THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEES PERFORMANCE IN THE OIL INDUSTRY (A CASE STUDY OF AGIP OIL COMPANY)
ABSTRACT
The purpose of this study was to identify the impact of leadership style on employee’s performance. It sought to investigate the different leadership styles and the degree of influence they would have on employees. Management involves the process of achieving goals and objectives through the effective and efficient use of human resources. The human factor of the organizations is regarded as the simple most important resources of management. Organizations would benefit immensely if adequate consideration is given to the processes or methods in which employees could be motivated towards achieving improved work performance. As documented in literature, many leadership styles exist and there is confusion in determining the most suitable styles for leading employees to achieve their desired level of performance or goals in their respective organizations. This research work carefully looked at the impact of leadership style on performance of employees in selected oil companies in Port Harcourt, Rivers state. Based on the findings of this study, it is recommended that leaders should consider the situations, the nature of the employees, his feeling and the type of goals assigned to him or her before choosing any leadership style.
CHAPTER ONE
1.1 THE BACKGROUND OF STUDY
Since years back, leadership and its special role in corporation has received quite a wide spread research attention. Irrespective if many decades of broad and careful study, numerous questions remain unanswered.
Leadership covers a very conspicuous position of group or organizational conduct. It is the heart of an organization, which without; organization or group cannot properly function. It is obvious, that leadership ensures orderliness in an organization when an economic venture is undertaken by an organization with a view to maximizing economic opportunities it calls for person to supervise, direct, control, and co-operation to ensure effectives. This point to the role of leadership in an organization.
Leadership cannot be completely delineated from management, though the former can be spoken of in relation to unorganized groups, while the later exist in an organized structure. At the same time most effective manager is a leader, and understands how leadership function is key towards understanding management itself. Montgomery (1960) define “leadership as the capacity and will to rally men and women to common purpose and the character which inspires confidence”
Furthermore, leadership as been defined in term of “ability to influence” that is simple but profound, a person may have a position of leadership, if he is not affecting thoughts and action of others, he is not a leader, however, the underlying in leadership are power and authority or the rights bestowed on the leader’s position to make decision, assign task to subordinates.
Maxwell (1960) likened leadership to an open umbrella held by a hand; the hand of the leader of that organization. Under the protection of that umbrella are all the department of the organization. The success of each department can never, will never raise any higher leadership set standard, whether the organization is a business, a church, or a family. The higher the standard the more effective the leadership. Thus, in the sense leadership is not the activity of a single individual worker can meet the tremendous demand of achieving the objective of the organization alone. Individual workers cannot be separated from the whole (organization) though individual leadership is important yet cannot be separated from the whole organization.
In addition, the studies on leadership so far, have confirmed that there is no single basic pattern of abilities and personality traits characteristics of all leaders.
Macgregor .O. (1960:180) stated that “personality characteristics of the leader are vital, but those which are essential differ considerably depending on circumstances. Even without a single institution such as industry, different circumstances require different leader’s characteristics. The leadership requirement by a young growing company for example are different functions (sales, finance, production, etc) demand rather different abilities and skills of leadership.
To crown it all, the essence of this to fine out the effect of leadership style on employee performance. The extent in which effective leadership is synonymous to the survival of business or organization. However, this study will enlighten managers to be effective leaders and not leader by position rather disposition. And how to be employee oriented: go to their employee, connect, find common ground, and empower them to succeed so as to achieve the organizational set goals.
The impact of using unstable leadership style in a situation can be grievous. This has reduced the moral of many employees and even made them vow never to take introduction from such managers again. These therefore, are problems I believe if not checked might result in disastrous, disintegration, disharmony and chaos in the organization.
1.2 STATEMENT OF THE PROBLEM
Poor leadership style in an organization results in effective employee performance. The oil sector, which should be the main driver of the economy. Makes minimal contribution to country gross domestic product, has turned to be disastrous effect on the nation, many of participants blame the poor leadership in the oil sector.
Why as 50years of oil export not transformed Nigeria into an industrial giant? Why as its massive oil wealth not banished mass poverty amongst its citizen? Why does the world 14th largest oil producing country still import fuel and petrochemicals: why it is that Nigeria is the only country were the oil producing communities lack infrastructure, school; healthcare facilities and employment (Tajuidee suleman 2004). The reason according to oil industry expert: and a stakeholder is failure of leadership. Nigeria is the only oil producing country in the world was illegal oil bunkering and smuggling is an issue. Because of ineffective leadership style in the organization.
Therefore, due to problems of bad leadership in the organization, the organization as suffered both internally and externally. Internally, on the employee’s performance. Externally, on the country’s economy. However, the impact of using unstable leadership style in a situation can be grievous.
This has reduced the moral of many employees’ and even made them vow never to take instruction from such manager again.
1.3 OBJECTIVES OF THE STUDY
The objective of this study is to:
To examine the impart of leadership style of employee’s performance
To identify the appropriate leadership style to use in different situation in the organization.
To evaluate effective leadership as the determinant factor of achieving organizational goals.
To measure good leadership and its influence on the employee’s performance.
To examined the impact of motivation as the tool for improving employee’s performance
1.4 RESEARCH QUESTIONS
The following research questions will be appropriate to this study.
What are the impacts of leadership on employee’s performance?
What are the appropriate leadership styles suitable in different situations in the organization?
How does effective leadership determine the achievement of the organizational goals?
How can we estimate or appraise good leadership and its influence on the employee performance.
How can employee be energizing so as to improve their performance.
1.5 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 oil companies in River state and attainable remedies to these problems. Those in other parts of the country will therefore achieve from this study the private and public sectors firms also are not exempted from these achievements and will find this study relevant since they experience nearly similar type of environment.
The study will also assist potential business investors on the basic issues of how to effectively and efficiently utilize the human resources in their organizations
Scholars and researchers with ensure interest on this area of study will as well as find this work relevant. However, leadership subsumed under management effort is substantial and cannot be criticized.
1.6 SCOPE AND LIMITATION OF THE STUDY
Oil companies operating in River State were selected for this important study with special preference to those in Port Harcourt.
Respondent sort for are line managers, supervisors and personnel managers since they perform the leadership roles in organizations.
The study is limited to only oil firm in Port Harcourt, due to most of oil companies in Nigeria and other related organizations are located in port Harcourt. In course of this study many constraints were encountered, most notably are financial and time constraints.
1.7 OPERATIONAL DEFINITION OF TERMS
LEADERSHIP STYLE
As use in this study, implies the way which influence process is exercised. It is the characteristics ways in which the leadership relates to his subordinates or employees.
EFFECTIVENESS
This implies the ability of an organization in achieving its objective. It is doing the right thing.
EFFICIENCY
This is the optimum level o9f a given resources which the organization may fully utilize to produce a given unit of output/ waste. However, it is act of doing things right.
EMPLOYEE PERFORMANCE
This is the employee’s behavior directed towards the requirement of the job as well as productivity and profitability of the organization. It involves the employee utilized potentials towards attainment of the organizational goal.
GOAL CONGRUENCY
This is as used in this work refers to the agreement of employer and employee to wards the achieving the goal of the organization. It is harmonious activities between the organizational policy and the employee so as to obtain the required targets.
ORGANIZATION
This is the coalescing of sub-system so as to achieve specified objectives. It is a system of critically co-ordinate activities of two or units.
SITUATIONAL LEADER
As used in this study mean leadership styles depending on the circumstances that arise at particular time in a given organization so as to attain the organizational target. “Situational leaders give direction because circumstances demand it”, stand George Bama (2002). However, circumstance is more often the entry level mind set of the situational leader.
PLAN OF WORK
This was arranged or organized sequentially as follows: chapter one covers the interdiction, the background of study, statement of the problem, objective of the study, research questions were formulated to guide research in the study. Whereas, chapter two encompasses the literature review, where the concept of leadership, use of the theories and principle in understanding leadership, the trait approach to leadership, situational approach to leadership, behavioral approach, basic leadership style, the choosing a leadership style, the termination of leadership style, the leadership continuum, managing sub-ordinate in organization, the concept of performance and contribution of other aspects were used to enriched the chapter. The summary was drawn.
In chapter three, research methodology and design was stipulated. The population of the study, sample procedure, sample size, method of data collection, and instrument of the study and the validation of the instrument were also explained.
Furthermore, chapter four focus on the data analysis and interpretation of result, and analysis of respondents as wall as the summary of the chapter.
THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEES PERFORMANCE IN THE OIL INDUSTRY (A CASE STUDY OF AGIP OIL COMPANY)