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TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL RESILIENCE OF MANUFACTURING FIRMS IN PORT HARCOURT

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TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL RESILIENCE OF MANUFACTURING FIRMS IN PORT HARCOURT

Abstract

The study examines the relationship between transformational leadership and organizational resilience of manufacturing firms in Port Harcourt. In this research, the survey method was employed. The study was designed to focus on selected manufacturing firms in Port Harcourt. The population of the study is made up of (216) management staff of manufacturing firms in Port Harcourt which include Wesly Paint and new Revoc Nigeria Limited all in Trans Amadi Port Harcourt. The Taro yemes formula was used to determine the sample size of 140. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage while the hypotheses were tested with used of chi-square. Data collected was coded into SPSS version 22. The study showed a significance relationship between transactional leadership and organizational resilience in selected manufacturing firms in Port Harcourt. Based on the findings of the study, we recommended that management should exert idealized influence with the aim to build trust and confidence as they set out roles to play for subordinates to imitate which will improve their adaptive capacity, management should exert idealized influence towards robustness. They should develop intellectual stimulation ability that improves the organizational adaptive capacity and management should take challenges, takes risk and solicits follower’s ideas through intellectual stimulation to enhance the robustness level by the organization.

Table of Contents

Title Page    i

Cover Page ii

Dedication  iii

Certification         iv

DEDICATION     Error! Bookmark not defined.

ACKNOWLEDGEMENTS     vii

Abstract      viii

Table of Contents ix

List of Tables       xi

List of Figures      xii+

CHAPTER 1        13

INTRODUCTION         13

1.1 BACKGROUND OF THE STUDY     13

1.2  STATEMENT OF THE PROBLEM   16

1.3 OBJECTIVES OF THE STUDY          16

1.4  RESEARCH QUESTIONS        17

1.5  RESEARCH HYPOTHESES    17

1.7  Scope/ Limitation of the Study  18

1.8  Definition of Terms 19

CHAPTER 2        20

LITERATURE REVIEW        20

2.1 Conceptual Framework     20

2.1.1 Concept of Transformational Leadership   20

2.1.2 Dimensions of Transformational Leadership        22

2.1.3 Organizational Resilience         23

2.1.4 Dimensions of organizational resilience      26

2.1.5 Relationship between Transformational Leadership and ganizational                         Resilience    28

2.2    Theoretical Framework  30

2.2.1 The Theory of Transformational Burns (1978)    30

2.2.2 Theory of Transformational Bass (1985)    31

2.3 Empirical Review    32

CHAPTER 3        34

RESEARCH METHODOLOGY      34

3.1 Research Design      34

3.2 Population of the Study    34

3.3 Sample and Sampling Techniques        35

3.4 Methods of Data Collection        36

3.5 Method of Data Analysis  36

3.6 Questionnaire Design        37

3.7 Data Analytical Techniques        37

3.8 Reliability and Validity     38

CHAPTER 4        39

DATA PRESENTATION AND ANALYSIS       39

4.1  Data Collection and Presentation        39

CHAPTER 5        47

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS       47

5.1 Summary       47

5.2 Conclusions   47

5.3 Recommendations   49

References  50

Appendix I 53

APPENDIX II      54

List of Tables

Table 4.1: Questionnaire Administration and Retrieval……………………38

List of Figures

2.1.5 Relationship between Transformational Leadership and ganizational                         Resilience    28

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Organizational resilience is a continuously moving target which contributes to performance during business as used a crisis situation (Mitroff 2005). It requires organization to adopt and to be highly reliable and enable them to manage disruptive challenge (Durodic 2003).

Organizational resilience is vital as being resilient involved providing opportunities for organizations to gain competitive advantage (Parsons,   2001). Halicize (2008) describes organizational resilience to involve organizations ability to survive and potentially even thrive in times of crisis.  Global turbulence is a constant phenomenon  because  change,  environmental volatility uncertainty and instability are the only constraints in an ever changing economic world, organizations faced an unprecedented and growing number or possible disruptions to their status quo; from history  many  organization fails, a current risk  management  and  governance models adopt  scalable resilience  metrics (Wieland  &Wallenburg, 2013).  For  firms  to  cope  and succeed in this current  turbulent  environment  of  uncertainty  and  change  organizations  must  move  from the traditional/conventional risk and governance models and focus instead on resilience. Marcus & Macaulay  (2008)  carried  out  a  study  on  organizational  resilience  as  a  key  to  anticipation, adaptation and recovery which focuses on how the organization can better foresee its future, and how  it  can  become  adaptive  to  changes  and  address  crises  and  adversity.  The  British  standard defined  organizational  resilience  to  include  the  extent  of  an  organization  to  anticipate,  prepare for,  and  responds  and  adopt  to  incremental  changes  and  sudden  disruption  and  prosper. Transformational leadership focuses on ensuring revolutionary change in organization through attaching to the organization’s vision (Sullioan & Decker, 2001). In this case, a leader work with subordinates   to   identity   needed   change   as   they   create   vision   to   guide   change   through inspirational guide. For the past years business leaders have become aware of the need for resilience in firms operations. 

Transformational leadership is a modern approach towards leadership. Thamrin (2012) has defined transformational leadership as what leaders’ do in order to transforms the values, needs, aspirations, followers’ priorities and also motivates their followers to exceed expectations.

Transformational leadership theory has captured the interest of many researchers in the field of organizational leadership over the past three decades. Burns developed this theory (1978) and later Bass (1978, 1985). The major premise of the transformational leadership theory is the leader’s ability to   motivate the follower to accomplish more than what   the   follower planned  to   accomplish  (Metwally, 2014). Transformational leadership has four components: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (Thamrin, (2012).  Transformational leaders inspire followers to accomplish more by concentrating on the follower’s values and helping the follower align these values with the values of the organization. Furthermore, Burns identified transformational leadership as a relationship in which the leader and the follower motivated each other to higher levels which resulted in value system congruence between the leader and the follower (Metwally, 2014).

Transformational leadership has been associated with the personal outcomes, (Arnold K, Barling J, Kelloway K., 2000) of the follower as well as organizational outcomes. Research has shown that transformational leadership impacts follower  satisfaction  (Metwally, 2014)  and  commitment  to   the   organization  (Givens 2008).  Research  has  also   shown  that transformational leadership impacts employee commitment to organizational change and organizational conditions (Arnold K, Barling J, Kelloway K., 2000). Due to its impact on personal and organizational outcomes, transformational leadership is needed in all organizations (Givens 2008).

Leadership is associated with organizational and employee performance, (Thamrin 2012). Leadership plays an important role in determining employees’ commitment. Researchers have found that employees who are pleased with their supervisors/leaders and feel that they are being treated with respect and are valued by their management feel more attachment with their organizations ( Usman A 2011). Commer P., (2013), defined employee commitment as worker’s level of involvement with his job and organization. Organizational commitment can be attributed as employees’ loyalty and faithfulness towards organization and his intensions to be the part of that organization. Organizational commitment has significant importance because committed workers have less intension to quit the job, less often absent and highly motivated to perform at advanced level. An employee’s commitment to an organization is usually a choice that they make depending on their environmental surroundings.

The  researcher  found  through  various  literature  that  academic  works  as  it  concerns transformational  leadership and organizational  resilience.

1.2    STATEMENT OF THE PROBLEM

The main approach to understanding leadership style is based on the cultural background of the leader and members of the workforce, the environment and the leader’s personal orientation of the entity and life matter generally.

In recent times, subordinates or employees seems to be influence by different types of leadership style which have contributed immensely to the failure in the result of the employees performance in business organizations.

This is followed by development of the contingency model which was developed fried fiddler and his associate. In the proposal, effective group organizational resilience is said to be dependent on the proper match between the leader style degrees of influence on the control subordinate. Three situational criteria were identified which could be manipulated to create proper match with the behavioural orientation of the leader. The three criteria identified are: Leader member relation, Task structure and Position power. By the leader member relation, he meant the degree of influence trust and respect subordinates have their leader and are willing to follow the leader’s guidance. The task structure emphasize on the degree of which procedure had been established for job assignment.

1.3    OBJECTIVES OF THE STUDY

The main objective of the study was to investigate the relationship between transformational leadership and organizational resilience. The specific objectives are as follows:

1.       To examine the relationship between Inspirational and organizational      resilience in selected manufacturing firms in Port Harcourt.

2.       To examine the relationship between Intellectual Stimulation and   organizational resilience in selected manufacturing firms in Port Harcourt.

3.       To examine the relationship between Idealized Influence and organizational       resilience in selected manufacturing firms in Port Harcourt.

1.4     RESEARCH QUESTIONS

1.       To what extent does Inspirational Motivation associate with organizational      resilience in selected manufacturing firms in Port Harcourt?

2.       To what extent does Intellectual Stimulation associate with organizational resilience in selected manufacturing firms in Port Harcourt?

3.       To what extent does Idealized Influence associate with organizational resilience in selected manufacturing firms in Port Harcourt?

1.5     RESEARCH HYPOTHESES

HO: There is n significance relationship between transactional leadership and organizational resilience in selected manufacturing firms in Port Harcourt.

HA: There is a significance relationship between transactional leadership and organizational resilience in selected manufacturing firms in Port Harcourt.

1.6    SIGNIFICANCE OF THE STUDY

This research aimed at creating awareness and assessing transformational leadership and organizational resilience. Therefore, the study is expected to be of much value to the people as follows;

Members of the firm will be informed on importance of transformational leadership and organizational resilience. Also, it will help decision makers to formulate difference strategies which will help the implementation of transformational leadership and organizational resilience. The researchers will be benefited by identifying variable areas for further research, and will be used as an additional reference to researchers on transformational leadership and organizational resilience.

1.7  Scope/ Limitation of the Study

The scope of this study is delimited into the followings:

Content Scope: The specific areas of transformational leadership, the study investigated include; inspirational motivation, intellectual and idealizes influence. Whereas, the areas of organizational resilience include response, robustness and resourcefulness.

Geographical scope: This study covers an examination of strategic contributions of transformational leadership and organizational resilience.

Unit of Analysis: This is a macro study because it is interested in ascertaining the survival of an organization in this direction. Hence, it is a micro level study. In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

Thirdly, poor response from the respondent and inability to access the entire population of the study.

1.8   Definition of Terms

TRANSFORMATIONAL  LEADERSHIP:  Is  defined  as  a  leadership  approach  that  causes  change  in  individuals  and  social systems.  In  its  ideal  form,  it  creates  valuable  and  positive  change  in  the  followers  with  the  end  goal  of  developing followers  into  leaders.

LEADERSHIP: The action of leading a group of people or an organization, or the ability to do this.

ORGANIZATIONAL RESILIENCE: Organizational resiliency refers to an organization’s ability to create an environment that enhances career resiliency of their employees.

RESOURCEFULNESS: Resourcefulness means the ability to adapt to crises, respond flexibly and when possible transform a negative impact into a positive.  For a system to be adaptive means that it has inherent flexibility, which is crucial to enabling the ability to influence of resilience. 

RESPONSE: Response means the ability to mobilize quickly in the face of crises. This component of resilience assesses whether an organization has good methods for gathering relevant information from all parts of society and communicating the relevant data and information to others, as well as the ability for decision makers to recognize emerging issues quickly.

ROBUSTNESS: Robustness incorporates the concept of reliability and refers to the ability to absorb and withstand disturbances and crises.

SUBORDINATE: A person under the authority or control of another within an organization.

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