TO INVESTIGATE ON FACTORS INFLUENCING THE CHOICE OF

LEADERSHIP STYLES

(CASE STUDY OF EQUITY BANK)

PRESENTED BY:

EVANSON KANYIRI

INDEX NUMBER:

COURSE CODE:206001

INSTITUTION:

NIBS TECHICAL COLLEGE

A RESEARCH PROJECT REPORT SUBMITTED TO THE KENYA

NATIONAL EXAMINATION COUNCIL IN PARTIAL FULFILLMENT OF

THE REQUIREMENT FOR THE AWARD OF CERTIFICATE IN

BUSINESS MANAGEMENT

EXAMINATION SERIES: JAN 2021

 Declaration
This research project is my original work and has not been submitted in any other learning

institution.

Signed…………………………….

Registration Number………………….

Date …………………

EVANSON KANYIRI

This research project has been submitted for examination with the approval of my supervisor.

Signed:…………………………………. Date: …………………….

Mr Wekesa

Lecturer

Business department

Nibs Technical College

 ACKNOWLEDGEMENT
I would like to thank my supervisor, Mr. Wekesa for the time he took to guide me through this

project and his utmost advice. I also wish to appreciate my family for their patience and support

during the period of carrying out this study. God Bless You all.
Table of Contents
Declaration.................................................................................................................................................2
ACKNOWLEDGEMENT........................................................................................................................3
Chapter One...............................................................................................................................................4
1.0 Introduction.........................................................................................................................................4
1.1 The background of the study..........................................................................................................4
1.2 Statement of the problem................................................................................................................6
1.3 Purpose of the study........................................................................................................................7
1.4 Objectives of the study....................................................................................................................7
1.4.1 general objectives......................................................................................................................7
1.4.2 Specific objectives.....................................................................................................................7
1.5 Research questions..........................................................................................................................7
1.6 Scope of the study............................................................................................................................8
1.7 Significance of the study..................................................................................................................8
1.8 Operational definition of key terms...............................................................................................8
Chapter two...............................................................................................................................................9
2.0 Literature review.................................................................................................................................9
2.1 Introduction.....................................................................................................................................9
2.2 Theoretical literature review..........................................................................................................9
2.2.1 Greats man theory..................................................................................................................10
2.2.2 Behavioral theory....................................................................................................................10
2.2.3 Contingency theory.................................................................................................................10
2.2.4 Transactional theory...............................................................................................................10
2.3 Empirical literature review...........................................................................................................10
2.4 Conceptual framework..................................................................................................................11
2.5 Summary of literature review.......................................................................................................12
CHAPTER THREE.................................................................................................................................13
3.0 RESEARCH METHODOLOGY.....................................................................................................13
3.1 Introduction...................................................................................................................................13
3.2 Research design.............................................................................................................................13
3.3 Target population..........................................................................................................................14
3.4 Sampling design.............................................................................................................................14
3.5 Data collection................................................................................................................................15
 3.6 Data analysis..................................................................................................................................15
CHAPTER FOUR...................................................................................................................................16
4.0 DATA ANALYSIS, PRESENTATION, FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS........................................................................................................................16
4.1 Introduction...................................................................................................................................16
4.2 Response rate.................................................................................................................................16
4.3 general demographic.....................................................................................................................17
4.3.1 gender of the respondent........................................................................................................17
4.3.3 Marital status..........................................................................................................................19
4.3.4 Tenure of the respondent.......................................................................................................20
4.4 Data analysis..................................................................................................................................21
4.4.1 Employee’s competence..........................................................................................................21
4.4.2 Leadership...............................................................................................................................24
4.5 Summary of the findings...............................................................................................................25
4.6 Conclusion......................................................................................................................................26
4.7 Recommendations..........................................................................................................................26
 Chapter One

1.0 Introduction
1.1 The background of the study
It is usually necessary for an organization to choose the best leadership styles so as to ensure

smooth running. this study recognizes the rate that leaders play I the management of strategic

change in organization as well as how they steer the organization towards the achievement of

their goals.

There are several styles of leadership such as; autocratic, bureaucratic, laissez-faire, charismatic,

democratic, participative, situational, transactional and transformational leadership. According to

Rad and Yarmomadia,2006, a leader may have knowledge and skills to act effectively in one

situation but may not emerge as effective in a different situation

Mann Hyung 2008 defines leadership style as a managerial activity that affects subordinate in

such a way that they are willing to voluntarily meet the goals of the organization.

Efficient managers adapt their styles of behavior to subordinates and assigned tasks. Most

a management theorist agree that leadership efficiency is a function of leadership,

subordinates and a current situational variable. Tannenbaum and Schmidt, 1958 sees

leadership styles as a continuous that ranges from an authoritative leadership style to the

laissez faire managerial leadership style or leadership focused on subordinates. Authors

Hersey and Blanchard argues that even before a manager decides for a particular

leadership style, they should first be correctly oriented in a given situation and understand

what the main objectives to be achieved are. The model by Blanchard and Hersey

assumes that once a manager is able to identify and implement an appropriate leadership

style, they become more efficient leaders.

 Yukl,1994 lists the following factors as determinants of leadership styles in any

organization; level in authority hierarchy, function and size of the organization unit, crisis

situation, state of technology, stages in the organization life cycle and subordinate’s

competence and performance. Leadership style is relatively consistent pattern of behavior

that characterizes a leader. Today’s organization need effective leaders who understand

the complexities of the rapidly changing global environment. Fajana. according to the

Oladipo the success or failure of proper organization, nations and other social units has

been largely credited to the nature of their leadership style. Fajana S,1997 describes

leaders as individuals who have authority over others and are responsible for guiding

their actions. Chemers S 1997 believes that leadership is a process of social influence in

which one person asks for another’s help to achieve a goal. He further emphasizes that

the personality of a manager is an important dimension of leadership and it can play an

important role in the retention of the manager in the organization.

Kim and Mauborogne ,1992 stated that leadership is the ability to inspire confidence and support

among the people who are needed to achieve organizational goals. Leadership style is a

leader’s combination of attitude and behavior which leads to certain regularity and

predictability in dealing with group members, Dubrin 2004.relatioship theories also

known as transformational theories focus upon the connections formed between leader’s

ad followers. Transformational leaders are focused on the performance of group members

and also want each person to fulfill his/her potential. Leaders with this style often have

high ethical and moral standards.

Leadership style has been proven to be a determinant of more than one aspect in organization

and employee behavior. The two vital aspects that are of interest to understand are the

importance of the choice of leadership style and organizational commitments.

1.2 Statement of the problem

For decades people are searching for the solution to better leadership to suit the society.

Numerous research studies and books have been published in describing and fine tuning

the concept of leadership styles and effective leader. Effective leaders exhibit the ability

to cause their followers to accomplish the desired work and achieve their goals.

According to house 1998, leaders are effective because of their positive impact on

follower’s motivation, ability to perform and satisfaction. To achieve success leaders,

have to ensure that messages are communicated openly and honestly to keep employees

informed and commit to meeting expectations set by the leadership.

Equity bank limited offers customers financial services that socially and economically empower

their clients and other stake holders. The bank continues to receive recognitions and top

awards for its exemplary services. In April 2013 equity bank was voted best bank in

Kenya at the think business banking awards 2013. The bank emerged top ahead of other

banks. The top award came on the strength of regional reach, strong brad pulls and

innovation. At the same time the bank was named best bank in Kenya tier at the annual

banking awards. it was also voted the best bank in Kenya in terms of customer deposits

base of over seventy billion Kenya shillings.

1.3 Purpose of the study
This study intends to build on existing literature and add more knowledge in the field of

leadership. The study will provide industry with useful insight on factors influencing the

choice of leadership styles

1.4 Objectives of the study

1.4.1 general objectives
i) to identify the styles of leadership in equity bank limited

1.4.2 Specific objectives

i. To examine the relationship between leadership styles and personality of members in this

organization

ii. To examine the organizational culture capable of enhancing choice of leadership in this

organization.

iii. To identify the company’s beliefs on leadership and how they affect the choice of

leadership styles.

iv. To determine similarities and differences among employee in terms of age cultural

background and physical abilities.

1.5 Research questions

The questions that are guiding the study are as follows

i. Can the size of the firm influence the leadership style in an organization?

ii. Does life experience play a major role in leadership style at equity bank limited.

iii. Does policy frame work influence the leadership style in this organization.

iv. In what ways does goal attainment of the organization influence the leadership

style

v. Do personal attributes influence leadership style?

 vi. If the type of group relationship existing in an organization influence the choice

of leadership style.

vii. Does the personality composition of the work group influence the choice of

leadership in this organization?

1.6 Scope of the study

The study is limited to the factors influencing the choice of leadership styles at equity bank. The

study is streamlined to factor variables such as employee’s role, organizational culture,

sociological factors, economic, political factors and leadership styles variables namely

autocratic, democratic, laissez faire and bureacrati9c leadership styles.

1.7 Significance of the study

This study is significant in many ways .one of the ways is that this research may help in creating

understanding of the concept of leadership in the banking sector. This study will also enlighten

the employee on the roles and obligations to the leadership in the organization and other related

matters.it will help to identify then reason why employees react positively or negatively toa a

particular leadership style of a manager. The finding from the study is important because they

have the capacity of being used to formulate policy guidelines which are relevant and sensitive to

the choice of leadership to be used in the organization. The findings of this study will also be

useful to researchers as it contributes to the body of knowledge in the area of leadership

1.8 Operational definition of key terms

The chapter includes some different definitions of terms encountered during the study. They

include staff attrition which refers to r=the loss of employees through a natural process such as

retirement, resignation, elimination of a position, personal health or other similar reasons.

 Chapter two

2.0 Literature review

2.1 Introduction
This literature review provides an overview of areas under study and differences between past

research studies a and the one being undertaken. This chapter reviews various sources of

materials and information that relates to the area of study.

2.2 Theoretical literature review

This study is based on modern theory of leadership which emerged as a result of further research

on leadership conducted on the contingency and path goal theories. Leadership is an influence

among leaders and followers who intend real changes that reflect their mutual purpose.

According to the trait theory leadership assumes that there inherent and biological characteristic

or qualities in every leader or manager which influence his style of leadership. Natural a leader is

expected to be self-confident and emotionally stable; he is likely to show or express more

enthusiasm than others. on the other hand, the circumstances and situations that a leader find

him/herself in may also influence his style of leadership. This is the argument of the situational

approach which states that leadership is specific and always relate to a particular situation when

it occurs.

In particular transformational leadership theory popularized in 1970s onwards by Burn 1978 and

later Covey 1992 who advocated for leadership being about transforming people and

organization by engaging their hearts and minds. Transformational leaders are generally

energetic, enthusiastic a and passionate. Transformational leaders emphasize on leaming,

empowerment and teamwork. House 1998 views leadership in terms of appropriate behaviors

that are acceptable and satisfying to subordinates to the extent that they see such behavior as a
source of satisfaction. House identifying the four main leadership behaviors directive supportive,

participative and achievement oriented.

2.2.1 Greats man theory

This theory evolved in the mid 19 the century, it was seen that the trends of leadership are

intrinsic. I.e. they are internal characteristics such that great leaders are born not made. This

theory sees great leaders as those who are destined by birth to become leaders. the belief was

that great leaders will raise when confronted with appropriate situation

2.2.2 Behavioral theory

These theory focuses on the behavior of the leader as opposed to their mental, social and

characteristics. according to this theory leaders are made and not born.

2.2.3 Contingency theory

This theory argues that there is no single way of living and that every leadership style should be

based on certain situations. This indicates that there are certain people who can perform at the

maximum level in certain places but how minimum performance when taken out of his element

situation.

2.2.4 Transactional theory

These are characteristics by a transactional made between the leader and his follower. The theory

identifies the values of positive and mutual benefit relationship. the leadership is efficient in an

environment where he/she can motivate onwards.

2.3 Empirical literature review

Several theories of leadership have been proposed and deliberated upon by experts for the

purpose of this study, many theories will be given prominence.

According to Mullins, T 2003, directive leadership behavior is directed towards proving

psychological structure for subordinate. It includes letting subordinate know what they are
expected to do, scheduling and co ordinating work, giving specific guidance and co ordinating

work. Directive behavior is a form of path goal clarifying behavior.

According to House 1999 and Mullins participative leadership behavior is a behavior directed

towards encouragement of subordinate, influences on decision making and unit operation.

Similarly, leadership styles in organization should be adopted from the demands of the situations

the requirements of the people involved and the challenges facing the organization. Accordingly,

the most effective leaders can move among different leadership styles, adopting the one that

meets the needs of the moment.

2.4 Conceptual framework

The conceptual framework shows the relationship between the dependent variable and

independent variables. the leadership styles are the dependent variable while the factors are the

independent variable

A frame work for this study is depicted below

Independent Value Dependent value

Employees competence

Leadership

Leadership styles

Employees skill

Belief system
2.5 Summary of literature review
This summarizes the relationship between factors and leaders ship styles. Leadership

effectiveness has been a core topic in leadership. There are three fundamental components of

leadership process including the leader’s personality or traits, the follower’s perception of

leaders and the situations that those interactions take place. Leadership styles entirely depends on

many factors such as the size of the organization, the employee personality, the goal congruent

among employees and the degree of interaction among work groups. these factors may be

internal or external.

Leadership styles are independent on the prevailing circumstances and therefore managers

should be trained in various styles so that they are always able to use the leadership styles. Most

management theorists agree that leadership efficiency is a function of leadership, subordinates

and a current situational variable.

 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction
This study is aimed at identifying the factors that influence the choice of leadership style at

equity bank limited. In this chapter the issues described are research design, population,

sampling procedures, techniques, data collection tolls and procedures, data analysis and

presentation procedures. The main issues of consideration are the source of the data; study

approach and purpose, sampling technique, data collection method, data presentation and

analysis.

This chapter provides the overview of the methodological approach and the research design

selected for the study. This chapter clearly shows an in-depth direction into the way data is

gathered and analyzed

3.2 Research design

The term research design refers to how a researcher put a research study together to answer a set

of research questions. Research design works as a systematic plan outlining the study, the

researcher’s method of compilation details on how the study will move at its conclusion and

limitations of the research.

The study will take a qualitative form of research. The research will rely on what respondents

have to say. This ensures that the researcher will gain in-depth understanding and insight top as

well as allowing a detailed and intense study of the case.

3.3 Target population
The population of the study is entire staff of equity bank limited. The participation of the study

will be voluntary and anonymous. At least thirty employees will be selected randomly from all

departments of the company. The population of the study will comprise of managers,

departmental heads, supervisors and subordinates

The table below shows the targeted population

Category numbers Proportion

Departmental heads 7 23%

Managers 5 16%

Supervisors 8 26%

Subordinates 10 33%

Total 30 100%

3.4 Sampling design

Sampling technique provides a range of methods that enables one to reduce the amount of data

one needs to collect by considering only data from a subgroup known as a sample rather than all

the possible cases or elements. The purpose of taking a sample is to obtain a result that is

representative of the whole population being sampled without going to trouble anyone. A

systematic random sampling will be used during this research.

The following table shows the sample table

Category Numbers Proportions

Departmental heads 5 25%

Managers 4 20%

Supervisors 6 30%

Subordinates 6 30%

total 20 100%

3.5 Data collection

The aim of this study is to ascertain the factors affecting the choice of leadership styles. In line

with the recommendations will be used to collect data including filling out questionnaires,

survey, personal observations and examination of records. The primary data will be gathered

using questionnaires which will be designed with an adopted conceptual frame work. The

questionnaire will be structured into sections, personal profile, variable, characteristics of

employees, age, gender and level of education.

3.6 Data analysis

This chapter provides a description of the procedure to be used while conducting the research on

the factors affecting the choice of leadership style. The qualitative and quantities data obtained

will be obtained through questionnaires and examined by the researcher.

 CHAPTER FOUR

4.0 DATA ANALYSIS, PRESENTATION, FINDINGS, CONCLUSIONS

AND RECOMMENDATIONS
4.1 Introduction
This chapter includes all the information gathered during the research using the questionnaire

developed in chapter three. This chapter represents the data findings, analysis and interpretation

of factors influencing the choice of leadership styles at equity bank limited. A case study design

was used to achieve the objectives.

4.2 Response rate

This chapter includes the type of response experience during the research that showed how

different gender responded to the questions presented to them by the researcher.

Table 4.2.1 shows distribution of response rate

Status Response Percentage

response 12 60%

non-response 8 40%

total 20 100%

Figure 4.2.1 show a pie chart representing the response

 Chart Title

Respose
40% Non-response

60%

The above diagram shows the number of individuals who responded and those who did not

respond

4.3 general demographic

4.3.1 gender of the respondent
The table below shows respondents according to gender

Gender Frequency percentage

Male 13 65%

Female 7 35%

Total 20 100%

4.3.1 the bar graph blow shows the distribution of the respondents in according to gender
 Chart Title
14 13

12

10

8 7

0
males females

The above diagram represents the gender of responses with their percentage. The no

males were 13 which is 65% while the number of females was 7 which is 35%

4.3.2 age of the respondent

Age Frequency Percentage

below 25 years 3 15%

25-30 years 2 10%

31-35 years 2 10%

36-40 years 5 25%

41 and above 8 40%

Total 20 100%
4.3.3 Marital status
Table 4.3.3 shows distribution of the respondents according to marital status

Marital status frequency percentage

Single 12 60

Married 8 40%

Total 20 100%

Figure 4.3.3 bar graph shows distribution of the respondent according to marital status

marital status
14

12
12
10

8
8
6

0
singles married

marital status
4.3.4 Tenure of the respondent
Table 4.3.4 distribution of the respondents according to tenure

Tenure Frequency Percentage

below 1 year 7 35%

1-2 years 3 15%

2-3 years 5 25%

3-4 years 2 10%

5 and above years 3 15%

Totals 20 100%

Figure 4.3.5 bar graph showing distribution of the respondents according to tenure

frequency
8

0
below 1 year 2-3 years 3-4 years 4-5 years 5 and above years

frequency
4.4 Data analysis
4.4.1 Employee’s competence
Tale 4.4.1 distribution showing effects of employee competence at equity bank limited

Status Frequency Frequency

Yes 12 60%

No 8 40%

Total 20 100%

Figure 4.4.1.1 bar graph representing the level of respondent on how leadership style affects the

rate of employee’s competence

frequency
14

12

10

0
yes no

frequency
The diagram above shows the number of those who responded according to status. Those that

proved that employee competence affects leadership styles were 12 which is 60% while

those that were against were 8 which is 40%

Table 4.4.1.2 shows distribution according to the relationship between competence and

leadership styles.

Relationship Frequency Percentage

Very strong 7 35%

moderate 3 15%

very weak 5 25%

weak 5 25%

total 20 100%

Figure 4.4.1.2 pie chart shows the relationship between employee competence and leadership

styles.

percentage

very strong moderate very weak weak

Table 4.4.1.3 table below represent rate of leadership styles

Rate Frequency Percentage

Excellent 8 40%

Average 7 35%

Below average 3 15%

Total 20 100%

Figure 4.4.1.3 pie chart shows rate of leadership styles

rate

excellent average below average

The diagram above shows the rate of leadership styles t equity bank limited. the number of

respondents who prove the rate to be excellent were 8 which is 40% average were 7 which is

35% and below average were 3 which is 15%

4.4.2 Leadership
Table 4.4.2.1 shows the extent to which leadership styles affect employee’s performance

whether leadership styles frequency percentage

affect employee’s

competence

yes 16 80%

no 4 20%

Total 20 100%

Figure 4.4.2.2 represents the rate of leadership at equity bank limited

Rate Frequency percentage

Excellent 9 45%

Average 3 15%

Below average 8 40%

Total 20 100%
Figure 4.4.2.2 shows a bar graph that represents the rate of leadership on employee’s

performance.

rate
10
9
8
7
6
5
4
3
2
1
0
excellent average below average

rate

The average above shows the rate of leadership as rated by employees at equity bank limited

where those who proved that leadership was excellent were 9 which is 45% those who proved it

as average were 3 which is 15% and those who proved it as below average were 8 which is 40%

4.5 Summary of the findings

The purpose of the study was to investigate the factors influencing the choice of leadership

styles. The study revealed that leaders are responsible for setting the context for change within an

organization. Most of the respondents acknowledged that the key to successful organizational

change is heroic and learned change management by competent and visionary leaders. Leaders

must be able to counsel, teach, coach and reward employees as they adopt and make through the

change process. In this case, transformational leaders influence their followers by developing and
communicating a collective vision and inspiring them to look beyond self-interests for the good

of the team and the organization.

According to the respondent through effective communication channels between employees and

the leaders, the organization is able to manage itself effectively.

4.6 Conclusion
From the research finding some conclusions that can be drawn from the study one that

organizational change is about making alternatives to the organization purpose, culture structure

and process in response to seen or anticipated change in the environment. The study also

revealed the factors that influence the choice of leadership styles. It has also revealed that

leadership styles influence the employee’s performance.

The study further concludes that there is need to spend extra time and energy improving the

leadership skills of the organization. So as to ensure employee understand and communicates

efficiently.

Finally, the study concludes that organizations need to align organizational systems to support

needed changes. These include performance management system, rewards and recognition,

disciplinary approaches, compensation and promotions.

4.7 Recommendations
After the research the researcher found out that it is very important for the management to put

into consideration the type of leadership to be used. In respect to the study conducted by the

researcher the following the recommendations may be made; employee should be allowed to

participate in innovation activities like coming up with new ideas, employees should also be

involved in the decision making process of the organization, the employees should also be

empowered to make decisions wisely that affect the organization, the leaders should also provide
good working conditions for their subordinates. The researcher recommends that the

organization should employ flexibility in the leadership styles adopted.

4.8 Suggestion for further studies

The study was limited to Equity Bank Kenya Limited where the researcher sought to examine

the factors influencing the choice of leadership styles. A similar research could be conducted in a

different context in order to affirm the findings of this research as well as many other researchers

who have done the same research. The research recommends the need for further research to

establish the leadership style most suited for managing change efficiently in organizations.

Leadership research is also needed to link the specific styles of leadership to followers’ attitude

in organizations.

Finally, future research is needed to further clarify the specific moral and ethical qualities of

transformational leaders such integrity and comparison which may offer stronger explanatory

power of leadership styles and consequential behaviors.