Society of African Journal Editors

Kogi Journal of Management

EFFECTS OF LEADERSHIP STYLE ON ORGANIZATIONAL PERFORMANCE: A SURVEY OF SELECTED SMALL SCALE ENTERPRISES IN IKOSI-KETU COUNCIL DEVELOPMENT AREA OF LAGOS STATE, NIGERIA

Authors: Obiwuru Timothy C.; Okwu, Andy T. Akpa; Victoria O. & Nwankwere, Idowu A.

Journal: Kogi Journal of Management

This  study  has  investigated  the  effects  of  leadership  style  on  organizational  performance  in  small  scale enterprises. The major objective was to determine effect of leadership styles on performance in small scale enterprises. Transformational and transactional leadership styles   were considered in this study. Transformational leadership behaviours and  performance/outcome  considered  relevant  in  the  study  were charisma,  inspirational  motivation  and  intellectual  stimulation/individual  consideration;  and  effectiveness, extra  effort and satisfaction, respectively. Transactional leadership behaviours and performance/outcome variables were constructive/contingent reward and   corrective/management by exception; and effort, productivity and loyalty/commitment, respectively. The study followed a survey design, and employed evaluative quantitative analysis method. Analysis was based on primary data generated through a structured Multifactor Leadership Questionnaire (MLQ) administered on respondents. Responses to research statements were scaled and converted to quantitative data via code manual developed for the study to enable segmentation of the data responses  into  dependent  and  independent  variables  based  on  leadership  behaviours  and  associated performance variables. OLS multiple regression models were specified, estimated and evaluated. The result showed   that   while   transactional   leadership   style   had   significant   positive   effect   on   performance, transformational leadership style had positive but insignificant effect on performance. The study concluded that transactional leadership style was more appropriate in inducing performance in small scale enterprises than transformational leadership style and, therefore, recommended transactional leadership style for the small enterprises with inbuilt strategies for transition to transformational leadership style as the enterprises developed, grew and matured.