THE RELATIONSHIP BETWEEN LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
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THE RELATIONSHIP BETWEEN LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Chapter One: Introduction
Background for the Study
Leadership is often seen as a crucial factor influencing organisational performance. Organisational performance, regardless of size, is likely to be tied to the aggregate effects of leaders at various hierarchical levels (Ibid). Understanding the relationship between leadership, organisational culture, and organisational performance is critical for building effective organisations.
Firms operate in a highly dynamic and tense environment, requiring appropriate leadership styles capable of guiding the organisation and adapting to changes made to meet organisational goals. Identifying measures to improve the performance of individuals and hence the organisation has been and continues to be a major priority for organisational leaders.
Many companies in today’s service-based, knowledge economy are beginning to shift away from traditional management models developed for production-oriented firms.
This necessitates a broader range of leadership skills and styles that are adaptable to diversity and dramatic, often discontinuous changes in the workplace. A proactive organisational leader motivates staff to work towards the organization’s aims and objectives.
Leadership is crucial to the development of a business organisation because it directs the utilisation of human and financial resources towards the firm’s objectives. A leader is someone who encourages, directs, and motivates others to complete specified duties, as well as inspires his subordinates to work efficiently to achieve the state’s business goals.
Leadership is the style and technique to providing guidance, implementing plans, and motivating others[1].
Leadership focuses on developing followers and meeting their needs. Managers that use a transformational leadership style focus on developing employees’ value systems, motivational levels, and moralities while also developing their skills[2].
The challenge in examining topics such as leadership, organisational performance, and the interrelationships between the two constructs stems from their difficulty to define, describe, and measure scientifically.
The disagreement among theorists over the definitions of these variables has sparked further debate about research design and instrumentation, and there appears to be little progress being made to increase our grasp of these critical concepts.
Leadership is the relationship that occurs between an individual and a group based on mutual interests, in which the group behaves in a way that the leader directs or determines.
Leadership develops the company’s business plan and resources, including its workforce, finances, and operations. An organisation can gain a competitive advantage by developing a knowledge platform for business processes.
[3] claimed that people must adopt the organisational culture, and that top management should provide a specific blueprint and direction in inspiring employees on the correct platform in order to achieve organisational goals. Good leadership qualities contribute to the development of abilities that encompass all aspects of culture in order to improve organisational performance[4].
Furthermore, defines organisational performance as the ability to obtain and utilise restricted resources in order to achieve organisational goals. An organization’s culture has a significant impact on its performance and the value it provides to its personnel.
The analytical assessment elements in the deployment of knowledge management systems are designed to encourage information sharing and create an environment conducive to successful knowledge management systems. Based on this context, this study assesses the link between leadership and organisational performance in Nigerian corporate organisations.
Statement of the Problem
Leadership is a valuable asset in any organisation since it guides the organization’s direction and shows the path forward. Several organisations have struggled to function and satisfy their obligations due to poor or inefficient leadership.
The challenges that organisations face in achieving their goals inspired this research work to bridge the gap between leaders in an organisation and their roles in improving organisational performance.
The complicated business environment raises consumer expectations in terms of quality, flexibility, and speed, emphasising the importance of improving customer service.
The increasingly competitive marketplace raises concerns about innovation and leveraging business chances to achieve a successful corporate goal in the near future.
However, leadership is an invaluable asset to every organisation since it directs the organization’s course and shows the way forward. Individuals join an organisation to attain personal goals[i].
However, the concept of leadership style has helped to clarify important organisational problems like leadership, satisfaction, ethics, motivation, performance, and turnover.
Previous research has been undertaken in Nigeria on the relationship between leadership style and organisational performance[ii]. Several organisations have struggled to function and satisfy their obligations due to poor or inefficient leadership.
The difficulties that organisations have in achieving their goals inspired this research work to bridge the gap between leaders in an organisation and a good organisational culture in order to improve organisational performance. A single research project will not be sufficient to assess leadership’s impact on organisational performance.
Aims and Objectives of the Study
The purpose of this study is to assess the relationship between leadership and organisational success in a seven-up bottling company in Nigeria. Specific aims are to:
(i) Investigate the correlation between participative leadership and organisational performance.
(ii) Look into the relationship between transformative leadership and organisational performance.
(iii) Look into the relationship between transactional leadership and organisational success.
(iv) Look into the relationship between laissez-faire leadership and organisational performance.
Significance of the Study
The study will be extremely valuable to organisational leaders, industry captains, and aspiring leaders since it will provide them with the necessary leadership information to improve organisational performance.
Organisational success is determined by the organization’s ability to diagnose and analyse situational aspects in the environment, as well as to implement organisational processes and structures that will improve performance.
It will also consider the relationship between particular leaders and their subordinates, and how that relationship has influenced their job performance and the organization’s growth. Business administrators will obtain a thorough understanding of leadership qualities in order to adapt to changing events and maintain self-control over their leadership traits.
It exposes them to some good administrative skills, particularly in the area of employee welfare, and identifies potential problems impeding the performance of these activities and proposes solutions to eliminate these lapses,
allowing the organisation to grow and develop. This study activity will also add to the body of knowledge available on the subject been explored and serve as a platform for subsequent academic research and investigation on which stakeholders can rely.
Scope of the Study
This study aims to assess leadership and organisational performance in Nigeria. The study’s scope included the total number of employees at Seven Up Bottling Company in Ovia North East Local Government Area, Edo State, throughout the year 2017. A purposive sampling strategy will be utilised to sample respondents for the specified study.
METHODOLOGY
The methods used to gather, analyse, and evaluate the study’s data is explained below. It aims to provide a detailed examination of the research design, population and sampling techniques, variable operationalization and measurement, data collection sources, and data analysis method.
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