here are some key ways in which leadership and organizational behavior influence employee productivity:
- Motivation and Engagement: Effective leaders inspire and motivate employees to perform at their best. They create a sense of purpose and provide clear goals. When employees are engaged and motivated, they are more likely to put in the effort required to be productive.
- Communication: Open and transparent communication is crucial for productivity. Leaders who communicate effectively can ensure that employees understand their roles, tasks, and expectations. Miscommunication or lack of communication can lead to confusion and decreased productivity.
- Conflict Resolution: Organizational behavior affects how conflicts are handled. A healthy organizational culture encourages the resolution of conflicts in a constructive manner, while a toxic culture can lead to prolonged disputes that distract from work.
- Decision-Making: Leadership plays a key role in decision-making. Effective leaders involve employees in the decision-making process when appropriate, which can lead to better decisions and increased buy-in from employees. Poor leadership can result in arbitrary decisions that may not align with employees’ interests.
- Workplace Culture: The organizational culture sets the tone for how employees behave and interact with one another. A positive culture that values teamwork, collaboration, and employee well-being tends to foster higher productivity. Conversely, a toxic culture characterized by mistrust, favoritism, or unethical behavior can lead to decreased productivity and higher turnover.
- Performance Feedback: Effective leaders provide constructive feedback to employees, helping them identify areas for improvement and development. This feedback loop is essential for continuous improvement and increased productivity.
- Empowerment: Empowering employees to make decisions within their roles can boost productivity. When employees have a sense of ownership and control over their work, they are more likely to take initiative and find innovative solutions to problems.
- Training and Development: Organizational behavior influences whether the company invests in employee training and development. A culture that values learning and skill enhancement can lead to a more skilled and productive workforce.
- Recognition and Rewards: Leaders can reinforce desired behaviors and productivity through recognition and rewards. Employees who feel appreciated are often more motivated to maintain or improve their performance.
- Stress and Burnout: Poor leadership or an unhealthy organizational culture can lead to increased stress and burnout among employees, which can negatively impact productivity. Leaders who promote work-life balance and provide resources for stress management can help mitigate this.
- Innovation and Creativity: Effective leadership can encourage a culture of innovation and creativity, leading to the development of new processes, products, or services that can enhance productivity in the long term.
In summary, leadership and organizational behavior have a profound impact on employee productivity. Effective leadership and a positive organizational culture can foster motivation, engagement, and a sense of purpose among employees, leading to increased productivity. On the other hand, poor leadership and negative organizational behavior can result in reduced morale, increased turnover, and decreased productivity. Therefore, organizations that prioritize and invest in leadership development and a healthy organizational culture are more likely to see positive effects on employee productivity.