THE INFLUENCE OF EFFECTIVE LEADERSHIP ON ORGANIZATIONAL PERFORMANCE (A CASE OF SELECTED SMALL SCALE INDUSTRIES IN ABA, ABIA STATE, NIGERIA)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

An organization is a social set up, which has a boundary that separates it from its environment, pursues its own collective goals, and controls its own performance (Hicks and Gullet, 1975). In a formal organization, interactions are rationally coordinated and directed through time on a continuous basis. The person at the helm of affairs is usually the leader.

Kraines (2001) stressed that the word leadership has been used by most disciplines: political science, business executives, social workers and educationist. However, there is large disagreement as regards the exact meaning.

This view was also supported by Taffinder (2006), who gave different definitions to leadership: “a simple meaning: leadership is getting people to do things they have never thought of doing, do not believe are possible or that they do not want to do”. With reference to an organization, he defined leadership as “the action of committing employees to contribute their best to the purpose of the organization”.

While on a complex and more accurate view, he explains that you only know leadership by its consequences – from the fact that individuals or a group of people start to behave in a particular way as a result of the actions of someone else”.

It is important to distinguish between leadership as an organizational function and as a personal quality. According to Bowery (2004) the later entails special combination of personal characteristics, which brings to light qualities and abilities of individuals. The former refers to the distribution of power through out an organization and it brings to focus the pattern of power and authority in the organization.

Defining leadership in its various reflections is very important.

However, it is necessary to buttress what our focus is when any of its definition is referred to and under what condition.

Previous views about leadership show that it is seen as a personal ability. However, Messick and Kramer (2004) were of the opinion that the degree to which individuals’ exhibits leadership depends not only on his characteristics and personal abilities, but also on the characteristics of the situation and environment in which he finds himself.

Messick and Kramer (2004) further explained that since human beings could become members of an organization in order to achieve certain personal objectives, the extent to which they are active members depends on how they are convinced that their membership will enable them to achieve their predetermined objectives. Therefore an individual will support an organization if he believes that through it, his personal objectives and goals could be met, if not the person’s interest in the organization will decline.

Glantz (2002) further explained that models on human relation shows that there are no essential conflicts that can satisfy workers social and psychological needs. These needs are entirely congruent with organizational goals of effectiveness and productivity.

1.2 STATEMENT OF THE PROBLEM

The researcher embarked on this study due to the problems.

Inability to determine the pattern of leadership and the extent it affects organizational performance

Inability to identify the factors that are responsible for worker’s low performance in the selected area of study.

Inability to adopt to change by small scale business owners

Over managing i.e not willing to delegate responsibilities.

Inability to plan strategically small scale business owners.

1.3            OBJECTIVES OF THE STUDY

This research work is aimed at achieving the following end.

1.     To find out the relationship between leadership and organizational performance in organization

2.     To determine the pattern of leadership and the extent it has affected organizational performance.  

3.     To identify the factors that is responsible for worker’s low performance in organization.

4.     To find out how leadership style has affected labor management relations and productivity in the selected area of study.

5.     To identify the set goals or objectives of the organization under study and to ascertain whether the organization is achieving that ideal leadership.

1.4            RESEARCH QUESTION

The study sought answers to the following research questions.

1.                 What pattern of leadership usually affects organization positively?

2.                 Does effective leadership enhance organizational growth?

3.                 Does leadership style influence workers performance?

4.                 Can leadership style affect the performance of small scale businesses in Nigeria?

5.                 Which of the leadership style exist in most small scale businesses?

1.5 RESEARCH HYPOTHESIS  

The following hypotheses were posited to guide us in reaching the research objectives.

HYPOTHESIS I

 Ho: leadership function and pattern in small scale industries, does not affect the overall performance of the business outfit (organization)

Hi: leadership function and pattern in small-scale industries affect the overall performance of the business outfit

HYPOTHESIS II

Ho: Existence of a favorable working environment does not enhance employees’ high input to their organization in the selected small-scale industries  

Hi: Existence of a conducive working environment enhances employees’ high input to their organization in the selected small scale industries.

HYPOTHESIS III

Ho: effective leadership does not promote maximization of the objectives of an organization

Hi: effective leadership promotes maximization of the objectives of an organization.

1.6 SCOPE OF THE STUDY

This work will focus on Evaluation of leadership and Organizational

Performance in Small Scale industries in Nigeria; A Case Study of Selected Small Scale industries in Aba, Abia State, Nigeria.

Aba, which is located in eastern part of Nigeria, is chosen because it is one of the strongest commercial nerve centers of the country. The number of small-scale industries springing up from this area is unparalleled when compared to other cities in the country.

1.7 SIGNIFICANCE OF THE STUDY

It is believed that this study will be of immerse importance because it will reveal the relationship between leadership and organizational performance in Aba, Abia State, Nigeria and how leadership style could be applied to small-scale industries bearing in mind the environmental differences. Secondly, it will be of great importance to the student of business administration who may be heading small-scale industries after their studies.

Finally, this study will enable management and leaders of small scale industries to become aware of the factors that actually motivate their employees to low and high productivity in their work areas.

1.8 LIMITATION OF THE STUDY

There is no gain saying that there are no limitations in research work generally. Any shortcoming that arises in this study is as a result of factors which are beyond the researcher’s control.

Therefore, it will be of more importance to highlight certain militating factors that tend to narrow or limit my scope of study. This project research would have been easier if not for these limitating factors:

1.     Time factor: time was not on the researchers to consult various sectors of the economy to review employees or given out questionnaire to various institutions on the effect of government revenue policies.
As we all know, time is never our friend. The time scheduled for the completion of this research thesis was too short. As a result, generating information/data was strenuous as it coincides with final year examination period, which needed attention.

2.     Finance: this is another barrier that limited the researcher’s work.

3.     Available resources: was unavailable for the research work.

1.9 DEFINITION OF TERMS

Leadership: the word leadership does not have a single definition because the meaning could often be affected by what it intends to cover. Taffinder (2006) gave the following as definitions of leadership: “a simple meaning: “a simple meaning: leadership is getting people to do things they have never thought of doing, do not believe are possible or that they do not want to do”.  

Employer: an employer can be defined as a person or institution that hires people.

Employee: this refers to the person being hired (supplier of labor).

Management: this can be defined as an act of controlling and directing people so as to coordinate and harmonize the group thereby accomplishing goal(s) within and beyond the capacity of people being directed (Dubrin, 2007).

Corporate image: as explained by Croft and Dalton (2003) corporate image shows or depicts the attributes people give to an organization. In other words it could mean the identity of the organization

Motivation: Efklides (2001) defined motivation as a conscious act aimed at spurring better results from individuals who may ordinarily not ready to go beyond their capacity.

Organizational environment: Dubrin (2007) explained that organizational behavior refers to the microenvironment affecting the performance of an organization. This includes suppliers, customers, small-scale industries and the public.

Organizational performance: this was explained by Stankard (2002) not to mean the performance of the single parts or units of the organization but the product of all interactions taking place in the organization.