Tag Archives: Employees Performance

THE IMPACT OF LEADERSHIP STYLES ON EMPLOYEES

THE IMPACT OF LEADERSHIP STYLES ON EMPLOYEES JOB PERFORMANCE IN THE FEDERAL POLYTECHNIC, AUCHI

ABSTRACT

This research thesis focuses on the leadership styles and employees job performance in the Federal Polytechnic, Auchi. Methodologically the study deployed both the primary and secondary data. The investigation of the study raveled that co-operative mode of administration is preferred to the suppressive and free – rein systems. It also showed that cooperative disposition of leadership breeds team –work, employees’ participation in formulation organization and implementation of institutional goal and objectives attainment. The findings empirically noted that hostile department leads should be punished for their actions and bureaucratic rules and procedure be adopted to check care free department heads. The management and Head of Departments of Federal Polytechnic Auchi should implement the following recommendation of adopting cooperative approach of administration as a matter of a policy for the institution: The Management of Federal Polytechnic Auchi should implement the following recommendation of adopting cooperative approach of administration as a matter of a policy for the institution; also the findings empirically noted that hostile department heads should be punished for adopting care-free attitude in performing his duties. Base on the findings some recommendations were made which include adoption of co-operative approach of administration as a matter of policy for the institution. The management of federal polytechnic Auchi should be put in place motivational incentives to encouraged workers at work especially reward of excellent performance, promotion, welfare package, training and retraining of employees, welfare package, training and retrain.

CHAPTER ONE

INTRODUCTION

1.0 Background of the Study

Leadership is to any organization what the heart is to the human body. Just as the body depends on the heart to pump blood for it to stay alive, so also an organization relies on its leadership for persistent coordination in order to survive. Cole (2002) posits that leadership is a vital element in the social relationships of groups at work. He further argues that in a dynamic process at work in a group, leadership influences the other group members to commit themselves freely to the achievement of group tasks. It follows therefore that in an organization, the leadership and employees complement each other. While commenting on leadership-employees relationship, Nwachukwu (2007) explains that once employees are recruited, it becomes the function of leadership to utilize them in the accomplishment of organizational objectives. He stresses that although the employees are hired to assist in the realization of predetermined organizational goals, they come to the organization with their own personal goals, aspirations, biases and preferences [which determine their behavior in the organization] and they exhibit the aforementioned through much concern about their roles, risks and involvements. It then becomes the function of leadership to marry employees’ goals with organizational goals for harmonious coexistence and achievement of organizational objectives. Uma (2005) added that having knowledge of organizational behavior which entails the actions and reactions of employees to various stimuli helps leadership to effectively handle individuals, groups, and organizational resources to achieve the goals of organization. And at the same time, enhance the quality of life for employees and enable them to reach their full potentials.

Apart from the aforesaid valuable roles of leadership, the styles adopted in playing those roles are also very important to an organization. According to Ojokuku, Odetayo, and Sajuyigbe (2012) leadership style is a key determinant of the success or failure of any organization. They maintain that while leadership influences, directs, and motivates others to perform specific tasks for the accomplishment of the stated corporate objectives, leadership style serves as the manner and approach of providing direction, implementing plans, and motivating employees to be committed to organizational objectives. The major leadership styles include the democratic, autocratic, and laissez-faire. They are as well known as transformational, transactional, and free-rein styles of leadership. The transformational or democratic leadership style is the type that motivates followers by appealing to higher ideals and moral values which can inspire employees to perform beyond expectations and transform both individuals and organizations (Bass, 1985 cited by Belonio, undated). The transactional or autocratic leadership style is based on bureaucratic authority and legitimacy within the organization. It emphasizes work standards, assignments and task-oriented goals. It focuses on task completion and employee compliance and relies on organizational rewards and punishments to influence employee performance Burns, (1979). The Laissez-Faire or free-rein leadership style is characterized by a total or general failure to take responsibilities for managing Bass, (1999). The choice and application of any leadership style in supervising the subordinates depends on the preference of the leader. The exact leadership style adopted in any organization can have either positive or negative impacts on the leader, other employees and the organization as a whole. That is why the issue of leadership and leadership style often generate a lot of controversies and if not timely attended to, it degenerates to misgivings and displeasures which eventually debilitate even a once vibrant organization.

In Auchi Federal Polytechnic, this issue of leadership style is currently breeding heated debate. The employees’ attitude to work and their present level of performance which negatively robs off on the institution is speculatively blamed on the Management’s manner of leadership. This investigation is therefore put in place to unravel the actual impacts of leadership style on employees’ performance in Auchi Federal Polytechnic from 2008-2015.

1.1 Brief History of Federal Polytechnic

The federal polytechnic Auchi was established in 1964 as a technical college by Midwestern region. The former president Ibrahim Babagida announced the takeover of the institution as a federal polytechnic Auchi in 1994 by a decree.

The new polytechnic started off as a multi-campus institution with its headquarters in Benin City. The Department of Accountancy and company Administration moved from Auchi to join the government Academy, Benin City, which had been absorbed to form the school of Business Studies in the Benin campus of the Polytechnic while the Engineering Department remained in Auchi to become the School of Engineering of the Polytechnic.

Mean while, in 1974, the name of the institution was changed to Auchi Polytechnic, and in 1975, the Headquarters was moved back to Auchi.

The federal government Decree of 1997 set up the National Board for technical education (NBTE) to coordinate technical education in Nigeria with the following mandates:

To provide science and technical education which produced middle level technical manpower and their training.
To provide full-time and part time course in teaching and training in technology, applied science Business, and administrative sectors relevant to the need of development of manpower in Nigeria.
To conduct courses in technical education for qualified middle level trainees.
To arrange conferences, seminars and workshop relevant to the field of study or leaning.

1.2 Statement of the Problem

The issue of leadership styles has been a subject of much concern. A lot of researches have previously carried out investigations related to this subject matter.

In the study conducted by Belonio R.J. (undated) on “The Effects of Leadership Style on Employee Satisfaction and Performance of Employees in Bangkok”, Transformational leadership was seen to have a positive effect on the significant subscales of job satisfaction. Transactional leadership also had a positive effect on the significant subscales of job satisfaction and laissez-faire leadership had a positive effect as well on the significant subscales of job satisfaction. Belonio therefore advises that since leadership styles affect various aspects of employee job satisfaction, which in turn affect job performance, managers, supervisors, leaders and organizational heads should not stick to only one form of leadership style. The management of Auchi Polytechnic has not lived up to expectation in combining the various leadership styles that will possibly bring more satisfaction and enhance employee performance in the institution.

Shafie, Baghersalimi, and Barghi (2013) also carried out a similar investigation on “The Relationship between Leadership Style and Employee Performance” (Case Study of Real Estate Registration Organization of Tehran Province) in 2013. The findings showed that transformational and pragmatic [transactional or autocratic] leadership both impacted on the staff performance but transformational leadership style is associated with higher relevance. They however noted that transformational leadership and pragmatic leadership are not two contradictory theories, rather they are complementary ideologies. This implies that leadership styles ought to be alternated to embrace the various employees’ behavior in an organization. Not knowing how to interchange leadership styles is a bane to Employees job satisfaction.

Spector (1997) argues that employee or job satisfaction is an important concern in every organization since it focuses on both humanitarian and utilitarian perspectives. According to the humanitarian perspective, people deserve to be treated fairly and with respect. The utilitarian perspective proposes that employee or job satisfaction can lead to employee behaviors that affect organizational functioning and performance.

Over the years, the Federal Polytechnic at Auchi has enjoyed tremendous harmony in terms of management-employees relationship. The staff performance cum organizational reputation has been commendable to some extent. But internal wrangling and contention are becoming rampant. Employees’ job satisfaction has reduced drastically while their performance is also in its lowest ebbs. Some lapses in the choice of leadership style by the institution’s management are speculated as the chief causes of these negative occurrences.

1.3 Objectives of the Study

The general objective of this study is to examine the impacts of leadership style on employees’ performance. The specific objectives are outlined below.

To reveal the connection between cooperative mode of administration and the level to which employees are doing their jobs in Federal Polytechnic Auchi.
To show the link between suppressive system of management and the degree of workers’ frustration in Federal Polytechnic Auchi.
To show how the free-rein method of supervision is associated with the rate of staff’s absenteeism in Federal Polytechnic Auchi|.

1.4 Research Hypothesis

The following hypotheses are put forward for testing in this study.

There is a relationship between cooperative mode of administration and employees’ service delivery in Federal Polytechnic Auchi.
There is a relationship between suppressive manner of management style and workers frustration in Federal Polytechnic Auchi.
There is a relationship between free-rein method of supervision and workers’ absenteeism in Auchi, Federal Polytechnic

1.5 Significance of the Study

This research will offer essential information that will helpfully guide administrators in the general acts of organizational management specifically on the issues that concern superiors / subordinates.

The revelations pertaining to the subject of impacts of leadership styles on employees’ performance in organizations will further build-up existing literature.

The results obtained in this investigation will expand the frontiers of knowledge.

1.6 Scope of the Study

This study centered attention on the issue of impacts of leadership styles on employees’ performance. The study location is Federal Polytechnic, Auchi. It is situated in Edo North senatorial district of Edo State. The period covered by this investigation ranges from (2000 to 2015).

1.7 Limitations to the Study

Obtaining information from the respondents in Federal Polytechnic, Auchi was limited by bureaucratic bottle-necks. Some official information was scarcely disclosed by respondents owing to the secrecy that characterizes the public service. More so, many respondents were reluctant to participate in the research due to fear of indictment after responding to certain questions on the research instrument. There was also some delay in the process of retrieving the questionnaires because of some respondents’ belated response. Nonetheless, the researcher was able to muddle-through after much resilience.

1.8 Operational definition of terms

The following terms are presented to explain the concepts.

(a) Cooperative Administration: The use of friendliness and sympathy in the supervision of workers in the workplace.

(b) Service Delivery: Job performance or the act of doing a given job.

(c) Suppressive Management: Displaying hostility in controlling employees in the organization.

(d) Frustration: This is the dissatisfaction suffered by the personnel working in an organization owing to the unbearable working conditions.

(e) Free-Rein Supervision: The freedom given to employees to discharge their duties with little or no control.

(f) Absenteeism: It is the staff’s habit of staying away from workplace for unconvincing reasons and without taking permission.

(g) Impacts: These are the good and bad mutual influences that the behaviors of individuals and groups have on one another in an organization at a given period.

(h) Leadership Styles: It encompasses the methods and techniques applied by superiors in controlling their subordinates in the office.

(i) Employees’ Performance: It entails the extent to which workers discharge their assigned tasks in their place of work.

1.8b Organization of the Study

This work is organized into five chapter, chapter one has background of the study, brief of federal polytechnic, Auchi,Statement of the problem, objective of the study, research hypothesis , significance of the study, scope of the study, limitation to the study, Chapter two covers review of related literature with subheading like “System theory” “MC Gregor theories x and y”. The concept of leadership, leadership styles conceptualized approaches of the study leadership, Administrative/ Organizational structure and the concept of job performance in the Federal Polytechnic Auchi. Also the Chapter three has research method with the following topic like Research Design, Sources of Data, Population of Study, Sample and Sampling Techniques , Research Instrument, Validity and Research Reliability Test, and Statistical Techniques for Data Analysis. While Chapter four will present the summary of the major findings; Chapter five Summary of the findings Recommendation, conclusion and Contribution to Knowledge.

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IMPACT OF MANAGEMENT BY OBJECTIVE (MBO) ON EMPLOYEE PERFORMANCE IN NIGERIA BANKING INDUSTRY

ABSTRACT

Human resources are the most important and dynamic among all the resources an organisation owns. To retain efficient and experienced workforce in an organisation is very crucial in the overall performance of an organisation. A satisfied employee can help make an organisation more profitable and competitively. The present study is an attempt to evaluate the impact of management by objective method on employee performance in the banking industry. The data collected from employees of First Bank Nig. Plc, First City Monument Bank Plc and Guarantee Trust Bank Plc in Ado Ekiti, in all 80 self-administered questionnaires were successfully completed. Based on the findings the study reveals that in hypothesis one there is a there is significant relationship between management by objective and employee performance, since F calculated as 4.000 is less than F- tabulated as 6.613 and for hypothesis two, there is there is no significant relationship between management by objective and productivity in an organisation, since the F calculated is also 4.000 less than F- tabulated as 2862.

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Management needs a lot of tools to be able to administer effectively in the day running of the business. Management by objective is one of the tools. It is a way of getting improved results in managerial action. Management boy objective can be described as managerial method whereby the superior and the subordinate in an organisation identify major areas of responsibility, in which they will work, set some standards for the good or bad performance and the measurement of results against those standards Derek (2005).;

Management by objective is also called management by objectives. However, there have been certain individuals who have long placed emphasis on management by objectives and by so doing have given impetus to its development as a system. Management by objective referred to a structured management technique of setting goals for any organisational unit.

George S. Odiorne(1981) in his book of management by objective defined this concept as “a system of management whereby the superior and the subordinate jointly identify objectives, define individuals major areas of responsibility in terms of results expected, and the use these objectives and expected results as guide for separating the units and assessing the contribution of each member. Besides, Odiorne points out that management by objective is a system of management and overall framework used to guide the organisation units and outline its direction. He went further to point that the superior and the subordinate jointly identify objectives. In other words, it is a participative management procedure that requires commitment and cooperation. The definition deals with identifying the results that are expected. Thus, management by objectives concentrates on the output of the organisation evaluating people by assessing their contribution to this output.

Management by objectives is a strategy wherein the management sets specific goals for the employees to accomplish within a fixed time period. Management by objective is a dynamic system which seeks to integrate the company’s need to clarify and achieve the profit and growth with the managers needs to contribute and develop him. It is a demanding and rewarding style of managing a business.

Management by objective can work in any size of the organisation if the procedures are understood and managers are patient in letting the system set in first. Management by objective is an effective planning, controlling and development system. Management by objective was defined by Koontz and O’Donnell (1968) as a technique system or method of management whereby the superior and subordinate managers of an organisation agreed on its broad goals, translate these goals, defined each expected individuals major areas of responsibility in terms of results expected, continually reviewing the accomplishment as the sole basis of assessing and rewarding them. Management by objective gives the employee the opportunity to participate in decision making. It assumes that the employee has been properly selected and trained and will be responsible for achieving the desired results in the organisation.

The underlying belief is that this involvement of employee leads to commitment and if an employee is committed, he can be directed to perform in a manner that positively contributes to the achievement of the organisational objectives. The MBO afford both the superior and the subordinate the opportunity to sit together and jointly identify common goals of enterprise to define individual’s areas of responsibility term of the results expected of him and use these measures as guide for operating the unit and assessing the contribution and each of its misers. This leads to the four basic components of the Management by objectives system:

* Setting performance objectives and standards for their accomplishment

* Developing action plans

* Coaching and counseling

* Annual performance appraisal

Organisations are ubiquitous. According to Mullins (2005), organisations are designed by people to overcome individual limitations and achieve individually. Hence, organisations become a means of survival for the people and exert an important daily influence on the life of the people and the way they live. The major decider for the survival of any organisation is the presence of capable men and women with the right technique to combine the organisation resource man, machine, money and material) to achieve organisational goals.

It is appropriate to note that management of companies in Nigeria lack sufficient techniques to make them manage effectively. Some of the tools are used and when used are not properly utilized. Management by objective is not only a managerial strategy to achieve a well-coordinated managerial goal, but it is also a popular management technique that pervades or cut across all human activities namely business areas, education, health, government and non-profit organisation. Most of the technique, system, and tools of management are hardly understood resulting in losses and changes to the organisation. Besides, it is the wrong use of technique and unwillingness of top management to utilize the right tool to solve the management problems. It is on these trends that the researcher intends to find out the impact of MBO method on employees performance in Nigeria Banking Industry. In order to investigate the above impact, one of the leading financial institutions in the country, First Bank of Nigeria, First City Monument Bank and Guarantee Trust Bank in Ado-Ekiti has been chosen.

1.2 Statement of the Problem

Management by objective is not an instant solution for organisational problems. Quite often many organisations see MBO as an instant solution to their problems. They fail to recognise that MBO demands careful planning and proper implementation. Many organisations have been overwhelmed by problems of MBO and Management by objective as a concept itself has a problem of wrong implementation like incomplete understanding of MBO philosophy in personal, poor planning and lack of guidelines for implementation, practical difficulty in setting objectives, increased pressure and frustration on subordinates, quantitative bias and lack of follow up.

MBO is a time consuming process. Objectives, at all levels of the organisation, are set carefully after considering pros and cons which consumes lots of time. The superior are required to hold frequent meetings in order to acquaint subordinates to the new system. The formal, periodic progress and final review sessions also consumes time.

It is pertinent to note that MBO is based on reward and punishment approach. It tries to discriminately force improvement on employees. At times it may penalize the people whose performance remains below the goals. Reward is provided only for the superior performance. Often MBO operates more problems than it can solve. An incident of tug of war is not uncommon. The subordinates try to set the lowest possible targets and the superior the highest. When objectives cannot be restricted in number, it leads to obscure priorities and create a sense of fear among subordinates. Added to this, the programme is used as a whip to control employee performance.

A well-conceived MBO programme requires three to five years of operation before it provides fruitful results. Managers and subordinates should be oriented so that they do not look forward to MBO for instant solution. Proper time and resources should be allocated and people should also be properly trained in the philosophy of MBO. There has been an interrupted information feedback which has caused a gap between goal setting and goal performance. Following the above, this study will examine the relatedness of proper planning, adequate time for measuring the benefit of the system, follow up, the exclusion of reward and punishment approach to the successful implementation of MBO.

1.3 Research Questions

In review of the problems associated with this topic, the following research questions are vital to in-depth analysis of this topic. This are:

Is there any factor militating against effective implementation of management by objective in an organisation?
To what extent are employees given the appropriate authority and responsibility for effective management by objective?

Does MBO have effect on productivity in an organisation?

To what extent does MBO determines employee’s performance towards achieving the objectives of the organisation?

1.4 Objectives of the Study

The general objective of the study is to find out the impact of the MBO method on employees performance in the Nigeria Banking Industry. The specific objective of the study includes this:-

To examine the factors mitigating against the effective utilization of Management by Objective
To measure the extent to which employees are given authority and responsibilities for effective Management by Objective

To measure the relationship between employees’ performance and Management by Objective

To measure the effect of Management by Objective in an organisation

1.5 Research Hypotheses

The following null hypotheses have been formulated for the study;

H0- There is no significant relationship between MBO and employee performance.

H0- There is no significant relationship between MBO and productivity in an organisation.

1.6 Significance of the Study

Practicing management by objective will make the management of First Bank of Nigeria, First City Monument Bank and Guarantee Trust Bank to be more assertive in their decision making. It will assist the subordinate in the above-mentioned banks to be able to identify themselves with the objective of the company and the role they will play. Management of First Bank plc.in particular would find the result of this research very rewarding and variable when applying management by objective.

From this result, they would know the particular problem jeopardizing the correct application of management by objective, and thereby take remedial action. Consequently, the acceptance of this study and adoption of the research’s recommendation could assist the management of First Bank plc. and other organisation and public sectors in making sound and strategic decision to improve employee performance and productivity through careful result measurement, appraisal rating and commensurate reward system.

1.7 Scope of the Study

This research work is limited to First Bank plc. , First City Monument Bank and Guarantee Trust Bank in Ado-Ekiti, Ekiti state, Nigeria and how different organisation can be managed better by the managers setting the goals and all the company members working towards achieving the goals.

1.8 Operational definition terms

Management by objective (MBO): It is the process of defining objectives within an organisation so that management and employees agree to the objectives and understand what they need to do in the organisation in order to achieve them.
Management: The organisation and coordination of the activities of a business in order to achieve defined objectives.
Manager: A manager is a person who oversees employees or department in a business.
Employees: An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognised rights and duty.
Employers: An employer’s is a person or institution that hires employees or workers.
PLC (Public Limited Company): It is limited liability Company whose shares may be freely sold and traded to the public with a minimum share capital of 500,000 and the letters plc after its name.
Subordinate: A person under the authority or control of another within an organisation.
Superior: Something which is higher in a hierarchical structure of any kind.
Objective: A specific result that a person or system aims to achieve within a time frame and with available resources.