EFFECT OF LEADERSHIP STYLES ON WORKERS PERFORMANCE IN THE BANKING INDUSTRY
This research examined the Effect of Leadership Styles on Workers Performance in the Banking Industry with special reference to Wema Bank Plc. The research adopted survey research design. Data were gathered through primary source with the aid of a well-structured questionnaire. Simple random sampling technique was adopted in the selection of sample, this was used to eliminate biasness in the selection process of the respondents. Data garnered were presented on table using percentage and the formulated hypotheses were analysed with the used of Chi-square statistical method. The result of the analysis shows that there is a significant relationship between leadership style and worker’s performance. Also there is a significant relationship between leader-worker’s relations and organizational growth. Based on the conclusion of the analysis recommendations were proffered to the staff and management of Wema Bank Plc.
1.1 BACKGROUND TO THE STUDY
Effective leadership is one of the fundamentals that is regarded for organizational success. A capable leader provides direction for the organization and lead followers towards achieving desired goals. In similar vein, employees are likely to exert more effort in their assigned tasks and pursue of Organizational interests. According to Ogbonnia Ken, “effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational goals”. According to Oyedijo Ade, the internal and external environments of an organization are as follows:
Internal environment is within the organization itself such as its strength and weakness, resources, core competencies and its structure and processes while the external environment is outside its organization such as the opportunities and threats of its environment, industry environment, competitive environment and the macro environment that comprises of the Political, Economical, Socio-Cultural, Technological, Global and Demographic environment. According to PYE management, a leader’s typical way of behaving toward group members can be classified “leadership style”. Is the leader autocratic, participative or laissez-faire while Wikipedia added two more styles which are the narcissistic and toxic managers? Managers often use more than one of the three notable one’s depending upon the issue involved and the circumstances surrounding it. According to O.J.K Ogundele and O.T Olajide, In 2004, the government realized that for proper economic development to take place in the financial sector the financial institutions existing then need to have a strong capital base, and as such policy was put in place that they increased the capital base of prospective banks in the country to ₦25billion. This resulted in many banks merging together while some big ones are acquiring small ones. This reduced the total number of banks in Nigeria from 89 in 1998 to 25 by 2005 December and 23 by the end of 2006. Through these processes WEMA BANK did not lose its identity in the industry and based on the above scenario would it be right to submit that the leadership of the bank should take full credit for the success recorded by the bank or on the other hand, to what extent should credit be given to the leadership of the bank regarding its success.
1.2 STATEMENT OF THE PROBLEM
Since previous studies identified that leaders influence attitudes of followers, then it is possible that the workers performance is influenced by the leadership style applied by the leader. However, this statement may be too general as to be considered valid because there are no statistics to back it up, and also various styles of leadership exist, one would not know which one to recommend and which to reject. Again, can the prescribed style of leadership remain valid for improved workers performance in the banking industry? And also for every situation faced by an organization, what is the adequate leadership style that will be use to bring about greater performance from the workers or what combination of leadership styles will be more effective or efficient for greater performance in the industry.
1.3 RESEARCH OBJECTIVES
· To investigate the effective of leadership style on worker’s performance in the Nigeria banking industry.
· To evaluate the importance of leader-workers relations in organizational building.
· To identify the problems associated with leader workers relationship in the Nigeria banking industry.
· To make suggestions on leadership patterns with the view of improving worker’s performance.
1.4 RESEARCH QUESTIONS
The study would examine:
· To what extent does leadership style influence worker’s performance?
· How does leader-workers relation affect organizational growth?
· What are the factors that hinder cordial leader-workers relationship?
· What leadership style could be adopted to improve workers performance?
1.5 RESEARCH HYPOTHESES
H1: There is a significant relationship between leadership style and worker’s performance.
H2: There is a significant relationship between leader-worker’s relations and organizational growth.
1.6 SOURCES OF DATA
The Data required for this study will be drawn from amongst workers in Wema Bank Plc (head office) Lagos state. Particularly, it will be drawn from amongst workers whose schedules of duties require their direct physical contact with a superior and also workers in groups that are under a superior and also each individual of the group have direct contact with the superior. References would be made to published and unpublished work on this topic and also information will be sourced from the internet. Finally, questionnaires will be administered on sample population for generation of data required.
1.7 SIGNIFICANCE OF THE STUDY
Managers in the banking industry will benefit from the study because it will show the leadership style applicable in the banking industry that will improve workers performance to bring about great results. Also it will help the bank in question to know the appropriate leadership style that will be applicable to bring about improvement in workers performance to yield the desired result. It will help organizations to know which of the leadership styles is applicable for every situation in an organization due to the dynamism of the business environment.
1.8 SCOPE AND DELIMITATION
The scope of this study will be limited to the influence of leadership and leadership style on the performances of employees in the banking industry in Nigeria. The study will be carried out on WEMA BANK PLC (Head office). The result generated is intended to be representative of the banking industry in general. This is so because of the constraint inherent in moving from one bank to another for data collection. The other delimitation of the study is identified to be time. The researcher has limited time to complete the study, and aside from the above, there is limited funds budgeted for the research work.
1.9 OPERATIONAL DEFINITION OF TERMS
· Leader: A leader is a person who leads a group of people.
· Leadership: It is the state or position to be a leader.
· Leadership style: The style the leader uses to achieve result from its workers.
· Management: Management is the art of getting things done through people.
· Organization: A group of people who forms a business.
· Group: A group consists of more than 2 workers.
· Workers are employees.
· Industry is a collection of firms that are into the same business.
· Performance is how well a job is been done.