ABSTRACT
The effect of leadership styles on employee’s performance has become a common topic. The objective of the study is to evaluate the effect of leadership styles on employee performance in Federal Inland Revenue Service Abuja. The population of the study is 322. The sample size is 178 using the Taro Yamani formula. The study used a survey research method to share questionnaire in order to gather primary data from the sample. The data analysis was carried out with the help of statistical package for social sciences (SPSS) software. The results revealed that there is a significant effect of transactional leadership style and transformational leadership style in the performance of employee. whereas it found that there is no significant effect of coercive leadership style in employee performance. The study recommends that organizational leaders or supervisors should use more of transactional and transformational leadership style, but not coercive leadership style to ensure that organizational goals are met.
Keywords: Leadership Styles, Employee Performance, Transactional Leadership Style, Transformational Leadership Style, Coercive Leadership Style.
TABLE OF CONTENTS
Cover page – – – – – – – – – – i
Title page – – – – – – – – – – ii
Declaration – – – – – – – – – – iii
Approval page – – – – – – – – – iv
Dedication – – – – – – – – – – v
Acknowledgement – – – – – – – – vi
Abstract – – – – – – – – – – vii
Table of contents – – – – – – – – – viii
List of Tables – – – – – – – – – xii
List of Figures – – – – – – – – – xiii
Abbreviations – – – – – – – – – xiv
CHAPTER ONE: INTRODUCTION
1.1Background of the Study – – – – – – – 1
1.2Statement of the Problem – – – – – – – 3
1.3Research Questions – – – – – – – – 4
1.4Objectives of the Study – – – – – – – 4
1.5Research Hypothesis – – – – – – – – 5
1.6Significance of the Study – – – – – – – 5
1.7Justification of the Study – – – – – – – 6
1.8 Scope of the Study – – – – – – – – 7
1.9 Definition of Terms – – – – – – – – 7
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1Conceptual Review – – – – – – – – 9
2.1.1The Concept of Leadership – – – – – – 9
2.1.2Leadership Styles – – – – – – – – 10
2.1.3Transactional Leadership Styles – – – – – 11
2.1.4Transformational Leadership Style – – – – – 12
2.1.5Coercive Leadership Style – – – – – – 13
2.1.6The Concept of Employee Performance – – – – 14
2.1.7Transactional Leadership Style & Employee Performance – 15
2.1.8Transformational Leadership Style & Employee Performance – 16
2.1.9Coercive Leadership Style & Employee Performance – – 17
2.2 Theoretical Review – – – – – – – – 17
2.2.1 Contingency Theory – – – – – – – 18
2.2.2Behavioural Theory – – – – – – – 18
2.2.3Trait Theory – – – – – – – – – 19
2.3Theoretical Framework – – – – – – – 19
2.4Empirical Review – – – – – – – – 20
2.5Existing Gaps for the Study – – – – – – 23
CHAPTER THREE: METHODOLOGY
3.1Research Design – – – – – – – – 24
3.2Sources of Data – – – – – – – – 24
3.2.1 Primary Sources of Data – – – – – – – 25
3.2.2Secondary Sources of Data – – – – – – 25
3.3Methods of Data Collection – – – – – – 25
3.4Population of the Study – – – – – – – 26
3.5Sample Size – – – – – – – – – 27
3.6Sampling Techniques – – – – – – – 27
3.7Methods of Data Analysis – – – – – – – 27
3.8Study Variables and Measurement – – – – – 28
3.9Validity and Reliability of the Research Instruments – – – 29
3.10 Limitation of the Study – – – – – – – 30
CHAPTER FOUR: RESULTS, ANALYSIS AND DISCUSSION
4.1Data Analysis – – – – – – – – – 31
4.1.1 Analysis of Demographic Distribution – – – – 31
4.1.2Analysis of Structural Questions – – – – – 38
4.2Test of Hypothesis – – – – – – – – 45
4.3Findings of the Study – – – – – – – 49
4.4Discussion of Findings – – – – – – – 49
CHAPTER FIVE: SUMMARY, CONCLUSIONS ANDRECOMENDATIONS
5.1Summary of Findings – – – – – – – 52
5.2Conclusion – – – – – – – – – 52
5.3Recommendations – – – – – – – – 53
5.4Areas for Further Studies – – – – – – – 54
References – – – – – – – – – – 55
Appendix – – – – – – – – – – 63
LIST OF TABLES
Table 3.4: Population of the Study- – – – – – 26
Table 4.1: Participant’s Demographic Data – – – – 31
Table 4.1.2.1: Transactional Leadership Style – – – 38
Table 4.1.2.2: Transformational Leadership Style – – – 40
Table 4.1.2.3: Coercive Leadership Style – – – – 42
Table 4.1.2.4: Employee Performance – – – – 44
Table 4.2.1: Regression Analysis &Transactional Leadership – 46
Table 4.2.2: Regression Analysis & Transformational Leadership 47
Table 4.2.3: Regression Analysis & Coercive Leadership – 48
LIST OF FIGURES
4.1Bar Chart for Gender – – – – – – 33
4.2Bar Chart for Academic Qualifications – – – 34
4.3Bar Chart for Age – – – – – – 35
4.4Bar Chart for Work Experience – – – – 36
4.5Bar Chart for Nationality – – – – – 37
ABBREVIATIONS
F.I.R.S Federal Inland Revenue Services
FDAE Filling Department Arrears Endorsement
RPP Returns Payment Processing
WAEC West African Examination Council
NECO National Examinations Council
OND Ordinary National Diploma
HND Higher National Diploma
B.Sc. Bachelor of Science
M.Sc. Master of Science
Std Standard
Sig Significance
SPSS Statistical Product and Service Solutions
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Leadership styles and the performance of employees play a crucial part in organizations all over the world especially with regard to achieving organizational goals and objectives, building a vision and mission for the organization, targeting and managing the efforts of the organization, etc. (Xu & Wang, 2008). There are several issues and challenges that affect the performance of employees some of which are; lack of motivation, absence of the right tools or equipment’s required to carry out the tasks at hand, absence of clearly stated organizational goals, lack of technical skills and training, etc. (Mazin, 2017).
Several other challenges that affect the performance of employees in an organization include; the inability of organizational employees to prioritize their task, which results to poor time management, carrying out tasks late and note reaching organizational goal, etc. Improper behaviours or bad approach towards tasks in the office or work in the organization, lack of moral or principles, and lack of skills required for job are additional challenges that are constantly affecting the performance of employees in several organizations.
Since organizations endeavour to look for extraordinary leaders that can lead them to progress, unlimited efforts have been put out by researchers to recognize how best leaders work. Due to this, numerous administration philosophies have been created over the years (Hassan, et al., 2017). There are several leadership styles that exist and each style is a match for different situations and they work best when the leader has a foresight of what can be accomplished and also communicates with his subordinates, but this study will only focus on the following styles; transformational leadership style, transactional leadership style and coercive leadership style.
This analyzes the impact of leadership styles used by managers on the performance of their employees, with the aim of making the work environment significantly better and beneficial. There is a huge connection between an administrator’s authority style and a worker’s ability to apply additional effort (Katz, 1974). This is because the aforementioned is necessary as it enhances the employer employee relationship in organizations, which in turn determines the development and overall profit of the organization.
In the past, a large number of studies have proved that the style of leadership used by manager’s influences the employee’s execution of work from numerous points of view (Hassan, et al., 2017).
Additionally, this study enables the managers of organization determine which style of leadership they settle for, in order to get the best results (Leadership styles that will help improve their performance and help achieve their organizational goals). This study investigates the impact of leadership styles on employee performance.
1.2 Statement of the Problem
Organizations are facing problems that are related to high labour turnover, poor employee performance, unprincipled practices, etc. These organizations are failing due to the absence of effective leadership styles of management teams, in these types of situations it is usually as a result of unorganized workers or lack of co-ordination and controlling of workers, which in turn leads to low productivity of the workers and in the long run failure and closure of the organization.
The aforementioned challenges encountered by organizations can be solved by sourcing competent leaders with the intelligence and experience to lead and also by sourcing leaders with styles of leadership motivate and influence the employees positively. The performance of personnel in an organization comprises several activities such as; outlined duties, meeting up with deadlines, efficiency and effectiveness in carrying out the outlined work. Countless organizations if not all require resilient styles of leadership that will motivate the performance of their employees (Kolzow, 2014). It is common for organizations to encounter difficulties such as lack of origination, low efficiency and failure to meet organizational targets (Pedraza, 2019). These issues are often as a result the organization not applying specific leadership styles to the problems at hand. The aforementioned problems are difficulties that are continuously affecting employee performance and their deliverance of services which is why this study intends investigates the best leadership style that will motivates the performance of employees.
Ojokuku, M. and Sajuyigbe, S. (2012) contended that transformational leadership style and transactional leadership style influence employee performance. Therefore, this study investigates the effect of leadership styles on employee performance in Federal Inland Revenue Service, Abuja.
1.3 Research Questions
This study proposed the following research questions:
- To what extent does transformational leadership impact on employee performance in Federal Inland Revenue Service, Abuja?
- To what extent does transactional leadership impact on employee performance in Federal Inland Revenue Service, Abuja?
- To what extent does coercive leadership impact on employee performance in Federal Inland Revenue Service, Abuja?
- Objectives of the Study
The main objective of the study is to determine the impact of leadership styles on employee performance.
The specific objectives of the study were:
- To ascertain the outcome of transformational leadership style on employee performance.
- To determine the result of transactional leadership style on employee performance
- To establish the aftermath of coercive leadership style on employee performance.
- Research Hypotheses
This study proposed the following hypothesis:
H01: Transactional leadership style has no significant impact on performance of employees.
H02: Transformational leadership style has a significant impact on performance of employees.
H03: Coercive leadership style has no significant impact on performance of employees.
- Significance of the Study
This research proposes to assist administrations and small societies meaning to acquire high and optimum performance from their employees by utilizing new approaches to leadership and also grasping the consequences diverse leadership styles have on their performance.
By satisfying the points that are expressed in the objectives section, this research becomes beneficial to not only the employees, but also leaders/ policy makers and organizations. Employees will benefit from this research because it will help them recognize the style of leadership that is best for them and will motivate them in terms of their jobs and successfully carrying out tasks.
This research also assists policy makers/ leaders to understand which leadership style will have a positive impact on their subordinates and also how they can motivate employees to carry out their tasks wholeheartedly. Lastly, it helps organizations/ companies to pick out the best leaders that can help improve the performance of their organization and to help achieve organizational goals.
- Justification of the Study
To comprehend the effect that leadership styles have on the performance of employees has become significant over the years. Seeing as the performance of employees is essential in the triumph of organizations, finding the leadership style that suites them is the right thing to do. Various organizations in Nigeria are failing to accomplish their goals due to the lack of employee’s performance. When organizations start to use leadership styles that influence their employees to work hard, it will save them from failing to accomplish their organizational goals.