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Monday 27 February 2017

THE IMPACT OF LEADERSHIP STYLE ON WORKERS PERFORMANCE IN PRIVATE ORGANIZATION (A CASE STUDY OF CHISCO TRANSPORT COMPANY LIMITED



CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK


2.1   Introduction

This chapter deals with the review of studies and literature of various researchers and authors pertaining to the topic which offers some insights into the qualities of successful leadership style.  Every leader in every organization performs certain roles/tasks for the smooth running of the organization and improvement of organizational performance. The manner the leader performs these roles and directs the affairs of the organization is referred to as his/her leadership style. Leadership style therefore is the way a leader leads. Some leaders are more interested in the work to be done than in the people they work with while others pay more attention to their relationship with subordinates than the job. Whether a leader emphasizes the task or human relations is usually considered central to leadership style Akpala (2015).


2.2 Concepts of Leadership Style

Leadership is a concept that originally developed in folk psychology to explain social influence on groups Bass (2006).  Many people believe that leadership is simply being the first, biggest or most powerful. Leadership in organizations has different and more meaningful definitions. Very simply put, a leader is interpreted as someone who sets direction in an effort and influences people to follow that direction.

Leadership is the process by which a person exerts influence over people and inspires, motivates, and directs their activities to help achieve groups or organizational goals and performance Ashibogwu (2008).  Therefore leadership is the ability to influence a group towards the achievement of goals.

The source of this influence may be formal as a result of one possessing a managerial rank in an organization or informal such as non-sanctioned leadership, which is the ability to influence that arises outside the formal structure of the organization. The informal structure of leadership is as important if leadership is the result of the interaction among leaders, the followers and the leadership situation. The leadership process contains all these elements Keller (2006).


Leadership generally is regarded as essential to group and organizational performance. Thus, leadership contributes significantly in the success and failure of organization. It tends to be based on position, authority and seniority; for example, commitment is highly associated with loyalty to the top boss Rowe (2011). Effective leadership style in organization, therefore, creates vision of the future that considers the legitimate long term interest of the parties involved in the organization to develop a strategy for moving forward towards that vision enlists the support of workers to produce the movement and motivates employees to implement the strategy Taffinder (2006).

Amin,  (2008) identified several leadership classifications systems. First, it is the exploitative approach, which manages all decisions and informs subordinates of them. Secondly, it is the benevolent autocrat who employs a paternalistic approach to leadership. Thirdly, it is the consultation style, where the manager asks subordinate for input in decision-making and typically exercises general rather than close supervision. The participative style totally integrates workers in the decision making process. Leadership and supervision by supervisors is presumed to be necessary in order to initiate structure and direct subordinates towards organizational performance David and Andrzy (2007).
 
2.3  Theoretical Framework
Various leadership paradigms have been used to describe leadership and leadership style. Leadership paradigm has changed over the last decades; it has transited from the traditional leadership to the new perspectives. Goleman  (2012) categorize trait, behavioural and situational or contingency theories under traditional leadership perspectives, and charismatic and transformational leadership theories under the new leadership perspectives. The focus of all theories on leadership is to determine organizational effectiveness and performance.
  

2.3.1 Great Man and Trait Theories

The great man theory is based on the idea that leaders are born with innate, unexplainable leadership skills, which cause other people to see them as heroes. It is based on the opinion that leaders are right and leadership is rooted in the authority of their righteousness.  Leaders are elevated by their followers on the ground of their unique qualities that others do not have. As a result,   followers   do   not   doubt   their   leaders Hayward (2005).

Trait theories are based on great man theories. Trait approach to the understanding of leadership perceives leadership as the core of organization effectiveness and performance. Like the great man theories, trait perspective assumes that great leaders are born with distinguished traits/characteristics that make them different from other people. According to Ashibogwu (2008), researchers like Stogdill (2014), in his quest for the secret of great leaders, review many research reports on leadership, based on the assumption that great leaders are born. Glantz (2014) indicate that Stogdill (2014) found that leaders were a bit more intelligent, outgoing, creative, assertive, responsible, taller and heavier than average people.

However, these differences in traits could not provide a solution to the search, as the list was found to be statistically insignificant. Thus, Stogdill (in Glantz 2014) concluded that a person does not become a leader because of a combination of traits since the impact of traits differs according to situation.

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