Full Project – A critical evaluation of leadership style and organization performance in the private sector

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CHAPTER ONE

1.0  INTRODUCTION

1.1  BACKGROUND OF THE STUDY

       Early in human existence, people learned that their divisional efforts often tell short of success, they found that they were unable to accomplish many tasks that require more than individual effort.  Therefore the necessity for group activity was discovered relatively early in human existence.  Group activities require cooperation, else members, can find themselves working across purpose and therefore losing the benefits of association.  In other to attain this cooperation and to achieve desire complex goals, some system of relationship has to be established among the group members.

Organization can be thought of as social systems of cooperation that are designed to enhance individual.  It could also be seen as a goal seeking unit which in order to survive must accomplish certain desire task.  Many simply define an organization as an arrangement in which two or more people work together cooperatively to achieve defined goals.  This leadership becomes an essential factor accomplishing these tasks.  Leadership may be viewed as the ability to influence subordinate to go and carryout designated organizational function willingly and enthusiastically.  Simply put, leadership is getting people to do what he (the leader) wants them to do.  In doing so, the leader would have successes in bringing the subordinate perception in line with his own goal and thus organizational objectives may have been accomplished.

Leading is acquired only through years of practice applying the necessary principle of management in getting along with people who perform the task in the organization, understanding them and appreciating why they behave in a particular manner.

Hicks and Gullet (1982:2000), observed that leadership is not incessantly inter-changeable with managing because leadership only is the ability to influence others.

The phenomenon of goal various between subordinates and the organization has a direct effect on organizational performance for example, the management of an industrial set up especially private sector may be concerned with production revenue, cost, quality and profitability, whereas employees of his establishment are mainly concerned with salaries and wages, good working condition, opportunity for advancement, these variances possesses increased leadership challenges to the manager which requires the ability to integrate  these opposing interest.

This Hicks and Gullet (1982:2001), further observed that without leadership organization is a muddle of man and machine.  It is the human factor which binds a group together and motivates it towards achievement.  It is the ultimate act which brings to success, potential that is in an organization and its people.  By observing and recording leadership behavior both in natural and a borating setting, social scientist came to perceive certain inequality consult their group when making decision others do not.  Some spend time dealing with workers personal problems, which others spend, much time organizing work.  The method of style of leadership, a manager chooses the use of getting influences his effectiveness as a leader.  The correct of a leadership style coupled with appropriate extend motivation can lead to the achievement of both individual and organizational goals.

Some prevalent leadership styles are: autocratic, participative or democratic and lassies faire leadership style.  A leader is autocratic if he is right and centralizes decision.  He is participative if he is in the habit of asking or group opinion or suggestion.  He is lassies faire when he takes little or no action to influence the group.  Most managers use all these style at one time or another depending on the circumstance.

1.2  STATEMENT OF THE PROBLEM

Many scholars in the field of management have shown simple concern organizational performance.  High productivity on the part of the worker could be said to be directly proportionate to the effectiveness of the leadership style and employee morals.  The problems identified are:

1. None payment of overtime
2. Delaying in payment of salaries
3. Production oriented managers and poor motivational tools. These are common problems that affect to a large degree, the poor performance of most privates sector business.  This Ejiofor (1981) states that the highest level of aspiration of many workers remain within the range of satisfying the lower level needs which more often than not is economic.

1.3  OBJECTIVES OF THE STUDY

The objective of this study is to:

1. Identify the leadership style that will enhance organizational performance in the private sector business.
2. Determine the relationship between leadership style and organization performance.

1.4  RESEARCH QUESTION

Managers, administrators and other leaders of organizations are interested in getting their workers apply effort directly to achieve desire goals of the organization.  However, experience and empirical studies have proved that people vary extensively in how hard they works and consequently in their performance or output.

In view of this, the researcher will attempt to address the following central issue under investigation:

1. Do leadership styles has anything to do with efficient running of the organization?
2. Does motivation really affect the output of workers in the organization?
3. What factors influences managers in adopting a leadership style?
4. Does a good mix of leadership guarantee better organizational performance?
5. How does the entire organization behavior affect leadership?
6. Does good leadership style bread good industrial relations?
7. What is the relationship between leadership style and organizational performance?

1.5  SIGNIFICANCE OF THE STUDY

       In view of the fact that the adoptions of a particular numerous factors are attempted to make sound suggestion, it is hoped of all research that the findings and recommendation of this study will be of great importance to many interested person.  These will include:

1. Indicating how best to motivate the employees of various institutions to ensure better organizational performance.
2. To expose managers to the benefits of good leadership.
3. Enlighten the ordinary entrepreneur on how best to handle employee relationship to achieve organizational goals.
4. Suggest the best leadership style available for effective running of the organization in the private sector.
5. This work will also be of immense help to managers, supervisors, private and public organizations and researchers.

1.6  SCOPE OF THE STUDY

This study is concerned with leadership style in private industries in Abia State and their organizational performance.  It analyzes various leadership, influence managers to adopt a particular leadership style. Those things that motivate the workers in accepting and putting in their best on the job and its general effect on organizational performance.

1.7  LIMITATIONS OF THE STUDY

The following limitations were encountered in the course of this study.

• Time: This was a major constraint due to the fact that time given for this project work was not enough compared to the volume of academic work the researcher is doing.
• Finance: This was another major constraints as there was not enough money for transportation, buying and printing of materials, browsing on the internet to get this work done.
• Accessibility of Data: To assess data needed from organizations was not an essay one as most organizations where not open to me.
• Work Load: The academic work load was not left out as a major limiting factor as the workload left me no opportunity to do the research work.

1.8  DEFINITION OF TERMS

In the course of these projects, some key words and phrase which were relevant to the study were used.   They include:

• Productivity: This is the ration between output and all resource (input) used in production.
• Output: This refers to all the resources used in the production utilization of the inputs.
• Input: This refers to all products realized out of the utilization of the input.
• Efficiency: It is the measurement of the way an organization is currently used in resources at its disposal.

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Full Project – A critical evaluation of leadership style and organization performance in the private sector