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Full Project – THE IMPACT OF EFFECTIVE LEADERSHIP IN AN ORGANIZATION

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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Leadership is necessary to shape goals, coordinate efforts, motivate employees, and monitor performance. Leadership consists of the efforts of one member of an organization with respect to other members with the intent of helping people and organizational units achieve their goals (Yukl, L992). Leaders guide firms and their people into the future. They are the ones who must find new paths to change organizations and should be the most persistent in pursuing the chosen direction. One of the most difficult things about studying leadership is that it is frequently conflated with management,

Leadership, more specifically effective leadership, is every bit as crucial in Nigeria organizations as it is throughout the world. Nigerian organizations are no different from others worldwide in terms of striving for performance in order to be globally competitive. The Nigeria situation, however, is incredibly complex as many organizations are caught in the middle of a web of authoritarian hierarchies and traditional leadership approaches, as well as bureaucratic hierarchies mixed with modern approaches to leadership (Grobler, 2002).

Managers at all the levels have to input their efforts and make maximum use of their abilities which sometimes are produced under supervision or without it. However, there are many expectations from managers working for an organization. These expectations are sometimes fulfilled but in some situations these managers may be running to their boss for guidance. Therefore, the managers must be developed so that they can think and work on their own and fulfill their responsibilities innovatively, while understanding and foreseeing the fulfill their responsibilities innovatively, while understanding and foreseeing the market and business situations. consequently, question arises that how an employee can work more efficiently and effectively to increase the productivity and growth of an organization’ to help identify

An effective leadership program can be of an immense assistance to help build leadership qualities among individuals within the organization. The relationship between readership and performance was indirect as well as direct (Gadot, 2007), which proves the importance of developing leaders through leadership development programs’

Latest studies provide that organizations heavily invest in Human Resource

Development interventions to update and skill the employees in order to attain job performance, job satisfaction and job involvement. These skills can be impacted by providing necessary technical/non-technical training and coaching (Rowold, 2008). Currently, readership is widely recognized and verified through research. Leadership development can be imparted through experiential learning’ vicarious learning and transformational learning and it is imparted as leaders can influence the people and motivate them (Popper, 2005).

Leadership development is becoming an increasingly critical and strategic imperative for organizations in the current business environment (Sheri-Lynne -Parbudyal, 2007). Leadership development is an important-area which is considered and implemented in organizations to increase human capability and some other benefits like to gain competitive advantage. Some developmental assignments can be carried out concurrently with regular iob responsibilities, whereas others require taking a temporary leave from one’s regular job (Yukl, 2011). At current jobs, some may be used to develop new projects or begin new projects serving as department representative on a cross functional teams.

Training sessions play an important role to improve the performance of organizational managers regarding communication skills, listening skills, motivate others, support others, and share information (Klagge, L997).

A leadership development program is aimed to improve the skills of employees’ performance at all levels whether operational, tactical, strategic and personal as well. Performance is a vital feature of an organization; furthermore, development programs can be helpful in identifying and managing teams, where group development and specifically personal development and growth of managers also take place.

The most important aspect nowadays is that how a manger can adopt the leadership attributes and effectively use them to perform his job responsibilities assigned, these attributes can help him work further than the job responsibilities and add more achievement to the organization. Leadership development process intends to develop leaders and also includes transfer of organizational culture and values ultimately resulting into collective sharing among all the members of the organization to achieve the organizational objectives (Hamilton and Cynthia, 2005).

Leadership requirement in today’s organizations in Nigeria perspective is very important to meet the global business challenges. On the other hand, leadership development is also a major consideration and challenge across the globe and has a major influence on employee’s performance.

There is a range amount of work done on leadership development and its impact on various factors including employee performance in many parts of the world, however, there is very limited research conducted in Nigeria. consequently this important area of organization and employee development remains unexplored at large.

However, it is important to recognize the leadership development and means to develop, and its impact on the organization and its employees in Nigeria business environment. Therefore, keeping in view, the importance of leadership development and its acknowledgment and benefits drawn in all parts of the world, this research is aimed at studying leadership development value and benefits on business sector, in particular employee performance in Nigeria. Apart from this, leadership development can also be helpful in implementing change efforts.

There can be many methodologies to implement this program through training, workshops, seminars etc. Nowadays in Nigeria there is an emerging trend of corporate training conducted by the organization to develop the human capital and personal development of managers. This trend is also recognized by various government institutions as well.

The overall objective of the research is to study the leadership development and its impact on employee performance. The study is carried out in Nigeria organization which adopts format methods in developing their employees.

1.2 Statement of the Problem

A key challenge for leaders is the barriers that exist between employees due of organizational structures, physical separation, and cultural differences. Companies claim to offer comprehensive customer solutions with better-aligned sales organizations. But in many firms, in order to manage each part, the Human Resource department is only responsible for its employees while the Marketing and Sales departments are responsible for customers and channel partners (Fleming et al. 2005).

Some of the setbacks in leadership influence on employee performance are stated below:

In the first place, some leaders do not appreciate the fact that employees have to be motivated to ensure they do what they have to do so that the goals and objectives of the organization are achieved. Because of the prevailing situation in Nigeria where supply of labour is greater than its demand, some employers do not believe much in effective motivation of workers to produce high performance. They uphold the view that even if workers are not properly motivated they cannot leave the job since there is no job in the labour market.

Secondly, most employers are not effective in their leadership behaviour. They treat workers as machines believing that workers could be treated anyhow.

And again, leaders do not also manage their time effectively with their workers to enhance effective job performance from the workers. In response to this, workers do not handle their work properly e.g there is high labour turn over absenteeism, lackluster attitude, low performance etc. There is no proper planning and they would not prioritize their task accordingly. They perform their task in a lackadaisical way, the effect of which is ineffectiveness, which if left unchecked can damage socio economic life of the nation.

Furthermore, lack of training has been associated with poor performance of both employees and Leaders with regards to such intrinsic factors like welfare, and cumbersome techniques of management technique, since employees that are not trained, or up-dated faces the risk of stress, being burnt-out or been lackadaisical in their job.

1.3 AIMS AND OBJECTIVES OF THE STUDY

The purpose of the study is to examine Impact of effective leadership in an organization. However, the following are the aims and objectives of the study:

To find out the effect of leadership on the overall of performance of employees’ in an organization.
To evaluate the relationship that exists between the leaders and their subordinates.

iii. To measure the performance assessment process of an organization..

To examine the influence of effective leadership on organization turnover.

1.4 Research Questions

Based on the purpose of the study, the following questions are raised to provide a guide and solution to the research problems:

How does leadership affect the overall performance of employees’ in an organization?
Does any relationship exist between leaders and their subordinates?

iii. How can performance assessment process be measured in an organization?

Does effective leadership have influence on organizational turnover?

1.5 Research Hypotheses

In carrying out this research work these theoretical statements are made to serve as a direction on which the work will be premised.

H_o: Leadership does not influence employees’ performance in an organization.

H₁: Leadership does influence employees’ performance in an organization.

H_o: There is no relationship between effective leadership and organizational turnover.

H₁: There is relationship between effective leadership and organizational turnover

1.6 Significance of the Study

The outcome of the study would aid leadership in formulating feasible policies that would be in the best interest of the organization.

At the corporate level, it is expected that the study would become an eye-opener and immensely add to the knowledge of leaders. The assessing of employees performance does not only enhances the methodology or efficiency of the organization, but also project the organization in a good shape before the within corporate circle.

The finding of this study would also help to identify the problems within the staff training policy and help to curb that generates neurosis that lighten tension for an effective performance between Leadership and employees.

And again the study would enlighten students about the relationship that co-exist between leaders and employees in an organization which will prepare them for a better work environment.

1.7 Scope and Limitation of the Study

This research work would explore the impact of effective leadership in an organization.

The study examines “The Impact of effective leadership in an organization” with a view to explore First Bank of Nigeria Plc, Surulere, Lagos. The study is limited to the assessment of leadership and employee performance; improvement after training and the relationship that co-exist between the two parties (leadership and employee).

The study, however faced some logistic problem in terms of the time and the

cost involve in carrying it out, but nevertheless, it strive to justify its purpose and relevance by contributing to knowledge and helping to further stimulate the relationship between the leaders and the employees in an organization.

1.8 Definition of Terms

The following terms are referred to the understated definition throughout the study.

Organizational performance: Organizational performance comprises the actual output or results of an organization as measured against its intended outputs. According to Richard et al. organizational performance encompasses three specific areas of firm outcomes: financial performance; product market performance; and shareholder return.

Employee: An employee contributes labor and expertise to an endeavor of an employer and is usually hired to perform specific duties which are packaged into a job.

Employment: it is a contract between two parties, one being the employer and the other being the employee.

Leadership: It’s the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task’

Management: over the years the philosophical terminology of “management” and “leadership” have, in the organizational context, been used both as organizations: An organization that is established as an instrument or means for achieving defined objectives has been referred to as a formal organization.

Performance: Job performance generally refers to behavior that is expected to contribute to organizational success.

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