IMPACT OF LEADERSHIP SYLE ON EMPLYEES PRODUCTIVITY. A CASE OF NTARIKON COOPERATIVE

Abstract

The major objective was to investigate the effects of leadership style on employee’s performance. The specify objectives was Examine the effect on each leadership style on employee performance and make recommendation. For this study four kinds of leadership styles where used and there include autocratic, laissez fair, democratic and transactional. There was a cross survey and the population for the study was the management and employees of NTARIKON COOPERATION with a sample population of 30 employees. Data was collected in the form of questionnaire and analyzed using descriptive and regression analysis. The findings shows that leadership style has a significant influence on employees performance  In respect to the above conclusion, leadership style has a significant effects on employees performance and  democratic leadership style in particular  in NTARIKON COOPERATION could further empower their employees by developing team and according some measure of power and authority to their employees, in this way, employees could ignite their potentials, feel part of an organisation and perform maximally for the organisation This will ensure better organizational results.

Also, large organizations should know who leadership style is best at and particular time and on the type of employees hence there is a need carry out more research on the effects of leadership style on employee’s performance.Key words: leadership style, employee’s performance 

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background to the Study

It is impossible to overstate the significance of effective leadership in a company. Organizations and governments that are successful and those that are unsuccessful are distinguished by their leadership. It is critical in providing direction and a sense of purpose in order to achieve the organization’s mission and goals. It also plays an important role in the social relationships that exist between groups at work. Group behavior is primarily determined and shaped by the actions of those in positions of leadership. When correctly implemented, each employee experiences a strong sense of commitment to the achievement of organizational objectives. Regardless of the equality of its members, every group will tend to have a system in which it will have a leader at the helm of the ship.

Organizational objectives, on the other hand, will never be achieved unless the appropriate leadership style is in place. It is important to remember that the effective performance of an individual employee is a function of both his or her personal characteristics and the environment in which he or she works. A thorough evaluation of an employee’s knowledge, skills, experience, attitude, and motivation will result in the highest possible level of productivity and efficiency on the job. Because leadership is concerned with the human resource element, it serves as the foundation for the effective utilization of material resources in an organization through the development of individual skills, knowledge, and ability in a given organization.

The globalization of businesses and the numerous challenges they face in order to achieve their goals and be more successful than competitors characterize today’s competitive environment. It has captured the attention of researchers for many years, but they have been unable to settle on a single definition. Leaders play a critical role in the achievement of these goals and the enhancement of employee performance through their satisfaction with their jobs. Many researchers have concentrated their efforts on various aspects of leadership. According to Mintzberg (2010), leadership is the key to building trust by earning the respect of others and demonstrating it. According to Raelin (2011), leadership is directly related to the practice to which the majority of people devote their time and energy.

It was during this period that the first attempts at leadership research were made, which was influenced by the scientific management precept that there is “one best way” to accomplish a given objective. Additionally, the notion that leadership is a fleeting quality possessed by “great men” whose personal characteristics made them “natural leaders” was prevalent. Instead of attempting to comprehend leadership style, the research team sought to identify the characteristic that distinguishes leaders from followers, as well as ineffective leaders from effective leaders, as a starting point. As research revealed that personality traits and intelligence play only a minor role in leadership effectiveness, this line of inquiry began to fade in importance (Bass, 2008).

A simple definition of leadership is a process of exerting influence over the activities of an individual or a group in order to achieve predetermined goals. An organization’s lifeline is the person who provides it. Douglas McGregor’s theories X and Y are based on the belief that a leader’s attitude toward human nature has a significant impact on how that person behaves as a leader and how that person’s attitude affects the employees who work for him or her. Although it is important to note that no single leadership style is likely to be effective in all circumstances, leadership styles do vary depending on the environment and circumstances in which they are used.

Instead of focusing on a single leadership style, leaders can adapt their approaches based on three factors: the leader’s own forces, the forces of the subordinate, and the forces of the situation itself. An effective leader is defined by his or her ability to manage and withstand the forces that surround him or her, as well as their ability to effectively utilize human and material resources to achieve organizational objectives. McGregor made it clear that the expectations of leaders and the performance of subordinates are closely related. As he goes on to explain, when leaders have high expectations of their employees, they are more likely to be productive.

1.2 STATEMENT OF THE PROBLEM

One of the issues that the researcher has observed is the inflexibility of the leadership style exhibited by the majority of organization managers. They are unable to adapt their leadership style in response to shifting circumstances and business environments. This failure is the result of a lack of understanding of the fact that no single style of leadership can be applied to all situations and that leaders must be adaptable in order to allow for change.

Another issue that is closely related to the first is the failure of administrators to take into account the current situation when leading their subordinates. They make the mistake of allowing the circumstances to dictate the type of leadership style to be used.The absence of an effective line of communication between administrators and their employees is another issue to consider. Many organizations are concerned about the communication gap that exists between leaders and their subordinates, because effective leadership is predicated on the communication patterns of both managers and their subjects.

For the reasons stated above, leaders lack managerial experience in terms of ensuring that employees are motivated, and an insufficient level of motivation contributes to employees’ inefficiency and effectiveness.

1.3 Research Questions

1.3.1 Main Research Question

1. What are the effects of leadership style on employee productivity?

1.3.2 Specific Research Questions

From the above, the study seems to attempt to provide answers to the following research question.

1. What is the effect of autocratic leadership style on employee productivity?
2. What is the effect of democratic leadership style on employee productivity?
3. What is the effect of laissez-faire leadership style on employee productivity?