Question

IMPACT OF LEADERSHIP STYLES ON ORGANIZATIONAL PERFORMANCE IN BANK

. Introduction

1.1 Back ground of the study

1.2 Statement of the Problem

1.3 Aims and Objectives of the study

1.4 Scope of the Project

1.5 Focus of the Study

1.6 Significance of the study

1.7. Hypothesis

1.8. Research Questions

1.9. Research limitations

1.10 Outline of Project Report

Answer 1

1.INTRODUCTION & DEFINITION OF LEADERSHIP::

Leadership style is a key determinant of the success or failure of any organization. A leader is person who ,influences directs, and motivates others to perform specific tasks and also inspire his subordinates for efficient performance towards the accomplishment of the stated corporate objectives. Leadership style is the manner and approach of providing direction, implementing plans, and motivating people.

Leadership is a critical management skill, involving the ability to encourage a group of people towards common goal. Leadership focuses on the development of followers and their needs. Managersexercising transformational leadership style focus on the development of value system of employees, their motivational level and moralities with the development of their skills .It basically helps followers achieve their goals as they work in the organizational setting; it encourages followers to be expressive and adaptive to new and improved practices and changes in the environment .

According to Michael (2011) leadership has a direct cause and effect relationship upon organizations and their success. Leaders determine values, culture, change tolerance and employee motivation. They shape institutional strategies
including their execution and effectiveness. Leaders
can appear at any level of an institution and are not exclusive to management. Successful leaders do, however, have one thing in common. They influence those around them in order to reap maximum benefit from the organization’s resources, including its most vital and expensive.In recent times, many organizations in the Nigerian banking industry, have recorded cases of immoral and unethical banking practices, gratifications high labour turnover, inability to meet basic required obligations, and incessant financial distress syndrome, which has led to many banks being merged and acquired. This may be as a result of lack of effective leadership. The prime motive of many organizations is to achieve its stated objectives, hence the need to effectively coordinate and motivate the workers by an effective leader. Unfortunately some organizations do not take cognizance of the leadership style adopted by their managers. It is on this premises that this research work set out to examine leadership style and organizational performance in GTBank Plc, Sokoto Nigeria.

This research examined the relationship between leadership styles of managers and the effect of the leadership style on workers performance in GTBank Plc, Sokoto Branch. For this purpose data was collected from three (3) branches of GTBank plc, in Sokoto. Quantitative method of social research was used in conducting the research as such questionnaire was administered in collecting information from the respondents. The result that emerge from the research indicate that the X2 = 89.2 for hypothesis one and X2 =90.2 for hypothesis two. Therefore, the researcher recommends a more cooperation to foster among stakeholders and employees and also, they should set up a quarterly meeting to get leadership feedback. Finally, the researcher recommends that managers should adopt a good transactional leadership
style to boost the morale of workers which will in turn improve their productivity and performance.

1.1 BACKGROUND TO THE STUDY
There is hardly any conversation today in Nigeria that doesn’t begin with the word “leadership”. Leadership in government, organization, mosque/churches and even in schools and family. There are also leadership issues being discuss in
several parts of world today. Government has fallen and an organization has fail due to bad leadership and issue of failed banks in Nigeria. There cannot be leadership without followership.

For every organization who wants to remain and wax stronger in a global market competitive environment must engage the service of good leaders. The effective leadership style certainly improves workers and organizational productivity. Ojokuku, Odetayo and Sajuiygbe (2012) confirmed that leadership style is the major determinant of any organization success especially in Nigerian banks.

Researches (Luchak and Gellatly, 2007 and Paré and Tremblay, 2007) revealed that organizational commitment is positively associated with work efforts organizational performance and negatively related to absenteeism and employees turnover. Bass (1985) described transformational leadership style as a systematic way by which subordinates or fellows praise and appreciate their leaders. Resultantly, this style enhances their motivational level, which leads to organizational productivity. While Ivey and Kline (2010) stated that,Transactional leadership is characterized by leader-follower exchanges, whereby Leaders exchange things of value with followers to advance both the leaders’ own and followers’ agendas”.

Banking sector is an engine of economic growth and development globally, Nigeria inclusive. Ebong (2006) observed that the banking sector promotes economic growth through its role of mediating between the economic units that
have surplus funds and those that require such funds to support their investment. He pointed out that “By pooling together such savings, banks are able to achieve economies of scale with beneficial effects for their borrowing customers”. However, for the Nigerian banking sector to play its vital roles of development in the economy, the need for effective leadership that subscribes to proper business ethicsis fundamental.

Guaranty Trust Bank Plc (GTBank) is a foremost Nigeria’s financial institution incorporated as a limited liability company licensed to provide commercial and other banking services to the Nigerian public in September 1990. The bank commenced operations in February 1991, and became a publicly quoted
company in 1996 (GTB, 2013). Presently, the bank has employs over 5,000 people in Nigeria, Cote d'Ivoire, Gambia, Ghana, Liberia, Sierra Leone and the United Kingdom (GTB, 2013). Despite the high numbers of workers they have in GTBank, it’s not certain on how leadership style affect their worker’s performance.It is therefore, indispensable to study transactional and transformational leadership styles and their impact on Nigerian banks worker’s performance.

1.2 STATEMENT OF THE PROBLEMS
Most of the researchers emphasized on transformational leadership but some also gave importance to transactional leadership. Egan, Sarros & Santore (1995) articulate, transformational style is more effective than transactional style, regardless of organizational type, method adopted by a leader is based on his personal ability, preferences and experiences. But organization’s output is negatively affected by the transactional leadership, (Bass, 1999). Howell &
Merenda, (1999) conducted their research on association between leader-member exchange, transactional and transformational leadership in forecasting employees
performance and concluded that transactional leadership style is a positive predictor of follower’s performance. (Bass, Avolio, Jung, & Berson, 2003) carry out their research for military platoon which was an organization, working in an
unstable environment and it proves that transactional leadership increases performance among the soldiers. Transactional leadership style is relatively weakly and associated with performance and is optimistically related to perception of organizational politics (Gadot, 2007). While investigating the effect of leadership on organizational performance in Russian companies, (Elenkov, 2002) observed
that in Russia managers who adopt transactional leadership behaviour positively correlates with organizational Performance and innovation.

Participative leaders increase employees’ performance by using the motivational mechanism of organisational commitment (Sashkin, 1976). The provide subordinates with an opportunity to be involved in and exert influence on the decision making process (Somech, 2005). Consequently, active participation promotes involvement and commitment, because subordinates develop a greater trust in and rise to a higher level of acceptance of information identified by them
(Armenakis et al., 1993; Fullan,1997).Some scholars argue that a decision is only as good as its implementation and those who participate in making it are usually highly committed to make it fruitful (Robbins et al., 2008). Those subordinates who perceive their leaders as adopting participative leadership behaviour are more committed to their organizations, more satisfied with their job and maintain highperformance levels (Yousef, 2000). Therefore, the ability of leaders to correctly use a participative leadership style motivates subordinates to commit themselves to the  organization. Yiing and Ahmad (2009) also found that participative leadership style is significantly and positively related with organizational commitment. Other scholars also revealed that this leadership style has a positive effect on the
commitment of subordinates to the quality of service, share values and the clarity of the employees’ functions (Dolatabadi and Safa, 2010). Furthermore, other scholars argue that this leadership behaviour influences the job performance of
subordinates by creating high levels of trust (Huang et al., 2010).In spite of this, the effects of managerial leadership styles have not been fully examined in most banks. This research intended to examine if other managerial styles of leadership are still applicable and effective in banks today
apart from the most common democratic, transformational, and transactional leadership that are been practice or seen in most banks, which is a gap that this research attempts to fill. The researcher designed a study to assess the impact of
leadership styles on worker’s performance in Guarantee Trust Bank Plc, Sokoto branch.

1.3 RESEARCH QUESTIONS
In the course of this research, effort was been made to gather available data to find answer to the following research questions::

1. What is the relationship between a leadership style of a bank managers and bank worker’s performance in Guarantee Trust Bank?

2 What style of leadership does the manager of Guarantee Trust Bank apply?

3 What is the effect of the styles they adopt on workers performance?

1.4 AIMS AND OBJECTIVES
This study aims at addressing key questions by examining the various leadership styles in a banking setting especially Guarantee Trust Bank Plc, Sokoto branch.
The specific objectives are outlined below:
1. To identify the kind of leadership style Guarantee Trust Bank managers apply.
2. To examine the relationship between a leadership style of the manager and worker’s performance in Guarantee Trust Bank.
3. To examine the effect of the leadership style on workers performance in Guarantee Trust Bank.

1.5 RESEARCH HYPOTHESES
The following hypotheses have been formulated to serve as a speculative guide for my research.

H0: There is no significant relationship between the leadership styles of a bank manager and worker’s performance in Guarantee Trust Bank.

H0: There is no significant relationship between the leadership style the manager apply and the workers performance.

1.6 SIGNIFICANCE OF THE STUDY

The study become necessary, because leadership style has becomes a serious issues in our society. Given the important role of banking in our economies such as the Guarantee Trust Bank plc, it is important to assess if the normal effects of the different leadership styles hold. As one of the major problems affecting our bank workers and our economy at large, the findings will serve as guidelines for bank managers to improve on their leadership style as a means to have a stable and long firm with a good leader who can inspire its followers. It can also be useful in shedding more lights on the impact of leadership style on worker’s performance in
our banking sector and our society at large.It is therefore, so imperative to conduct this study for it to extend the frontier
of knowledge by bring out facts for social scientist, managers, officials and any other agency so as to get solution to the problems of leadership in terms of their
leadership style they adapted. Finally, future researcher can use the end product of this work as a reference
for future studies of related subject matter.

1.7 SCOPE OF THE STUDY
The scope of this study is to cover the influence of leadership and leadership styles on the performance of employees in the banking industry in Nigeria.

The research work will focus mainly on the impact of leadership style and how it affects the performance of the workers. The study also aims at using Guarantee Trust
Bank for the sampling of opinions. The field survey shall be conducted in Sokoto because it is closer to access.

1.8 OPERATIONALISATION OF CONCEPTS:

​​LEAD: To show the way.
LEADERSHIP: A person who leads or commands a group.

LEADERSHIP STYLE: Is the leader’s style of providing direction, implementing plans, and motivating people.
MANAGER: somebody who is responsible for directing and controlling work and staff of a business, or of a department within it.
MOTIVATION: The act of providing with a reason to act in a certain way.
PERFORMANCE: Is the fulfilment of an obligation or the accomplishment of a given task.
WORKER: An employee of a person, company or organization.
WORKER’S/EMPLOYEE’S PERFORMANCE: Is the job related activities expected of a worker and how well those activities were executed.

SUMMARY OF FINDINGS
Going by the findings of the research, the major findings can be summarized as follows:-
1. Majority of the total population were young men and women who were on their under 40 years and also, majority of them are men.

2. Over 70 percent of them are regulator worker of GTBank Plc Sokoto branch while few are newly employed.

3. The research signifies that managers of GTBank Plc, Sokoto branch are conversant with transactional leadership style.

4. The research also shows that most of the workers agree that their performance is limited by poor leadership of their supervisor.

5. Also, the research reveals that majority of the workers agree that their supervisor is a team player.

CONCLUSION
Conclusively, it can be said that leadership style on workers is not a recent phenomenon. It is as old as the emergence of an organization. Also, this study has shown that “there is a significant relationship between the leadership styles of a bank manager and worker’s performance in Guarantee Trust Bank Plc, Sokoto Branch”. It is equally obvious that “There is a significant relationship between the leadership style the manager apply and the workers performance among workers of GTBank Plc, Sokoto Branch”.

On the whole, leadership styles are very important to the well being and development of any bank or organisation because it allow progress and improve workers performances. Therefore, there is need for a manager to access it workers and choose the appropriate leadership style that will enhance its workers
performance.