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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.

Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572

RELATIONSHIP BETWEEN LEADERSHIP STYLES AND


ORGANIZATIONAL EFFECTIVENESS: A STUDY OF ZENITH BANK
PLC
Emeka Emmanuel Ejike
Zenith Bank Plc,
Ogidi, Anambra State, Nigeria
Email. achievepm@yahoo.com; Phone: +2349027006787
ABSTRACT: This study examined relationship between leadership styles and organizational
effectiveness. Participants (141 males and 59 females) were 200 Zenith Bank Plc employees, age-
ranged 24-50 years, mean-age 32.3 and SD 6.13. Instruments were Multifactor Leadership
Questionnaire and Organizational Effectiveness Scale. The study had correlational design and
Pearson Product Moment Coefficient statistics. Findings showed that transformational leadership
style significantly correlated with organizational effectiveness at r = .89**, p < .01; transactional
leadership style correlated significantly with organizational effectiveness at r =.55**, p <.01; while
laissez-faire leadership style correlated negatively but not significant with organizational
effectiveness at r = -.01, p. > .01. By implication, leaders who adopt transformational and
transactional leadership styles have effect on the effectiveness of the organization. Recommendations
were for transformational and transactional leadership styles to be embraced by bankers.
KEYWORDS: Leadership Styles, Organizational Effectiveness, Zenith Bank Plc
INTRODUCTION Statement of Problem
Leadership is evolving and so is the It is generally believed that
nature of the human being. Leadership style organizational effectiveness which is associated
consists of a leader's general personality, with the employees’ performance emanates
demeanour, and communication patterns in from the actions of an effective leader which
guiding others toward reaching organizational stimulate the desires of subordinates,
or personal goals. According to Bennis and translating to enhanced performance (Khan &
Nanus (2015), many organizations are over Adhan, 2014; Kužnin & Walker, 2017). It has been
managed and under led. The type of leadership observed that in time past, some banks
style engaged by a leader goes a long way to collapsed as a result of bad leadership. The
affect the effectiveness of the organization. It researcher is of the view that good leadership in
is fundamental that an organization places organizations can lead to organizational
uninhibited emphasis on the appropriate effectiveness especially in banks. This
leadership style to enhance employee presumption is therefore curiously investigated
performance and drive organizational by the present study.
effectiveness (Makambe & Moeng, 2019). In The banking industry has been
this light, there is need to understand various observed to be experiencing high employee
leadership styles in organization that produces turnover due to job dissatisfaction and work
effectiveness. Particularly in banks in Nigeria overload according to Ojokuku et al. (2012). In
(Zenith Bank Plc). order to ameliorate the situation, there is need
Leadership is challenging. Most for banks to establish effective leadership
professionals are neither fully conscious of through apt leadership styles. On the other
their particular leadership style nor know how hand, the adoption of different leadership styles
they might develop their leadership patterns to in some banks has generated problems between
become more effective leader. Al Khajeh managers and subordinates, and in some cases,
(2018) opined that the leadership phenomenon loss of motivation.
is fundamental in providing employees with Some managers were opposed to the
direction and psychological gratification to use of certain leadership styles because it was
acquire the best out of them. It is vital that an believed that they eroded their power while
organization places unbridled focus on its there was lack of receptivity of some leadership
leadership because it is the leaders’ decisions styles by some employees due to lack of
that may decide the difference between the understanding of the effects of these styles on
success and failure of an organization.
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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.
Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572
employee performance as stated by Makambe targeted toward achieving the
and Moeng (2020). There are limited studies on organizational goals, as measured with the
the relationship between leadership style and Organizational Effectiveness Scale by
employee effectiveness in banking sector Nwanzu and Uhiara (2018).
especially Zenith bank plc. It is in the light of
LITERATURE REVIEW
this observation that this study was motivated
Theoretical Review on Leadership
to expand the body of knowledge on the nexus
Contingency theory: Contingency theory
between leadership style and employee
centers on adapting situational variables to
effectiveness in the banking industry especially
better fit into a leader’s style. Contingency
Zenith bank.
theorists agree that leadership theories must
Purpose of Study take into consideration the situation in which
The objectives of the study were to: leaders operate. For instance, Fred Fiedler’s
1. Determine the extent of the relationship contingency model assumes that a leader’s
between transformational leadership styles preferred style is effectively set and suggests
and organizational effectiveness. adapting situational elements to achieve better
2. Examine the degree of relationship outcomes. Tested through a variety of field
between transactional leadership styles and research, the model’s basic principle
organizational effectiveness. according to Mitchell, Biglan, Oncken &
3. Investigate the nature of relationship Fiedler (1970, 253-267) is that the
between laissez-faire leadership styles and performance of interacting groups is
organizational effectiveness. contingent upon the interaction of leadership
Research Question styles and the favorability of the situation for
1. To what extent will there be relationship the leader.
between transformational leadership styles According to Fiedler (1964, 149-190)
and organizational effectiveness? who proposed contingency theory, a person
2. To what degree will there be relationship would be appropriate for certain situations that
between transactional leadership styles and a group might find itself in. For every
organizational effectiveness? demanding scenario, the group would go and
3. What is the nature of relationship between inquire a leader to fit. The main limitation in
laissez-faire leadership styles and this theory is that people possess certain
organizational effectiveness? personality aspects and there are different
Significance of the Study situations. Sarros & Butchatsky (2006)
1. The findings of the study will be beneficial reported that a person does not necessarily
to bankers in gaining competitive become productive later because he had
advantage. leadership qualities (Belmejdoub 2015, 1-29).
2. Again, the findings of the study will be They linked the fact to certain circumstances;
beneficial in general organizational some people with leadership qualities may
management. The applications of the never be given the right circumstances, so they
finding will help a lot to improve banking think life is rather a case of luck.
and organizational performance. Another concern with this approach is
Operational Definition of Terms that the situation and people will acclimatize,
1. Leadership style: This is the strategy and people are not necessarily a rigid
adopted by a person in a leadership personality nor is the situation itself rigid and
position, as measured with the Multifactor unchanging, which makes it opened to
leadership questionnaire MLQ-5x by psychological inquiry. So, once the theory has
Avolio and Buss (1990). been widely applied in practice, there seem to
2. Organizational effectiveness: It is the be the idea in veracity, that people do adapt to
overall performance of an organization the situations they find themselves in.

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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.
Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572
Conceptual model: This study is anchored on
the Collaborative Leadership Model (CLM)
shown in Figure 1 below.

Figure 1: Collaborative Leadership Model (Adapted from Sawyer, 2007, p. 88)


The figure above showed leadership as a The transformational leader then
motivator of relationship which fosters safety, motivates the subordinates by making them
trust, and commitment, among leaders and their initially aware of the significance of task
subordinates who are partners leading to outcomes, impelling them to transcend their
substantive or transforming change that reflects own self- interest for the sake of the
their mutual purpose, shared vision, and organization and activating their higher-order
common goals. The need for partnership is needs. Transformational leaders seem to be
believed to be a result of complexity in today’s more effective and productive because of their
organization. charisma, in terms of motivating the employees
The CLM is appropriately suited for the and they may meet the emotional need of the
21st century because it is premised on trust employees or they may arouse the employees
which nurtures the establishment of an intellectually (Bass & Avolio 1994).
interlocking network of relationships among Transformational leadership encompasses four
people who are labouring to generate a different behaviors according to Barling,
movement leading to organizational Christie, and Hoption [2]. They include the
transformation. Elements included in CLM following:
which dictates particularly the transformational a. Idealized influence- this entails a
and participative leadership styles include the situation where the leader chooses to do
collective vision and common goals, fostering what is ethical or what is best for the
trust and commitment to the organization, organization rather than what is
partnership between leaders and subordinates, convenient. It includes behavior such as
mutual purpose, bringing about organizational providing a vision for the future and
transformation, and formation of interlocking creating a collective sense of mission;
network of relationship. b. Inspirational motivation - they are
Types of Leadership Styles leaders who motivates their workers to
Transformational Leadership Style - achieve more by setting high but realistic
This leadership style came into existence by the standards and inspiring members to
works of Burns (1978) and Bass (1990). prevail psychological setbacks and
Transformational leadership style focuses on external hindrance.
developing the followers and considering their c. Intellectual Stimulation- this is a
needs. Transformational leaders focus more on situation whereby a leader encourages
developing the total value system of the followers to think for themselves,
employees – development of skills, motivation question their own assumptions, re-frame
level and moralities (Ebrahim 2018, 1-8). In challenges and approach matters in
transformational leadership, the subordinates innovative ways.
believe, have confidence and give absolute d. Individualized consideration- this
respect and loyalty to the leader. Moreover, involves leaders who pay special
they are motivated to do more than what was attention to followers’ personal need for
initially expected to do (Obiwuru et al. 2011, achievement and development and act as
100-111 (Bass 1985). mentors.
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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.
Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572

Figure 2: Transformational leadership model (Adapted from Renjith, Renu and George (2015)

Transactional Leadership - interests. They motivate subordinate to achieve


Transactional leadership as its name implies, expected level of performance by helping them
views leadership as based on transactions to recognize task responsibilities, identify goals
between leader and followers. The leader sees and develop confidence about meeting desired
human relations as a series of transactions. performance level.
Thus rewards, punishments, reciprocity, Past researchers have studied on
exchanges (economic, emotional, and physical) transactional leadership as the core component
and other such "transactions" are the basis of of effective leadership behaviour in
leadership. As Bass (1990) puts it, transactional organizations prior to the introduction of
leadership connotes “I lead this organization by transformational leadership theory (Bass, 1985;
paying you and telling you what you need to do; Burns, 1978; House, 1977). Exchange
you respond by doing what you need to do relationship is the key element reflected by the
efficiently and well, and the organization will transactional leadership. Transactional leaders
prosper”. This style of leadership starts with the demand their subordinates to agree with tasks
idea that team members agree to obey their or actions if the subordinates hope for rewards
leader completely when they accept a job. and resources or avoidance of punitive action
Transaction means that usually the (Burns, 1978; Podsakoff, MacKenzie,
organization pays the team members in return Moorman & Fetter, 1990). This dyadic
for their hard effort and compliance. If they do exchange process of leadership style has been
not work as stated in the agreement, they might linked with contingent reward and punishment
be “punished” by the leader. In this style, rules behaviour and termed as transactional leader
are very clear and reward system is introduced behaviour by Bryman (2008). Research on
for the hardest working subordinates. transactional leadership indicates that there are
Moreover, punishments are also possible and three dimensions underlying the transactional
formal systems of discipline are quite common. leadership construct (Bass &Avolio, 1997;
The leader can give an opportunity for his team Bass & Steidlmeier, 1998; Tepper& Percy,
members to have an impact on their income. 1994).
This usually happens when they work harder 1. Contingent rewards or reinforcement: The
which cause greater productivity. Alternatively, leader uses rewards, promises and praise
a transactional leader could practice to motivate followers to achieve
"management by exception" – rather than performance levels contracted by both
rewarding better work. In fact, transactional parties.
leadership is rather a type of management than 2. Active management-by-exception: The
an actual leadership style. It focuses basically leader monitors followers’ performance,
on short-term task and is not suitable for a taking corrective action in anticipation of
creative work. Transactional leadership style as problems or when irregularities occur.
opined by Burns (1978) indicates that 3. Passive management-by exception:
transactional leaders are those who sought to The leader waits passively for mistakes to
motivate followers by appealing to their self- occur, or for things not to go as planned, before
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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.
Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572
taking corrective action with negative feedback is that it prepares future leaders and helps the
or reprimand. organization in the long run (Aghahowa, 2021).
Summarily, Transactional leadership style as Conversely, democratic leadership
opined by Burns (1978) emphasizes that style can lead to waste of time and low
transactional leaders are those who sought to productivity in organizations with poor cultural
motivate followers by appealing to their self- orientations and cultural values. This leadership
interests. They motivate subordinate to achieve style may not also be suitable for business
expected level of performance by helping them enterprises though the most advocated for in the
to recognize task responsibilities, identify goals last decades (Makambe & Moeng, 2020).
and develop confidence about meeting desired Laissez-Faire Leadership Style -
performance level. These leaders minimize their involvement in
Autocratic Leadership Style - decision making giving all the right and power
Leaders make decisions without consulting to make decisions and to perform their duties.
with others. The autocratic leadership style is Here, the leader provides all the necessary
also known as authoritative leadership style. resources for staff to perform their functions.
According to Mgbeze (2014), while some Employees have the freedom and liberty to take
input is sought from subordinates, the leaders decisions that will inure to the benefit of the
seem to have the final say. This type of leader organization without unnecessary interference
accomplishes ends through imparting a clear, from the leader. Laissez-faire leadership style
compelling vision, sees to it that the vision is works best when: the organizational culture in
built into strategic planning, and guides an organization promotes employee
actions throughout the organization. The commitment and loyalty, employees are highly
authoritarian gives directions, monitors skilled and experienced, employees are
progress closely and declares to subordinates specialist in their domain of work and when the
the position they wish them to adopt by leader has put in place monitoring mechanisms
elucidating why certain things are expected, to track the performance of each employee in
done or required and how individual actions the organization. However, this style should not
adapt into the larger picture be used if the leader does not have the capacity
Democratic/Participatory to monitor the work of his employees.
Leadership Style - These leaders involve the
Empirical Review
people or the representatives of people in the
Beakana (2017) investigated the effects
decision making. In democratic style of
of leadership styles on organizational
leadership, sub- ordinates are involved in the
performance in Ahantaman Rural Bank from
decision-making process, and decisions result
2013 to 2016. The study also sought to
from a group consensus. There are frequently
investigate any relationships between
scheduled meetings, and subordinates are
leadership styles and overall performance of the
listened to by the leader. This leadership style
Bank. The main objective of the study was to
aspires to nurture responsibility, flexibility and
investigate what type (s) of leadership style (s)
high morale. There is a tendency for staff to be
led to improved organizational performance in
more realistic about what is and is not possible,
the Bank. The specific objectives of the study
because they are involved in the decision-
were to investigate the relationship between
making process, as well as planning
leadership styles and organizational
(Aghahowa, 2021).
performance and the type of leadership style (s)
The democratic leadership is also
that lead to improved organizational
widely known to motivate the employees to
performance. The study adopted a total
perform better, as their views and opinions are
population sampling approach to data
valued and it gives them room for participation
collection.
in crucial meetings, and are also carried along
Among the leadership styles
in the decision-making process. Rukmani,
investigated, transformational leadership style
Ramesh & Jayakrishnan (2010, 365-370)
obtained the highest raw score of 350
hinted that a major problem with democratic
representing 22 percent of the total population
leadership is the assumption that everyone
investigated. Transactional, democratic,
involved has an equal stake in decision-making,
autocratic and laisez-faire leadership styles
with a shared level of expertise. A major
followed in that order. Thus, it was found that
advantage of the democratic style of leadership
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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.
Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572
the most dominant and preferred leadership leadership is the best style of leadership in
style in the Bank was transformational managing an organizational system of any type,
leadership style. This leadership style led to and maintained that people react favorably to it
improved and consistent performance of the in organizations by increased productivity,
Bank. The study concluded that there was a lower unit cost, good morale and improved
direct relationship between leadership styles labor management relation. However, Yukl
and performance of the Bank. (2012) hinted that the worst style of leadership
According to Ukaidi (2016, 25-34), is autocratic or authoritative leadership style
leadership style and systemic behavior shifted which gives rise to high labor management
away from the characteristics of the leader to conflicts.
the style the leader adopted. According to Rowe
HYPOTHESES
(2001, 81-94), records from the style approach
1. There will be a significant relationship
recommend that leaders who are devoted to
between transformational leadership styles
democratic or participatory leadership style
and organizational effectiveness.
seem more successful, compared to managers
2. There will be a significant relationship
that adopt autocratic or laissez-faire leadership
between transactional leadership styles and
style of management.
organizational effectiveness.
Neha Gupta (2014) identified that
3. There will be a significant relationship
transactional leadership style was more
between laissez-faire leadership styles and
appropriate in inducing performance in Brick
organizational effectiveness.
Kilns than transformational leadership style
and, therefore, recommended transactional METHOD
leadership style for the Brick Kilns with inbuilt Participants: Participants of the study
strategies for transition to transformational comprised of 200 Zenith bank employees
leadership style as the enterprises developed, selected from the major cities in the three
grew and matured. This implies that smaller senatorial zones of Anambra State. A total of
organizations are more likely to adopt 141 were males while 59 were females with
transactional leadership style than bigger age range of 24 to 50 years and mean age of
organizations. This finding is consistent with 32.3 with standard deviation of 6.13. The
that of Obiwuru, et al. (2011) who investigated simple random sampling technique was used
small scale enterprises in Nigeria. They found to select the respondents which afforded all
that while transactional leadership style had elements of the population an equal
significant positive effect on performance, opportunity to participate in the study thus
transformational leadership style had positive eliminating sampling bias.
but insignificant effect on performance. Some Instruments: The study made use of two
other studies carried out by researchers have research instruments for data collection
deviated from this conclusion. namely Multifactor leadership questionnaire
Koech and Namusonge (2012) in their MLQ-5x developed by Avolio and Buss
study of the same topic in state corporations in (1990) and Model based Organizational
Kenya found high (0.518 to 0.696, P < .05) Effectiveness Scale by Nwanzu and Uhiara
correlations between the transformational (2018).
leadership factors and organizational Multifactor Leadership
performance ratings, whereas correlations Questionnaire MLQ-5x - This instrument
between the transactional-leadership behaviors was developed by Avolio and Buss (1997).
and organizational performance were relatively This is an instrument that measures mainly
low (0.219 to 0.375, P < .05). By this, Koech transformational and transactional leadership
and Namusonge’s findings is consistent with styles and has been adapted in Nigeria by
the intuition behind leadership styles in small Ugwuanyi et. al (2020). The MLQ (Form-5X)
scale enterprises and much larger is a nine-factor model conceptually distinct
organizations, as they explained in their leadership factors and three leadership
conclusion. As organizations grow, leadership outcomes. Five scales were identified as
dynamics also change in response to characterizing transformational leadership
organizational demands and vice-versa. (idealized influence attributed, idealized
Complementing Rowe (2001, 81-94), influence behaviour, inspirational motivation,
Yukl (2012) opined that participatory
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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.
Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572
individual consideration, and intellectual obtained reliability coefficient of the entire
stimulation). scale was .94. For the subscales, the obtained
Three scales were defined as reliability coefficients were: goal attainment
characterizing transactional leadership model, .78; system resources model, .80;
(contingent reward, management-by- internal processes model .62 and stakeholder
exception active, and management-by- model, .67. For split-half reliability, the
exception passive). One scale was described as correlation between forms yielded .78
non-leadership (laissez-faire). All the scales Spearman-Brown coefficient, .88: Guttman
have four items each. All items of the MLQ Split-Half Coefficient .86. Cronbach’s Alpha
(Form-5X) used a five-point Likert response of .96 was observed.
scale. Ugwuanyi et.al (2020) obtained a Procedure: The researcher with a letter of
Cronbach alpha of ,82 for the whole introduction from the Head of Department of
instrument. Nweke, Dike-Aghanya and Psychology, Chukwuemeka Odumegwu
Okpara (2019) established a validity of r=.67 Ojukwu University, Igbariam Campus, visited
but the researcher obtained a Cronbach alpha the banks for data collection and sought the
of .70 for this present study. consent of the management of the banks to
Model-based Organizational conduct the research. The head of operations in
Effectiveness Scale - Model-based the banks gave the approval to conduct the
organizational effectiveness scale is a 40- study and for the distributions of the
item self-reported scale developed by questionnaire to the bank workers. The
Nwanzu and Uhiara (2018) which measures questionnaires were administered to only
organizational effectiveness as the sum total volunteered participants who filled consent
of the utility of inputs and output mechanism form to participate in the study.
of an organization which define The questionnaires were however
organizational the overall organizational collected back during work hours. The
impacts on their environment. Participants participants were not given any time limit
respond to each item on a scale ranging from because of their usual tight schedules.
1 (strongly disagree) to 5 (strongly agree). However, the respondents responded to the
Sample items include: “needed manpower is questionnaires and returned to their operation
always acquired”, “employees’ attitude to managers within a space of 48 hours.
work is always encouraging”, and “returns Respondents were asked to answer the
on investments is always adequate” and questionnaire by rating the frequency with
“high degree of cohesion among members”. which their immediate supervisor or others
The items on the table were arranged in the considered as their leader display the behaviour
following order of subscales. Goal listed in the items of the questionnaire. They
Attainment Model, 1, 5, 9, 13, 17, 21, 25, 29, were ensured of the confidentiality of their
33, 37; System Resources Model, 2, 6, 10, 14, responses and requested to be honest in rating
18, 22, 26, 30, 34, 38; Internal Processes the questionnaire. There was no reward given
Model, 3, 7, 11, 15, 19, 23, 27, 31, 35, 38, and to the participants for participating in the study.
Stakeholder Model, 4, 8, 12, 16, 20, 24, 28, All the participants volunteered to participate in
32, 36, 40. the study. The participants were administered
Tests of psychometric properties the questionnaire with the help of research
(reliability and validity) were conducted on assistants.
the 40 items. Test - retest reliability
Design and Statistics: The study adopted a
coefficient of the entire scale was .73. For the
correlation design bearing in mind that the
subscales, the obtained reliability coefficients
study is seeking for relationship among the
were: goal attainment model, .66; system
variables. Being a correlation study, Pearson
resources model. 45; internal processes
Product Moment Correlation Coefficient
model .58 and stakeholder model, .64.
statistical tool was adopted as a statistical tool
Alternate-form reliability was determined by
to test the hypotheses.
correlating the 40 items with Anantharaman
and Chacko’s (2008) 40- items OE scale. The

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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.
Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572

RESULT
Table 1. Table 1: Descriptive Statistics and Zero-Order Correlations of the Study variables
1 2 3 4
1 Organizational effectiveness 1
2 Transformational .89** 1
3 Transactional .55** .68** 1
4 Laissez-Faire -.01 .01 -.01 1
** Correlation was significant at the 0.01 level
performance; a goal that can be achieved by
Results showed that transformational
transformational leadership in organization.
leadership style correlated with organizational
This study therefore reports that transforming
effectiveness at r = .89**, p < .01,
leadership entails both leaders and followers
transactional leadership style correlated
raising each other’s motivation and sense of
significantly with organizational effectiveness
purpose.
at r =.55**, p <.01, while laissez-faire
The second hypothesis which stated
leadership style correlated negatively but not
that there will be a significant relationship
significant with organizational effectiveness at
between transactional leadership styles and
r = -.01, p. > .01.
organizational effectiveness was also
DISCUSSION confirmed. This is consistent with previous
The study examined the relationship findings Obiwuru, et al. (2011), Neha Gupta
between leadership styles and organizational (2014) and Longe (2014). This type of
effectiveness among Zenith bank workers in leadership style helps in creating, as well as
Anambra State. Hypothesis one which stated sustaining the context in which organizational
that there will be a significant relationship and human capabilities are maximized as the
between transformational leadership style and employees are always able to achieve the
organizational effectiveness was confirmed. tangible and intangible re- wards. This
The result is consistent with previous findings, leadership style majorly results in creating an
Obi (2011), Rachelle, et al (2013) and environment that is optimal for performance,
Beakana (2017). Leaders who adopt and also articulates the convincing vision that
transformational style have significant effect enhances the overall organizational
on organizational effectiveness. The performance.
implication of this is that employees often feel Conversely, Sofi and Devanadhen
free, valued and appreciated when the leader is (2015, 31-45), in their study discovered that
not harsh; a leader that is not harsh would be transactional leadership does not have a direct
more democratic and would allow for impact on the performance of the organization.
employees’ participation in decision making They concluded that transactional leadership
process in the organization. As a result, style does not encourage creativity and
employees will be encouraged to come to innovation among the employees and hence,
work and work efficiently without delay or employees do not perform as per the
unnecessary excuses. expectations of the organization. This result can
A leader that adopts this be explained using Maslow theory because
transformational approach will effectively ones an individual’s need is met, the person will
reduce employees’ intentional and habitual be intrinsically and extrinsically motivated to
absence from duty because transformational work efficiently.
leaders are better equipped to handle The third hypothesis which stated that
absenteeism and other challenges. This there will a significant relationship between
implies that when leaders delegate power and laissez-faire leadership style and
responsibilities to subordinates, it inversely organizational effectiveness was rejected.
helps the subordinates to find their passion. This style of leadership is seen as no
Achieving subordinates’ motivation can be leadership at all. This is in line with the study
done by linking their needs satisfaction to by Lumumba, Simatwa, and Jane (2021). The
efficient performance. It can also be achieved study sample was 225 tutors and the 9
by complementing the subordinates work principals. Leadership styles were measured
environment through substantial coaching, using the adapted version of the Multi-factor
direction, and rewards for their efficient Leadership Style Questionnaire. The study
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Journal of Psychology and Behavioural Disciplines, COOU, Vol. 2, No 3, December 2022.
Published by Psychology Department, Chukwuemeka Odumegwu Ojukwu University (COOU), Anambra State, Nigeria.
ISSN (PRINT): 2814-3183: e-ISSN (ONLINE): 2955-0572
found that both laissez faire and autocratic Beardwell, J. & Thompson, A. (2017). Human
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negatively influenced the organizational International Journal of Management 3,
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monitored or rewarded for performing well, A Paradigm for Developing Globally
none is expected to work and this affects the Responsible Leaders. [Master’s Thesis 1-
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to be rewarded and appraised and when it is not https://www.researchgate.net/publication/3
done there are no motivations to do more and 01675222_The_Leadership_Journey_A_p
this affects the productivity of the bankers aradign_for_developing_glob-
thereby affecting the effectiveness of the bank. ally_responsable_leaders.
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