THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEE MOTIVATION (A CASE STUDY OF CADBURY PLC)

Table of Contents

Abstract. 2

CHAPTER ONE.. 6

INTRODUCTION.. 6

1.1 Background to the Study. 6

1.2 Statement of the Problem... 8

1.3 Objectives of the Study. 9

1.4 Research Questions. 9

1.5 Research Hypothesis. 10

1.6 Significance of the Study. 10

1.7 Scope of the Study. 11

1.8 Limitations of the Study. 11

1.9 Organization of the Study. 11

CHAPTER TWO.. 14

REVIEW OF RELATED LITERATURE.. 14

2.1 Introduction.. 14

2.2 Theoretical Review.. 14

2.3 Conceptual Review.. 16

2.3.1 Overview.. 16

2.3.2 Transformational Leadership.. 16

2.3.3 Transactional Leadership.. 17

2.3.4 Charismatic Leadership.. 17

2.3.5 Servant Leadership.. 17

2.3.6 Authentic Leadership.. 18

2.3.7 Psychological Empowerment. 18

2.3.8 Leadership-Member Exchange (LMX). 18

2.3.9 Contingent Leadership.. 19

2.3.10 Social Exchange Theory. 19

2.4 Empirical Review.. 19

2.5 Summary of Literature Review.. 21

CHAPTER THREE.. 22

RESEARCH METHODOLOGY.. 22

3.1 RESEARCH DESIGN.. 22

3.2 AREA OF THE STUDY:. 22

3.3 POPULATION OF THE STUDY:. 23

3.4 DATA COLLECTION.. 23

3.5 SAMPLING.. 23

3.6 RESEARCH INSTRUMENTATION.. 24

3.7 DATA ANALYSIS.. 24

3.8 ETHICAL CONSIDERATIONS.. 24

3.9 LIMITATIONS.. 25

CHAPTER FOUR.. 26

DATA ANALYSIS AND INTERPRETATION.. 26

4.1 Preamble. 26

4.2 Socio-Demographic Characteristics of Respondents. 26

TABLES BASED ON RESEARCH QUESTIONS.. 29

4.3 Analysis of the Respondents’ Views on Research Question one:. 29

4.4       Testing Hypothesis. 41

4.5 Discussion of Findings. 42

CHAPTER FIVE.. 45

SUMMARY CONCLUSION AND RECOMMENDATION.. 45

5.1 SUMMARY.. 45

5.2 CONCLUSION.. 46

5.3 RECOMMENDATIONS.. 47

REFERENCES.. 48

APPENDIX.. 51

 

 

 

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Leadership is a critical determinant of organizational success, influencing various aspects of employee behavior, productivity, and overall workplace culture. One of the most significant areas where leadership exerts its influence is employee motivation. The leadership style adopted by organizational leaders plays a pivotal role in shaping the motivational climate within the workplace. Different leadership styles, ranging from autocratic to democratic, transformational to transactional, have distinct effects on employee motivation levels. Understanding these effects is crucial for organizations seeking to enhance employee engagement, satisfaction, and performance.

The impact of leadership style on employee motivation has garnered considerable attention from researchers and practitioners alike. Studies have consistently demonstrated that leadership behaviors significantly influence the motivational dynamics within teams and organizations (Robbins & Judge, 2020). For instance, transformational leaders who inspire and empower their followers tend to foster higher levels of intrinsic motivation among employees, leading to increased job satisfaction and commitment (Bass & Riggio, 2006). Conversely, leaders who adopt a more authoritarian or laissez-faire approach may inadvertently undermine employee motivation, resulting in reduced morale and productivity (Goleman, 2000).

Moreover, the relationship between leadership style and employee motivation is complex and multifaceted, influenced by various contextual factors such as organizational culture, industry norms, and individual differences among employees (Northouse, 2018). Effective leadership involves not only understanding different motivational theories but also tailoring leadership approaches to suit the specific needs and preferences of employees (Luthans, 2011). By adopting a nuanced understanding of leadership styles and their impact on motivation, organizations can create environments that foster employee engagement, creativity, and organizational success.

In this paper, we will delve deeper into the intricate interplay between leadership style and employee motivation, examining how different leadership approaches influence motivational outcomes in diverse organizational contexts. By synthesizing existing research findings and drawing insights from real-world examples, we aim to provide a comprehensive understanding of how leaders can effectively leverage their leadership style to enhance employee motivation and drive organizational performance. Through this exploration, we seek to offer practical recommendations for organizational leaders seeking to cultivate a motivational climate conducive to employee growth, satisfaction, and success. Northouse, P. G. (2018).

 

1.2 Statement of the Problem

Employee motivation is a crucial determinant of organizational success, directly linked to productivity, job satisfaction, and overall performance. One significant factor affecting motivation is leadership style, which plays a pivotal role in shaping the work environment and employee perceptions. However, despite extensive research in organizational behavior, the specific impact of leadership style on employee motivation remains a subject of ongoing investigation. This study aims to address this gap by exploring how different leadership styles, such as transformational, transactional, and laissez-faire, influence employee motivation within diverse organizational contexts. By examining the relationship between leadership behavior and motivational factors, this research seeks to provide actionable insights for leaders and managers to enhance employee engagement and performance. (Avolio et al., 2019).

Recent studies have highlighted the significance of leadership style in fostering employee motivation (Avolio et al., 2019; Bass & Riggio, 2006). Avolio et al. (2019) emphasized the transformative potential of charismatic and inspirational leadership behaviors in stimulating intrinsic motivation among employees. Similarly, Bass and Riggio (2006) underscored the importance of transactional leadership in providing clear goals and rewards, thereby enhancing extrinsic motivation levels. However, while existing literature acknowledges the importance of leadership style in motivating employees, there remains a need for empirical research to comprehensively understand the nuanced impact of various leadership approaches on different motivational factors. Therefore, this study endeavors to contribute to the existing body of knowledge by investigating the intricate interplay between leadership style and employee motivation, offering practical implications for organizational leaders and human resource practitioners.

1.3 Objectives of the Study

The main objective of the study is to examine the impact of leadership style on employee motivation. Specific objectives of the study are:

  1. To identify the relationship between specific leadership styles and employee motivation.
  2. To explore the mediating factors that influence the leader-motivation relationship.
  3. To evaluate the effectiveness of leadership style interventions in boosting employee motivation.

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

  1. 1.  To what extent do transformational, democratic, and autocratic leadership styles differ in their impact on employee motivation?
  2. 2.  How do factors like perceived leader trust, decision-making autonomy, and alignment with organizational goals influence the relationship between leadership style and employee motivation?
  3. Do leadership development programs focused on specific styles lead to measurable increases in employee motivation compared to control groups?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no statistical significant relationship between leadership style and employee motivation.

1.6 Significance of the Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Bus admin sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.

1.7 Scope of the Study

The study is delimited to Cadbury plc. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.

1.8 Limitations of the Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.

1.9 Organization of the Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.

Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.