Influence Ofleadership Patterns and Styles on Employee 2

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INFLUENCE OFLEADERSHIP PATTERN AND STYLE ON EMPLOYEE MORALE AND PRODUCTIVITY LECTURE DELIVERED BY JONATHAN ISHAYA DEPARTMENT OF BUSINESS ADMINISTRATION AND MANAGEMENT NIGERIAN ARMY INSTITUTE OF TECHNOLOGY AND ENVIRONMENTAL STUDIES (NAITES) MAKURDI ON THE OCCASION OF NAITES MAIDEN SEMINAR/WORKSHOP 1

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This paper is presented on NAITES maiden Seminar/worshop 2014

Transcript of Influence Ofleadership Patterns and Styles on Employee 2

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INFLUENCE OFLEADERSHIP PATTERN AND STYLE ON EMPLOYEE MORALE AND

PRODUCTIVITY

LECTURE DELIVERED

BY

JONATHAN ISHAYA

DEPARTMENT OF BUSINESS ADMINISTRATION AND MANAGEMENT

NIGERIAN ARMY INSTITUTE OF TECHNOLOGY AND ENVIRONMENTAL STUDIES

(NAITES) MAKURDI

ON THE OCCASION OF NAITES MAIDEN SEMINAR/WORKSHOP

ON 16TH DECEMBER, 2014

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ABSTRACT

Leadership is a process influence between leaders and subordinates where a leader attempts to influence the behavior of subordinates to achieve the organizational goals. Organization in achieving its goals and objectives depends on the leaders of the organization and their leadership styles. By adopting the appropriate leadership style, leaders can boost employees’ morale thereby increasing their productivity. This paper looked at the three leadership styles namely; autocratic, laissez faire and democratic which were found to have direct correlation with employee morale and productivity. Relevant leadership theories were used to explain the ways in which leaders approach their operations. Based on the empirical review of previous studies on the subject matter, it was concluded that democratic leadership style is deemed suitable for managing schools which gives teachers sense of belonging and boost their morale to work hard hence, improving the performance of the students.

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Introduction

Leadership is a major element that sets successful and unsuccessful organizations apart.

It plays central role in offering direction and purpose towards achieving goals of an

organization. It is also an important element in the social relationship of groups at work.

Leadership is the main factor that determines and shape group behavior and also the life

wire of an organization. When it is correctly applied, each employee enjoys a feeling of

strong commitment towards achieving organizational goals. Regardless of equality of its

members, every group or organization will tend to have a system in which it will have a

leader. According to Likert (1974), a leader is a person who has the ability to influence

the behavior of others in a group activity. According to Furnham (2005) Leadership is

also a process of influencing the employees’ behavior in achieving institutional goals.

Leadership can simply be defined as a process of influencing the activities of an

individual or a group towards attainment of set goals. However, organizational goals can

never be achieved without proper leadership style in play. Leadership style can roughly

be referred to as the behavior of a leader in which he/she influences the followers

(Lutherns, 1989). It is important to note that the effective performance of an individual

employee is a function of both his personal characteristics and the work environment. A

careful consideration of knowledge, skills, experience, attitude and motivation of an

employee enhance maximum productivity and efficiency in the job. Since leadership

deals with the human resource element, it provides the basis for effective utilization of

material resources in an organization through individual skills, knowledge and ability.

It is important to note that no single leadership style is likely to be effective in all

circumstances, leadership style vary based on surroundings and circumstances.

Therefore, instead of concentrating on a single leadership style, leaders can vary their

approaches depending on three factors:

Forces in the leader

Forces in the subordinate,

Forces in the situation.

An effective leader is measured by his ability to manage and withstand forces around

him and how to effectively utilize human and material resources to attain organizational

objectives. Douglas McGregor put it clear that there is a close relationship between

leaders’ expectation and the resulting performance of subordinates. He further explains 3

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that if leaders’ expectations are high, productivity is likely to be high. According to

research conducted on why organizations fail, it was discovered that the major problem

is the inflexibility of the leadership style by most organization managers. They fail to

adjust their style of leading to the changing situations and business environment. This

failure is as a result of the lack of understanding of the fact that no one particular style of

leadership can fit all conditions and must be flexible to give room for change.

PATTERNS OF ORGANIZATIONAL LEADERSHIP

The type of influence required for effective leadership is not the same for all leaders.

Depending on their level in the organization, different cognitive and affective skills are

required of leaders. The three basic leadership roles in an organization have been

identified as follows:

1. Origination. Origination refers to strategic decision making regarding policy

formulation or structural change. These critical decisions determine the culture and

mission of the organization.

2. Interpolation. Interpolation refers to interpreting strategic decisions and designing a

method for implementing them within the organization. Interpolation includes adapting

or supplementing the present structure to new policy directives.

3. Administration. Administration consists of implementing the policies and procedures

that have been provided to keep the organization operating efficiently.

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Initiation

Interpolation

Administration

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These three types of Leadership are typically performed at different levels in the

organization and require different abilities and skills. The origination of new programs

and policies, which may involve a change in the organization’s structure or a

reinterpretation of the organization’s mission, occurs at the top level of the organization.

Individuals at this level must have an understanding of the entire organization and of

the ways it interacts with the external environment. Top level managers symbolize the

organization and what it stands for. Interpolation on the other hand deals with

interpreting policy decisions and applying them to the existing organization. It is

typically done by intermediate-level managers. Middle-level managers must maintain a

two-way orientation by taking directives from those above and communicating them to

people below while Lower-level supervisors administer the policies and procedures of

the organization. Successful supervisors need to possess both technical knowledge and a

clear understanding of the organization’s rules. Lower-level supervisors must be

concerned with equity and with the administration of rewards and punishments, since

they continually deal with these issues in leading others

LEADERSHIP STYLES

Effective organizational leaders are relatively consistent in the way they attempt to

influence the behavior of group members. The leader who makes all the major decisions

in one situation is not likely to be tactless in another. The relatively consistent pattern of

behavior of most leaders is too complex to be described by a single style and some

leaders modify their style to match a situation. These styles of leadership are as follows:

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Autocratic Style:

An autocratic leader maintains most of the authority by issuing orders and telling

group members what to do without consulting them. To the autocrat (or

authoritarian) the basis for leadership is formal authority. Autocratic leaders may

have a few favorite subordinates but they usually regard close interpersonal

relations with group members as unnecessary. The autocratic style of leadership

is generally not favored in modern organization as expressed by the consensus of

several current leadership theorists.

Democratic /Participative Style

A democratic/participative leader is one who shares decision-making authority

with the group. Participative leadership occupies enough space on the field to

warrant being divided into three sub-types: consultative, consensual and

democratic.

A consultative leader solicits opinions from the group before making a

decision yet does not feel obliged to accept the group thinking. An

acceptable way to practice consultative leadership would be to call a

group meeting to discuss an issue before making a decision. A consensual

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leader also encourages group discussions about an issue and then makes a

decision that reflects the consensus (general agreement) of group

members.

Consensual leaders thus turn out more authority to the group than do

consultative leaders. The consensus leadership style results in long delays

in decision making because every party involved provides input. Yet

consensus often leads to commitment to the decision.

Distributed leadership recognizes individuals in formal and informal

positions to take responsibility for leadership activities by a network of

interactions. Based on empirical studies, Harris (2004) found that

distributed leadership has contributed to a sustainable improvement of

schools in terms of achieving higher levels of both student attainment and

achievements.

A democratic/participative leader confers final authority on the group. He or she

functions as a collector of opinions and takes a vote before making a decision.

Democratic leaders turn over so much authority to the group that they are sometimes

classified as free-rein leaders. Many organizations today are achieving good results with

participative management.

Laissez-faire Leadership/Free-Rein Style

“Laissez-faire” means “leave it be” in French. It is used to describe leaders who

leave their employees to work on their own. Laissez-faire leadership could be

effective if the leader monitors what is being

achieved and communicates this back to the team regularly. Often, this style of

leadership is most effective when individual employees are very experienced and

skilled self-starters. This type of leadership, however, could also occur when

managers do not apply sufficient control.

Free rein leader turns over almost authority to group members and does as little

as possible. Given a situation in which the work to be done by each employee is

clearly defined; such leaders maintain hands –off policy. They make few attempts

to increase productivity to their employees. At times the free–rein leader is an

abdicator who cares very little for achieving productivity goals or developing

subordinates. At other times, the free –rein style is appropriate and leads to high

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productivity. Such leadership situations include directing the work of highly

skilled advertising, copywriters, research scientist, or stock analysts.

It is also good to realize that effective leadership can be learned.

Based on the above leadership styles, it was revealed that democratic leadership is the

best management style for an organization because it has little grievance, low

absenteeism and turnover and increased job satisfaction resulting in general increase in

productivity. Subordinates are rewarded to be motivated. Since the decision making

process is decentralized, they feel appreciated and highly energized to work towards the

achievement of organizational goals.

Although, studies have shown that democratic leadership style is not always the most

productive. In fact, some studies have found that both the satisfaction and the

productivity of group members are higher under directive leaders than democratic

leaders. For example a study of 488 managers in a consumer loan company found that

employees who had high authoritarianism scores (high acceptance of strong authority

relationships) were more satisfied and productive when they worked for supervisors

who had little tolerance for freedom.

MANAGERIAL GRID

A conceptual framework combining a concern for task accomplishment and a concern

for people was created by Robert Blake and Jane Mouton called the Managerial Grid.

Five different grid positions are typically used to illustrate different leadership styles.

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A 9.1 Leader is primarily concerned with production and task accomplishment

and unconcerned about people; this person wants-to get the job-done and wants

a schedule followed at all costs.

The 1.9 Leadership style reflects a maximum concern for people with minimum

concern for production. This individual is not concerned whether the group a

small produces anything, but is highly concerned about the members’ personal

needs, interests and inter-personal relationships.

The 1.1 Leadership style reflects minimal concern for both production and

people and is characteristic of a person who essentially abdicates the leadership

role.

The 5.5 Leadership style reflects a moderate concern for both people and

production.

The 9.9 leadership style reflects a maximum concern for both production and

people. The leader wants to meet schedules and get the job done but at the same

time is highly concerned about the feelings and interests of the group members.

This leadership style is described as the most suitable for an organization.

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THEORIES OF LEADERSHIP

This section discusses the various theories of leadership; namely: Great man theory,

trait, behavioral and the contingency or the situational theories

Great man theory of Leadership “Born to lead”

According to this theory, great leaders are simply born with the necessary internal

characteristics such as charisma, confidence, intelligence, and social skills that make

them natural-born leaders. The theory assumed that the capacity for leadership is

inherent that great leaders are born, not made. This theory often portrays great leaders

as heroic, mythic and destined to rise to leadership when needed. Some people have

natural leadership gifts. With seeming ease they work well with others and blend. They

motivate co – workers and their Subordinate, and they never seem to make demands on

people.

Traits theory of leadership

Similar in some ways with the great man theory, the trait theory of leadership focuses

on identifying some personal characteristics that cause effective leadership. This theory

also postulates that leaders are born not made. Some of the identified characteristics

that make leaders effective according to trait theory are:

Intelligence, knowledge, expertise, drives (ambition), self-confidence, cognitive ability,

honesty, integrity and sense of maturity.

Although, this theory has been criticized on many grounds, there is a balanced view

that recognizes that certain traits increased the likelihood that a leader will be effective,

but they do not guarantee effectiveness and the relative importance of difference traits

is dependent upon the nature of leadership situations.

Behavioral theory

Behavioral theory assumed that effective leaders adopt certain styles or behaviors. It

assumes, in effect, that effective leaders can be made. This theory focuses on the action

of a leader not mental qualities or internal states. According to this theory, people can

learn to become leaders through teaching and observation. The theory identified two

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basic kinds of leaders’ behaviors that influence their subordinates. These are: Initiating

structure and consideration.

Initiating structure: This consisted of leadership behaviors associated

with organizing and defining the work, the work relationships, and the

goals. A leader who initiated structure was described as one who assigned

people to particular tasks, expected workers to follow standard routines,

and emphasized meeting deadlines.

Consideration: This involved leader behaviors that showed friendship,

mutual trust, warmth, and concern for subordinates. Leaders engage in

consideration when they show their followers that they trust, respect, and

look out for their well-being.

Theory X and Theory Y

Although not strictly speaking a theory of leadership, the leadership strategy of

effectively- used participative management proposed by Douglas McGregor has had a

tremendous impact on leaders. The most publicized concept is McGregor's thesis that

leadership strategies are influenced by a leader's assumptions about human nature. As a

result of his experience as a consultant, McGregor summarized two contrasting sets of

assumptions made by managers in industry: theory X and theory Y.

Theory X advocates that organizations managed their employees as if they were work-

shy, and needed constant direction, monitoring and control while theory Y believed that

managers managed their employees as if they were responsible individuals who were

willing and able to take on responsibility and organized their own work. He argues that

the underlying assumptions of the manager determine the way they managed their

employees, which in turn determine how the employees would react. Thus, if employees

were managed as if they operated on theory X, then they will act in theory X manner.

Conversely, if employees were managed as if they operated on theory Y, they will

respond as theory Y employees. McGregor made the point that what is believed about a

person can help the person to behave in that way.

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Contingency Theory of Leadership

The most popular and extensively researched situational theory of leadership was first

proposed by Fred Piedler during the 1960s. Fiedler’s model claims that group

performance depends on the interaction of the leader style and the favorableness of the

situation.

This theory focus on particular variables related to the environment that might

determine which particular style of leadership is best suited for the situation. According

to this theory, no leadership style is best in all situations. Success depends upon number

of variables, including the leadership style, qualities of the followers and aspects of the

situation.

EMPIRICAL STUDIES

According to research conducted by Haruni J. Machumu and Mafwimbo M. Katila from

Mzumbe University, Tanzania on the influence of Leadership style on teachers’ Job

satisfaction and productivity, the results revealed that democratic leadership style is the

one which promotes teachers’ job satisfaction as they are likely to be engaged, cared and

valued for their contribution hence good performance.

Similar research was conducted by M.L Voon, M.C Lo et’ al on the influence of Leadership

style on teachers’ Job satisfaction and productivity in public sector organizations in

Malaysia, the results showed that democratic leadership style has a stronger

relationship with employees job satisfaction, hence increase productivity.

Another research was conducted by Yahaya Alhasan, Osman Ibrahim et’ al in Tamale

Polytechnic Ghana on assessing the effect of leadership style on staff productivity and

the result revealed that autocratic leadership style adopted by the management of the

polytechnic was responsible for the failure of the polytechnic, therefore they

recommended the adoption of more participative style which is democratic leadership

style.

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Lastly, Japhet S. Gwiyo et’ al conducted a research on a critical review of the leadership

styles on the performance of teachers in Tana River county Kenya, it was discovered that

there is a relationship between the school management’s leadership styles and students’

performance. The findings of this study strongly indicated a positive correlation

between the management’s leadership styles and students’ performance. Autocratic

leadership style was found to have a significant negative effect on the students’

performance. Therefore they recommended democratic style of leadership to enhance

good performance of the students.

From the findings of these various studies, it can be concluded that democratic

leadership style is the most suitable leadership style for organizations most especially

school.

Impact of Choosing an Appropriate Leadership Style on Employee Morale and

Productivity

Various types of educational organizations ranging from Nursery school to Universities,

Polytechnics and research organizations exist in the society. Though they highly differ in

terms of their administrative departments and structure, they all have a responsibility of

imparting knowledge, skills and discipline in the learners. Administrative support to

teachers is generally important for teachers’ well-being.

However, effective leadership and employee job satisfaction are two factors that have

been regarded as fundamental for organizational success. Therefore, the following

outline the various ways in which an appropriate leadership style impact on employee

morale and productivity.

i. Since Autocratic leaders do not seek input from employees, these leaders

tends to alienate their staff and diminish the employee feeling of involvement.

On the other hand, Democratic leaders are open to employee involvement and

allow employees to feel part of the organization's success. When the staff feels

alienated, morale and productivity suffer. A manager that involves employees

in the company's operations builds morale and improves productivity.

ii. Leadership style also has an effect on how goals are set. A democratic leader

uses high energy and inspiration to motivate employees to success.

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iii. A capable leader provides direction for the organization and lead followers

towards achieving desired goals.

iv. Employees with high job satisfaction are likely to exert more effort in their

assigned tasks and pursue organizational interest.

v. An organization that fosters high employee job satisfaction is also more

capable of retaining and attracting employees with the requisite skills that the

organization needs.

vi. Staff that feel motivated and have confidence in the company's vision and can

be more productive. Leadership style has a direct influence on employee

morale.

vii. When a leader acknowledges or appreciates the contribution of subordinates

that can influence their productivity. When leaders motivate their employees

through recognition and providing incentives for good work done by the

employees it will increase their sense of self-esteem and create positive

impact on productivity

Leadership undeniably affects organizational performance; in particular, employee

productivity and organizational commitment are affected by leadership behaviors.

What then is productivity? Productivity is the relationship between the amount of one

or more inputs and the amount of outputs from a clearly identified process. The most

common measure is labor productivity, which is the amount of labor input (such as

labor hours of employees) per physical unit of measured outputs. Another measure is

materials productivity, in which the amount of output is measured against the amount of

physical materials input.

RECOMMENDATIONS

1. Leaders should manage and utilize the resources at their disposal efficiently to

maximize productivity. Saving costs through employing more unqualified and

low cost workers may not necessarily raise productivity. They should also

demonstrate a strong support in allowing their employees to acquire new skills

and knowledge, and be individually productive.

2. Leaders should employ open communication to increase the trust between them

and their employees. They need to help employees feel as though they are valued

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and trusted. A frank communication promotes a trustworthy relationship

between the leader and his employees, which helps to get issues solved quickly

and competently.

3. Leaders should motivate their employees through recognition and incentives for

a job well done. Through small gestures, such as having “Employee of the Month”

award would increase employee’s sense of self-esteem and create positive impact

on productivity. Performance incentives, in the form of monetary awards, could

also be given to employees, based on their performance. Employees would be

judged based on the quality of their work, productivity, time lines, and discipline.

4. Leaders must embrace innovation because innovativeness has become a major

factor in influencing strategic planning. Leaders who actively support and

promote innovation to their employees would create an enabling environment

for increase productivity.

5. Leaders, apart from their actions and personal influence, should empower

employees to make certain decisions and keep operations running smoothly and

effectively. They also need to constantly keep them abreast with the current

affairs and situations.

6. Leaders of successful organizations should focus on cultivating a participative

decision making environment. Participative decision-making is an effective

strategy, as a leader does not always have the foresight to anticipate all

challenges when making a decision. Engaging others in the decision-making

process allows the top management to tap into individual’s unique talents.

CONCLUSION

The leadership style used by management can affect the morale and effectiveness of

employees’ productivity. It can be concluded that a leader with a democratic leadership

styles accepts input from employees and uses the pertinent information to improve the

work process in an organization.

From the findings of the various studies on the influence of leadership styles on

teachers’ morale and productivity, it was revealed that there is a significant relationship

between school management's leadership style and teachers’ productivity thereby

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increases students’ performances. This is an indication that leadership styles are varied

and have a direct impact on motivations and productivity of employees in any

organization be it government or private, profit or non profit, manufacturing or service

oriented and social or commercial organization etc. This means that effective leadership

can certainly contribute to school improvement by abetting the motivation,

participation, and coordination of teachers.

Reference

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Burns, J. M. 1978. Leadership. New York: Harper & Row.

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Foster, R., & Young, J. (2004). Leadership: Current themes from the educational literature.

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Yahaya A. (2014) International Journal of Economics, Commerce and Management. Vol. II,

Issue 9, Licensed under Creative Common Page 1 http://ijecm.co.uk/ United

Kingdom.

PROFILE OF JONATHAN ISHAYA

I was born in Unguwar Rukku, Kubau LGA of Kaduna State. I did my elementary

education @ L.E.A Primary school Unguwar Rukku. I then proceeded to G.S.S Anchau

Takalafia Kubau LGA Kaduna State for my secondary education. I later further my

education @ Kaduna State University (KASU) where I obtained Bachelor of Science in

Business Administration. I’m currently a lecturer in the department of Business

Administration and Management, NAITES.

Professional certification

I am a graduate member Nigerian Institute of Management (NIM) and a professional in

Project management, Human Resource management and innovation management.

Responsibilities Held:

Department of Business Administration and management Registration officer

Department of Business Administration and management EDC coordinator

Department of Business Administration and management Examination Officer etc.

Hobby

Reading, volley ball and meeting people

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