CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The relationship between leadership style and various organizational outcomes—such as employee job performance, satisfaction, stress levels, and turnover intentions—has been extensively examined in organizational research. Leadership exerts a substantial influence not only on the overall organization but also on individual departments, teams, and the general workplace environment. According to Goleman (2000), management seeking optimal outcomes should avoid relying on a single leadership style. Leadership is best understood as the dynamic capacity to lead by example, fostering motivation in others to reach their fullest potential with integrity and accountability, thereby advancing both personal and professional development (Christin Lin, 2008).
One of the key concerns for organizations is the recruitment and retention of skilled personnel who can serve as effective leaders. Farid Dadashev (2007) posits that leadership goes beyond directing and motivating teams to attain shared goals. It involves assuming responsibility for the collective and ensuring both stability and adaptability in the face of organizational change. Similarly, Spencer Hutchins (2007) emphasizes that leadership is more than issuing instructions and ensuring compliance—it involves vision-setting, inspiration, and empowering others to achieve meaningful results. Ryskia (2002) further asserts that leadership emerges when a goal needs to be accomplished and involves more than one individual in the process. At its core, leadership entails motivating and inspiring people and teams to strive for desired outcomes.
Monisha Merchant (2004) adds that leadership also involves making strategic decisions for the organization, owning those decisions, and being accountable for their consequences. Therefore, the success of an organization in fulfilling its mission and objectives significantly depends on its leaders and the leadership styles they adopt. When leaders employ appropriate leadership approaches, they can positively influence employee satisfaction, commitment, and productivity.
Leadership style encompasses a combination of managerial attitudes, behaviors, characteristics, and competencies, which are shaped by both personal and organizational values, the preferences of leaders, and the level of trust in employees under various conditions (Mosadeghrad, 2003). While an organization may possess well-conceived strategies and the tools necessary to implement them, the absence of effective leadership can result in poor execution, rendering these plans unsuccessful.
In light of these considerations, this study aims to examine the impact of leadership styles—specifically transformational leadership—on employee job performance within the food and beverage industry, given the increasing relevance of this leadership approach in contemporary organizational practice.
1.2 STATEMENT OF THE PROBLEM
The business landscape today is marked by constant change and increasing complexity. As a result, organizations must remain vigilant and responsive to internal and external factors that can influence their success. Leadership is one such critical factor that plays a pivotal role in an organization's sustainability. The effectiveness—or lack thereof—of leadership can significantly determine whether an organization thrives or fails, especially in attracting and retaining skilled manpower to maintain operational effectiveness.
In recent years, there has been a noticeable increase in the rate of business failures. A common contributing factor to this trend is the absence of effective leadership. Since the primary objective of any organization is to achieve its set goals while remaining profitable, it becomes imperative for leaders to efficiently coordinate and inspire their workforce toward the attainment of these goals.
Against this backdrop, this study is positioned to explore the effects of transformational leadership style on employee job performance, with a particular focus on organizations within the food and beverage sector.
1.3 OBJECTIVES OF THE STUDY
The major objective of the study is to investigate The Impact of Transformational Leadership Style on Employee Job Performance in the Food and Beverage Sector.
Other specific objectives are:
i. To find out what is transformationa1leadership style.
ii. To examine the relationship between transformational leadership style and employees' job performance.
iii. To determine the differences between the job performance of employees under transformational leaders and employees under other leadership styles.
iv. To offer suggestions on how well transformational leadership style can be used to improve employees' job performance
1.4 RESEARCH QUESTIONS
i. What is transformational leadership all about?
ii. Is there relationship between transformational leadership style and employees' job performance?
iii. Could there be differences between the job performance of employees under transformational leaders and employees under other types of leaders?
iv. What can be done to improve employees' job performance using transformational leadership style?
1.5 HYPOTHESES
Hypothesis 1
HO: There IS no significant relationship between transformational leadership style and employees' job performance.
HI: There is significant relationship between transformational leadership style and employees' job performance.
1.6 SIGNIFICANCE OF THE STUDY
It is believed that if the findings of the research are fully implemented, it will help in highlighting how a manager can adopt the right style of leadership or combine the different styles of leadership in any given situation in order to be an efficient and successful leader.
The study will also teach potential managers and other interested researcher to inspire confidence and facilitate accomplishment of both informal groups and diverse individuals in attaining high job performance of employees.
The analysis of the findings and recommendations would provide basis for the management of the organization under-study, to improve and adjust where situation demand and trusting the leadership style being adopted by them.
1.7 SCOPE OF THE STUDY
The scope of this study is limited to analyzing The Impact of Transformational Leadership Style on Employee Job Performance in the Food and Beverage Sector. It also goes further to explain some key component attached to leadership. The study will be carried out using a structured questionnaire and validation will be done using statistical tools. UNILEVER NIGERIA PLC, AGBARA will be used as the case study.
1.8 LIMITATION OF THE STUDY
As it is usual with most research work, there are bound to be constraints. Therefore constraints encountered with this investigation should not be neglected. As a full time working lady, I would have appreciated it, if I had more time at my disposal as the subject of the study is quite voluminous. Therefore, the only constraint is the time limit.
1.9 OPERATION DEFINITION OF TERMS LEADER
Leadership:
Is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational and societal values.
Transformational Leadership
This is the kind of leadership in which the leader inspires his subordinates to adopt the organizational vision as their own, while attempting to heighten their values, concerns and developmental needs.
Styles
Is the manner and approach implementing plans, and motivating values, preferences and culture.
Employees
A person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.
Performances
The act of performing; the carrying into execution or action, execution, achievement; accomplishment representation by action; as the performance of an undertaking of a duty.
Employees Performance
Means the level at which your employees are performing.
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