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Impact Of Leadership Style On Organization Performance




The study is on “Impact of leadership style on organization performance”. The study has three objectives and three research questions. Descriptive Survey research design was used for the study. The population was 100 and the sample size was 5 companies in Port-Harcourt randomly. Taro Yamanne (1969) statistical formula was used to determine the sample. Questionnaire was used for collection of data while simple percentage and frequency counts table was used to analyze the research questions. The findings show that democratic leadership styles have a positive and significant effect on employee’s performance. Democratic leadership style has been proven to be a very effective tool towards boosting employees level of productivity. A significant relationship exists between democratic participatory leadership style and employees motivation. Analytical result shows that an organization that practices democratic leadership style will enhance workers motivation. The study therefore recommends that, Management and organizations should adopt democratic leadership style as a matter of corporate policy. Democratic leadership style should be adopted as a very effective tool for motivating workers and to boost their morale and output. This is because it gives the sense of belonging, acceptance, self-worth and approval etc, to the employees as identified by Maslow being some of the conceptual human needs. Management and organizations should take advantage of the peaceful and harmonious industrial environment usually created by this adoption of democratic leadership style so that creative and useful ideas from the workers can be played up and embrace for the advancement and progress of the whole entity.


1.1 Background of the Study

In recent times, the research has been tremendously rising on organizational failures. Most people and researchers have always attributed to the inability of manager to be able to manage or lead subordinates effectively in their organizations.

This development has led to this research study which aims to ascertain the impact of democratic leadership style on the organizational performance.

Democratic leadership has been seen as one of the most important elements on through which the objectives and goals of the organizations are achieved. Democratic leadership, also known as participative leadership is where individuals who would typically be considered unequal by hierarchal standards have shared power in making decisions. Democratic leadership has a noticed effort on the behavior attitude and performance of their subordinates and also emphasize collaboration and the free-flow of ideas. Democratic leadership is an important aspect of management. For an effective performance of the organization, there must be an art of inspiring the subordinates to perform their duties willingly and competently.

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Davies (1967) viewed leadership as persuasion ability over others to meet objectives enthusiastically. Leadership involves inducement, persuasion and motivation of subordinates to enable them contribute willingly to the organizational goals based on the employee’s maximum capabilities (Nwachukwu, 2000).

Lipharm (1964) sees leadership as the initiative of a new structure or procedure for the accomplishment of an organizational goal.

Whereas, Hith (1981) defined leadership as the process of provision of direction and influencing individuals or group in order to attain goals. In every organization, it must be stated clearly, the number of subordinate in the organization, the performance of organization will be affected. Additionally, leadership style, is the manifestation of the dominant pattern of behavior of a leader (Olaniyan, 1999; Okurumeh, 2001). Employees are the most important assets in establishment which, the objectives may not be achieved.

Ali, Elmi and Mohammed (2013) maintains that although many factors may influence the performance of an organization, there can be little doubt that the quality of leadership available to it will be one of the most critical determinants of ultimate success. Leadership behavior plays a very important role in enhancing employee’s job satisfaction, work motivation and work performance.

Thus, a leader is responsible and entrusted to perform such leadership functioning as planning, organization, directing, coordinating and controlling the work of the organization for effective performance.

Attman (1979) viewed leadership as a process of influencing people to direct their efforts towards goals attainment. Stoner et al (1978) sees leadership as the process of directing and influencing the task-related activities of group members. Hence, there are three implications of this definition. First, leadership must involve other people, followers or subordinates. By their willingness to follow the leader status and make leadership process possible. Without followers or subordinates, a person’s leadership qualities, if they existed at all, would be irrelevant. Second, the leadership process involves an unequal distribution of power among leader and group members. Leader can direct some of the activities of group members, that is, the members are compelled or are willing to obey most of the leader directions. The group members cannot similarly direct the leader’s activities; through they will obviously affect those affected in number of ways. Third, the definition suggests that leaders can influence their followers or subordinates what to do, but also can influence how or in what manner the subordinates carry out the leader’s instruction.

According to Stoner (1978) motivation is that which causes channel and sustains people behavior. Glueck (1978), it is regarded as a set of attitudes which dispose one to act in a goal directed way. The act of influencing and stimulating a person’s action. Atkinson (1964), Ajijiola (1976) and Ikechukwu (1979),Jones (1965), says it has to do with how behavior gets started, energized, sustained, directed, stopped and what kind of subjective reaction is present in the organism while all this is going on. Motivation will help leaders understand why subordinate behave the way they do and can also influence the organizational performance.

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1.2     Statement of the Problem

Past studies have proven that democratic leadership contributed towards better performance and it leads to high levels of team outcomes and solicits different ideas form team members. Leadership style has become a very crucial area of management. In fact, it has attracted the attention of many management scientists who have actually delved into the difficult task of writing about the subject in the management literature.

Improper leadership qualities within the organization have a negative impact on the subordinates as well as the achievement of the organization objectives. For a long time, due to many factors, including the “hegemonic” nature of communication in Nigeria, youths had little opportunity to be active in governance, or make their views heard. However, with improvement in communication technology, the status quo appears to be changed. An effective leader influences followers in a desired manner to achieve desired goals. So this research work is set to find its effects on the employee performance in the organization and possible improvement.

1.3     Objectives of the Study

The general objective of this study is to determine whether or not the democratic leadership style adopted by managers in Nigerian organizations have impact on the performance of employees.

Specific Objectives;

  • To identify the impact of democratic leadership style on organizational performance,
  • To examine how participatory, democratic leadership style employees performance
  • To evaluate effective leadership as the determinant fact of achieving organizational goals

1.4     Research Questions

  • Does the democratic leadership style adopted by the manager in the company have an impact on the organizational performance?
  • What is the influence of participatory democratic style on employees performance in Port-Harcourt?
  • Is there any effective and efficient leadership styles existing in companies in Port-Harcourt?

1.5     Hypothesis of the Study

This study is guided by the following conjectural propositions:

H01: There is relationship between democratic leadership styles and organizational performance.

H02: There is a relationship between participatory democratic leadership styles and workers efficiency.

H03: There is no significant correlation on participative leadership style and the followers on performance improvement.

1.6     Scope of the Study

Some firms operating in Rivers State were selected for this important study with special preference to those in Port Harcourt. These firms include;

  1. Nigerian Liquified Natural Gas Company
  2. Mobil Producing Limited
  • TSK Nigeria Limited
  1. Chevron Limited
  2. Deutag Drilling Limited
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Respondents sort for are managers, supervisors and personnel managers since they perform the democratic leadership roles in organizations.

1.7   Significance of the Study

The human factor as noted in management is a simple most important resource. This study ensures to help as well as tackle the leadership problems challenging companies in Rivers State and attain remedies to these problems. Those in other parts of the country will benefit from this study. The private and public sector firms are also not excluded from these achievements and will find this study relevant since they experience nearly similar type of environment.

The study will also assist effectively and efficiently potential business investors on the basic issues on how to utilize the human resources intheir organizations students and researchers will find interest on this area of study and this work relevant. Thus, democratic leadership subsumed under management effort is substantial and cannot be overemphasized.

1.8   Background of the Case Study

Democratic leadership covers a very conspicuous position of group or organization conduct. It is the heart of an organization, which without, organization or group cannot properly function. The studies on leadership so far, have confirmed that there is no single basic pattern of abilities and personality traits or characteristics of all leaders.

To crown it all, the essence of this is to find out the impact of democratic leadership style on employee performance. However, this study will enlighten managers to be effective democratic leaders and not leader by position rather disposition and how to be employee oriented. Connect, find common ground and empower them to succeed so as to achieve organizational set of goals

 1.9 Definitions of Terms

Democratic Style: As used in this study, it implies the way which influenced process is exercised. It is the characteristics ways in which the leader relate to his subordinates or employees.

Employees: This refers to people who are under control of the leader manager who turns inputs of the organization to output based on directives.

Employee Performance: This is the employee’s behavior directed towards the requirements of the jobs as well as productivity and profitability of the organization.

Organization: This refers to a system of consciously coordinates activities of two or more persons explicitly created to achieve specific goals and objectives.

Pages:  51

Category: Project

Format:  Word & PDF               

Chapters: 1-5                                          

Source: Imsuinfo                            

Material contains Table of Content, Abstract and References.


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