TABLE OF CONTENTS

CHAPTER ONE:        INTRODUCTION

1.1                   Background to the study

1.2                   Statement of the problem

1.3                   Aim and objectives of the study

1.4                   Significance of the study

1.5                   Research questions

1.6                   Scope of the study

1.7                   Limitation of the study

1.8                   Study plan

1.9                   Definitions of key terms

CHAPTER TWO

2.1                   Definition of Leadership and Leadership Style

2.2                   Leadership Theories

2.2.1                Great Man/Traits Approach to Leadership

2.2.2                Behavioural Approach to Leadership

2.2.3                situational Approach to Leadership

2.2.4                Fielders Contingency Approach to Leadership

2.3                   Leadership Styles and Behaviour

2.3.1                Leadership Styles Based on the use of Authority

2.3.2                Likert’s Four System

2.3.3                Managerial Grid

CHAPTER THREE:   RESEARCH METHODOLOGY

3.1                   Historical Background of PHCN PLC

3.2                   Research Hypothesis

3.3                   Methods of Data Collection

3.4                   Population and Sample Size

3.5                   Sampling Techniques

3.6                   Methods of Data Analysis

CHAPTER FOUR: DATA PRESENTATION ANALYSIS

4.1                   Demographic Characteristics Analysis

4.2                   Leadership Styles Analysis

CHAPTER FIVE

5.1                   Summary

5.2                   Conclusion

5.3                   Recommendation

References

Questionnaire

CHAPTER ONE

INTRODUCTION

1.1                   Background to the Study

                        The performance of any enterprise or the life spans of an organization, whether large or small is directly proportional to the finality of its leadership. In the light of fact, an organization or community will only succeed, towards the achievement of a group goal, only if the reign of a leader exists. Thus; a leader is someone who has the ability to inspire, motivate and use power effectively and in a responsible manner towards the achievement of a goal considering this, leadership can simply be define as the act or process of influencing people, so that they will strive willingly and enthusiastically towards the achievement of a group goals.

                        Yusuf (2001) argues that the ability of any organization to achieve its desire goals and objectives depends on the nature of its leadership. However empirical evidence has tends to show that leadership plays very significant roles in effective and efficiency of any organization. Ogunsan 91985) and Ochia (1987) admitted in their study that leadership skill were very effective in enhancing performance. Hence, leadership has a significant managerial factors and ingredients in the success of any organization.

Ingredient of Leadership

A.     The ability to use power effectively and in a responsible manner.

B.     The ability to inspire

C.     The ability to comprehend that human being has different motivational forces at different time and in different situation.

D.     The ability to act in a manner that will develop a climate conducive to responding to and arousing motivation.

                        Thus, the move a leader understand what motivate their subordinate and how these motivation operate the better the actualization of a group goal, David Mann (1985) sees styles of leadership as some of the basic requirement for achieving good management, administration and good leadership. Leadership styles may be defined as a designing pattern of behaviour used in integrating both the organization and personal interest in achieving the organization aim and objectives. Furthermore, these styles of leadership are many but three are commonly in used in most establishment; free vein leadership style, autocratic leadership style and democratic leadership style. It is generally believed that good leadership style will increase organizational performance, lower unit cost, high morale sustain and improve management- labour relationship (Nwachukwu 1988).

1.2      Statement to the Study

Over the year, scholar have extensively research on the effective leadership styles in an organization. Prominent among then are Stodgill, Fieldler Likert, Blade and Monton, Tennenbaum and so forth.

Leadership have been seen involving a variety of styles, ranging from one that is highly boos-centered to that is highly subordinate with suggestion that no one style is always right and another is not always wrong in the context of business and services industries to achieve goals. More so, for manager or leader at appropriate leadership styles in an establishment, some situational factors need to be considered. These include position power, task structure and leader member relations.

1.3                   Aim and Objectives of the Study\

                        The aim of this research is to examine critically the impact of leadership style on organizational performance.

                        The objectives of this study are as follows:

1.                     To explain what is meant by leadership style

2.                     To describe various types of leadership style

3.     To examine how leadership styles can improve organizational performance and create good leader member relations.

4.     To make recommendations as to how leadership style can exercise positive impact on organizational performance.

1.4   Significance of the Study

        The importance of the research study is:

1.     It helps to identify leadership style to be put forth by the manager in the organization, to ensure high moral and high performance among the staff of PHCN Plc Ilorin.

2.     The study identifies the advantages and disadvantages associated with different leadership styles under particular condition.

3.     Finally, it point out how motivational forces affects the performance of staff.

1.5   Research Questions

                        It is unlikely that a leadership style that worked yesterday would be successful in today’s administration. Considering this 3 major questions’ what, where & how are being asked.

1.          What is the current situation of the organization? What leadership style is in use? What changes are expected by adopting a new leadership style?

2.          Where are we taking the organization? How much growth do we need? What is the targeted goal? What are the social objectives of the organization?

3.          How can we get there from here? This is the important part of question, as it proffer the leadership style to be adopted which in turn give solution to the above other question asked.

4.          Task structure – how does a task structure affect the subordinate performance?

5.           What are the impact of highly based – centered and their subordinate?

6.          The effect of the degree of freedom granted to subordinate by their leader.

The following research questions are set out purpose of this study.

1.6      Scope of the Study

This research examines the impact of leadership style on organizational performance of power Holding Company of Nigeria (PHCN) formally NEPA, Ilorin between the period of 1999 to 2007 with strict emphasis on administration, marking and distribution section of the organization, as they are the major focus on the achievement of the organization goals.

1.7                      Limitation of the Study

There are certain limitations encountered in the course of carrying out this research they include.

1.     Lukewarm attitude of the officials of PHCN in responding to the questionnaire.

2.     Fears of espionage as all vital information are classified as “TOP SECRET” because of government protocol.

3.     Improper filling of questionnaire by the respondents

4.     Long delays in getting back the filled questionnaire from the respondent as a result of busy schedule at work.

It should be noted, however that the limitations outlined above does not in anyway in validate this  research as sufficient data was obtained through insider friend and good human relation, therefore the research is still valid.

1.7      Study Plan

This research project is divided into five chapters. Chapter one is the introduction, which consists of the background, research problems, aim and objectives, significance, research questions, scope, limitations, study plan and definition of terms.

Chapter two is the literature review, which comprised of definitions of leadership and leadership styles, leadership theories and leadership styles  and behaviours.

1.8      Key Terms

1.     Autocratic: A leader who has complete power and expecting complete obedience.

2.     Amalgamation: To combine or join together

3.     Benevolent: Doing good or being kindliness

4.     Boss: A manager or leader in Chief

5.     Consultative: A state of meeting with someone to exchange idea and opinions (Discussion)      

6.     Decentralized:  The process of moving power/decision making away from a single large group to other small local group.

7.     Democratic: Ruling or leading people through decision by

their group or people.

8.     Dogmatic: Act of being stubborn and forcing opinion on others.

9.     Enterprise: A business

10.   Exploitative: To make use of something selfishly.

11.   Goal: Anything aimed a t or wished for

12.   Impoverished: To make something poor or lesion in quality

13.   Leader: One who shows way on direct or guide or persuade

14.   Leadership: Ability to lead

15.   Manager: Someone in charge of a business

16.   Motivation: To cause someone to act in a certain way

17.   Non Coercive: To cause someone to act in a certain way

18.   Organization: A group of people working together for a purpose.

19.   Participative: To have a share or take part.

20.   Style: Manner of acting

21.   Subordinate: Someone lowers in rank

CHAPTER TWO

LITERATURE REVIEW

2.1                   Definition of Leadership and Leadership Style

The concept of leadership being an important aspect of management in work group has over the years attracted the interest of many scholars and research workers to write a lot on it. They are many but few will be considered.

Burton and Thakur (1995) define leadership “as both a process and a property”. As a process, leadership is the use of non-coercive influence to shape or direct the activities of a group towards group goals. As a property, leadership is the set of characteristics attributed to those individuals who are perceived to use that influence successfully.

Cle (1997) define leadership as a dynamic process of work in a group, where by one individual over a particular period of time and in a particular organization context, influences the other group members to commit themselves freely to the achievement of group tasks or goals.

This definition encompasses important feature of leadership

1.     Leadership is a dynamic influence by the changing requirement of the task, the group itself and individual members. The implication of this is that there is no one “best way” of leading and leader needs to be able to exercise a range of behaviour to maintain their role effectively.

2.     Leadership is no necessarily conferred to one person but may be shared between members. Some leaders are more figureheads; Mintzberg (1973) specifically sees this function a bona-fide management role. The significant is that whoever exercise influence is the leader.

3.     The leadership principal role is to influence the group toward the achievement of group goals in an official group such as product, on team; goals are set mainly if not exclusively by senior management. The leadership task is to gain the group’s commitment to these goals.

4.     Leadership is exercise in and influence by the particular ser of circumstance, which form the organization context. This context. Fieldler (1967) points out some important implication for the degree of power possessed by the leader. Hence, the degree of freedom grant to the subordinates by the leader (Tannenbaun and Schmidt 1973).

Weihrich and Koontz (1984) define leadership as influence that is the art or process or influencing people so that they will strive willingly and enthusiastically towards the achievement of the group goals. Ideally people should be encouraged to develop not only willingness to work but also willingness to work zeal and confidence. Zeal reflects an earnestness and intensity in the execution of work, confidence reflects experience and technical ability.

Nwachukwu (1988) sees leadership as a social influencing process for the attainment of goal. The function of leadership pervades all organization. A leader then is a person with power over others, who exercise the power for the purpose of influencing their behaviour.

Apple by (1994) sees leadership as the ability of management to induce subordinates to work towards group goals with confidence and Keenness. Leadership implies that the leader accepts responsibility for the achievement of the group objectives and it is therefore for trust and cooperation from both side to be in evidence all the time.

Akanni (1987) define leadership as the ability to direct employees in such a way that the goals are achieved. Thus, building morale and motivating employees to work effectively are essential ingredients of sound leadership.

Davis (1942) assessed leadership as the principal dynamic force that stimulates motivates and coordinates the organization in the accomplishment of its objectives.

For Bellow (1959) leadership meant the process of arranging a situation so that various member of a group can achieve common goals with maximum economy and minimum of time and work.

A good leader is one who is capable of persuading other to move enthusiastically towards the achievement of group goals. A leader is the most influential person in an organization because he provides directions, guide group activities and ensure that group objective are attained (1985). Burton and Thakur (19) see leader as those who have ability to influence the behaviour of others without the use of force. Leaders act to help a group attain objectives through the maximum application of its capabilities. They do not stand behind a group to push to accomplish organization goals.

Despite all that has been written about leader and leadership, there seem to be no consensus concerning the primary role of function of leader. House (1971) working on the path goal, approach which suggest that the leader should clarify oaths to goal attainment, identified four kinds of leadership behaviour- directive, supportive, participative, achievement oriented, brief description of the behaviour thus:

Directive leader behaviour include the following

1.                     Informing subordinates as what is expected

2.                     Offering directives on what to do and how

3.                     Establishing schedule for the work to be done

4.                     Maintaining specific standard of performance

5.                     Clarifying the leader’s role in the group

                        Supportive leader behaviour includes the following:

i.                      Making the work and he work environment more pleasant

ii.                     Treating group member as equals

iii.                    Being friendly and appreciable

iv.    Demonstrating concern for the status, well-being and needs of subordinates.

        Participate leader behaviour include:

i.      Getting subordinate involved in decision making

ii.     Consulting with subordinates

iii.    Asking subordinates for suggestion

iv.    Considering those suggestions seriously before making a decision.

        Achievement oriented leader behaviour include.

i.      Establishing challenging goals

ii.     Expecting subordinates to perform at this high level

iii.    Demonstrating confidence that subordinates will perform at high level.

                        Path-goal suggests that the same person can practice different types of behaviours, at different time in very situation.

                        Hence, the approach suggests that there are two basic situational factors influencing how a leader relates to subordinate satisfaction. The personal characteristic of the subordinates and the characteristic of the environment.

                        The most two important subordinate characteristics are (a) Locus of control (b) Perceived ability.

                        Key environmental factors are (a) the task structures (b) the authority system and (c) the work group. The leader behaviour will motivate subordinates if it assists them in coping with environmental uncertainly arising from these three factors.

2.2                   Leadership Theories

Leadership being an important aspect of managing human group activities has called on the attention of many scholars to build-up on it. And many have particularly contributed to the leadership concept through theories and findings. Major theories will be dealt on this research work especially one that outline some basic kind of leadership styles.

2.2.1                Great Man/Traits Approach to Leadership

                        This approach to leadership focused on the traits and characteristic of leadership. It was the early approach that believes that leaders are born and not made.

                        The theory attempts to identify the traits that successful leaders posses so that people could be trained to develop those traits. The approach sought a unique set at traits tat distinguished leaders from their peers.

                        A number of studies were conducted for the search of these characteristics traits. Gary Yukc (1981) summarized the research by identifying the following traits and skills that are found to be characteristic of successful leader. Trait characteristics of successful leaders include; adaptable to situation; alert to the social environment, ambition and achievement oriented; assertive, cooperative, dependable dominant (the desire to influence heirs) energetic (high level activity) persistent, self confidence, tolerant of stress, willingness to assume responsibility. Skill characteristics of successful leader include, clever (intelligent) conceptually skilled (creative), diplomatic and tactful, fluent in speaking, knowledge about the group task, an organized (administratively ability) persuasive and socially skilled.

                        Also of importance was the study conducted by Kother (1982) in which he identified fair categories of personality characteristic of successful leader as nee/motive; temporary (emotionally stable and optimistic) cognitive orientation, Kother (1982) then added knowledge about their business and organizations and relationship, cooperative relationship with many people in their organization and industry.

                        The conclusion drawn by scholars after a review of all the traits is that there is no evidence that universal traits exist. Thus, no particular set of traits could be scientifically established and no traits seem t guarantee leadership success.

2.2.2                Behavioural Approach to Leadership

This approach is aimed at determining those that were associated with successful leadership. It is believe that a leader’s behaviour and the style in which he relates to other people affect his effectives. Research by Misomi etal (1985) shows that successful leadership was associated with three fundamental leadership behaviour. (i) task performance (ii) group maintenance (iii) employee participative in decision making.

i.      Task performance: In this behaviour, if a leadership is to be successful, the leader must get the job done. The most common task performance factors were found to be, fast work speed good quality/high accuracy, high quality and observation of the rules.

ii.     Group maintenance behaviour: maintenance oriented behaviour are those taken by the leader to ensure social stability of the groups to develop and maintain harmonious work relationship and to maximize the satisfaction of group members. The most common group maintenance behaviour observed were directed towards group/member, comfort, stress reduction and appreciation.

iii.    Participation in decision making: A successful leaders knows that employees want to take part in making decisions that will have an impact on their work environment. However, successful leader also known the amount of participation that is possible or desirable and it varies with the situation. Thus, the decision participation dimension of leadership  behaviour can range from autocratic to democratic.

2.2.3        Situational Approach to Leadership

                        Empirical research finding indicates that the situation in which a leader operates shapes his leadership. The performance of leader is to be associated with the situation in which they find themselves. The situation theory to leadership distances the approach t o understanding of leadership.

                        The situational approach beliefs that leaders are the product of given situations. A large number of the studies made confirmed that leadership is strongly affected by the situation from which leader emerge and operates.

                        The emergency of Hitler in Germany in 1930’s the earlier rise of Mussolini in the period after world war II, Emeka Ojukwu, Yakubu Gowon name but a few seem to be tailored to situation. This approach to leadership recognizes that there exist an interaction between the group and the leader. It supports the following theory that people tends to follow those whom they perceived 9accurately and inaccurately) are offering them a means of accomplishing their other personal desire. The leader then, is the person who recognizes this desire and does thing or undertakes these programmes design to meet them.

                        Heresy et al (as Cited in Lisa M. Wolter 201) noted that situational leadership is based on a relationship among of guidance and direction (task behaviour) a leader gives. The amount of social emotional support (relationship behaviour) a leader provide and the readiness level that follower exhibit in performing a specific task, function or objectives. The situational leadership model provides an understanding of the relationship and the level of readiness of followers. Situational approach obviously has much practice and is important for practicing. Thus, manager should consider the situation with which they will design an environment for performance.

2.2.4                Fieldler’s Contingency Approach to Leadership

                        Fieldler proposed a contingency theory of leadership based on the belief that leader effectiveness depends on situation. Leader may be more effective in some situations than in others. The theory holds that to become leaders is not only because of the attributes of their personalities but also because of various situational factors and the interactions between leaders and group members.

                        On his research findings Fiedler identified three critical dimension of the leadership situation that could help to determine how leadership style will be most effective and achievable.

                        Three situation briefly describe here:

a.     Power situation: This is the amount of power that is inherent in the leader’s role itself. Position power is high when leader has the power to assign work and reward and employee.

In the case of manager, this is the power arising from organizational authority. As Fiedler points out a leader with clear and considerable position can obtain good follower-ship earlier than one without such power.

b.     Task structure: According to fiedler, this has to do with extent to which task can be clearly out and people held responsible for them. Task structure has been suggested composed of four Component as follows:

1.     Goal multiplicity – the number of different ways the job can be performed.

2.     Decision verifiability – how well the job provide performance feed back.

3.     Decision specificity – the degree to which the job has an optimal solution or outcome.

4.     Goal clarity – how clearly the requirement of the job is stated (Burton et al 1995)

a.     Leader – member relations: These are those personal relationships that exist between the leader and subordinates. Since position power and task structure may be largely under the control of enterprises. It has to do with the extent to which group members like trust, respect, and confidence reposed in leader and are willing to follow him.

23.                   LEADERSHIP STYLES AND BEHAVIOR

                        This sub – section draws our attention to the classification of leadership style and the attribute of each. Leadership style in accordance to Heresy et al as cited in walter (2001 sees it as a behavior exhibited by the leaders as perceived by the followers. Daviman (1995) sees leadership style as some of the basic requirement for achieving good management, administration and good leadership.

There are many leadership styles but few will discussed in this research work.

(a)  Leadership style based on the use of authority

(b)  Likert’s four system

(c)  Managerial grid

(d)  The situational life cycle model

2.3.1 Leadership Styles based on the use of Authority

                        This leadership style is sub-divided into three (3) basic styles viz: autocratic, democratic and free vein/laissz-faire leadership style

A.                     Autocratic Leadership Style

In this style, the leader commands and expects complaisance. He is dogmatic and very conscious of his/her position. He however leads by the ability to give reward and punishment. Its advantages thus;

1.  It is useful when the subordinates are new on the job and have no experience

It is important in emergency situation when decision must be taken immediately.

It is sometimes useful to increase efficiency when chain of command and division of work is clear.

Disadvantages

It creates problems both within the employee and production in the run due to their resentment and fails to develop the worker commitment to the objective of the organization’s

It brings one-way communication, without feedback, leading to misunderstanding and communication breakdown.

B.                     Democratic Leadership style

This type of leadership style allows the subordinate to participate in decision-making as the leader ultimately consults with subordinate on propose action and decisions.

This type of leader range from the person who does not take action without subordinates concurrence to the one who makes decision by consulting with subordinates without considering their concurrence.

Advantages

It induces confidence

It assures rising performance and satisfaction

It promotes co-operation and loyalty among workers

It results in high employment moral

Disadvantages

It is time consuming in decision-making as different decision is made, which may result to frustration to impatient management.

In this style, some group member’s staff may be alienated if their ideas are not accepted for action

B.                     Free-Rein/Laissz Leadership style

The fee-rein leader uses his or her power very little, if at all giving subordinates to set operations. Such leaders depends largely on subordinate to set their own goals and means of achieving them and they see their role as one aiding the operations of followers by furnishing them with information and acting primarily as a contact with the group’s external environment.

Advantages

It is very useful where people are motivated and achievement oriented

It is highly creative with a fee and informal environment.

It creates an environment of freedom, individually as well as team spirit.

Disadvantages

Some members may put their own interest above, which may result in, disorganized activities, which do lead to inefficiency and chaos.

2.3.2                Liker’s Four System

Likert sees an effective management as strong oriented to subordinate relying on communication to keep all parties working as a unit. All member of the group, including the manager or leader adopt a supportive attitude in which they share in one another’s common needs, values, aspirations, goals and expectations.

Thus likert put forward what is today known as system 1-4 of management.

System 1 Management is described as “EXPLOITATIVE AUTHORITIES” manager.

Here managers are highly autocratic, have little trust in subordinates, motivate people through fear and punishment and only occasional rewards, engage in downward communication and limit decision-making to the top.

                        System 2 Management (“”Benevolent-authoritative”) its manager have  patronizing confidence and trust in subordinates motivates with rewards and some fear and punishment, permit some upward communication, solicit some ideas and opinions from subordinates and allow some delegation of decision making but with close policy control.

                        System 3 Management (consultative managers): In this system there is a substantial but not complete confidence and trust in subordinates, usually to make use of subordinate ideas and opinions, use rewards for motivation with occasional punishment and some participation engage in communication flow both down and up, make broad policy and general decision at the top, wallowing specific decision to be made at lower levels and act consultatively in other ways.

                        System 4 Management (participative group): In this, management have complete trust and confidence in subordinates in all matters, they always get ideas and opinion from subordinates and constructively use them. They also give economic rewards on the basis of group participation and involvement in such area as setting goals and appraising progress towards goals. They engage much in communication downwards and up with peers; encourage decision-making throughout the organization and operate among themselves and with subordinates as a group.

Management scholar argued manager who applied the system 4 approaches to their operation had greatest success as a leader.

It was inferred from the point of view of staff workers that (i) democratic leadership style takes priority in PHCN PLC (ii) in relation to situation, the four system of management are employ by PHCN manager.

2.3.3                MANAGERIAL GRID

In earnest to the definition of leadership style, Robert Black and Dane mouton developed a well known approach called the “managerial grid”.

The managerial grid has two dimensions; concern for people and concern for production.

Concern for people: includes such elements as degree of personal commitment towards goals achievement, maintenance of the-self esteem of workers, placement of responsibility on the basis of trust rather than obedience, provision of good working conditions and maintenance of satisfying interpersonal relations.

Concern for production: Include the attitude of a supervision towards a wide variety of things such as the quality of policy decisions, procedures and process, creativeness of research. quality of staff services, work efficiency and volume of output.

The managerial grid style are divided into five:

(a)    “1.1 style” (impoverished management); Managers concern themselves very little with other people or production and have minimum involvement in their jobs, to all interest and purposes, they have abandoned their jobs and only mark time or acts as messengers, communicating information from supervisors to subordinates.

(b)    “9.9 Style” (Team manager): Manages display in their actions the highest possible dedication both to people and to ncduction. They are real “team manager” who are able to mesh the production needs of:he e: with the needs of individuals.

(c)     “1.9 Style” (country club m2ra Manager, have little or no concern for production but are concernef only for people. They promote an environment in which everyone is relaxed, friendly and happy and no one is concerned about putting forth coordinated effort to acconn1ish enterprise goals.

(d)    “9.1 Style” (autocratic task management:  Managers are concern only with developing an efficient operation, which have little or no  concern for people and who are quite autocratic in  their styles of leadership.

(e)     “5.5 Style” (Middle of the road management): Manager has medium concern for production and for people. They obtain adequate, but not outstanding, morale and production. They do not set goals too high, and they are likely to have a rather benevolently autocratic attitude towards people.

Among the true styles, the 9.9 styles (team manager) is seen to be the best style since it encompasses both production people needs. PHCN PLC managers as well uphold this style in their dealing with job and people.

The current business unit structure shows the name of various positions that has been changed. Formally general manager is now chief operation officer, District Manager now Head of Department, undertaking manager is now services manager.

The new business unit structure starts with the market oversight committee, headed by MD/CE and made up of directors that will advice on issue arising from the new business unit. Next to the market oversight committee (MOC) is the chief operating officer that will report directly to the MD/CE: He will enter into performance contract with management, which indicate specific targets to be delivered. Under the C 00 (chief operating officer) is the planning performance manager and internal auditor. Other company officers responsible directly to the chief operating officer are the Head Technical Services, Head Customers Services, Head Finance and Account; Head administrative Service and Business Manager. Under business manager come account officer, customer services officer and administrative office. Each of these officers has under him/her a number of staff workers.

A critical look of this structure pre-supposes a decentralized management authority. In accordance to Cole 1996 a high decentralized organization is one in which the authority commits people, money and material widely throughout every level of the structure.

The structure was adopted in order to make each of the managers of unbundled distribution zones to have responsibilities than before. The major reasons for unbundling distribution and marketing sectors of PHCN PLC are as follows:

-       The need to improve service to customer by efficient and timely delivery of electricity.

-                       The urgent need to improve base and cash collection.

-       The need to commence dry-run process of the emerging new market ruler.

In conclusion to achieve these, substantial finance and administrative, autonomy must therefore be grated to the filed managements.