EFFECT OF LEADERSHIP STYLES ON WORKERS PERFORMANCE IN THE BANKING INDUSTRY (A CASE STUDY OF WEMA BANK PLC)
1.1 Background of the Study
Effective leadership is one of the fundamentals that is regarded for organizational success. A capable leader provides direction for the organization and lead followers towards achieving desired goals. In similar vein, employees are likely to exert more effort in their assigned tasks and pursue of Organizational interests. According to Ogbonnia Ken, “effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational goals”. According to Oyedijo Ade, the internal and external environments of an organization are as follows:
Internal environment is within the organization itself such as its strength and weakness, resources, core competencies and its structure and processes while the external environment is outside its organization such as the opportunities and threats of its environment, industry environment, competitive environment and the macro environment that comprises of the Political, Economical, Socio-Cultural, Technological, Global and Demographic environment. According to PYE management, a leader’s typical way of behaving toward group members can be classified “leadership style”. Is the leader autocratic, participative or laissez-faire while Wikipedia added two more styles which are the narcissistic and toxic managers? Managers often use more than one of the three notable one’s depending upon the issue involved and the circumstances surrounding it. According to O.J.K Ogundele and O.T Olajide, In 2004, the government realized that for proper economic development to take place in the financial sector the financial institutions existing then need to have a strong capital base, and as such policy was put in place that they increased the capital base of prospective banks in the country to ₦25billion. This resulted in many banks merging together while some big ones are acquiring small ones. This reduced the total number of banks in Nigeria from 89 in 1998 to 25 by 2005 December and 23 by the end of 2006. Through these processes WEMA BANK did not lose its identity in the industry and based on the above scenario would it be right to submit that the leadership of the bank should take full credit for the success recorded by the bank or on the other hand, to what extent should credit be given to the leadership of the bank regarding its success.
1.2 Statement of the Problem
Since previous studies identified that leaders influence attitudes of followers, then it is possible that the workers performance is influenced by the leadership style applied by the leader. However, this statement may be too general as to be considered valid because there are no statistics to back it up, and also various styles of leadership exist, one would not know which one to recommend and which to reject. Again, can the prescribed style of leadership remain valid for improved workers performance in the banking industry? And also for every situation faced by an organization, what is the adequate leadership style that will be use to bring about greater performance from the workers or what combination of leadership styles will be more effective or efficient for greater performance in the industry.
1.3 Objective of the Study
To identify the different leadership styles and their relationship with employee productivity
To determine the relationship between leadership styles and employee motivation
To ascertain the effects of leadership styles on employee morale
To determine the relationship between employee productivity and placement
To examine the significance of leadership styles on organization survival
1.4 Significance of the Study
This research work is aimed at improving employee productivity through the various leadership styles. It is also aimed at highlighting the relationship between leadership styles and employee motivation, the significance of leadership styles on organization survival. It will also serve as reference document to students, government, other researchers and scholars, leaders, employee by contributing towards the advancement of knowledge in management and other field. It is also a requirement in partial fulfillment for the award of Higher National Diploma in Purchasing and Supply of Kaduna Polytechnic.
1.5 Research Questions
What are the different leadership style and their relationship with employee productivity
What are the relationship between leadership styles and employee motivation
What are the effects of leadership styles on employee morale
What are the relationship between employee productivity and placement
What are the significance of leadership styles on organization survival
1.7 SIGNIFICANCE OF THE STUDY
Managers in the banking industry will benefit from the study because it will show the leadership style applicable in the banking industry that will improve workers performance to bring about great results. Also it will help the bank in question to know the appropriate leadership style that will be applicable to bring about improvement in workers performance to yield the desired result. It will help organizations to know which of the leadership styles is applicable for every situation in an organization due to the dynamism of the business environment.
1.6 SOURCES OF DATA