THE IMPACT OF LEADERSHIP AND ORGANIZATIONAL BEHAVIOUR ON EMPLOYEES PRODUCTIVITY

THE IMPACT OF LEADERSHIP AND ORGANIZATIONAL BEHAVIOUR ON EMPLOYEES PRODUCTIVITY

(A CASE STUDY OF DIAMOND BANK PLC, ENUGU BRANCH.)

ABSTRACT

In modern society, economic prosperity and progress depend largely on the quality of leadership. This is true of nation states as it is of individuals or generate among policy makers, corporate executives and investors are largely justified. Leadership is very essential in an organization because achievements and results occur corollary to the traits being projected by the leader. The major aim of every organization is to grow. The relationship between the management and employees has a great impact to that effect. Employees will be expecting to earn higher so as to sustain their living while the management will be expecting employee to work had so as to see that the objectives of the organization is realized. Organizational behaviour is more or less a pure psychology attached to the institutional companies and applicable to achieve organisational goals. It constitutes the activities of an organisation that can be observed by another organisation or by experimental instruments. The research work will focus on the leadership and effects of leadership style, appraisal and organisational behaviour of management and employees. The work is made up of five chapters. In the first chapter we will discuss about the general ideas of leadership, organisational behaviour and its effects on management and employee. In the second chapter we shall look into the literature review, we shall look into various authors who have researched on the leadership styles, appraisal and organisational behaviour of management and employees. In chapter three, we will present research methodology while chapter four will be presentation of data analysis. We shall also interpret the data and test the hypothesis and finally, chapter five will be summaries, findings and recommendation.

CHAPTER ONE

1.1 INTRODUCTION

GENERAL IDEA OF LEADERSHIP

Leadership is a process in which a leader attempts to influence his or her followers to establish and accomplish a goal or goals.

Leadership is the process through which an individual tries to influence another individual or a group of individuals to accomplish a goal. Leadership is valued in our culture, especially when it helps to achieve goals that are beneficial to the population, such as the enactment of effective preventive health policies. An individual with leadership qualities can also improve an organization and the individuals in it, whether it be a teacher who works to get better teaching materials and after school programs or an employee who develops new ideas and products and influences others to invest in them.

Leadership can be exhibited in a variety of ways and circumstances. Mothers and fathers show leadership in raising their children with good values and encouraging them to develop to their potential. Teachers show it in inspiring students to learn and to develop their intellectual capacity. Health care workers can be leaders and develop services that meet the needs of the communities they serve, or work in collaboration with other organizations to create cost effective, prevention oriented programs and services.

Many studies have been done and many books and articles have been published on this subject. Through this work a consistent set of leadership attributes has emerged. An effective leader does most, if not all, of the following:

Challenge the Process—search out challenging opportunities, take risks, and learn from mistakes.

Inspire others to come together and agree on a future direction or goal— create a shared vision by thinking about the future, having a strong positive vision, and encouraging others to participate.

Help others to act—help others to work together, to cooperate and collaborate by developing shared goals and building trust, and help to make others stronger by encouraging them to develop their skills and talents.

Set an example—behave in ways that are consistent with professed values and help others to achieve small gains that keep them motivated, especially when a goal will not be achieved quickly.

Encourage others—recognize each individual's contributions to the success of a project.

Another way of defining leadership is to acknowledge what people value in individuals that are recognized as leaders. Most people can think of individuals they consider being leaders. Research conducted in the 1980s by James Kouzes and Barry Posner found that a majority of people admire, and willingly follow, people who are honest, forward looking, inspiring, and competent

An individual who would like to develop leadership skills can profit from the knowledge that leadership is not just a set of exceptional skills and attributes possessed by only a few very special people. Rather, leadership is a process and a set of skills that can be learned.

The word leadership can refer to: the process of leading. Those entities that perform one or more acts of leading.

Kouzes (2002) states that "Leadership is not a place, it‘s not a position,and it‘s not a secret code that can‘t be deciphered by ordinary people. Leadership is an observable set of skills and abilities. Of course some people are better at it than others."

In general terms, leadership can be defined as the ability to influence the behaviour of others.

This definition can be expanded when considering leadership in organizations to include the fact that the leader exerts influence within a working group in order that the group may achieve group tasks or objectives. (T .Lucy 1997) leadership is an everyday art involving the skill of leading and dealing with people. The success in ruling new dominions is contingent upon both his ability to wield power effectively, and the existence of an opportunistic situation. Problems, which result within organizational members, disagree on both the natures of the goals of which people disagree on both the natures of the goals of which people aspire, and the act of leadership. Leadership, as we use the term refers to behaviour, undertaken within the context of an organisational members behave.

It could be observed that leadership and management envisages deeply into what the organization can achieve if the quality of recognition is accorded to them. Leadership has been propounded to include the sources of influence that are built into a position in an organizational hierarchy.

These include organizationally sanctioned rewards, and punishments, authority, as well as referent and expert power katz and kahn 1966, p.32. It could be seen however, that subordinates within the organization, through not all seem to enjoy the influence that exists all over and above the organization.

Leadership is very essential organization and greatly influences the whole organization because achievements and results occur corollary to the traits being projected by the leader. Leadership includes the ultimate source of power but has that positive ability in persuading other individuals and to be innovative in decision making. According to Bennis and Nanus, many organizations are over managed and under led. The difference is crucial, managed are people who do things right, but leaders are people who do the right things always.

Problems are bound to occur within every noted organisation and decision making is bound to generate conflicts while initiating policies.

People are expected to coordinate. Whatever they are doing to achieve organizational goals. In this light, the notion of leadership act are those which help a grouping meeting those stated objectives (Bavelas 1960:p491).in general terms the acts of controlling other people consists uncertainty reduction ,which entails making the kind of choice that permits the organization to proceed towards its objective despite various kinds of internal and external variables.

The effectiveness of leadership has some characteristics, which include forceful threats, a complete assertion of authority to the subordinates, and a derived, and situational responsibility.

Note that in the society today, not only the presence of rewards (positive and negative), or the incentive appraisal could induce productivity but the feeling of belongingness.

Improper leadership qualities within the organization have a negative impact on the subordinates as well as the achievement of the organizational objective. An organization that has growth and forward looking has a good leadership and vis a vis a bad or deteriorating organization has a bad leadership.

Leadership is always related to the situation. There is a growing awareness that is a continuous interaction between the factors presents in any given situation, including for example, the personal characteristics of the leader, the tasks, the environment, the technology, the attitudes, motivation and behaviour of the followers and so on.

1.2 BRIEF HISTORY OF SIAMOND BANK PLC

Diamond Bank Plc began as a private limited liability company on March 21, 1991 (the company was incorporated on December 20, 1990). Ten years later, in February 2001, it became a universal bank. In January 2005, following a highly successful Private Placement share offer which substantially raised the Bank's equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed on The Nigerian Stock Exchange. Moreover, in January 2008, Diamond Bank's Global Depositary Receipts (GDR) was listed on the Professional Securities Market of the London Stock Exchange. The first bank in Africa to record that feat.

Today, Diamond Bank is one of the leading banks in Nigeria respected for its excellent service delivery, driven by innovation and operating on the most advanced banking technology platform in the market. Diamond Bank has over 7

the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships. And like a diamond, our strength makes us even more valued and valuable. Diamond Bank has won several awards including the prestigious "Most Improved Bank of the Year"- Thisday Newspapers, "Best Bank in Mergers & Acquisition".

We have retained excellent banking relationships with a number of well-known international banks, allowing us to provide a bouquet of world class banking services to suit the business needs of our clients. These international banking partners include Citibank; HSBC Bank; ANZ Banking Group; ING BHF Bank AG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank; Commerzbank; and Nordea Bank Plc.

In 2008, and to ensure we grow with the needs of our customers, we streamlined our operations into three distinct strategic business segments: Retail banking, Corporate Banking, and Public sector.

Diamond Bank continues to develop and to build on its core competencies. By continually cutting from the rough, we have improved our services and our banking facilities. Like cutting from a rough gem to create a diamond of the finest quality, we are proud to have become a gem of a bank.

1.3 STATEMENT OF THE PROBLEM AND SUB PROBLEM

The design of the investigation is to elicit the effect of the different leadership styles in finance oriented and services oriented organization in order to determine its distinct impact on the organizational behaviour of management and employees in the case organization.

SUB PROBLEM I: The purpose of the study is to evaluate the factors of leadership (the traits: intelligence, initiative, imagination, communication, the skills, analytical, diagnostic, conceptual, the status, recognition and the situation) culture in the case organisation with the view to calculate their contribution in attaining organisational objective. (Contribution to efficiency and growth in profit).

SUB PROBLEM II: The object on the inquiry is to ascertain the most favourable leadership style amongst autocratic, democratic, paternalistic, and laissez faire, used in the case organisation to determine its influence on management and employees.

SUB PROBLEM III: The intention of the investigation is to compare the relationship (positive or negative) between leadership and organisational behaviour in the finance and service oriented organisation to identify the effect on work performance.

SUB PROBLEM IV: The purpose of the study is to correlate the leadership style to organisational behaviour of management and employees in DIAMOND BANK to decide the trend and influence of leadership style on the organisational behaviour of management and employees.

1.4 RESEARCH PROBLEM ORIENTED HYPOTHESIS

In aiming to go on with the stated problem of study, the following research problem oriented hypotheses are revealed.

HYPOTHSIS I: Leadership style that display intelligence, initiative and communication traits, analytical, diagnostic and conceptual skills, recognition and situation, contributes certainly to attaining organisational efficiency and growth in point.

HYPOTHESIS II: The leadership style that has no monopoly of authority improves interpersonal relationship that employee oriented determines positive reaction in form of contribution to decision making, punctuality and work to achieve company goals.

HYPOTHSIS III: Positive relationship between leadership and organisational behaviour in the case of organisation will increase the work performance.

HYPOTHESIS IV: Positive correlation between the leadership style and organisational behaviour in and DIAMOND BANK will lead to increase performance to achieve organisational objectives and goals.

1.5 OBJECTIVE OF THE STUDY

Research is basically aimed at determining ones view of related studies at every time.

In the course of studying the aforementioned subject on the leadership style: one will be able to determine those areas where the different types of leadership styles have contributed immensely to organisation goals.

For the purpose of this study, the behaviour of the management and employees can be viewed as endogenous as well as exogenous. The researcher will therefore proceed to express and state those objectives which the study is expected to accomplish. They are as follows:

a. The value of the different factor of leadership (the leaders traits, skills and subordinates reaction, status, recognition and the prevailing situation) in finance oriented as well as service oriented organisation.

b. To critically evaluate the nature of leadership in affecting work performance

c. To determine the effect of leadership style and their basic relationship with organisational behaviour

d. To highlight the adoption of any best leadership style that will suit the organisation for effective productivity

e. To inquire the extent leadership has been affecting decision making and organisational effectiveness

f. To appraise any possible relationship and comparison on the effect of leadership styles on organisational behaviour

Furthermore, the research will assist future researchers in finding possible solutions to the best leadership style after monitoring organisational behaviour found in management and employees in different organisation.

1.6 SIGNIFICANCE OF THE STUDY

The significance of this study is basically a definite scope which will help elicit all the problems and effect of different leadership styles. Also, it will assist in highlighting how management and employees react under stereotyped condition.

In addition, all the aforementioned and determined effects, problems and solutions will be critically viewed to serve as possible recommendations to today‘s manager who may be willing to employ a particular leadership style. It will forestall a better situation for the leader to select best type of leadership system.

1.7 LIMITATIONS OF THE STUDY

In pursing this investigation and study, lots of impediments and obstruction were encountered as the research progressed. All these impediments brought about a conspicuous clause with the research work. They include, lack of relevant data due to poor respondent, time constraint and financial conditions.

Lack of relevant data: The design of the study was negatively affected by the nature of respondent, which was projected by the workers within the case organisation. The non challant attitude of most employees approached, sample of the studying population was discouraging relevant information needed for the research was not made available easily to the researcher while the available information were censored before being allowed to be used.

A. TIME CONSTRAINT: Time was also limited to the researcher in carrying out the study effectively and efficiently. Time constraint was experienced under dual stages. One was with the sample under population study. They either schedule appointment that they cannot meet up with or complain of limited time within their work though they are willing to respond.

In addition, the other was with the researcher. The research is being carried out within limited semester time table, which include the understudy of other aspect of the course being read. This created a situation of not rescheduling meetings for more comprehensive interviews as may have been required.

B. FINANCIAL CONDITION: Financial condition prevailing within the economic system was a serious impediment. This includes transportation fare to and from school to the case organisations. Also that of extracting the essential information either through printing or photocopying of relevant materials. Finance, thus contributed immensely to limit the entire scope of the research.

Although all these obstructions were envisaged and experienced, efforts were made to carry on with the research to achieve the expected and desired result.