Master’s Thesis Abia State, Nigeria By Owolabi Yusau Lawal .
Master’s ThesisEvaluation of leadership and OrganizationalPerformance in Small Scale industries in Nigeria;A Case of Selected Small Scale industries in Aba,Abia State, NigeriaByOwolabi Yusau Lawal&Chukwuma Kingsley ChukwuebukaMay 20070
Evaluation of leadership and Organizational Performance in SmallScale industries in Nigeria; A Case of Selected Small Scale industriesin Aba, Abia State, NigeriaByOwolabi Yusau Lawal&Chukwuma Kingsley ChukwuebukaA thesis submitted in partial fulfillment of the requirements for thedegree of MBA (Master of Business Administration) Blekinge Instituteof Technology, Sweden.May 2007SupervisorDr. Klaus Solberg Søilen 1
EVWUDFW From time immemorial, the role of leaders in ensuring excellentorganizational performance can not be over emphasized. The need foradequate motivation, suitable working environment, compensation andefficient communication between employers and employees areimportant to promoting excellent organization performance. Thoughstudies on motivation and leadership role amongst employees are wellstudied in urban centers in developed countries, less could be said ofrural centers in developing countries like Nigeria. Therefore, it wasimportant to evaluate leadership and organizational performance insmall- scale industries in Aba, Abia state, Nigeria. The evaluation wasdone through use of questionnaires with questions tailored towardsdetermining: the relationship between leadership and organizationalperformance, pattern of leadership and the extent it has affectedorganizational performance, the factors responsible for worker’s lowperformance and how leadership st yle has affected labor managementrelations and productivit y in three selected small scale industries in thestud y area. After anal yzing the result with Chi-square, it wasconcluded that to attain the objectives of small-scale industries in Aba,Abia state Nigeria, it was necessary that leadership recognizes theneeds of the workers, employ appropriate motivational tool such aspromotion of staff based on merit and skills, provide suitable workingenvironment and provide an appropriate leadership st yle that willencourage free flow of information among employer, superior officersand other employees.Key words: small-scale industries, leadership st yle, motivation andorganizational performance.2
7 %/( 2) &217(176 TABLE OF CONTENTS . 3List of tables . 5 FNQRZOHGJHPHQW . 6&KDSWHU ,QWURGXFWLRQ . 71.11.21.31.41.5Background . 8Purpose and challenges faced during the study . 10Hypothesis and objectives of the study . 11Significance and limitations of study. 13Definition of terms . 13&KDSWHU 7KHRU\ . 15Concept of leadership .2.1 Levels of leadership .2.1.1 Participation .2.1.2 Leadership Process .2.1.3 Importance of the process .2.2 Leadership Ability .2.3 Trait theory .2.4.0 Behavioral theory .2.4.1 The Ohio State Universit y Study .2.4.2 Prudential Life Insurance Company .2.4.3 The Michigan Studies .2.5 Likert Leadership theory .2.6 Situational Theory .2.7 Fielder’s contingency theory.2.7.1 Fielder’s revised theory .2.7.2 Criticism of Fielder’s Theory .2.8 Leadership in Nigeria .2.9 Leadership among the Igbo cultural group .161718181919212222242526272829303233&KDSWHU 0HWKRGRORJ\. 35Research Design and Methodology.3.1 Sources of data .3.2 Instrument for data collection .3.3 Sampling and sampling technique.3.4 Determination of sample size .3.5 Techniques of data anal ysis .3.5.1 Method for data presentation includes use of: .363637373839393
&KDSWHU (PSULFDO DQDO\VLV . 41Presentation of Data . 424.1 Anal ysis of data from respondents . 42&KDSWHU QDO\VLV .Data Anal ysis .5.1 Hypothesis one .5.2 Hypothesis two .5.3 Hypothesis three .5.4 Hypothesis four .5.5 Interpretation and meaning of anal yzed data .5.6 Theories relevant to this study .5556565859616263&KDSWHU &RQFOXVLRQ . 65Discussion and finding. 666.1 Conclusion . 676.2 Recommendation . 69 SSHQGL[ . 71 SSHQGL[ . 725HIHUHQFHV . 75 4
/LVW RI WDEOHV Table 1: List of selected companies . 39Table 2: Number of questionnaires administered and collected . 39Table 3: Sex of workers . 42Table 4: Age distribution of the workers . 43Table 5: Type of education possessed by respondents . 43Table 6: Longetivit y of staff . 43Table 7: Nature of business ownership . 44Table 8: Level of director’s involvement in dail y business activit y . 44Table 9: Reporting of sectional heads to the manager . 45Table 10: level of cordialit y between heads and subordinates . 45Table 11: degree of freedom . 46Table 12: Suitabilit y of working environment for the workers. 46Table 13: satisfaction of workers with present salary . 47Table 14: Promotion of staff in the company . 47Table 15: Factor deciding whom to promote in the company . 47Table 16: Job motivation . 48Table 17: Level of motivation among staff in the companies . 48Table 18: Existence of training facilities . 49Table 19: Type of training received . 49Table 20: Delegation of dut y and authority . 50Table 21: Performance evaluation . 50Table 22: leadership st yle . 51Table 23: Motivation of workers based on their efforts andcontributions . 52Table 24: level of motivation among the respondents . 52Table 25: existence of performance measurement in the companies . 53Table 26: How to enhance organizational performance . 54Table 27: factors affecting organization performance . 54Table 28: Contingency table for leadership st yle. 57Table 29: Computation of CHI – SQUARE (X 2 ) value for Hypothesis 1. 57Table 30: Contingency table for factors deciding whom to promote inthe company . 58Table 31: Computation of CHI-SQUARE (X 2 ) value for hypothesis 2 59Table 32: Contingency table for response of leaders to highperformance . 60Table 33: Computation of CHI-SQUARE (X2) for hypothesis 3 . 60Table 34: Contingency table for factors that motivates staff’spromotion . 61Table 35: Computation of CHI-SQUARE (X 2 ) value for hypothesis 4 61 5
FNQRZOHGJHPHQW We are grateful to Klaus Solberg Søilen (PhD) for his timel y response andadvice during this study. To staff and directors of Ariaria shoe plaza,Sunsison ventures and Chuba plastics, Aba, Abia State Nigeria, we arethankful for your cooperation and gesture during this study. To all ourfriends and famil y, who supported us all through this study, we arethankful.We are also grateful to the MBA team in Blekinge Institute ofTechnology, Sweden for taking us through the necessary rudiments inthis program and providing an avenue to study at this level.Lastl y we are grateful to God for His mercy and favor all through thisstud y. 6
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,QWURGXFWLRQ Recession in economy is a basic characteristic of most developing orthird world country. Nigeria, which is the most populated nation insub-Saharan Africa, falls into this category. The consequence of thisrecession includes sharp reduction in foreign exchange, high cost ofliving, povert y, unemployment: which was averaged at 5% between1976 and 1998 and continued depreciation in the value of the nation’scurrency called Naira ( N ) (Ekpo and Umoh, 2007). To salvage thecountry from this looming epidemic, the managers of the country werecompelled to look inward and re-evaluate the industrial strategies usedb y the nation.Based on the nation’s fragile economy, the need to groom andencourage establishment of more small-scale industries was reengineered under the Obasanjo administration (1977-1979) (Unamakaand Ewurum, 1995). Prior to this period, the focus of industrial polic yin Nigeria has been on assembling plants, which are medium scaleindustries. This idea was developed during the post second world warera where the need to reinvent the wheel of industrial development inEurope was prime. It was intended that Europe should be redevelopedas a new industrial base: mainl y automated and void of artisanship thatwas common during the pre-second world war era in Europe (Budhwarand Yaw, 2001)Nigeria as a developing nation is affected by the modern economictheory of developing the new world. Thus, the nation’s developmentplanner accepted adopting the policy of import substitution throughindustrial technology, which encourages small-scale industries. At thispoint, it becomes important to the leadership of the nation to preventexodus to developed centers and reduce, if not able to eradicate theproblems caused by economic recession through encouragement ofsmall scale industries within the local communities with the aim ofusing local raw materials. %DFNJURXQG An organization is a social set up, which has a boundary that separatesit from its environment, pursues its own collective goals, and controlsits own performance (Hicks and Gullet, 1975). In a formalorganization, interactions are rationally coordinated and directedthrough time on a contineous basis. The person at the helm of affairs isusuall y the leader.Kraines (2001) stressed that the word leadership has been used by mostdisciplines: political science, business executives, social workers and8
educationist. However, there is large disagreement as regards the exactmeaning.This view was also supported by Taffinder (2006, pg 6), who gavedifferent definitions to leadership: “a simple meaning: leadership isgetting people to do things they have never thought of doing, do notbelieve are possible or that they do not want to do”. With reference toan organization, he defined leadership as “the action of committingemplo yees to contribute their best to the purpose of the organization”.While on a complex and more accurate view, he explains that you onl yknow leadership by its consequences – from the fact that individuals ora group of people start to behave in a particular way as a result of theactions of someone else”.It is important to distinguish between leadership as an organizationfunction and as a personal qualit y. According to Bowery (2004) thelater entails special combination of personal characteristics, whichbrings to light qualities and abilities of individuals. The former refersto the distribution of power through out an organization and it bringsto focus the pattern of power and authority in the organization.Defining leadership in it various reflections is very important.However, it is necessary to buttress what our focus is when any of itsdefinition is referred to and under what condition.Previous views about leadership show that it is seen as a personalabilit y. However, Messick and Kramer (2004) were of the opinion thatthe degree to which individuals’ exhibits leadership depends not onl yon his characteristics and personal abilities, but also on thecharacteristics of the situation and environment in which he findshimself.Messick and Kramer (2004) further explained that since human beingscould become members of an organization in order to achieve certainpersonal objectives, the extent to which they are active membersdepends on how they are convinced that their membership will enablethem to achieve their predetermined objectives. Therefore an individualwill support an organization if he believes that through it, his personalobjectives and goals could be met, if not the person’s interest in theorganization will decline.Considering the selected industries in Aba, Abia state, Nigeria for thisstud y, the effectiveness or ineffectiveness lies in the leadership andorganization of the institute. According to Akpala (1988) somecommon problems were mentioned to affect organizational performancein Nigeria business and other institutions. Among these problems facedb y economic and government institutions in Nigeria are bad attitude towork among Nigerian work force, poor organizational performance,inefficiency and ineffectiveness in most places. The writer buttressedhis point by saying that most organizations in Nigeria are managed by9
management s ystems that are strange to the t ypical Nigerian culture.However, suggestions were made that the right t ype of leadership andmotivation were not applied in managing Nigerian workers.Among the objective of any small scale industry is to make profit andachieve liquidit y status. They try to achieve this b y providingemplo yment, facilitate economic growth, provide goods and servicesand purchase goods and services through effective and efficientproduction and distribution of goods and services. As observed in mostNigerian small-scale settings, the effectiveness of these roles is greatl ydetermined by the availabilit y and accessibilit y to personnel, finance,machinery, raw materials and possibility of making their goods andservices available to their immediate communit y and the nation at large(Unamaka and Ewurum, 1995).Therefore all integrated groups inclusive of small-scale industries needto be coordinated to achieve effective result. It is therefore themanager or leader’s role to achieve this (Glantz, 2002).Glantz (2002) further explained that models on human relation showsthat there are no essential conflicts that can satisfy workers social andps ychological needs. These needs are entirel y congruent withorganizational goals of effectiveness and productivit y.The extent (degree) to which all members of an organization use theirabilities and influences in the effective utilization of resources dependsupon how well the managers (leaders) of the organization understandand perform their jobs. Maddock and Fulton (1998) explained thatleadership and other processes of the organization must be such thatcan ensure maximum probabilit y within all interactions andrelationships with the organizations, each member will in the light ofhis background, values and expectations, view the expenses assupportive and one which can build and maintain his sense of personalworth and importance. 3XUSRVH DQG FKDOOHQJHV IDFHG GXULQJ WKH VWXG\ The number of small scale industries spring up yearl y in Nigeria are somuch but at the end of the dang, many of them go downhill because ofa lot of factors militating against them and the problems have beenattributed to the performance of Leadership.This work will focus on Evaluation of leadership and OrganizationalPerformance in Small Scale industries in Nigeria; A Case Study ofSelected Small Scale industries in Aba, Abia State, Nigeria. Aba,which is located in eastern part of Nigeria, is chosen because it is oneof the strongest commercial nerve centers of the country. The number10
of small-scale industries springing up from this area is unparalleledwhen compared to other cities in the country.This work will also determine the pattern of leadership and the extentit has affected organizational performance in the selected small scal eindustries in Aba, Abia State, Nigeria, identify the factors that areresponsible for worker’s low performance in the selected area of study.Also, we will find out how leadership st yle has affected labormanagement relations and productivit y in the selected area of study.For each of these purpose of study, hypothesis will be formulated toanswer them using by chi Square as a staticall y tool of anal ys is.It is believed that this study will be of immerse importance because itwill reveal the relationship between leadership and organizationalperformance in Aba, Abia State, Nigeria and how leadership st ylecould be applied to small-scale industries bearing in mind theenvironmental differences. Secondl y, it will be of great importance tothe student of business administration who may be heading small-scaleindustrie
Master’s Thesis Evaluation of leadership and Organizational Performance in Small Scale industries in Nigeria; A Case of Selected Small Scale industries in Aba, Abia State, Nigeria By Owolabi Yusau Lawal & Chukwuma Kingsley Chukwuebuka May 2007
Since 1999, passenger growth at Austin-Bergstrom International Airport (ABIA) has tripledwith , a 4.2% average annual growth rate. Between 2011 and 2017, ABIA has grown at a 7.3% average annual growth rate, and had 13.94 million annual passengers (MAP) in 2017This growth rate exceeds the national average growth rate of 2.8% .
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Abia state, Nigeria . A thesis . submitted in partial fulfilment . of the requirements for the Degree of . Master of Commerce (Agricultural) at . Lincoln University . by . Victor Chimaobi Okoroji . Lincoln University . 2019
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