EMPLOYEE PRODUCTIVITY IN PRIVATE ORGANISATIONS IN NIGERIA: THE IMPACT OF LAISSEZ-FAIRE LEADERSHIP STYLE
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CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Leadership is a concept that has grown through productive connections between companies and society as a whole. Leadership is described as the process through which a person motivates a group of people to achieve a shared goal, or as the key to gaining the respect of others (Northouse, 2004). It is often associated with the use of a leading strategy to give motivational motivation and optimize the growth and development potential of workers. Effective leadership is recognized as a vital source of management development and a sustainable competitive advantage for enhancing organizational performance (Rowe, 2001). Leadership is the heart and soul of organizational management. The significance of a manager identifying his or her unique leadership style is emphasized by the fact that (Glantz, 2002).
There is emerging evidence that, in today’s dynamic global workplace, businesses are becoming more aware of the impact leadership styles have on employee well-being and organizational results. Leadership is an essential factor that has a substantial effect on the overall health of organizations and countries (Odumeru and Ifeanyi, 2013). The encouragement of employees to give ideas and innovations by their leaders results in a fulfilling and rewarding work environment (Khaliq, 2001). Effective leadership behavior, according to Buelens, Broeck, Vanderheyden, Kreitner, and Kinicki (2006), is founded on both the manager’s willingness to assist subordinates and the subordinates’ need for assistance. Building a healthy connection between a leader and his or her followers requires the leader to recognize the personal values of those who are willing to offer their time and abilities to accomplish shared objectives. Leadership is essential to organizational performance because effective companies need motivated employees.
An organization’s leadership style is one of the factors that determines whether or not workers are interested in and dedicated to the company (Timothy et al., 2011). According to Belonio (2010), leadership styles may either inspire or discourage employees, resulting in an increase or decrease in employee performance. Among other things, leadership style affects the effectiveness of resource mobilization, allocation, use, and advancement of organizational performance (Timothy et al., 2011). A lack of appropriate leadership style and motivation are two factors that have a negative effect on organizational performance in Nigeria.
Clearly, the organization’s direct induced determines the organization’s ability to fulfill its objectives. Leaders are the individuals necessary to be recruited by an organization in order to achieve its objectives, and organizations exist to deliver services to society for the benefit of humanity. He must be communicative in order to coordinate the operations of the people and the organization. In actuality, leaders ensure that the activities of subordinates are directed toward attaining the organization’s objective. This can only be done by providing the subordinate with an atmosphere conducive to meeting their demands. A competent leader can inspire and motivate subordinates to perform better.
According to Chiang and Wang (2012) and Clark, Hartline, and Jones, leaders have created a variety of ways for leading people in the workplace (2009). It is essential to remember that diverse leadership styles are suited to different circumstances, individuals, cultures, occupations, and organizational goals. In private enterprises, transformational, transactional, laissez-faire, and authoritarian leadership styles have all been used. None of these leadership styles are erroneous or unsuitable for a leader to deploy, but their application is dependent on the leader’s surroundings, which may effect staff productivity and organizational performance.
1.2 Statement of the problem
Different leadership styles may have an impact on the work performance, attitudes, and actions of employees toward the firm. According to Mullins (2005), a manager’s leadership style is defined by the manner in which he or she interacts with workers. The leadership style has a significant impact on employee attitudes and behaviors as well as organizational performance. High labor turnover, frequent complaints, strikes, and a reduction in job performance are typical indicators of employee discontent with a company’s leadership style (Khan et al. 2010). In support of this, Timothy, C., Andy, T., Victoria, O., and Idowu, A.(2011) opined that inefficiency, poor achievement of results, shoddy handling of activities and programs, poor rendering of services, abuse of office, lack of initiative and maintenance culture, delays, corruption, unsatisfactoriness, irregularities, poor quality of work output, poor commitment, low morale, truancy, tardiness, lateness to duty, idleness, laxity
Although numerous studies have been undertaken to explain the principles and effects of leadership styles, especially transactional and transformational leadership styles, few have focused on laissez-faire leadership styles. This is because laissez-faire leaders have a reliance and faith in their employees. They do not micromanage, get excessively involved, or offer excessive guidance or instruction. They give guidance and accept responsibility when required, but their style of leadership enables subordinates and team members to take the initiative (Frischer, J. 2006). Therefore, more study into the effect of laissez-faire leadership style on staff productivity in Nigerian private enterprises would benefit in acquiring a deeper understanding and enhancing the validity of the results. On the basis of this hypothesis, the researcher investigated the effect of a laissez-faire leadership style on staff performance.
1.3 Objective of the study
This research aims to investigate the influence of laissez-faire leadership on employee productivity in Nigerian private firms. Specifically, the research aimed to:
Examine the advantages of selecting a certain leadership style inside Organization.
Determine whether the laissez-faire style of leadership affects employee productivity.
Determine the effect of laissez-faire leadership on the economic development and performance of the company.
1.4 Research hypothesis
There are no perceived benefits to adopting a leadership style in a business (Ho1:).
In private firms, a laissez-faire leadership style has little effect on staff productivity.
1.5 Significance of the study
Organizations and academics would find the research to be of both practical and empirical value. In practice, the business’s management board may utilize the study’s findings and recommendations to enhance the leadership characteristics of its organization in order to increase subordinate performance. Other organizations not included in this research may also learn valuable lessons from the study’s results and recommendations for enhancing leader-subordinate relationships. The empirical results of the study will contribute to the current body of literature and act as a resource for students and academics who intend to do more research in the linked topic.
1.6 Scope of the study
This research aims to investigate the influence of laissez-faire leadership on employee productivity in Nigerian private firms. The research will evaluate the advantages of adopting a certain style of leadership in Organization. It will determine if the laissez-faire style of leadership affects worker productivity. It will determine the effect of laissez-faire management on the economic development and performance of the company. However, the research is confined to DataPlus Interactive Limited, FCT Abuja.
1.8 Limitation of the study
As with any human endeavor, the researchers experienced minor obstacles in conducting the study. Due to the nature of the discourse, there was a paucity of literature on the topic, which necessitated that the researcher incur greater financial costs and invest more time in locating relevant materials, literature, or information, as well as in the process of data collection; consequently, a small sample size was selected. In addition, the researcher will conduct this investigation alongside other scholarly endeavors. In addition, the selection of the sample size was restricted to the banking sector since a small number of respondents were asked to complete the research instrument; hence, the findings cannot be generalized to other corporate organizations. However, despite the limitations faced throughout the research, all aspects were minimized in order to provide the best results and ensure the success of the study.
1.9 Definition of terms
A leader is someone who guides the behavior of other group members and instructs them on how to complete a job.
Leadership is the process of guiding and influencing others towards the achievement of an organization’s objectives.
A subordinate is a person who works beneath another or is lower in the official hierarchy.
The institution: This is the systematic process through which individuals develop an interest in achieving goals.
Leadership style refers to the unique actions of a leader while leading, inspiring, guiding, and managing groups of individuals.
Employee Productivity Employee productivity may be defined as the quantity of work (or output) generated by an employee within a certain time period.
Organizational Performance: Organizational performance is the comparison of an organization’s actual output or outcomes to its expected outputs (or goals and objectives).
EMPLOYEE PRODUCTIVITY IN PRIVATE ORGANISATIONS IN NIGERIA: THE IMPACT OF LAISSEZ-FAIRE LEADERSHIP STYLE
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