LEADERSHIP STYLE AND EMPLOYEE PERFORMANCE: A STUDY OF SELECTED FIRMS IN ABA. ABIA STATE…

LEADERSHIP STYLE AND EMPLOYEE PERFORMANCE OF MANUFACTURERING COMPANIES IN ABA ABIA STATE. 1.1 Background to the Study The success of a nation, society, government, organization, and employees is totally linked to leadership. According to Ricketts (2005), leadership has played a fundamental role in nearly every aspect of society. Kai (2013) stated that in the operation of a company, leadership behaviors and leadership style have a decisive influence on employee performance. According to Gupta, McDaniel, and Hearth (2005), leadership establishes and transmits to employees at the organizational level the overarching direction of the organization, such as establishing a better understanding of effective employees' performance and future leader growth. Leadership has gained a great deal of attention in both public and private companies throughout the world as a result of globalization and technological advancements, and there is a need for leaders to become more strategic in their thinking when it comes to managing their organizations. According to Punnett (2004), leadership is an important feature of all companies, but its role is becoming more challenging as firms become more involved in globalization and technological innovation. Any organization's strong or abysmal performance and its employees, departments, and the smallest unit are laid before leadership. This means that leadership cannot purge itself from the failure of organizations and their employees since the leadership styles used by leaders influence the effective performance of employees. For these reasons, most managers are changed or fired for non-performance of their organization or team of employees. According to Odumeru and Ogbonna (2013), this is due to the fact that leadership is a major aspect that contributes significantly to the overall well-being of companies and nations. On the other hand, Employees are valuable assets of an organization and the leaders of profitable companies place a high premium on increasing employees’ performance levels (Leigh, 2009). Leadership best practices are a powerful way to enhance individual growth and development, employee performance, and organizational productivity (McNeese-Smith, 1996). Many leadership models differentiate two main types of leadership behaviours: task-oriented, which has a strong focus on targets, close supervision, and control of subordinate actions, and relationship-oriented behaviour, which focuses on sensitivity to individual and group needs, care for group tensions and focus on harmonic working relations (Euwema, Wendt and Van Emmerik, 2007). These leadership behaviours are also referred to as directive and supportive leadership respectively (Northouse, 2013). According to Adamaechi and Romaine (2002), leadership is very essential in any kind of group or organization and it can mean the difference between success and failure of any group or joint activity. Leadership is an important aspect in any organization. The style that leaders of Universities adopt in the day-to-day running of their activities will have impact on the human resources of such Universities. An effective leader should be able to influence his or her followers to reach the goals of the organization. According to Covey (2007), leadership is an interpersonal process through which one person is able to influence the activities of individuals or groups towards the attainment of given objectives within a particular situation by means of communication. Different leadership styles may affect employees’ work performance, attitude and behaviours towards the organization. Mullins (2005) defined leadership style as the manner that a manager chooses to behave towards employee. Leadership style is the most prevalent factor that influences employees’ attitudes and behaviours including organizational performance. According to Chiang and Wang, (2012); and Clark, Hartline and Jones, (2009), leaders have adopted various styles when they lead others in the organization. It is important to note that different leadership styles exist for varying situations, human beings, cultures, tasks and organizational goals. Therefore, this study investigated the nature of relationship between leadership styles and employee performance in manufacturing firm in Aba. 1.2 Statement of the Problem Employee performance includes executing defined duties, meeting deadlines, employee competency, and effectiveness and efficiency in doing work. Various organizations need strong leadership styles that stimulate the employee performance. Some organizations face the problems: poor innovation, low productivity, inability to meet performance targets. This problem happen due to lack of strategic interventions of specific leadership styles to the particular situations was predicted as the problem at hand; this problem continuously affects employee performance. That’s why study investigates the leadership style that stimulates performance of employees. 1.3 Objectives of the Study The broad objective of this study is to examine the nature of the relationship between leadership style and employee performance. The specific objectives are: 1. To ascertain the nature of relationship between transformational leadership and effectiveness. 2. To determine the nature of relationship between transactional leadership style and sales volume. 1.4 Research Questions 1. What is the nature of relationship between transformational leadership and effectiveness? 2. What is the nature of relationship between transactional leadership style and sales volume? 1.5 Research Hypotheses 1. There is no significant relationship between transformational leadership and effectiveness. 2. There is no significant relationship between transactional leadership style and sales volume 1.6 Scope of the Study The scope of this study is limited to Friesland Campinas WAMCO Nigeria Plc. and Cadbury Nigeria Plc Aba, Abia State. 1.7 Significance of the Study The following will benefit from this study: The Organization: The present study will help the leaders in organization and especially those in developing countries in general to answer the long standing question of how to enhance employee performance by leaders through the adoption of the right leadership style. The Government: This study will provide understanding of the concept so as to generate data and information that every planner could use in order to come up with strategies, plans and designs that will strategically position them in the highly competitive, diverse, and complex business environment that is experienced at present. The Academia: The notable significance of this study is the possibility that other researchers may be able to use the findings in this study for future studies that will create a huge impact on society. This study finding can be used for other findings that might prove to be helpful in introducing changes to the business. 1.8 Organization of the Study The study comprises of five (5) chapters for a better understanding of the study: Chapter One: This chapter covers introduction, background of the study, statement of the problem, objectives of the study, research questions, and hypotheses, scope of the study, significance of the study, organization of the study and definition of terms. Chapter Two: This chapter looks at the review of related literatures which comprises of conceptual review and profile of place of study. Chapter Three: This chapter looks at methodology with which the researcher used in this research study, research design, Collection of Data, Selection of Data, Design and Administration of Questionnaire, Population, Sample size determination, Sampling Techniques, Operational Measures of Variables, Data Analysis Techniques. Chapter Four: This chapter comprises of the actual presentation of data in tables, its analysis, interpretation and testing of hypotheses to ascertain its level of acceptance and analytical summaries. Chapter Five: This is the last chapter and it comprises of the findings of the study, conclusion, recommendations and limitation of the study. 1.9 Operational Definition of Terms Leadership Style: This relates to the manner and approach of providing direction, implementing plans and motivating group of people to achieve goals. Transformational Leadership Style: This is a leadership approach that causes change in individual and social systems. Transactional Leadership Style: This is a leadership where managers give employees something they want in exchange for getting something they want. Employee Performance: This is how well a person executes their job duties and responsibilities. Effectiveness: Effectiveness is defined as the degree to which something is successful in producing a desired result; success. Sales Volume: This is the measure of how many products a company sells. It's the number of items a business sells over a specific accounting period, whether per month, per quarter or per year. References Adamaechi, B. C. & Romaine, H. A. (2002). Issues, problems and prospects of free compulsory and qualitative education in Nigeria. Onitsha: Nigeria Education. Chiang, C. F., & Wang, Y. Y. (2012). The effects of transactional leadership and transformational leadership on organisational commitment in Hotels: The mediating effect of trust. Journal of Hotel and Business Management, 1(1), 1-11. Clark, R. A., Hartline, M. D., & Jones, K. C. (2009). The effects of leadership style on hotel employees’ commitment to service quality. Cornell Hospitality Quarterly, 50(2), 209-231. Covey, S. R. (2007). Developing Leaders, Training, 44(2), 88-88. Euwema, M. C., Wendt, H., & Van Emmerik, H. (2007). Leadership styles and group organisational citizenship behaviour across cultures. Journal of Organisational Behaviour, 28(8), 1035-1057. Leigh, R. S. (2009). A correlation analysis of the leadership learning analysis associated with organisational profitability. Available from ProQuest Dissertations and Theses database. (UMI No. 3353750) McNeese-Smith, D. (1996). Increasing employee productivity, job satisfaction and organisational commitment. Journal of Healthcare Management, 41(2), 160-175. Mullins, L. J. (2005). Management and Organisational Behaviour. London: FT Pitman. Northouse, P. G. (2013). Leadership: Theory and practice. California: Sage Publications Inc. Gupta, A., McDaniel, J. & Hearth, S. K. (2005). Quality management in service firms: sustaining structures of total quality service. Managing Service Quality, 15(4), 389-402. Kai, G. (2013). Research on the mechanism that paternalistic leadership impact on employee performance: organizational justice as an intermediary variable. Human Resource Management Research, 3(4), 150-156. Odumeru, J. A. & Ogbonna, I. G. (2013). Transformational vs. transactional leadership theories: evidence in literature. International Review of Management and Business Research, 2(2). Punnett, B. J. (2004). International perspective on organizational behavior and human resource management. New York, NY. M.E, Sharpe. Rickets, K. G. (2005). The importance of community leadership to successful rural communities in florida, Unpublished Doctoral Dissertation University of Florida, Florida. CHAPTER TWO REVIEW OF RELATLED LITERATURE 2.1 Conceptual Review 2.1.1 The Concept of Leadership Style Leadership as a concept is dynamic, flexible, and complicated, and no universally accepted definition has emerged (Peretomode, 2012). According to Eze (1982), leadership is a relational concept that involves both the influencer and the person being influenced. There can be no leader without followers, and the factors that interact to make an effective leader include not only the abilities and features of the group he is leading but also the features of the circumstance in which he is leading. This idea encompasses not just eagerness to work but also zeal and confidence (Igbaekemen, 2014). According to Asika (2004), leadership is the process of persuading individuals to direct their efforts toward the achievement of a specific goal or goals. According to Armstrong (2002), leadership is the practice of persuading and encouraging others to work energetically toward achieving goals. According to Lawal (1993), leadership is the process of persuading others to work voluntarily and confidently toward an organizational goal. According to McGowan and Miller (2004), leadership is about both the leaders and the interactions between the many leaders in the company. Leadership in an organization is a crucial aspect in increasing people's interest and commitment to the origination (Obiwuru, Okwu, Akpa, & Nwankere, 2011). It assists employees in achieving their company goals; it promotes followers to be expressive and adaptable to new and improved methods and changes in the environment (Azka, Tahir, Aslam, & Syed, 2011). Mills (2005) stressed that strong leadership helps a nation in times of crisis and makes corporate companies successful. According to Warrick (1981), leadership has power over interpersonal, material rewards, and punishments that frequently shape employee behavior and affect performance, motivation, attitude, and self-image, potentially in a favorable or negative way. On the other hand, Leadership styles refer to the pattern of leaders ‘behavior that characterize a given leader or various patterns of behavior favored by leader during the process of directing and influencing workers. It can also be define as the behavioral pattern or methodology that a leader adopts to manage his subordinates is termed leadership style (Wahab, 2010). Different leaders relate and communicate with their subordinates in a certain way to get them to perform exceedingly to a specific task for the overall welfare of the organization (Hersey & Blanchard, 2013). A leader's method to bring out the best from his subordinates to perform beyond their capacity is the tagged leadership style. Different leaders have different ways or methodology that works for them. However, scholars have argued that leadership style can either hinder or promote subordinates' job performance and organizational commitments, so scholars have warned that leaders should be careful when administering their style of leadership to the subordinates as it can it make or mare their performance (Marturano & Gosling, 2016). 2.1.1.2 Types of Leadership Style Leadership style can be divided into the following: 2.1.1.2.1 Transformational leadership style Burns (1978) defined transformational leadership as a process that occurs when one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality. The four dimensions of transformational leadership are: Idealized influence, which deals with building confidence and trust; inspirational motivation, which deals with motivating the entire organization; intellectual stimulation, which involves arousing and changing followers’ awareness of problems and their capacity to solve those problems; and individualized consideration, which involves responding to the specific, unique needs of followers to ensure they are included in the transformation process of the organization. These four dimensions enable leaders to behave as strong role models fostering followers’ transformation into more successful and productive individuals (Hay, 1995). Inspirational motivation, idealized influence, individual consideration and intellectual stimulation are the key dimensions of transformational leadership (Avolio, Zhu, Koh and Bhatia, 2004). Transformational leaders are suggested to promote intellectual development, confidence, team spirit and enthusiasm among the followers, thereby encouraging followers to be more focused on collective wellbeing and achieving organizational goals (Aydin, Sarier, and Uysal, 2013; Cho and Dansereau, 2010). Transformational leadership behaviours are influential in motivating employee change and transforming them to be more aware of task outcomes, activating their highest order needs and stretching them beyond their own self-interest for the benefit of the organization (Bass and Avolio, 1990). According to Avolio, Walumbwa and Weber (2009), transformational leadership approach is behaviours that transform and inspire followers to perform beyond expectations while transcending self-interest for the good of the organization. Transformational leaders are socially and emotionally intelligent; they are inspiring (McKee 2014), charismatic, know how emotions affect them and how they should use their emotions and their vision to increase excitement, optimism and inspiration among employees. As suggested by Jin (2010), transformational leadership integrates the elements of empathy, compassion, sensitivity, relationship building, and innovation. According to Aldoory and Toth (2004), transformational leadership includes the elements of participative decision making and sharing of power. Gibson, Ivancevich, Donnely and Konopaske (2012), explained that transformational leaders have the ability to inspire and motivate followers to achieve results greater than originally planned by reinventing the entire philosophy, system and culture of the organization. Yukl (1989) describes transformational leadership as the process of effecting fundamental changes in the attitudes and assumptions of organization members and establishing a commitment to the organization's mission and objectives (Kent & Chelladurai, 2001). According to Martin (2015), this approach is about forging relationships among people and effecting actual meaningful change by stressing principles and generating a common vision among everyone in the business. According to Abbas and Ashgar (2010), transformational leadership is a style that improves the level of dedication and motivation for people to work for the success of the organization regardless of their personal interests. According to Wang and Howell (2010), transformational leadership is primarily concerned with individual and group-level development. This leadership style has been extensively researched, has intuitive appeal, is process-focused, has an expansive leadership view (thus providing a broader view of leadership that supplements other leadership models), emphasizes follower (thus emphasizing followers' needs, values, and morals), is a very effective form of leadership, and is the most popular (Suresh & Rajini, 2013). 2.1.1.2.2 Autocratic Leadership Style Nwankwo (2001) and Enoch (1999) define autocratic leadership as a style in which productivity is prioritized over any human concern and decisions are made solely by the leader. According to Okumbe (1998), this leadership style is task-oriented, and workers are employed as a machine to achieve productivity and organizational goals and improvements. A worker is expected to follow instructions without inquiry, and there is little or no group participation in decision-making or good communication between the leader and employees. Dubrin (1998) defined autocratic leadership as the practice of the leader retaining the most authority and making decisions that employees only implement. According to Dalluay and Jalagat (2016), the strength of autocratic leadership is that decisions are made swiftly and that decisions are distributed and obeyed by subordinates from the top to the bottom of the hierarchy. Adebakin and Gbadamosi (1996) described an autocratic leader as one who is very conscious of his position and has little trust or faith in the subordinates, he feels that pay is a just reward for work and it is only the reward that can motivate. Melling and Little (2004), defined autocratic leader as a leader who is high-handed in his administration. Autocratic leader is the centre and pillar of all the activities that go on in the organisation where he is a leader. Autocratic leaders make their decisions alone (Nahavandi 2000), manage the group tightly and only command the individual goals and actions of each employee, so that staff does not understand the overall goals (Lumpe 2008). An autocratic leader mostly selects based on their own judgments and ideas that rarely include follower’s advice and these leaders have absolute control over the group (Zareen, Razzaq and Mujtaba, 2015). Autocratic leadership represents all those leaders who makes decision without the consent of team members and applied when quick decision is to be taken and team agreement is not important for acquisition of successful results (Boehm, Dwertmann, Bruch and Shamir, 2015). According to Pagewise (2002), autocratic leadership style is effective for new and untrained employees who do not know which tasks to perform or which procedures to follow in carrying out the task assigned to them. Iqbal, Anwar and Haider, (2015), suggested that autocratic leaders are characterized by an “I tell” philosophy; autocratic leaders tell other people what to do. Nwankwo (2001), defined autocratic leadership style as a leadership style where leaders exclusively make decisions because the leaders believes that human beings are weak, unwilling to work and have limited reasoning. Khan, Qureshi, Ismail, Rauf, Latif and Tahir (2015), suggested that autocratic leadership is when manager retains as much power and decision-making authorization as possible. Similarly, Dairo, (2014), stressed that in autocratic leadership method, the hub of authority is with the leader and all communications within the group shift toward the leader alone. 2.1.1.2.3 Charismatic Leadership Style The charismatic leadership style is by far the most successful trait-driven leadership style. Leaders have a vision and a personality that inspires followers to carry out that mission. This leadership style has always been regarded as one of the most valuable since it fosters creativity and innovation and is frequently extremely motivating. When charismatic leaders are at the head, the organization's followers simply follow (Michael, 2010). The charismatic leadership trait is out of the ordinary, unique, unconventional, and goes against the grain (Roussel, 2006). Charismatic leaders, according to Champoux (2006), have a high level of self- confidence, self-esteem, and self-determination, which increases their credibility. According to Bell (2013), charismatic leaders exhibit characteristics such as communication, vision, trust, image management, and delegation of authority. As a result, charismatic leadership frequently removes other strong personalities that compete with them. The upshot of filtering out the competitors is a swarm of delighted followers but few prospective leaders (Michael, 2010). According to Northouse (2004), charismatic leadership becomes viable when followers are confused and helpless. Bass (1985) defines charismatic leadership as "an intellectually interesting, motivating, ethical, and highly compassionate individual capable of forming emotional ties with his followers and other leaders." 2.1.1.2.4 Paternalistic leadership style Kai (2013) defines paternalistic leadership as a type of discipline and authority, fatherly compassion, and moral leadership. It refers to a leader who possesses parental characteristics, such as patriarchal styles, and includes three crucial dimensions: kindness, virtue, and authoritarian leadership. Cheng, Farh, and Chou (2006) characterized the paternalistic leadership style as controlling by people, father's compassion, dignity, and ethically unselfishness. It was considered a paternalistic leadership style because it incorporated three key elements: benevolence, morale, and authoritarianism. As a result, the interactions between the leader and its members define the efficiency of leadership (Cheng, Farh & Chou, 2006). Paternalistic leaders act as father figures and care for their subordinates as if they were parents. The senior and medium-level managers under this leadership style are concerned about their people. In exchange, the leader gains the total faith and allegiance of his or her employees (Mishra, Grunewald & Neelufa, 2014). 2.1.1.2.5 Visionary Leadership Style Sashkin (1998) defines a visionary leadership style as an individual's ability to create and convey a strategically focused company's realistic, convincing, and compelling vision. According to Bennis and Nanus (1997), a visionary leader is someone who picks a route by building a mental image of a conceivable and desirable future for the business. A visionary leadership style necessitates the leader having a future vision for the organization that is desired and exciting to all. Vision motivates individuals to work together toward common goals and keeps organizations going in the face of adversity (Sashkin, 1998). According to Zhu, Chew, and Spangler (2005), a visionary leadership style will result in a high level of cohesion, commitment, trust, motivation, and, therefore performance. According to Wallace (1996), the importance of a visionary leader is to have an agenda and skills closely related to excellence and being able to create a clear vision statement, and that vision must inspire employees within an organization, relate well to individuals outside the organization, set direction for his/her organization, and enable the organization to cope with change. 2.1.1.2.6 Transactional Leadership Style This leadership style emphasizes on the transactions between leaders and subordinates. Bass and Avolio (2013), suggest that characteristics of transactional leadership consist of two aspects, namely; contingent reward and exception management. Contingent reward is where leader make agreement about what subordinate do and promising reward obtained when goal is achieved. While exception management is leader monitor deviations from established standards and take corrective action to achieve organizational goals. Transactional leadership can affect positively or negatively on performance, depending on employee assessment. Positive effect can occur when employees considers that transactional leadership style can be assessed positively while it can have a negative effect when employee considers that transactional leadership style cannot be trusted because they do not keep to their promises, dishonest or not transparent. Transactional leadership is really just a way of managing rather a time leadership style as the focus is on short term task. It has serious limitations for knowledge based or creative works, but remain a common style in many organizations (Hill, 2014). The transaction is that the organization pays the team members in return for efforts and compliance of the team (House, 2011). Furthermore, transactional leadership style implies that reward or punishment is premised on individual performance. This is because reward is contingent to performance and punishment for failure to performance effectively. According to Avolio, Walumbwa and Weber, (2009), transactional leadership style is the exchange of rewards contingent on performance. Transactional leaders set up requirements as well as conditions and rewards that employees get, when they fulfil the requirements (Bass and Riggio 2006). Transactional leaders use conventional reward and punishment to gain compliance from their followers (Burns, 1978). Bass (1999) opined that transactional leadership style could take three forms namely: contingent reward, active management by exception, and passive leadership. According to Bass, Contingent reward is the degree to which the leader clarifies expectations and establishes the rewards for meeting these expectations (Judge and Piccolo, 2004). Secondly, transactional leadership style can take the form of active management by exception, in which the leader monitors the followers’ performance and takes corrective actions if the follower fails to meet standards’ (Bass, 1999). More so, it can also take the form of passive leadership. In this case, the leader only takes corrective actions when problems arise or avoids taking action at all. Transactional leadership style is the method of getting subordinates to meet job requirements by reinforcing rewards or punishments (Avery, 2004). Transactional leadership style is based on extrinsic motivation for improved productivity of employees (Kreitner and Kinicki, 2010). Transactional leaders identify, define and communicate what needs to be done and how the instruction will be carried out (Piccolo and Calquitt, 2006). Organizations tend to adopt transactional leadership in an attempt to increase performance of their employees (Varol and Varol, 2012). According to Marques (2007), the trait of transactional leaders of setting goals and promising reward motivate the followers that ultimately can lead to improved performance. Reward and recognition are provided contingent on followers to successfully carry out their roles and assignments (Bass, Avolio, Jung and Berson, 2003). Transactional leaders allows followers to fulfill their own self-interest, minimize workplace anxiety, and concentrate on clear organizational objectives such as increased quality, customer service, reduced costs, and increased production (Sadeghi and Pihie, 2012). Unsar, (2014), described transactional leaders as leaders that practice the style of doing work or making other people do the work by making their on-going activities more proficient and developed. 2.1.1.2.7 Servant Leadership Style Servant leadership is a realistic philosophy of leadership that encourages teamwork, advances services and develops trust, willingness to listen to others and their future orientation on the expected work performance (Rimes, 2011). This type of leadership involves leading others meaningfully through service and guidance to enable them to achieve the expected goals that are expected by a particular organization or individuals. Daft (2013) identified servant leadership with leader’s self- interest to serve others and organizations at two levels: which include fulfilling the goals and needs of the subordinate and also to realize long term goals of the organization. The servant leaders are also recognized with sharing many resources and things which include: power, ideas, information, recognition, praise for achievement and even money. 2.1.1.2.8 Laissez-Faire Style Avolio and Bass (2004) attributed Laissez-faire leadership to the leaders who avoid interfering when serious issues arise, this could also be described as non- leadership. According to Asare (2012) laissez-faire leaders delegate their responsibility to take decisions to the subordinates and gives them all the authority and control to go about their actions and accomplishments. Gastil (1994) postulated that laissez-faire leadership style has low involvement of activities, leaving matters to their followers and very little involvement in decisions making. Sometimes laissez faire leadership style is considered as no leadership (Aydin, Sarier and Uysal, 2013) or destructive leadership style (Skogstad, Einarsen, Torsheim, Aasland, and Hetland, 2007). According to Unsar (2014), this leader will give followers a goal, the followers are completely free to achieve these goals with their skills, and the leader will only be responsible for the supply of the resources. Also, laissez-faire leaders avoid responsibilities, do not take care of the needs of the followers, do not provide feedback, and delay decision-making (Bass and Riggio, 2006). Laissez-faire leaders in reality provide information, but no direction for their staff and do not get involved with followers; hence, employees become frustrated and dis-organised, which results in low work quality (Nahavandi 2000). Cilliers, Van Eeden and Van Deventer (2008), stated that laissez-faire leaders avoid active participation in responsibility of goals setting and avoid being involved when leadership direction is needed. This type of leadership can also occur when managers do not have sufficient control over their staff (Ololube, 2013). Laissez-faire style is avoidant leaders who may not either intervene in the work affairs of subordinates or may completely avoid responsibilities as a superior. In addition, when Laissez-faire leader observes that the members of the group are performing well, the leader allows the members to have liberty of action (Ohuoha, 2013). Laissez-Faire leadership style is that style of leadership where the authority and power is given to employees to determine the goals; the manager provides little or no direction to employees (Richard and Robert, 2009). 2.1.1.2.9 Democratic Leadership Style A democratic leadership may also be referred to as participative leadership, whereby individuals typically considered as unequal according to hierarchical standards are bestowed shared power in the decision-making process (Yang, Zhang and Tsui, 2010). Furthermore, all team members are allocated fair opportunities to participate in idea-generating processes and throughout group discussion and brainstorming; it is noted that the most effective ideas are being voted via the democracy model (Christian, 2018). In general, democratic leaders will encourage their team members to voice out any ideas due to an emphasis on group equality and free-flowing ideas. Nevertheless, the leader will still need to offer guidance and continuously monitor throughout the discourse process to prevent any quarrels and arguments from taking place, especially if more than one party hold different views or perceptions compared to others (Rifaldi, Ramadhini and Usman, 2019). Furthermore, the authority to decide who is in the group or contribute in decision- makings remains vested in the leader. Usually, when arguments or quarrels happen, difficulties to conclude on the decision taken by the team will arise, requiring them to generate a final overview and convince all team members regarding their support of all personal views (Galston, 2018). Besides, the democratic leadership has been found to be one of the most effective types of leadership style due to higher productivity perceived compared to autocratic leadership. After all, an autocratic leader will devise and position the ideas alone, whereby all the followers are required to do is to follow the directions that they set (Rangus and Cerne, 2017). In contrast, employees are involved in the decision-making process in the context of democratic leadership but their control in the process is maintained and the final say is according to the leader following employee discussion throughout every meeting or brainstorming session (Hunitie, 2017). 2.2 Employees' Performance Anthony (1965) views performance as two primary components efficacy and effectiveness. Efficacy is the inputs and outputs that result in higher volume for a given amount of inputs, while effectiveness is the degree to which planned outcomes are achieved. According to Deadrick and Gardner (1997), employee performance can be viewed as a record of outcomes achieved for each job function over a specific time period. Employee performance is typically measured in terms of outcomes; however, it can also be measured in terms of conduct (Armstrong, 2000). Employee performance, according to Rath and Conchie (2009), is linked to how successfully an employee meets his or her goals and objectives. Employee performance, according to Putterill and Rohrer (1995), focuses directly on individual productivity by analyzing the number of units of acceptable quality produced by an employee in a manufacturing environment during a particular time period. According to Sabir, Iqbal, Rehman, Shan, and Yameen (2012), employee performance is a critical component of every organization and the most crucial aspect of the organization's success and performance. According to Darden and Babin (1994), an increase in consumer impression of service quality is associated with high employee performance, whereas an increase in customer complaints and brand switching is associated with poor employee performance. Employee performance must be shown to recognize each employee's personal development and achievement (Hendrey, 2005). According to Mayer, Bardes, and Piccolo (2008), increased employee performance leads to higher customer focus. 2.2.1 Effectiveness Effectiveness refers to the level of quality with which a task or process is carried out that ultimately leads to higher overall business performance. It is how well a business and the people in it perform value-creating tasks, and how well the business functions worth together. Effectiveness can be applied to many parts of business activities. From a managerial standpoint, a business is effective if its people are performing their required tasks. The more consistently employees perform tasks properly, the more effective they are. This includes proper use of communication, technology, organizational and individual knowledge, and resources. Measures of effectiveness can also be used to describe production in a manufacturing setting. In this case, a process is considered effective if the outcome achieved the desired specifications. In other words, did the product turn out the way that the organization intended? Over a period of time, the more often that products come out meeting specified criteria, the more effective the process is considered. One important note is that effectiveness does not measure efficiency. In other words, effectiveness does not measure how much time or inputs are used in production (https://www.myaccountingcourse.com/accounting- dictionary/effectiveness). Furthermore, effectiveness is the extent to which objectives are attained. Thus, the focus of effectiveness is not on cost, but rather on targeting the correct tasks and completing them in a timely manner. A highly effective organization pays attention to its strategy and goals, to ensure that the long-term and tactical targets of the firm are pursued. 2.2.2 Sales Volume The concept of sales volume is what many manufacturers and distributors go a long way to make sure they have huge turnover so as to remain in business, this concept refers to what most business men and researchers looks for best way to increase. Sales volume means sold quantity of goods. There are many purpose for calculating the sales volume of an organization, for example, we need sales volume for calculating the value of total sales and gross profit (Pauwels etal, 2002). Sales volume is the number of units sold within a reporting period. This figure is monitored by investors to see if a business is expanding or contracting. References Abbas, W., & Asghar, I. (2010). The role of leadership in organizational change. Relating the successful organizational change to visionary and innovative leadership. 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CHAPTER THREE METHODOLOGY 3.1 Research Design Research design is used to structure the research and to show how all of the major parts of the research project, including the sample measures and methods of assignment, work together to address the central research question in the study. The researcher will use survey method of investigation which uses mainly questionnaire as a measuring instrument. 3.2 Selection of Data. This has to do with the type of data to be used, either primary or secondary data. In the course of carrying out this research the following data were employed, primary and secondary data. The researcher used a well structured questionnaire to get some reliable information from the employees of the companies under study while the secondary source of data refers to already existing data gotten from books, journal and various unpublished work in the internet. 3.3 Collection of Data Obadoeze (1996:68) refers to collection of data as a means of obtaining relevant information regarding the major ideas of the hypothesis of the study for the purpose of demonstrating how valid or reliable they are. Thus, the questionnaires were used by the researcher in getting information from the employees of the companies under study. 3.3.1 Design and Administration of Questionnaire The questionnaire is divided into two parts; the first part (section A) was used to obtain information on the personal profile of the respondents such as sex, age, marital status and educational qualifications and years of service while the second part (section B) was used to get answers to the questions. The questionnaire contained a total number of 20 structured questions and was personally administered to the respondents by the researcher. A copy of the questionnaire used in getting information from the organization is attached as appendix B. 3.4 Population of the Study The staff strength of the two companies under study form the population of the study which gave us 2,338. The staff strength of Friesland WAMCO Nigeria Plc is 1,217, while that of Cadbury Nigeria Plc is 1,121. 3.5 Sample Size Determination According to Onyenakeya (2001) a sample is the number of people drawn from a population large and good enough to represent the entire population. A representative size is an essential requirement of any research study. It is pertinent therefore to apply a mathematical approach to obtain such representative sample. N N 1+N (e) 2 Where n = sample size N = Population size E = Proportion of the sampling error (assuming 0.05) or level of significance. I = Constant Thus substituting the formula we have; n = 2338 1+2338(0.05)2 n = 2338 1+2338(0.0025) n = 2338 1+5.845 n = 2338 6.845 N = 342 Based on the above calculation, the sample size is 342. This implies that the study was based on three hundred and forty two (342) derived as the research sample size. Thus, to deduce the number of staff that was sampled from each organization; a simple statistics was applied as expressed below; WAMCO Nigeria PLC: x 342 = 178 Cadbury Nigeria PLC: 3.5.1 Sampling Techniques The researcher employed simple random sampling techniques. Simple random techniques were chosen as it offers all the employees in the Companies under study equal opportunities of being selected to serve as the respondent of the study. 3.6 Operational Measures of Variables This aspect of the study looks at how the researcher measured the variables, dependent and independent in the hypothesis. In the first hypothesis (Ho1) “There is no significant relationship between transformational leadership style and effectiveness”. the main dependent variable is effectiveness” and it is measured by the extent to which organizational goals are achieved, speedy production of goods, the extent organization satisfies its clients, consistency in product quality and doing things right while the independent variable is “transformational leadership style” and it is measured by acquisition of skills, new styles of accomplishing assign task, introduction of training program for workers and improved efficiency etc. it is operationalized based on research question one “What is the nature of relationship between transformational leadership and effectiveness?”. The second hypothesis (Ho2) “There is no significant relationship between transactional leadership style and sales volume” the main dependent variable is “sales volume” and it is measured by increase in patronage, customers loyalty, market share, profitability, increase in product demand and organizational growth, while the independent variable is “transactional leadership style“ and it is measured by increase in workers reward, change of worker position, achievement of set targets, level of efficiency, level of ideas generated etc. it is operationalised based on the research question two “What is the nature of relationship between transactional leadership style and sales volume?” 3.7 Data Analysis Techniques The Spearman Rank Correlation Co-efficient in the statistical package for social sciences SPSS package was employed to test the hypotheses. APPENDIX B: QUESTIONNAIRE. Instruction: Please tick (√) in the box that corresponds with your answer SECTION A: GENERAL INFORMATION 1. Gender: a. Male ( ) b. Female ( ) 2. Age Bracket: a.20 – 25 ( ) b. 26-35 ( ) c. 36-45 ( ) d. 46- 50 ( ) 3. Educational Qualification: a. O’ Level/ND ( ) b. B.sc/HND ( ) c. MSc ( ) d. Ph.D ( ) 4. Marital Status: a. Single ( ) b. Married ( ) c. Divorced ( ) SECTION B: QUESTIONS ON KEY RESEARCH VARIABLES Indicate how far you agree with each of the sentence by ticking one of the following: SA – Strongly Agree A – Agree D – Disagree U – Undecided SD – Strongly Disagree S/N Question SA A U D SD TRANSFORMATIONAL LEADERSHIP STYLE 1. The leadership of the organization helps staff in acquisition of skills. 2. The skills acquired by workers assist them in accomplishing assigned task in new ways. 3. The organization initiates training programme for workers from time to time. 4. The training programme improves workers efficiency. 5. The workers key into the vision of the organization. EFFECTIVENESS 6. The employees help the organization to achieve their goals. 7. The organization is consistent in product quality. 8. The organization clients are always satisfied with their services. 9. There are speedy production of goods and services. 10. The workers are committed to doing things right. TRANSACTIONAL LEADERSHIP STYLE 11. The organization is committed to rewarding worker for meeting their target. 12. The workers always achieve target set for them by the organization. 13. Employees experience change in desired position. 14. Good level of ideas is generated by workers. 15. There is increase in employee efficiency. SALES VOLUME 16. There is an increase in customer patronage. 17. The organization has the highest market share in the industry. 18. The organizational clients are consistent in buying our product. 19. The demand for our product is on the increase. 20. Transactional leadership style improves sales volume.