THE EFFECT OF LEADERSHIP STYLES ON WORKERS’ PRODUCTIVITY (A STUDY OF CADBURY NIGERIA PLC)
This research work tends to examine the effect of leadership styles on workers’ productivity with special reference to Cadbury Nigeria Plc.
Survey design was adopted and research questionnaire was used to gather data from respondents.
A sample of one hundred (100) was drawn from the population with the simple random sampling technique. Questionnaire was administered to the sampled staff of Cadbury Nigeria Plc.
Three research hypotheses was formulated and tested with the use of Chi-square technique.
The analysis resulted into rejecting the three null hypotheses and accepting the alternate, thereby concluding that there is relationship between leadership style and productivity; there is relationship between leadership style and labour turnover and there is relationship between leadership style and subordinate behaviours.
Suitable recommendations were proffered the management of Cadbury Nigeria Plc.
TABLE OF CONTENTS
Title Page i Certification ii
Table of Contents vi
1.0 Introduction 1
1.1 Statement of the Problem 2
1.2 Purpose of Study 3
1.3 Research Questions 3
1.4 Research Hypotheses 3
1.5 Significance of Study 3
1.6 Research Methodology 3
1.7 Scope of Study 4
1.8 Limitations of the Study 5
1.9 Definition of Terms 5
1.10 Historical Review of Cadbury Nigeria Plc 5
2.0 Introduction 8
2.1 Theoretical Framework and Concepts in Organizational
Behaviour and Performance. 8
2.2 Theories of Leadership 15
2.2.1. The ‘Trait” Approach 15
2.2.2 The Human Relations/Behavioural Approach 16
2.2.3 The Situational Approach 20
2.2.4 Contingency Model of Leadership 21
2.3 Leadership Styles 23
2.4 Organizational Behaviour and Motivation 24
2.4.1 The Behavioural Theories 25
2.4.2 Motivational Theories 31
2.5 The Impact of Leadership Styles on Organizational Performance 36
2.5.1 Leadership Style and Climate 37
2.5.2 The Organizational Performance 42
2.5. Leadership Approaches in Cadbury Nigeria Plc. 44
2.5.1. Background 44
2.6.2 Leadership Styles 46
2.0 Introduction 48
3.1 Area of Study 48
3.2 Population of Study 48
3.3 Sample Size 48
3.3 Methods of Data Collection 49
3.5 Research Instrument 49
3.6 Methods of Data Analysis 50
PRESENTATION AND ANALYSIS OF DATA
4.0 Introduction 51
4.1 Presentation of Data 51
4.1.1 Respondents’ Characteristics 51
4.1.2 Respondents’ Views/Responses 53
4.2. Analysis of Data and Hypothesis Testing 58
SUMMARY, CONCLUSION, AND RECOMMENDATION
5.0. Introduction 66
5.1. Summary of the Study 66
5.2 Conclusion 67
5.2.1 Recommendation 67
1.0 BACKGROUND TO THE STUDY
Two related concepts that are often used synonymously are ‘leader’ and ‘manager’. Allowing some fine conceptual details, a leader concentrates on providing the vision with which a group is led into achieving agreed objectives, and a manager is simply someone who implements a vision handed down to him using agreed or ingenuous methods. Thus, leadership is proactive whereas management is executing and at best reactive. The implication of this subtle distinction is that managers must acquire and utilize leadership skills for effectiveness.
Leaders are individuals who have authority over others and are responsible for guiding their actions. These are people who engage in the traditional management practices such as planning, organizing, decision-making and controlling. Leaders are evaluated according to their ability to achieve organizational goals. Regardless of environmental constraints, they are praised for successes and blamed for failures.
The managerial roles set include all the significant other persons who must relate to the manager in the course of carrying out the business of managing. The set us a very large one comprising of superiors, subordinates, peers, visitors, clients, and the entire society at large.
Leadership is one aspect of the leader’s role that concerns the ability to personally influence people in his role set to accomplish specific tasks. Fajana (2002).
The ability of an individual to influence the thoughts and behaviour of others is recognised as leadership. A leader’s position may be formal or informal, depending on the structure and nature of the group. Cole (1993).
Various propositions and theories of leadership abound. These include:
Traits Approach, that asserts that the ability to lead is an innate characteristics and the personally traits exhibited include initiative, decisiveness, self-assurance, assertiveness, intelligence, dressing, statue and physical appearance.
Human relations approach, which suggests that leadership ability, depends, not so much on innate characteristics, but on the behaviour of the leader.
Others are the X and Y theory, the contingency approach and path-goal theory. In addition to the theories, leadership can be approached using different styles. Hackett (1979) listed the styles of leadership as autocratic, democratic, and lasses-faire. The autocratic leader closely supervises the subordinates by issuing precise and detailed instructions to cover every task undertaken. The democratic leader communicates and consults with subordinates or groups more often, with group members actively participating in decision making in the laissez faire approach, subordinate are left to take decisions they deem necessary to complete their work.
The need for effective leadership pervades the shoddy manner of performances in both the private and public sectors of the Nigerian Economy.
The well-known saying that “if the head is bad the whole body would be affected” states clearly that the leadership of an organization is very important.
Ineffective leadership has been the bane of the Nigerian economic and socio-political systems. These problems have led to the poor performance and low productivity among Nigerian workers. Thus, the Federal Military Government under Buhari/Idiagbon regime declared a war against indiscipline as it relates to work ethics.
In Nigeria, leadership problems may have developed from societal poverty, occupational or professional arrogance and also lack of knowledge of what is really required of you. Observations have shown that most corporate failures are attributable to poor leadership and this is evident in all aspects of life that is education, religion and other sectors of national life. (Ubeku, 2000)
Therefore, scarcity of proper leadership in Nigeria refers to the scarcity of effective and dynamic people who are willing to assume significant leadership roles in our society and get jobs done effectively and efficiently.
1.1 STATEMENT OF THE PROBLEM
In Nigeria, a lot of negative consequences are derived from the application of wrong leadership styles. Notable among them are high labour turnovers, absenteeism, low productivity and interpersonal conflict. If these problems are left unchecked, a lot of damages could be done, not only to the corporate body, but also to the economy of the nation as a whole.
The present research is designed to contribute to a determination of the nature and effects of leadership styles on Nigerian companies with Cadbury Nigeria Plc as a case study.
1.2 PURPOSE OF STUDY
The purpose of this study is as follows:
1. To determine whether leadership styles affect workers’ productivity in Cadbury Nigeria Plc
2. To determine how leadership styles affects industrial relations in Cadbury Nigeria Plc.
3. To determine and compare the managerial leadership styles and their impact on employee behaviour and productivity.
4. To appraise if leadership styles and patterns affect the rate of absenteeism and labour turnover.
1.3 RESEARCH QUESTIONS
Is there any relationship between leadership styles and productivity?
Does leadership pattern relate to performance of workers?
Is there any relationship between leadership style and labour turnover?
Is there any relationship between leadership behaviour and subordinates’ behaviour?
Is there any ideal leadership style?
1.4 RESEARCH HYPOTHESES
1. H0: There is no relationship between leadership style and productivity
H1: There is relationship between leadership style and productivity
2. H0: There is no relationship between leadership style and labour turnover.
H1: There is relationship between leadership style and labour turnover.
3. H0: There is no relationship between leadership style and subordinate
H1: There is relationship between leadership style and subordinate behaviours.
1.5 SIGNIFICANCE OF STUDY
This study will enable the managers to appreciate the impact of leadership style on organizational behaviour and performance of employees.
1.6 RESEARCH METHODOLOGY
The population of this study comprised the managerial staff of Cadbury. The sample size of 100 would be chosen as adequate for the study, the sample population would be drawn from all departments within the organisation.
The research instrument for this study would be administration of questionnaire on the sampled population. The data generated at the end of the whole exercise would be analysed and presented using the following statistical tools.
- Frequency estimation
- Percentage estimation
1.7 SCOPE OF STUDY
We will examine Cadbury’s leadership styles, corporate policies and human relation practices.
The research focused on corporate success or otherwise, leadership patterns in the company as they affect or influence organizational behaviour and performance. The major issues that attracted attention are as follows:
- Whether leadership styles affect worker behaviour and performance.
- Whether leadership pattern and position classification of Cadbury Plc influence the attitude and behaviour of the subordinates to work?
- Whether the leadership style adopted by Cadbury Plc influences the attitude and behaviour of workers towards achieving the corporate goals?
- Whether the leadership style affects the rate of absenteeism and labour turnover in Cadbury Nig Plc.
1.8 LIMITATIONS OF THE STUDY
The available fund for this research is very small as a result of this the researcher would not conduct the research as satisfactory as he had intended. Transportation, typing and photocopying will consume a greater part of the fund. Some respondents would not co-operate, they will sill doubt the sincerely of the researcher after he had introduced himself and the purpose of the research.
The researcher would also find it very difficult to reach out to some respondents, especially those in management team because of their right schedules.
The restriction on the release of information by the respondents would not be helpful. Despite these shortcomings the researcher will make use of the time available in most suitable and practicable ways.
1.9 DEFINITION OF TERMS
A leader is an individual who have authority over others and are responsible for guiding their actions.
A manager is simply someone who implements a vision handed down to him using agreed or ingenuous methods.
Leadership is one aspect of the leader’s role that concerns the ability to personally influence people in his role set to accomplish specific tasks.
Leader’s typical way of behaviour towards group members can be classified as “Leadership Style”.
1.10 HISTORICAL REVIEW OF CADBURY NIGERIA PLC
The company was incorporated in Nigeria on the 9th of January 1965 and principally engaged in the manufacture and sale of branded fast moving consumer goods (FMCG). The company became a public company in 1970s and was granted a listing on the Nigeria Stock Exchange (N.S.E). The company is highly regarded for its high standards of corporate governance. This is further informed by the fact that the company gives expression to its Corporate and Social Responsibility obligations on carefully determined platforms.
The company’s wide range of quality brands and products in the confectionery, food drinks and foods market are enjoyed throughout the country and also exported abroad to neighbouring African countries. In addition, a range of intermediate products notably Sorghum Extract and Glucose Syrup are manufactured in dedicated facilities in Ikeja (a suburb of Lagos).
In 2000, the scope of responsibility of the company was widened to cover the entire West African sub-region. This brought about the reconfiguration of the existing manufacturing facilities within the sub-region which made the Ikeja factor as the source of consumer products for wider markets beyond the shore of Nigeria. This increases the capacity utilisation and economies of scale for the company.
The company main subsidiary is Stanmark Cocoa Processing Company Limited, located in Ondo. This subsidiary company processes cocoa beans into cocoa butter, liquor and cocoa powder. The cocoa better is the main source of foreign exchange to the company a sit is exported abroad, while the cocoa powder is utilised locally by Cadbury Nigeria.
The company board of Directors comprises a healthy mix of executive, non-executive and independent Directors, who hold ultimate accountability for the business. The role of Chairman (non-executive) is separated from that of CEO. The board not only enunciates policy direction, but has established processes for evaluating its own performance.
The company also has the following team structure in execution of policies and programmes. These are:
- Logistics: (Procurement, warehousing, production, planning and distribution),
- Operations: (Engineering services, projects, production, technical services and manufacturing best practices),
- Finance: (Financial operation, treasury, financial, accounting and taxation),
- Sales and Marketing: (Sales generation and credit management, marketing and customer care and welfare),
- Human Resources: (HR Strategy and processes, medical and security),
- Corporate: (Corporate affairs, administration, internal audit and company secretary and legal unit).