AN ASSESSMENT OF THE EFFECT OF LEADERSHIP

STYLES ON EMPLOYEES’ COMMITMENTS TO

ORGNIZATIONAL SUCCESS IN UAC NIGERIA PLC,
LAGOS, NIGERIA

BY

AGBO ESTHER ENE

MATRIC NO: NOU191049730

B.Sc BUSINESS ADMINISTRATION

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF ENTREPRENEURIAL STUDIES

NATIONAL OPEN UNIVERSITY OF NIGERIA

LAGOS STUDY CENTRE

NOVEMBER, 2022

i
 DECLARATION
I, AGBO ESTHER ENE, hereby declare that this work entitled: “AN ASSESSMENT OF

THE EFFECT OF LEADERSHIP STYLES ON EMPLOYEES COMMITMENTS TO

ORGANIZATIONAL SUCCESS IN UAC NIGERIA PLC, LAGOS, NIGERIA” is as a

result of my research efforts carried out in the Faculty of Management Sciences, Department

of Business Administration, National Open University of Nigeria, Lagos, Nigeria under the

supervision of DR. ALASAN ALI IBRAHIM.

I further wish to declare, to the best of my knowledge and belief, that it contains no materials

previously published or written by another person or material which to a substantial extent been

accepted for the award of any other degree or diploma of any university or other institutions of

higher learning, except where due acknowledgement has been made in the text.

_________________________ ____________________
AGBO ESTHER ENE DATE

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 CERTIFICATION

This is to certify that this research work entitled: “AN ASSESSMENT OF THE EFFECT

OF LEADERSHIP STYLES ON EMPLOYEES COMMITMENTS TO

ORGANIZATIONAL SUCCESS IN UAC NIGERIA PLC, LAGOS, NIGERIA” was

carried out by AGBO ESTHER ENE in the Faculty of Management Sciences, Department of

Business Administration. National Open University of Nigeria, Lagos, Nigeria for the award

of Bachelor of Science (B.Sc) Business Administration.

________________________________ _____________________
Dr. Alasan Ali Ibrahim Date
Project Supervisor

________________________________ _____________________
HOD Date

____________________________________ ______________________
External Examiner Date

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 DEDICATION

All thanks and adoration goes to God almighty for his infinite mercies and favours throughout

the cause of this project.

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 ACKNOWLEDGEMENT

All thanks be to God for making this plan come to reality despite all the challenges.

I would like to express my thanks to the people who have helped me most throughout my project
and to my Supervisor, I am grateful and may God almighty continue to bless you.

A special thanks goes to my colleague who helped me out in contributing to the project, where

they all exchanged their own interesting ideas, thoughts and made this possible to complete my

project.

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 ABSTRACT

The subject matter of this research: An assessment of the effect of leadership styles on

employees commitments to organizational SUCCESS, seeks to review the styles of leadership

and employees commitments in UAC OF NIGERIA PLC, Lagos State. It is also aimed at how

to boost organizational performance through effective employee’s commitments practices.

The objectives of this study are: (i) To inform the management of UAC OF NIGERIA PLC,

Lagos State about the leadership problems; develop strategies to improve upon them. (ii)To

establish what leadership style measures are currently placed and how effective they are. The

two hypotheses to be tested are: (i) Leadership style has no effect on the performance of

company’s productivity (ii) Leadership style has effect on the performance of company’s

productivity. The research method used both qualitative and quantitative approach. The chi-

square method of analysis will be made based on the responses from the questionnaires

gotten. The research work will be discussed in chapters: chapter one dealt with introduction,

background of the study, statement of hypothesis, purpose, and significance of the study,

scope and limitation of the study and definition f terms. Chapter two reviewed related

literature of scholars on the subject matter. Chapter three presented insight into the research

methodology. Chapter four dealt with data presentation, analysis and discussions of the

findings and chapter five provided the summary, conclusion and recommendation.

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 Table of contents

Cover page -------------------------------------------------------------------------------------- i

Fly page----------------------------------------------------------------------------------------- ii
Title page---------------------------------------------------------------------------------------- iii
Declaration-------------------------------------------------------------------------------------- iv
Certification------------------------------------------------------------------------------------ v
Dedication-------------------------------------------------------------------------------------- vi
Acknowledgement----------------------------------------------------------------------------- vii
Abstract----------------------------------------------------------------------------------------- viii
Table of content-------------------------------------------------------------------------------- ix
CHAPTER ONE: INTRODUCTION
1.0 Introduction----------------------------------------------------------------------------------- 1
1.1 Background to the Study-------------------------------------------------------------------- 2
1.2 Statement of the Problem------------------------------------------------------------------- 4
1.3 Research Questions-------------------------------------------------------------------------- 6
1.4 Objective of the Study -------------------------------------------------------------------- 6
1.5 Statement of Hypotheses ------------------------------------------------------------------- 7
1.6 Significance of the Study------------------------------------------------------------------- 7
1.7 Justification of the Study------------------------------------------------------------------- 7
1.8 Scope of the Study--------------------------------------------------------------------------- 8
1.9 Limitation of the Study---------------------------------------------------------------------- 8
1.10 Definitions of Terms------------------------------------------------------------------------ 8

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction ------------------------------------------------------------------------------- 10
2.2 Conceptual Framework--------------------------------------------------------- 12
2.3 Theoretical Framework--------------------------------------------------------- 34
2.4 Current Literature Review----------------------------------------------------------- 43

CHAPTER THREE: METHODOLOGY

3.0 Area of Study -------------------------------------------------------------------------- 46

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3.1 Research Design and Sources of Data------------------------------------------------------- 46
3.2 Study Population and Sample Size--------------------------------------------------- 46
3.3 Instrumentation-------------------------------------------------------------------------- 47
3.4 Method for Data Collection------------------------------------------------------------ 48
3.5 Secondary Data--------------------------------------------------------------------------------- 48
3.6 Method of Data Analysis--------------------------------------------------------------- 48
3.7 Limitation of the Study----------------------------------------------------------------- 50

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.0 Introduction ------------------------------------------------------------------------ 51
4.1 Data Presentation ---------------------------------------------------------------- 51
4.2 Findings of the study --------------------------------------------------------------------- 58
4.3 Discussion of Findings------------------------------------------------------------------ 59
4.4 Test of Hypothesis----------------------------------------------------------------------- 60

CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS

5.0 Introduction-------------------------------------------------------------------------- 69
5.1 Summary of Finding------------------------------------------------------------------ 69
5.2 Conclusion------------------------------------------------------------------------------ 71
5.3 Recommendations ---------------------------------------------------------------------- 71
5.4 Suggestions for Further Research ---------------------------------------------------- 72
REFERENCES:---------------------------------------------------------------------- 73
APPENDIX A------------------------------------------------------------------------- 82
APPENDIX B Questionnaires----------------------------------------------------------- 83
PROJECT PROPOSAL------------------------------------------------------------------- 86-87

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 CHAPTER ONE

INTRODUCTION

1.0 Introduction
Leadership is a topic with a broad appeal as most of the people are consciously or unconsciously
involved in the process of being influenced or influencing others in the role of leadership. People are
always interested in knowing the components that contribute to making an ordinary person a great
leader (Bateman & Snell, 2002). There are various forms of leadership styles. However for the sake
of this study, only two forms of leadership styles (i.e. transformational and transactional leadership)
were used. Transactional leadership is defined as the interaction between leaders and followers
(Marturano & Gosling, 2007).

In line with the structural conceptualization of commitment leadership style should be made
available of interest in the determination of the organizational commitment. For year’s, writers,
authors and the general public believed that true leaders are powerful that such leaders were “born”
and not made in terms of education and training (Crispen, 2011).

In an ideal situation leadership style in every normal organization, affects the rate of her employee
commitment. Thus the rate of personality of a leader will of course dictate a preference for a
particular style of leadership to enhance productivity. An aggressive authoritarian manager would
tend to be more of my directive type of a leader. While a very democratic manager with a strong
commitment to human values will probably use a more true-reign or participative leadership style.

Apart from this fact, contemporary formulation about leadership stresses the concept of social
exchange of leadership-follower relationships. For instance, Jacobs (1970) is of the opinion that,
individuals are in exchange relationship where group members of an organization depend on
exchange. Meaning that organization must rely on employees to meet its objectives, while
employees depend on the organization to provide their rewards.

Committed employees are less likely to develop patterns of tardiness or to be chronically absent
from work (Davenport, 2010). Gbadamosi (2003) contends that the more favourable an individual’s
attitudes toward the organisation, the greater the individual’s acceptance of the goals of the

1
organisation, as well as their willingness to exert more effort on behalf of the organisation.
Employees that are committed are also less likely to leave the organisation to explore others.
Therefore, carrying out a study of this nature will be important in trying to find out if it is the case.
Previous researches regarding leadership and organisational commitment has also been conducted
among participants from various cultural backgrounds and understandably researchers came up with
inconclusive results on the relationship between the leadership styles and employee organizational
commitment (Takao, 1998; Wang, 2004). In addition, though the literature suggests a relationship
between leadership style and organisational commitment, empirical studies are limited and lack
specificity concerning types of leadership styles and organisational commitment (Rai & Sinha, 2000;
Yousef, 2000).

Becker (1960) improved this exchange model by incorporating the elements of time, and the idea of
investment, quality of organizational participant. Becker said the more one has accumulated and
therefore would lose by leaving the organization, Becker concluded: commitment is basically a
structure phenomenon which occurs as a result of individual or organizational transaction and alter a
turn in investment overtime with Becker’s improvement of the structural notion of organizational
commitment Jacobs (1975) further expatiated by introducing the concept of expectation into his
leadership approach theory which assumes that in an organization, the managers are the
representative of the organization as well as a subordinate or workers who have some exchange will
be considered valuably fair in relations to the rewards and costs involved in the exchange.

Leadership style can then be seen as the various patterns of behaviours adopted by others during the
process of directing and influencing workers. The process of directing and influencing workers
aimed at accessing the managers’ leadership style as it affects the employees’ productivity either
positively or negatively.

1.1 Background of the Study

Leadership styles and employees’ commitment is a common phenomenon which has been
extensively addressed by many researchers worldwide due to its importance to the organization
(Angle & Perry, 1981; Kim, 2001; Lio & Nyhan, 1994; Lo, Ramayah, & Min, 2009). Organizational
commitment has been linked to the performance of organizational constituents, their loyalty,

2
organizational citizenship behavior, counterproductive behavior, employees’ aggression, job
satisfaction, and other individual and group constructs. Committed employees are expected to
perform at a greater level than their uncommitted counterparts (Meyer, Paunonen, Gellatly, Goffin,
& Jackson, 1989). They are willing to work extra hours when the job requires them to do so. They
are also willing to promote the organization as a favorable place to work at. Due to its diverse
accrued benefits to the organization, some researchers have devoted their effort to investigate the
antecedents of organizational commitment (Bateman & Strasser, 1984; Lok & Crawford, 2004;
Meyer, Allen, & Smith, 1993). These factors can be categorized into four groups; organizational
factors, including leadership, culture, structure and processes; individual factors, including
personality traits, emotional quotient, intellectual quotient, and spiritual quotient; job factors,
including job characteristics, and remuneration systems; and environment factors, including social
relationships and physical environment. The focus of this paper is on the influence of leadership
styles on employees’ organizational commitment.

Leadership style is the most prevalent factor that influence employees’ attitudes and behaviors
towards organizational success. Leaders have adopted various styles when they lead others in the
organization (Brown, 2003; Cheong, 2008; Chiang &Wang, 2012; Clark, Hartline, & Jones, 2009;
Cox, 2001). Some are using democratic, people or relationship centered approach and others prefer
autocratic, production centered method in order to achieve a similar goal, which is organizational
effectiveness. The choice of a style is contingent on diverse factors such as personality traits of
leaders, followers’ acceptance of the leaders, their readiness, task complexity and the norms and
values embraced by the organizational members. Therefore, leaders must possess special ability to
diagnose the organizational environment, accurately identify the contingent factors and subsequently
make a sound decision in leading the organization towards success. Here, emotional intelligence
ability offers great help to guide a leader in choosing the method(s) they need to lead employees.

The concept of leadership style and organizational commitment had its origin from the United State
of America (USA) (Alkahtani, 2015). It later developed and explained to European countries when
the concept was widely accepted by management practitioners as an indisputable management
concept; up till today, there is an increasing acceptance of the concept in developing countries in the
world.

3
The brief development history of leadership style can be summed up to have started long before
1965. One definition of leadership style is the exercise of influence by one member over other
members which helps in the accomplishment of group or organization goals. There is commonly
held belief “that leaders make a difference” and that they can have an effect on individuals, or entire
organizations. When things go right the leader get credit, when things go wrong the leader gets the
blame. Leader effectiveness is measure of the extent to which a leader helps the group or
organization achieve its goals (Hussein, 2015).

Researchers have tried to answer the question of why some leaders are more effective than others.
The leader behavior approach focuses on what leaders activities actually do; that is, the specific
behaviour performed by effective leader as opposed to ineffective leaders. The behaviour approach
sought to identify the leader behavior that aid individuals, group of organization in the achievement
of their goals. From multiple research studies, two categories of the leader behaviors were identified.
Structure consideration behaviors show that the leader trust respects, aid values, good relationship
with the subordinates’ example of a leader’s consideration behavior is being friendly, and treating
other individuals fairly.

1.2 Statement of the Problem

One of the problems observed by the researcher is the inflexibility of the leadership style by most
organization managers. They fail to adjust their style of leadership to the changing situation and
business environment. This failure is as a result of the lack of understanding of the facts that no one
particular style of leadership can fit all conditions and must be flexible to give room for change
(Edward Jernigan, 1997).

Another problem is close to the first, manager failure to consider the prevailing situation when
leading their subordinates. They fail to allow the situation dictate the particular style of leadership to
adopt.

Also is the problem of absence of an effective line of communication between the managers and
their employees. The communication gap between leaders and their subordinate poses a big problem
for several organizations as effective leadership is predicted on communication pattern of both the
managers and their subjects.

4
Douglas MC Gregor’s theory X and theory Y is of the view that leader’s attitude towards human
nature has a large influence on how that person behaves as a leader and how it affects the employee
under the leader. It is however important to note that no single leadership style is likely to be
effective in all circumstances, leaderships style vary based on surroundings and circumstances
(Beggs, 1999).

The above problems are being handled by organizations in the following ways:

(i) However, instead of concentration on a single leadership style,

(ii) Leaders can vary their approaches depending on three factors: forces in the leader,
(iii) Forces in the subordinate and forces in the situation.

An effective leader is measured by his ability to manage and withstand forces around him and how
to effectively utilize human and material resources to attain organizational objectives (Douglas,
2012).

McGregor (1943) put it clear that there is a close relationship between leaders’ expectation and the
resulting performance of subordinates. He further explains that if leaders’ expectations are high,
productivity is likely to be high.

In view of the above mentioned problems, that are persistently affecting the productivity of
organizations; efforts have been made to solve the problems confronting the achievements of
organizational goals and objectives as designed by the strategic management of the firms or
industries. One of the ways by which some of these problems are being solved through, motivation,
when workers or employees are induced via motivation. They tend to work tediously towards
achieving the set or targeted objectives of the firm. The goals of most organizations are to maximize
the wealth of its shareholders at a profitable rate. Hence motivation means getting things done
through other people by influencing and persuading them to perform particular tasks and they
themselves will not know the time they have done the job and this can be achieved by given bonus to
workers at the end of every financial year, salary increment, provision of staff quarters, etc. (Blun P.,
1985).

Abraham Maslow, the father of motivation says, when the basic needs of human beings are made
such as shelter, food and clothing, other needs kept on arising but the means of solving those needs

5
are limited. Thus, based on his theory, human needs can only be made to some extent but not all. As
a result, workers or employees are advised to contribute positively towards achieving organizational
goals without necessarily satisfying their desires (McGregor,1943).

Since leadership deals with the human resources element, it provides the basis for effective
utilization of material resources in an organization through individual skills, knowledge and ability.
Human relationship is also of paramount importance to organizations that is why Heyward Mayo
(1946) the father of human relationship came out with the view that organizations should implement
the concept which resulted to unity, oneness in most organizations. Though the above problems are
solved, but they still exist therefore the researcher seeks to investigate the values of the problems and
proffer a tentative solution via suggestions and recommendations to the affected organization based
on research findings.

1.3 Research Questions

i) What are the several problems faced when examining leadership styles?
ii) What type of leadership style do organizations prefer?
iii) Who are the beneficiaries of leadership styles?
iv) What are the effects of leadership styles in an organization?
v) What are the measures to be taken to improve employees’ performance in our
organization?
vi) How autocratic style of leadership does affect the organizational productivity of an
organization?

vii) How does the democratic style of leadership affects the organizational productivity of
the organization?

1.4 Objectives of the Study

i) To investigate the several problems faced during examining leadership styles.
ii) To find out the type of leadership style organizations prefer.
iii) T o find out who are the beneficiaries of leadership styles.
iv) To examine the effects of leadership styles in an organization.
v) To find out the measures to be taken to improve employees’ performance in an
organization.

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 vi) To investigate how autocratic style of leadership does affect the organizational
productivity of an organization.

vii) To ascertain how the democratic style of leadership affects the organizational
productivity of the organization.

1.5 Statement of Hypotheses

Hypothesis one:

Ho: Leadership style has no influence on employees’ commitment in UAC of Nigeria Plc, Lagos.

Hi: Leadership style has influence on employees’ commitment in UAC of Nigeria Plc, Lagos

Hypothesis two:

Ho: Leadership style has no relationship with the achievement of organizational goals in UAC of
Nigeria Plc, Lagos.

Hi: Leadership style has a relationship with the achievement of organization goals in UAC of
Nigeria Plc, Lagos.

1.6 Significance of the Study

This study will benefit the society considering the importance of the leadership styles in
organizations and to the growth and development of the nation. It will benefit companies in general,
and the management of UAC of Nigeria Plc will find this study of immense benefit (as the case
study of this research). The recommendations and findings will be directly beneficial to them. This
study is intended to analyze the leadership styles and employees commitment to organization in
Nigeria and the inherent problems associated with it would benefit individuals and other researchers
that have interest in the subject matter.

1.7 Justification of the Study

Justification for the need to investigate leadership styles, employees commitment, job satisfaction
and organizational success is exemplified in the seemingly observed relationship between the levels
of job dissatisfaction, absenteeism, grievance expression, tardiness, low morale and high turnover.
Leadership styles, employees commitment, job satisfaction and organizational success are immediate

7
antecedent of intention to leave the workplace and turnover. Unsatisfied workers will leave their jobs
more than their satisfied colleagues (Padilla-Vellez, 1993;Gangadhraiah et al., 1990; Martin, 1990).

Retention and turnover of staff, particularly highly skilled personnel, are important issues for
managers in the current health care environment (McBride, 2002). Employees who experience job
satisfaction through good leadership styles are more likely to be productive and stay on the job
(McNeese-Smith 1997; Irvine and Evans,1995). Furthermore, more satisfied employees have more
innovative activities in continuous quality improvement and more participation in decision-making
in organizations (Kivimaki and Kalimo, 1994).

1.8 Scope of the Study

The scope of the study is restricted to UAC OF NIGERIA PLC Lagos Island branch and is it to
ascertain the leadership styles and employees commitment to organizational goals. As a result, the
researcher has limited his research work to UAC OF NIGERIA PLC groups of company, Lagos to
be used in making generalizing references to all manufacturing industries in Lagos state and Nigeria.
The choice of UAC OF NIGERIA PLC group does not suggest that it is the most problematic,
inefficient and ineffective manufacturing or organization in Lagos state in terms of low productivity
caused by leadership style. The selection is based on the simplest; it is within the reach of the
researcher.

1.9 Limitations of the Study

In the course of the study, the researcher was faced with several constraints; one of the constraints
was the short time within which the research was to be completed. Other constraints are inadequate
funds, insufficient materials and data.

The researcher also encountered human factor constraint as some of the company officials were not
forthcoming and also ready to assist the researcher with necessary information about the
organization.

1.10 Definition of Terms

i.) Examination: means the act of looking at or considering something very carefully. A close look
at something/somebody to see if there is anything wrong or find out a problem.

8
ii.) Leadership: A person who leads a group of people through directing and influencing the task-
related activities of group members.

iii.) Leadership Styles: This refers to the pattern of philosophies, belief, attitudes, teaching and
assumption favoured by leaders during the process of directing and influencing workers.

iv) Styles: This refers to a particular way in which something is done eg. I like your style, I like the
way you do things.

v) Employees: A person who is paid to work for somebody or employees are the work force an
organization has.

vi.) Commitment: This is the way to perform or do something, towards achieving organizational
goals and objectives.

vii) Organization: It is a business or investment concern or entity own by one person or group of
persons. It has its leader, managers, directors and workers as the case may be.

viii) Goals: this simply means something that you pursue with the hope.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

Chapter two will cover related works done by different authors related to the research work the
researcher is conducting. This chapter will deal with historical background, conceptual framework,
theoretical framework and finally current literature review as it relates to an examination of
leadership styles and employees commitment to organizational goals.

This chapter provides a review of past, current and relevant literature on the research topic. The
objective of the literature review section is to establish a background framework upon which the
researcher is to build his/her discussions on the examination of leadership styles and employees
commitment to organizational goals, using UAC OF NIGERIA PLC LAGOS as a case study.
This literature review evaluates the current state of knowledge on how positive improvements in
leadership style may also generate positive outcomes in UAC OF NIGERIA PLC. The idea that a
leadership style as well as a social case may be made is an old one, stretching back to social thinkers
in the early ages of rural development as well as finding later expression in the human relations
school of thought. The argument is highly topical but has also been criticized, hence this review.

UAC OF NIGERIA PLC Company outcomes were initially defined as profitability. However, that
measure is problematic, since organizational performance may not be reported accurately by
companies in some national and regulatory contexts, especially where company leadership may be
affected. It is also narrow, because other measures of company health should also be considered in
the long term. We therefore also include all the other measures reported in the literature as key
positive mechanisms, such as leadership style, staff satisfaction, improved productivity, efficiency,
reduced labour turnover and innovation (Wright and Gardner, 2000).

Historical Background of UAC PLC

The United Africa Company of Nigeria Plc. (UAC) is a Nigerian publicly listed company based in
Lagos. Its areas of operation include manufacturing, services, logistics and warehousing, agricultural
and real estate. UACN's food operations include UAC Franchising, UAC Restaurants and UAC

10
Dairies. It also has equity stake in UACN Property Development Company, a quoted firm, CAP Plc,
makers of Dulux paints and Portland Paints, manufacturers of Sandtex paints (Godfrey 1960).

A former chairman of the board was Senator Udoma U.Udoma when Mr Larry Ettah was serving as
Group Managing Director and CEO in 2010.

UAC Nigeria also known as UACN was first incorporated in Nigeria under the name Nigerian
Motors Ltd on April 22, 1931 as a wholly owned subsidiary of the United Africa Company Ltd, the
firm that later became UAC International (UACI). UAC International, a subsidiary of Unilever,
included in its business, the trading activities formerly carried on by a number of other companies
including The Niger Company Ltd. and the African and Eastern Trade Corporation Ltd, all of which
had long-standing trading links with West Africa.

At inception, United Africa Company of Nigeria was a subsidiary of UACI's group of companies in
Nigeria, a group that was incorporated to transact in selected markets within the country. Many of
these companies later became divisions under UAC of Nigeria in 1973 following a consolidation
exercise.

UACN's business activities was initially in the auto trade market but soon expanded into other areas.
Strategic to its business conduct in Nigeria, the firm believed in the development of the economy
and an improvement in the income of farmers and Nigerians as key to its success, this belief partly
motivated its drive to expand into other areas of business. A major segment of the firm was produce
buying of cash crops from local farmers for export to foreign markets. This activity also involved
extension of credit to traders and middlemen who went into the hinterland to source for quality
grades of produce. The firm operated in this market through staffing of personnel at different buying
stations or through the use of traders and middlemen. When marketing boards were created for major
cash crops such as palm kernels, Cocoa and groundnuts, UAC of Nigeria was appointed as one of
the licensed buying agents. The company also traded in other agricultural products not regulated by
the government such as hides and skins, beeswax, rubber, shea nut, castor seed, piassava, kapok,
coffee, copra and gum. The revenue from the sale of agricultural produce was used to import various
goods for sale in the Nigerian market.

The firm's trade in consumer goods such as shirts, shoes, electrical appliances and mechanical
equipment involved importation from various countries of the world, a process overseen by its

11
parent company. Many goods distributed by the company were sold by middlemen or associate
companies such as Kingsway Stores.

The firm also managed transportation of bulk palm oil at buying points and storage at various ports
in the country for onward distribution to foreign markets. The firm had a fleet of river crafts
operating within the internal water ways of the country, an operation that was managed out of UAC's
office at Burutu. In addition, the firm helped to introduce new machinery for many pioneer oil mills
in Eastern Nigeria.

The company, whose name was changed to United Africa Company Ltd in 1943, retained the name
until 1955 when it became The United Africa Company of Nigeria Ltd and started acquiring, over a
period of five years, a large part of the business of UAC International. In 1960 C.W.A. Holdings
Ltd, England also a subsidiary of Unilever, acquired the interest of UAC International in the
company. Further re-organisation concluded in 1973 and resulted in the acquisition of a number of
wholly owned fellow subsidiaries of C.W.A. Holdings. In 1968, Niger House, the new head office of
UACN was completed. The 12 storey building was built by Taylor Woodrow and has adjacent
structures including an 8-storey building at the rear.

Following re-organisation, the company conducted the acquired businesses as operating divisions,
which are now in voluntary liquidation. The company took the name UAC of Nigeria Ltd in 1973. In
compliance with the Nigerian Enterprises Promotion Act 1972, 40 percent of the company's share
capital was acquired in 1974 by Nigerian citizens and associations and in accordance with the
provisions of the Nigerian Enterprises Promotion Act 1977, an additional 20 percent of the UAC's
share capital was publicly offered in 1977, increasing Nigerian equity participation to 60 percent.
The name UACN Plc was adopted in 1991.

2.2 Conceptual Framework

The most important thing to understand about conceptual framework is that it is primarily a
conception or model of what is going on with these things and why tentative theory of the
phenomena that we are investigating. The function of this theory is to inform the rest of the design-to
help to access and refine goals, develop realistic and relevant research questions, select appropriate
methods and identify potential validity threats. It also helps to justify the research.

12
In this chapter, the research highlighted the different sources for this theory and how to use theory
effectively in this design, describe the nature of theory in more detail later in the chapter, in dealing
with the uses of existing theory. Here, we want to emphasize that our conceptual framework is a
theory, however tentative or incomplete it may be.

What is often called the “research problem: is a part of the conceptual framework, and formulating
the research problem is often seen was a key task in designing your study. It is part of the conceptual
framework (although it is often treated as a separate component of a research design or proposal)
because it identifies something that is going on in the world, something that is itself problematic or
that has consequences that are problematic. Research problem functions (in combination with goals)
to justify study, to show people why research is important. In addition, this problem is presumably
something that is not fully understood, too that we don’t adequately know how to deal with;
therefore, we want more information about it. Not every study will have an explicit statement of a
research problem, but every good research design contains an implicit or explicit identification of
some issue or problem, intellectual or practical, about which more information is needed (the
justification of “needed” is where goals come into play).

Many writers identify part of a research design, proposal, or published paper that deals with the
conceptual framework of a study as the literature review. This can be a dangerously misleading term.
In developing the conceptual framework, should not simply review and summarizes some body of
theoretical or empirical publications, for three reasons:

 It can lead to a narrow focus on the literature, ignoring other conceptual resources that may be
of equal or greater importance for study. As Locke, Spirduso, and Silverman (1993) pointed
out, “in any active area of inquiry the current knowledge base is not in the library-it is in the
invisible college of informal associations among research workers”. This knowledge can be
found in unpublished papers, dissertations in progress, and grant applications, as well as in the
heads of researchers working in this field. Locke, Spirduso, and Silverman emphasized that
“the best introduction to the current status of a research area is close association with advisors
who know the territory”. In addition, an exclusive orientation toward the literature leads the
researcher to ignore his own experience, the researcher speculative thinking (discussed later in
the section titled “thought experiments”), and any pilot and exploratory research that was
done.

13
  It tends to generate a strategy of “covering the field” rather than focusing specifically on those
studies and theories that are particularly relevant to the research (Maxwell, 2006). Literature
reviews that lose sight of this need for relevance often degenerate into a series of “books
reports” on the literature, with no clear connecting thread or argument. The relevant studies
may only be a small part of the research in a defined field, and may range across a number of
different approaches and disciplines. The most productive conceptual frameworks are often
those that bring in ideas from outside the field of study, or that integrate different approaches,
lines of conclusions. It also helps justify the research. In this chapter, different sources for
this theory will be discussed, and how to use theory effectively in conceptual framework,
‘however tentative or incomplete it may be.

What is often called the “research problem” is a part of conceptual framework, and
formulating the research problem is often seen as a key task in designing the study. It is part of
conceptual framework (although it is often seen as a key task in designing the study. It is part
of the conceptual framework (although it is often treated as a separate component of research
design or proposal) because it identifies something that is going on in the world, something
that is itself problematic or that has consequences that are problematic. The research problem
functions (in combination with goals to justify the study, to show people why the research is
important. In addition, this problem is presumably something that is not fully understood, or
that want more information concerning it. Not every study will have an explicit statement of a
research problem and presumably something that is not fully understood, or that do not
adequately know how to deal with; therefore, the need for more information about it. Not
every good research design contains an implicit or explicit identification of some issue or
problem, intellectual or practical; about which more information is needed (the justification of
“needed” is where required goals come into play.)

2.2.1 Concept of Leadership Style

Leadership is life blood of any organization and its importance cannot be underestimated. Many
authors have studied this phenomenon, but there is no conscious definition of what leadership is, no

14
dominant paradigm for studying it, and little agreement regarding the best strategies for developing
and exercising it (Bennis, 2007; Hackman & Wageman, 2007; Vroom & Jago, 2007).

Omolayole (2006) views leadership as that kind of direction, which a person can give to a group of
people under him in such a way that these will influence the behavior of another individual, or
group.

Ngodo (2008) perceives leadership to be a reciprocal process of social influence, in which leaders
and subordinates influence each other in order to achieve organisational goals. Leadership style is
viewed as the combination of traits, characteristics, skills and behaviours that leaders use when
interacting with their subordinates (Marturano & Gosling, 2008, Jeremy et al., 2011).

Flippo & Musinger (1999) see leadership as a pattern of managerial behavior designed to integrate
personal or organizational interest and effect, in pursuit of some objectives. Fiedler (1969)
postulates that leadership style refers to a kind of relationship whereby someone uses his ways and
methods to make many people work together for a common task. In modern leadership theories, five
leadership styles have been presented, including (i) charismatic leadership, (ii) transactional
leadership, (iii) transformational leadership, (iv) visionary leadership, and (v) culture-based
leadership (Yukl, 1994; Bass, 1990; Sashkin, 1996; Sergiovanni, 1987).

Tannenbanum and Schmidt (1958) also identify four different types of leaders which have been most
widely accepted and used. These leadership styles, which centre around Mc Gregor’s Theory ‘X and
Y’ assumptions, are democratic, autocratic, dictatorial, and laissez faire leadership styles. Below is a
brief examination of some common leadership style dimensions listed above and their potential
impact on a group as well as their relative usefulness.

Leaders are made not born. If the researcher has the desire and willpower, the researcher can become
an effective leader. Good leaders develop through a never ending process of self-study, education,
training and experience. This guide will help the researcher through that process.

To inspire the researcher workers into higher levels of teamwork, there are certain things the
researcher must be, know and, do. These do not come naturally, but are acquired through continual
work and study. Good leaders are continually working and studying to improve their leadership skill;
they are not resting in their laurels.

15
Leadership is a process by which a person influences others to accomplish an objective and directs
the organization in a way that makes it more cohesive and coherent. Leaders carry this process by
applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills.

Although the researcher position as a manager, supervisor, leader, etc. give the researcher the
authority to accomplish certain tasks and objectives in the organization, this power does not make
the researcher a leader, it simply makes the researcher the boss. Leadership differs in that it makes
the followers want to achieve high goals rather than simply bossing people around.

Bass (1989 & 1990) theory of leadership states that there are three basic ways to explain how people
become leaders. The first two explain the leadership development for a small number of people.
These theories are:

Some personality traits may lead people naturally into leadership roles. This is the trait theory. A
crisis or important event may cause a person to rise to the occasion which brings out extraordinary
leadership qualities in an ordinary person. This is the Great Events Theory. People can choose to
become leaders. People can learn leadership skills. This is the Transformational Leadership Theory.
It is the most widely accepted Theory today and the premise on which this guide is based.

When a person is deciding if he respects the researcher as a leader, he does not think about the
researcher’s attributes, rather, he observes what the researcher do so that she can know who the
researcher really is. He uses this observation to tell if the researcher is an honorable and trusted
leader or a self-serving person who misuses authority to look good and get promoted, self serving
person who misuses authority to look good and get promoted. They succeed in many areas because
they present a good image to their seniors at the expense of the workers.

What makes a person want to follow a leader? People want to be guided by those they respect and
who have a clear sense of direction. To gain respect, they must be ethical. A sense of direction is
achieved by conveying a strong vision of the future.

2.2.2 Types of Leadership Styles

(i) Charismatic Leadership
By far the most successful trait-driven leadership style is charismatic. Charismatic leaders have a
vision, as well as a personality that motivates followers to execute that vision. As a result, this

16
leadership type has traditionally been one of the most valued. Charismatic leadership provides fertile
ground for creativity and innovation, and is often highly motivational. With charismatic leaders at
the helm, the organization’s members simply want to follow. It sounds like a best case scenario.
There is however, one significant problem that potentially undercuts the value of charismatic
leaders: they can leave. Once gone, an organization can appear rudderless and without direction. The
floundering can last for years, because charismatic leaders rarely develop replacements. Their
leadership is based upon strength of personality. As a result, charismatic leadership usually
eliminates other competing, strong personalities. The result of weeding out the competition is a
legion of happy followers, but few future leaders (Michael, 2010).

(ii) Transactional Leadership

The wheeler-dealers of leadership styles, transactional leaders are always willing to give the
researcher something in return for following them. It can be any number of things including a good
performance review, a raise, a promotion, new responsibilities or a desired change in duties. The
problem with transactional leaders is expectations.

Transactional leadership style is defined as the exchange of rewards and targets between employees
and management (Howell & Avolio, 1993). Transactional leaders fulfill employee needs of rewards
when targets are met (Bass, 1990; Howell & Avolio, 1993; Humphreys, 2002). Pounder (2002)
defines this style as the transaction of needs fulfillment from both sides of the organization and
employees.

(iii) Transformational Leadership

Transformational leadership style focuses on the development of followers and their needs.
Managers exercising transformational leadership style focus on the development of value system of
employees, their motivational level and moralities with the development of their skills (Ismail et al.,
2009). Transformational leadership acts as a bridge between leaders and followers to develop clear
understanding of follower’s interests, values and motivational level. It basically helps follower’s
achieve their goals working in the organizational setting; it encourages followers to be expressive
and adaptive to new and improved practices and changes in the environment (Bass, 1994).

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(iv) Autocratic Leadership
Autocratic leaders are classic “do as I say” types. Typically, these leaders are inexperienced with
leadership thrust upon them in the form of a new position or assignment that involves people
management. Autocratic leaders retain for themselves the decision- making rights. They can damage
an organization irreparably as they force their ‘followers’ to execute strategies and services in a very
narrow way, based upon a subjective idea of what success looks like. There is no shared vision and
little motivation beyond coercion. Commitment, creativity and innovation are typically eliminated
by autocratic leadership. In fact, most followers of autocratic leaders can be described as biding their
time, waiting for the inevitable failure this leadership produces and the removal of the leader that
follows (Michael, 2010).

(v) Bureaucratic Leadership

Bureaucratic leaders create, and rely on, policy to meet organizational goals. Policies drive
execution, strategy, objectives and outcomes. Bureaucratic leaders are most comfortable relying on a
stated policy in order to convince followers to get on board. In doing so they send a very direct
message that policy dictates direction. Bureaucratic leaders are usually strongly committed to
procedures and processes instead of people, and as a result they may appear aloof and highly change
adverse. The specific problem or problems associated with using policies to lead are not always
obvious until the damage is done. The danger here is that leadership’s greatest benefits, motivating
and developing people, are ignored by bureaucratic leaders (Michael, 2010).

(vi) Democratic Leadership

Tannenbanum and Schmidt, (1958) describe democratic leadership as one where decision-making is
decentralized and shared by subordinates. The potential for poor decision-making and weak
execution is, however, significant here. The biggest problem with democratic leadership is its
underlying assumption that everyone has an equal stake in an outcome as well as shared levels of
expertise with regard to decisions. That is rarely the case. While democratic leadership sounds good
in theory, it often is bogged down in its own slow process, and workable results usually require an
enormous amount of effort.

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2.2.3 Leadership Style and Organizational Performance
Relationship between leadership style and organizational performance has been discussed often.
Most research showed that leadership style has a significant relation with organizational
performance, and different leadership styles may have a positive correlation or negative correlation
with the organizational performance, depending on the variables used by researchers (Fu-Jin et al.,
2010). McGrath and MacMillan (2000) report that there is significant relationship between
leadership styles and organizational performance. Effective leadership style is seen as a potent
source of management development and sustained competitive advantage, leadership style helps
organization to achieve their current objectives more efficiently by linking job performance to
valued rewards and by ensuring that employees have the resources needed to get the job done.

Sun (2002) compares leadership style with the leadership performance in schools and enterprises,
and found that leadership style had a significantly positive correlation with the organizational
performance in both schools and enterprises. Broadly speaking, leadership performance is identical
with organizational performance. Business management attributes their successes to leadership
efficiency, that is, the leadership style of administrative supervisors has a considerable effect on the
organizational performance.

FuJin et al. (2010) opine that when executives use their leadership style to demonstrate concern, care
and respect for employees, it would increase interest of employees in their work and enable them to
put up better performance, thereby affecting their job satisfaction positively. Howell and Frost
(1989) cited in Fu-Jin et al, 2010) also confirm that there is a positive relation between leadership
style and organizational performance.

2.2.4 Prospects and Challenges of Leadership Styles and Employees Commitments

What are the prospects and challenges of those who are learning from the middle and executive
levels of organizations? Many people speculate about them. Our research at the Centre for Creative
Leadership (CCL) has found out what these challenges are from a proven and reliable source-form
the words of those leading from the middle and executive levels or organizations facing these
challenges every single day. We gather data from 763 participants of leadership development
programmes form seven different places in the world (China/Hong Kong, Egypt, India, Singapore,

19
Spain, United Kingdom, and United States.) though they come from all parts of the world, these
leaders consistently face the same six challenges:

a) Developing managerial effectiveness

b) Inspiring others
c) Developing employees
d) Leading a team
e) Guiding change
f) Managing internal stakeholders and politics

We explain what these six challenges are, and ways that leaders can cope with them. We also
implore those who design and implement training and development initiatives into understanding
these challenges. If you understand the challenges leaders’ face, you will be better able to design
initiatives aimed at their development.

The life of a modern-day leader clearly is not easy. Inside their organizations, they need to lead and
motivate a diversified group of people, work across organizational boundaries, improve efficiency,
and achieve growth. Externally, they face a complex and globalized environment; they have to
manage the personal characteristics of the employee such as age, job, tenure” (Batemen & Strasser,
1984, pp. 95-96).

2.2.5 Concept of Employee Commitment to Organization

Commitment is a force that binds an individual to a course of action that is of relevance to a
particular target (Meyer & Herscovitch, 2001). Although various definitions have emerged in the
literature, the most common approach has defined organizational commitment as “the strength of an
individual’s identification with and involvement in a particular organization” (Porter,
Steers,Mowdays&Boulian, 1974, pp. 604). Organizational commitment has attitudes and behaviours
in the workplace. Batemen and Stresser (1984) state that the reasons for studying organizational
commitment are related to:“employeebehaviours and performance effectiveness, attitudinal,
effective, and cognitive construct such as job satisfaction, characteristics of the employee’s job and
role, such as responsibility and the interest of researchers in the construct of organization
commitment can be understood in relation to its links with desirable work outcomes. There seems to
be consensus that employees’ organizational commitment influence their work attitude and

20
behaviors. Several decades of research demonstrate that organizational commitment can have
positive consequence for the organization and the individual employee (O’Driscoll, Pierce
&Coghlan, 2006; Riketta& Van Dick, 2005; Meyer et al., 2002; Mathieu &Zajac, 1990).

Organizational commitment is important for organizational effectiveness in that it enhances

employees’ desire to remain in an organization, improves their performance (Porter et al., 1974), and
stimulates their utmost efforts to accomplish the organization’s goals (Gellatly, Goffin & Jacson,
1989). It is also related to numerous work-related attitudes and behaviors, including satisfaction,
involvement with one’s job and work motivation (Makovits, Davis &Vandick, 2007’ Chughtal &
Zafar, 2006; Cooper-Hakim &Viswesvaran, 2005; Meyer et al., 2002; Allen & Meyer, 1996;
Mowday et al., 1982). Moreover, organizational commitment has been linked to increase knowledge
sharing (Alvesson, 2001), increased organization citizenship behaviors (Meyer et al., 2002; Riketta,
2002), better organizational performance (Ricketta, 2002; Meyer et al., 1989), reduced absenteeism
(Eby, freeman, Rush & Lance, 1999) and reduced turnover (Chughtai&Zafar, 2006; Cooper-
Hakim&Viswesvaran, 2005; Mathieu &Zajac, 1990). Employee’s turnover is very costly as
organizations have to spend money on exit interviews, severance pay, hiring costs, and lost
productivity while training the new hires. Bergmann, Lester, De Meuse and Graham (2000) conclude
that getting the best workers and keeping them committed to the organization can help organizations
survive and also increase their competiveness.

Employee commitment can take different forms. As a result, it is often seen as an HR variable which
is difficult to define. The context, direction and development of commitment, as well as the extent to
which commitment influences behaviour can result in confusion and debate(Hoek, 2013). Here are
some definitions of commitment in different contexts:

a) Connection to a goal: being bound to a goal or the determination in respect of a goal,

regardless of the origin of the goal (Josje, 2013).Believing in a goal and wanting to achieve it
also reflects a certain degree of commitment.
b) Connection to an organisation: a psychological state that binds an individual to the
organisation (Meyer, 2001). As a result employees are more loyal to an organisation and less
likely to leave it.

21
 c) Connection to a job: the probability that someone continues to work in that job and feels
psychologically bound to it. This is regardless of whether it is fulfilling or not (Rusbult,
1983).
d) Someone's attitude towards their work (Herscovitch, 2001).

2.2.7 Leadership styles and organization commitment

Prior research suggests that work experiences, personal and organizational factors serve as
antecedents to organizational commitment (Eby et al., 1999; Meyer & Allen, 1997; Allen & Meyer,
1996, 19990). One organizational factor that is considered a key determinant of organizational
commitment is leadership (Mowday et al., 1982).

Lee (2004) found out that transformation leadership correlates significantly with organization
commitment with samples of research and development (professional) in Singapore. Contrary,
transactional leadership does not have significant relationship with organizational commitment.
Hayward, Goss and Timothy (2004) findings have further indicated that no correlation was found
between transactional leadership and affective, normative and continuance commitment. Limsila and
Ogunlana (2007) found that the leadership style mostly adopted and proving to be most suitable for
people is the transformational leadership. In addition, their result reveals that transformational
leadership style is likely to generate commitment from subordinate while transactional and laissez –
faire are not.

The links between transformational leadership and organizational commitment are well established
(Walumba et al; 2005; Avolio et al., 2004 Walumbwa& Lawler, 2003; 1999; Kirkpatrick & Locke,
1996). Essentially, the empirical and meta-analytic studies suggest that followers working with
transformational leaders are more committed to their organizations and demonstrate fewer
withdrawer behaviors (Walumbwa, Wang, Lawler & Shi, 2004; Bono & Judge, 2003; Walumbwa&
Lawler, 2003; Barling, Weber &Kelloway, 1996). Transactional commitment by promoting the
values which are related to the goal accomplishment, by emphasizing the relation between the
employees effort and goal achievement and by creating a greater degree of personal commitment on
part of both followers’ as well as leaders for the achievement of ultimate common vision, mission
and goals of the organization (Shimir, Zakay& Popper, 1998). Transactional leaders influence
followers’ organizational commitment by encouraging followers to think critically by using novel

22
approaches, involving followers to develop his or her personal potential (Avolio, 1999; Bass
&Avolio, 1994; Yammarino, Spangler & Bass, 1993). This is further supported by Walumbwa and
Lawler (2003) that transformational leaders can motivate and increase followers’ motivation and
organizational commitment by getting them to solve problems creatively and also understanding
their needs.

Transformational leadership behavior may encourage employees in both regular ways to develop
stronger employee commitment (Bass, 1995). Although transformational leadership has been
conceptually and empirically linked to organizational commitment, there has been little empirical
focusing on the precise ways in which style of leadership impacts employee organizational
commitment.

A multitude of studies have substantiated empirical results about leadership styles and the
dimensions of organizational commitment.

Hayward et al. (2004) noted that transformational leadership has moderated positive correlation with
affective commitment. Low correlation coefficients between transformational leadership and
normative and continuance commitment were also found. Other researchers such as Kent and
Chelladural (2001) posited that individualized consideration has positive relationship with both
affective commitment and normative commitment. Similarly, positive correlation was found
between intellectual stimulation and both affective commitment and normative commitment.
Contrary to their hypothesis, Simosi and Xenikou (2010) found that transformational leadership did
not explain how continuance commitment develops. Only the subscale of personal sacrifices was
linked to transactional contingent reward.

Refferty and Griffin (2004) found conflicting empirical results in relation with continuance
commitment. The hypothesis that personal recognition has a unique positive relationship with CC.
contrary to their hypothesis, Simosi and Xenikou (2010) found that transformational leadership did
not explain how continuance commitment develops. Only the subscale of personal sacrifices was
linked to transactional contingent reward.

Rafferty and Griffin (2004) found conflicting empirical results in relation with continuance
commitment. They hypnotized that personal recognition has a unique positive relationship with CC
(not hypothesized in their work). These results may be explained by focusing on the composition of

23
the CC scale, which contains items measuring individuals’ perceptions of their investments in the
organization and the availability of alternative employment possibilities. When the only rewards that
are available for use by leaders are verbal encouragement or rewards of a personal nature, this may
result in follower frustration as people do not feel that they are being adequately rewarded for
performance. Increased frustration may lead individuals to evaluate alternative opportunities more
positively, reducing CC to the organization Rafferty & Griffin (2004). Regarding the relationship
between vision and CC, alternate expectations were consequently proposed: on the one hand, vision
can be positively associated with continuance commitment as articulating an idealized picture of the
future increases people’s investment in the future of an organization. On the other hand, vision may
be associated with a decrease in CC by empowering people and positively influencing their
perception of the opportunities available to them Rafferty & Griffin (2004).

Most previous studies have been focused on the affective commitment dimension of organizational
commitment. While a relationship between transformational leadership and affective organizational
commitment has been empirically established (e.g. Castro, Perinan & Bueno (2008); Felfe, Yan &
Six (2008); Metscher, (2005); Walumbwa et al.,( 2005, 2004); Dvir, Kass& Shamir, (2004); Bono &
Judge, (2003); Meyer et al., (2002); W.A Lowe, (2000); Bycio et al., (1995)), the relationship
between transformational leadership and employees’ normative commitment has only been
theoretically supported (Simosi & Xenikou, 2010). This may be explained by the extensive literature
on the determinants of affective commitment, while there have been relatively few empirical
investigations examining the antecedents of normative and continuance commitment. Despite the
difficulties associated with the measurement of their antecedents, it is important to continue to
investigate how continuance and normative commitment develop (Meyer et al., 2002).

Within the transformational leadership framework, the ability of leaders to properly implement
transformational process, such as intellectual stimulation, individualized consideration,
individualized influenced attribute and individualized influence behavior in managing organization
functions may lead to an increase behavior in managing organization function may lead to an
increased organizational commitment. (Simon,1994). Although, direct effects model based study has
provided significant findings, it does not sufficiently explain how and why transformational
leadership style affect organizational commitment in dynamic organizations (Avolio et al., 2004;
Bycio et al., 1995).

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2.2.8 Challenges of Employees Commitments
a. The loyalty concept
In today’s business environment, corporations depend on their employees more than at any other
time in the past. This is particularly true in hi-tech, biotech, finance, and other market segments
where employee contribution does not directly depend on the nominal time spent at work. Employee
dedication and employee loyalty in a constructive way is not an easy task. According to powers ,
“employee loyalty (unfortunately) is whatever the employee and employer agrees that it is”.

Hart and Thompson (2010) make the point that although employee loyalty has been widely
discussed in literature, the concept of loyalty remains loosely defined. They suggested a three-tiered,
psychologically-based definition of loyalty that included “the variety of obligation types that loyalty
can imply, and anticipates the potential for asymmetrical loyalty configurations between employers
and employees” loyalty cannot be expected without reciprocity. To expect a high level of loyalty
from its employees, a company is expected to show a similar, or even higher, level of loyalty to
them. Most of the time, however, this is not happening in the U.S. where corporations show little or
practically no loyalty to their employees. It is typical for a company to lay off employees without
warning, taking them by surprise. Most employees in corporate America realize that they can be let
go at any time and that management would do their best to hide layoff plans. Even the expectation of
losing one’s job so suddenly, and quite an intimidating manner, may be enough to destroy employee
loyalty. This is just one example of how corporate America is shooting itself in the foot. There are
many other examples of corporations showing very little loyalty towards their employees.

2.2.9 Importance and Trends of Employee Loyalty

Companies with loyal employees have a significant competitive advantage and a higher rate of
survival compared to companies with less loyal employees: “The long term success of any company
depends heavily upon the quality and loyalty of its people”, Loyal employees are assets to a
company, and their retention is a key to its success; for one, they bring in loyal customers. Given
their importance, employers need to be able to identify and retain loyal employees. The fact that an
employee has been working for 20 years doesn’t automatically guarantee his or her loyalty. For
example, an employee might have difficulty finding a better job opportunity due to lack of
marketable skills. An analysis of retail stores in the U.K. showed that a loyal workplace generates
significant benefits for the company. The study found that “employee loyalty in this industry is

25
multi-faceted and can be understood in relation to commitment to the retailing industry, the retailer
and the store.” Yee with colleagues developed a research model to analyze the influence of
employee loyalty on company performance. Their results, based on service ships in Hong Kong,
indicated that employee loyalty robustly affects company “profitability through service quality,
customer satisfaction and customer loyalty.” Foster with colleagues and Riechheld indicated that
companies with greater profits should appears to have a better leadership style. In his research on
employee loyalty, Michlitisch concluded that companies could best implement their strategies if they
develop and retain their high-performing employees, including the following, corporate culture,
communications and information, and rewards”. Cascio conducted a relative study of Sam’s Club
and Costco and Found out that Costco’s employee-related cost were higher than Sam’s Club, but that
Sam’s Club annual employee cost were three times higher than Costco’s due to turnover. Loyalty
was higher at Cosco due to higher pay and benefits.

In the past, most employees would work for one company their entire life. Altman noticed that, in
the past, having a job meant a commitment for life. People would get hired by one company and
retire from the same company. The employers were also more loyal to their employees. There was
strong sense or trust between these two parties that would bond them for a long time. Levine
concluded that in the past employees looked for job security in exchange for their loyalty and hard
work; the same situation does not remain in the present context. Now, employees look for a more
independent, mobile workforce. Loyal employees help in the growth and sustainability of a
company. Employees help in the growth and sustainability of a company. Employee loyalty reduces
a company’s financial strain, saving on investment in the recruiting process of new staff. Providing
proper training to employees also brings new customers to the company.

Gaining employee loyalty is not one-time task, but requires care. It comes from mutual relationship
building and it is not recession proof. The article ‘The Death of Corporate Loyalty” posed a question
whether companies that are cutting thousands of jobs will be able to generate loyalty and
commitment among their remaining employees. In the past, long-term job tenure was much higher;
however, such expectations are fading quickly with voluminous job cuts. Managers empowered in
this ways are likely to flex their muscle at every opportunity, told to act like risk-taking to flex their
muscles at every opportunity. Told to act like risk-taking entrepreneurs, they will expect
entrepreneurial rewards as well.

26
2.2.10 Strategies to Improve Employee Loyalty
Companies have developed a certain understanding of how increased employee loyalty is beneficial
to the company, and thus often takes actions for its improvement. Malinchak believes that education
of all categories of employees, including executives, helps improve employee loyalty” which
decreases turnover and ultimately helps carry the business through uncertain times.’ Based on the
analysis of Raytheon Co. talent retention efforts, Helpert concluded that rewards and recognition are
critical for having loyal employees. Eskidsen and Nussler conducted a 52-question survey in
Denmark which showed that companies could improve employee loyalty and corporate performance
by introducing “a culture of personal growth and development in order to enhance the learning
capability of the organization”; additionally, they found that financial rewards also positively
impacted employee satisfaction and loyalty.

Many factors impact employee loyalty and one of them is workspace conditions. Rheem, pointed out
that although economic factors are important in creating loyalty, identification with the
organization’s goals often carries greater weight. Green suggested that each employee has a unique
character and thus one single approach is not effective for applications. By employee engagement he
means pace, anxiety, schedule, technology, turnover, productivity, revenue and profitability.
Employee engagement is defined as “The degree to which a person commits to an organization and
the impact that commitment has on how profoundly they perform their length of tenure” (page 242).
Champy pointed out that “it is important to give employees the feeling that they own the company
by instituting profit sharing and option plans to improve loyalty. It allows employees to convert a
taxable profit sharing bonus into company shares”. Davis-Blake et al examined how a blended
workforce consisting of “standards” and nonstandard” workers in the same jobs decreased standards
employees’ loyalty, and increased their interest both in leaving their organizations and in exercising
voice through unionization.” The president of Jim Harris group stated five principles embraced by
the world’s best run companies that help revitalize employee’s loyalty and commitment. They are:
(1) capture the heart; (2) open communication; (3) create partnerships; (4) drive learning; and (5)
Emancipate action. Tatum describes employee incentives to encourage employee loyalty as a
combination of respect, communication, acknowledgment, rewards, and benefits.

In their books “Human Sigma: Managing the Employee-Customer Encounter,” Fleming and
Asplund discussed a vital role which mangers play in motivating employees and meeting their

27
emotional requirements. By recognizing and appreciating employees’ contributions, organizations
energize them to accomplish their duties with a greater degree of effort and dedication. “The right
recognition reinforces authentic successes by cementing the memory of what the employee did right
and encoding that memory with positive emotions that make it more powerful and meaningful”.
Negative responses cause employees react towards the most basic human needs, including
workplace environment, psychological needs and aspirations. Sutton creates a framework for
managers on how to be a good boss in difficult situations, and his emphasis is on employees’ needs.
According to Sutton, during difficult times a manager should provide more care, predictability,
understanding and control. If employers were able to do so, they would enjoy an employee’s loyalty
for years. Studies conducted by Dewhurst, Guthridge, and Mohr indicated that strategies such as
praise, individual attention and proving employees with opportunity to take leadership roles in
projects positively influenced employee loyalty.

In their survey with 127 respondents, including employees and owner-managers in small,
independent bakeries, Reda and Dyer came to the conclusion that an employee’s above all things
gets more satisfied when treated well by leaders. The authors also concluded that use of formal
recruitment techniques predicted positive employee perceptions, and that employees’ perception of
owners’ commitment predicted their loyalty to the firm. However, it is not that such a conclusion can
be extended to white-collar jobs, where psychological factors of employee loyalty discussed by Hart
and Thompson may play a more important role.

2.2.11 Morality and Mutual Loyalty, Trust, and Respect

Employee loyalty depends on the mutual loyalty of employee and employer. In other words, while
loyalty must come from employees, it is only generated by companies that show loyalty to its
employees. Darci noted that “Employers can expect their employees remain loyal-but employers
must be loyal to them”. In his article “how to resolve Employee Conflict”, Maughan points outthat
employers often look for the success and profitability of the firm, whereas employees look for a
stable and productive workplace with fairness, respect and equality. Both parties need to come to a
point of agreement on these differences and identify goals that motivate the other.

If a company shows respect to its employees and acknowledges their achievements and contributions
to the company’s success, it definitely builds employee loyalty. As noted by Weber in his analysis of
the health care system , respect shown to employees made them very loyal. For instance, he pointed
28
out that in the last six years not a single doctor among the 32 who staff the emergency rooms of
Pennsylvania’s Lehigh Valley Hospital & Health Network left for another job. At Austin Medical
Centre in Minnesota, despite the fact that the nationwide nursing vacancy rate reached 16 percent,
there were no job openings for registered nurses wanting to join the hospital even they had a waiting
list of 125 registered nurses wanting to join the hospital. In the analysis of the attitude s influencing
loyalty, only limited influence on loyalty were mainly intangible, linked to workmates, bosses, and
customers. Gender, age, job level, and tenure had only limited influence on loyalty” (page 129).
Schrag discussed the moral significance of employee loyalty, arguing that “employees have a
natural inclination to extend loyalty to the organization and that organizations consequently have an
obligation to make clear to employees the degree to which the organization will recognize and
reward employee loyalty” (page 41). Such mutual obligations are beneficial for both employer and
employee. Coughlan views employee as adherence to shared moral values. He suggested a
distinction between the concepts of loyalty and commitment. In his analysis, commitment includes
compliance, identification and internalization, while loyalty can be tied to community of
interdependent others, to adhere to moral principles in pursuit of the individual and collective goal.
Altman noticed that management often breaks the psychological contract with employees and that
unsupportive management hurts employee retention.

The result of a survey related to employee loyalty and conducted by Gallup was published in article
entitled “Americans are loyal to their employer. Among them 74% are very loyal, 19% are fairly
loyal, 2% are not too loyal, and 2% are not at all loyal, although loyalty of employees depends on
their salary, more recent studies indicate a greater emphasis on other factors. Matzler and Renzl
argued that trust in management and trust in peers “strongly influences employee satisfaction and, as
a consequence, employee loyalty.” A statistical analysis of the results showed a strong link between
trust, employee satisfaction, and employee loyalty. Federman stated that a lack of trust in senior
leadership is the primary reason why employee engagement level is down. He notes that an
organization should reengage its employees by providing them with direction and reason to become
passionate about their jobs. He suggests actions that would reengage employees, including the
opportunity for them to voice their concerns.

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The Loyalty Chasm
Although the growth of hi-tech industries has resulted in a stronger dependence of companies on
employee loyalty, the loyalty situation in corporate America is not improving. Analysis conducted in
recent years shows this trend of decrease in employee loyalty. A trend is clearly seen through the
analysis conducted in the recent years. By analyzing multiple authors in his article entitled
“Employee Loyalty in the New Millennium,”. Powers stated that traditional employee loyalty”
implies long-term development and trust building. If true, then the more organic, matrix-type,
spontaneous organizational arrangements forecasted for the 21 st century would not allow enough
time for the formation of employee loyalty.” According to Laabs , “whereas the promise of being
together forever (like marriage) was once our employment pact, we now caused such a negative
trend in employee loyalty? Darci suggested that “before we damn this generation of workers,
consider this possibility: maybe, just maybe, employer killed company loyalty.” He supported his
point by the following analysis: “how could this happen? Why would they do it? It’s suicide.
Consider this: when sales slip and profits are in jeopardy, why is head count reduction the first
response to quickly right the ship? When health insurance premium inch up, why is passing the cost
onto the employees the best solution? When staffing levels slip, why is getting workers to do more
with less the best response?”

Thus, employee loyalty is a crucial component of company success. Its declining trend may spell
potential problems for companies and affect the ability of the economy to recover from the most
severe recessions in history. In order to find ways to improve the situation, we have to first identify
major goals of this research is to identify serious problems with employee loyalty in corporate
America today which have to be addressed in order to improve the situation in this phase of research
to collect informal and perceptional opinion from employees of all ranks

2.2.12 Concept of Organizational Success

Organizational success is measured by how well a company meets the individual objectives of its
business plan. Those objectives include setting goals, making plans to meet those goals, not letting
obstacles derail plans and monitoring the workflow to ensure the plans are on track. For
organizational efforts to be successful, it is imperative that a capable leader be in place (Yoga, 2013).
The leader provides support and ensures the team has the necessary tools to complete assigned tasks.
The leader may also delegate some responsibilities to other qualified individuals.

30
Organizational success generally comes from having a clear plan or strategy to deliver on a mission.
But a strategy is not success until it delivers its intended value. Successful organizations create
value. Organizations, of course, come in many shapes and sizes, flavours and colours. This book is
predominantly concerned with companies, but the same points apply to all organizations. The
definition of success will vary from organization to organization, but the need to create value in
support of a mission is universal (Andrew, 2012).

In the case of a company, this might be shareholder value. In the 1990s the focus of organizations
worldwide shifted to generating shareholder value. Suddenly this was seen as the most relevant
measure of a company and leader’s success. Its allure has since paled, but it is clearly a vital
ingredient in any consideration of what constitutes corporate success (Kakabadse, 2012).Pure
financial value also has its place. Turning losses into profits, creating financial value where it didn’t
previously exist, can be immensely satisfying. Clearly, companies need to make money to survive
and provide value more generally. But that is not the be all and end all of most organizations. As
Henry Ford observed, “A business that makes nothing but money is a poor kind of business.”

These are enduring themes – as old as business itself. Money, price and profit are simply indicators
of value. They are by-products of value creation. So, too, is quality. As the great management
thinker Peter Drucker observed: “Quality in a product or service is not what the supplier puts in. It is
what the customer gets out and is willing to pay for. A product is not quality because it is hard to
make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers
pay only for what is of use to them and gives them value. Nothing else constitutes quality.”

In other words, value is in the eye of the beholder. Value is something that is created in the mind of
another person. It may have a price tag or it may be something less tangible. Value might be seen in
terms of social value. Increasingly, the companies I encounter throughout the world have a clear
notion of contributing to society more generally. They want to help make the world a better place,
while still making a profit.

Value is often also seen in terms of the stakeholders involved:

the individuals, groups or organizations with a direct interest in the activities of a corporation. These

31
include shareholders, customers, suppliers, employees, investors, and members of the community in
the location where the company operates.

Stakeholder value thinking has been central to research at Harvard University and many American
corporations. In recent years, thousands of initiatives have been launched and billions of dollars have
been spent in the quest for improving stakeholder engagement to generate value. Yet, the results are
mixed.

Our notions of value are continually evolving. Leading the current intellectual charge is the familiar
form of Michael Porter of Harvard Business School. The originator of the Five Forces framework
now talks of “creating shared value”. The debate about what constitutes value is gathering pace as
the next set of challenges facing companies become clearer.

While emphases change, what doesn’t is the fact that value, in its many manifestations, is at the
centre of corporate life. Different types of organizations will seek to create different sorts of value,
but all organizations must create value to legitimize their existence. Value truly is the currency of
success.

2.2.13Concepts of Organizational Commitment

Meyer and Allen (1991) and Allen and Meyer (1990) identified three separable components
reflecting:

A desire (affective commitment), a need (continuance commitment), and an obligation (normative

commitment) to maintain employment in an organization.

The three component model developed by Meyer and Allen has been subjected to the greatest
empirical scrutiny and has arguably received the greatest support (for a review, see Meyer, Stanley,
Herscovitch & Topolnystsky, 2002 and Meyer & Allen, 1997). Meyer and Allen (1991) argued that
one of the most important reasons for distinguishing among the different forms or organizational
commitment was that they have very different implications for behaviour. Although all three forms
tend to bind employees to the organization, and therefore relate negatively to turnover, their relations
with other types of work behaviour can be quite different (Meyer et al., 2002).

32
Affective commitment (AC) entails an acceptance and internalization of the other primary goals and
values, a willingness to exert effort on their behalf and a strong emotional attachment to them (Allen
and Meyer, 1990; Mowday, Steers & Porter, 1979). Employees who are affectively committed to the
organization will probably carry on working for it because they want to (Meyer & Allen, 1991).

Normative commitment (NC) entails perceived obligations to maintain employment memberships

and relationships, in exchange for employment, employees feel compelled to reciprocate with loyalty
and commitment that derive from mortality and value driven principles based on reciprocity norms
and socialization practices (Meyer &Herscovitch, 2001). “Employees with a high level of normative
commitment feel that they ought to remain with the organization” (Meyer & Allen, 1991, pp. 67).

Continuance commitment (CC) involves appraisals of personal investments tied to one’s current
employment and the availability of employment alternative (Meyer and Allen, 1984). Continuance
commitment “refers to the awareness of the costs associated with leaving the organization” (Meyer
and Allen, 1991, pp. 67). Individuals with high continuance commitment remain with their
organizations because they perceive the costs of leaving to be too great. This type of commitment
indicates that employees remain because they have too much time invested (Meyer and Allen, 1991).

Becker (1960) originally proposed that people engage in consistent lines of behaviour because of the
inducements (side bets) to do so. Employers offer a variety of such inducements to retain employees,
including job status, seniority and benefits. Further, employees often desire to avoid the social and
economic costs of leaving (e.g., relocation costs, disrupted social networks). CC strengthens as these
side bets accumulate, rendering employees more likely to stay with the organization. Meyer and
Allen (1991) also indicate that individuals whose most important connection to the organization is
based on the continuance commitment stay because they need to.

Commitment due to a lack of alternative employment opportunities (CC: LoAlt) reflected

commitment based on few existing employment alternatives. This commitment refrain the individual
from leaving the organization, due to the perceived lack of more desirable employment
opportunities.

Perceived sacrifice of investments associated with leaving the organization CC: HiSac) related to
fear of losing benefits acquired by the organization during the years of work. This commitment is

33
driven by the perception of losing the investments done in the targeted organization if it is
abandoned by the individual.

2.2.14 Prospects/Outcomes of Organizational Commitment

When a person is deciding if she respects you as a leader, she does not think about your attributes,
rather, she observes what you do so that she can know who you really are. She uses this observation
to tell if you are an honorable and trusted leader or a self-serving person who misuses authority to
look good and get promoted. Self-serving leaders are not as effective because their employees only
obey them, not follow them. They succeed in many areas because they present a good image to their
seniors at the expense of their workers.

The best of good leadership is honorable character and selfless services to your organization. In your
employees’ eyes, your leadership is everything you do that effects the organization’s objective and
their well-being. Respected leaders concentrate on what they are [be] (such as beliefs and
characters), what they know (such as job, tasks, and human nature), and what they do (such as
implementing, motivating, and providing direction).

What makes a person wants to follow a leader? People want to be guided by those they respect and
who have a clear sense of direction. To gain respect, they must be ethical. A sense of direction is
achieved by conveying a strong vision of the future.

2.3 Theoretical Framework

2.3.1 Theories of Leadership
There is wide and ever growing variety of theories to explain the concept and practice of leadership.
I will provide a brief overview of the more dominant or better known theories. I hope that others will
share their thoughts on whether this list neglects any theories/approaches such as adaptive, authentic
and appreciative. It is important to note that this submission attempts to provide an overview of
leadership theories versus models. I view models as attempts to functionalize the more theoretical
aspects of leadership and make them easier to put into play by organizations and constants. This is,
in and or itself, an important activity. Most theories view leadership as grounded in one of more of
the following three perspectives: leadership process of relationship, leadership as a combination of
traits or personality characteristics, or leadership as certain behaviors or as they are more dominant

34
theories that exit the nations that, at different degree of realization of goals. I will say on the front
end that, in my opinion, leadership is a dynamic and complex process, and that much of what is
written these days tends to over-simplify. This process provide an overview that keeps things simple,
without crossing into over simplification, and for the most part refraining from any critiquing of the
various theories.

a. Trait Theory

This theory postulates that people are either born or not born with the qualities that
predispose them to success in leadership roles. That is, those certain inherited qualities.
“Such as personality and cognitive ability, is what underlined effective leadership. There
have been hundreds of studies to determine the most important leadership traits, and while
there is always going to be some disagreement, intelligence, sociability, and drive (aka
determination) are consistently cited as key qualities.

b. Skills Theory

This states that learned knowledge and acquired skills/abilities are significant factors in the
practice of effective leadership. Skills theory by no means disavows the connection between
inheritance and the capacity to be an effective leader – it simply argues that learned skills, a
developed style, and acquired knowledge, are the real keys to leadership performance. It is of
course the belief that skills that warrants all the effort and resources devoted to leadership
training and development.

c. Situational Theory

This theory suggests that different situations require different styles of leadership. That is, to
be effective in leadership requires the ability to adapt or adjust one’s style to the
circumstances of the situation. The primary factors that determine if a leader adapt are an
assessment of the competence and commitment of leading followers. The assessment of these
factors determines if a leader should use a more directive or supportive style.

d. Contingency Theory

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 This theory states that a leader’s effectiveness is contingent on how well the leader’s style
matches a specific setting or situation. And how, you may ask, is this different from
situational theory? In situational, the focus is on adapting to the, situation, whereas
contingency states that effective leadership depends on the degree of fit between a leader’s
quality and style and that of a specific situation or context.

e. Path-Goal Theory

This theory is about how leaders motivate followers to accomplish identified objectives. It
postulates that effective leaders have the ability to improve the motivation of followers by
clarifying the paths and removing obstacles to high performance and desired objective.

f. Transformational Theory

This Theory states that leadership is the process by which a person engages with others and is
able to create a connection that result in increased ‘motivation and morality in both followers
and leaders. It is often linked to the theory of charismatic leadership that espouses that
leaders with certain qualities, such as confidence, extroversion, and clearly stated values, are
best able to motivate followers. The key in transformational leadership is for the leader to be
attentive to the needs and motives of followers in an attempt to help them reach their
maximum potential. In addition transformational leadership typically describes how leaders
can initiate, develop, and implement important changes in an organization. This theory is
often discussed in contrast with transformational leadership.

g. Transactional Theory

This is a theory that focuses on the exchanges that take place between leaders and followers.
It is based in the notion that a leader’s job is to create structures that make it abundantly clear
what is expected of his/her followers and also the consequences (i.e. rewards and
punishments) for meeting or not meeting these expectations. This theory is often likened to
the concept and practiced of management and continues to be an extremely common
component of many leadership models and organizational structures.

36
h. Servant Leadership Theory
The conceptualization of leadership reflects a philosophy that leaders should be servants first.
It suggests that leaders must place the needs of followers, customers, and the community
ahead of their own interests in order to be effective. The idea of servant leadership has a
significant amount of popularity within leadership circles – but it is difficult to describe it as
a theory in as much as set of beliefs and values that leaders are encouraged to embrace.

2.3.2 Principles of Leadership

a. To help you be, know, and do; (U.S. Army, 1979) follow these eleven principles of
leadership (later chapters in this guide expand on these and provide topics for implementing
them).
b. Know yourself and seek self-improvement – in order to know yourself, you have to
understand you, know, and do, attributes. Seeking self-improvement means continually
strengthening your attributes. This can be accomplished through self-study, formal classes,
reflection, and interacting with others.
c. Be technically proficient – As a leader, you must know your job and have a solid familiarity
with your employees’ task.
d. Seek responsibility and take responsibility for your actions – Search for ways to guide your
organization to new heights. And do not blame others. Analyze the situation, take corrective
action, and move on to the next challenge.
e. Make sound and timely decisions – Use good affordable solving, decision making, and
planning tools.
f. Set example – Be a good role model for your employees. They must not only hear what they
are expected to do, but also see. We must become the change we want to see – Mahatma
Gandhi.
g. Know your people and look out for their well – being – Know human nature and the
importance of sincerely caring for your workers.
h. Keep your workers informed – Know how to communicate with not only them, but also
seniors and other key people.
i. Develop a sense of responsibility in your workers – Help to develop good character traits that
will help them carry out their professional responsibilities.

37
 j. Ensure that tasks are understood, supervised, and accomplished – communication is the key
to this responsibility.
k. Train as a team – Although many so called leaders call their organization, department,
section, etc. a team; they are not really teams, they are just group of people doing their jobs.
l. Use the full capabilities of your organization, department, section, etc. to its fullest
capabilities.

2.3.3 Theories of employee commitment

The literature indicates that organizational commitment is linked to various variables, which include
both personal variables such as age and gender, leadership style and trust. The literature also reveals
that commitment entails a high level of identification with the organization’s goals and values, a
willingness to exert effort for the benefit of the organization and a strong desire to maintain
membership in the organization (Morrow, 1983). Organizational commitment has been identified as
a useful measure of organizational effectiveness, because according to Avolio (2000),
transformational leadership is defined by five key dimensions, i.e. IDEALISED, INFLUENCE,
ATTRIBUTE (refer to the socialized charisma of the leader, whereby the followers feel trust,
admiration, loyalty and respect for the leader); IDEALISED, INFLUENCE behavior (which refers to
the charismatic actions of the leader, whereby individuals transcend their self-interest for the sake of
the organization and develop a collective sense of mission and purpose); inspirational motivation
(refers to the way in which transformational leaders energize their followers by articulating a
compelling vision of the future – thus creating enthusiastic excitement, raising followers
expectations, and communicating confidence that followers can achieve ambitious goals);
intellectual STIMULATION (refers to the way in which transformational leaders question the status
quo, appeal to followers’ intellect, stimulate them to question their assumptions, and invite
innovative and creative solutions to problems); and individualized consideration (refers to leadership
behavior that contributes to follower satisfaction by paying close attention to the individual needs of
followers, acting as a mentor or coach, and enabling them to develop and self-actualize).

Transformational leaders are thus characterized by: a) raising the level of awareness of followers
about the importance of achieving valued outcomes, vision, and the required strategy; b) Getting
followers to transcend their own self-interest for the sake of the team, organization, or larger

38
collectivity, and c) Expanding followers’ portfolio of needs by raising their awareness to improve
themselves and what they are attempting to accomplish (Burns, 1978; Bass, 1985b).

2.3.4 Theories as relates Leadership Style and Organizational Commitment

The literature indicates that organizational commitment is linked to various variables, which include
both personal variables such as age and gender, leadership style and trust. The literature also reveals
that commitment entails a high level of identification with the organization’s goals and values, a
willingness to exert extra effort for the benefit of the organization and a strong desire to maintain
membership in the organization (Morrow, 1983). Organizational commitment has been identified as
a useful measure of organizational effectiveness, because high levels of commitment can lead to
several favourable organizational outcomes. Suleiman and lies (2000a) identify important aspects of
organizational commitment, i.e. it fosters better superior-subordinate relationships; it enhances
organizational development, growth and survival; it improves the work environment; it negatively
influences withdrawal behavior such as turnover, lateness and absenteeism; and it has a positive
impact on employees’ readiness to innovate and create.

Based on the different components of commitment, organizational commitment can be described as

a multidimensional concept. According to Meyer and Allen (1997), organizational commitment can
be classified into: Affective commitment (emotional attachment), continuance commitment (costs
associated with leaving the organization) and normative commitment (moral obligation to remain
with the organization).

The literature has shown that transactional and transformational leadership can get results from
subordinates that are beyond expectations (Bass 1997). Leaders can contribute to an employee’s trust
and confidence in them.

Price (1997) further suggests that employees are far likely to be committed to the organization, if
they have confidence in their leader.

From a theoretical point of view, studies have shown that transformational leaders generally
outperform transaction, and performance (Jung, 2001). Clearly, employee commitment reflects the
quality of the leadership in the organization (Stum, 1999). According to Nyengane (2007), it would
be logical to assume thatleadership style has a significant influence on the growth of an organization.

39
In numerous studies, transformational leaders were found to generate higher commitment in their
followers (Bass, 1988; Avoiluio, 1999; Avoilio&Yammarino, 2003). For instance, Koh, Terborg and
Steers (1991) noted greater organizational commitment of school teachers and students if their
principals were rated more transformational. Fuller, Patterson, Hester and Stringer (1996) reported in
a meta-analysis, greater follower compliance if their leaders were more transformational than
transactional.

Research, development and practical applications in the 25 years since Burns’ (1978) significant
publication on transforming leaders, has shown that transformational leadership generally generates
greater follower effectiveness and satisfaction than does transactional leadership, although effective
leaders certainly perform using the full range of styles (Avoiluio, 1999; Bass &Avofao, 1993; Bass,
1985a, 1998). For example, Bass, Avolio, Jung &Berson (2003), reported that for 72 U.S. light
infantry platoon leaders, those who were rated higher on transformational leadership, led their
platoons more effectively in near-combat readiness missions one month later.

Hayward, Goss and Tolmay (2004) noted that transformational leadership has a moderate positive
correlation with affective commitment. Lower correlation coefficients between transformational
leadership and normative and continuance were also found. The findings have further indicated that
no correlation was found between transactional leadership and affective, normative and continuance
commitment.

Other researchers such as Kent and Chelladurai (2001) indicated that individualized consideration
has a positive relationship with both affective commitment and normative commitment. Similarly,
positive correlations were found between intellectual stimulation and both affective commitment and
normative commitment.

Bass and Avolio (1994) revealed that transformational leaders who encourage their followers to
think critically and creatively can have an influence on their followers’ commitment. This is further
supported by Alumbwa and Lawler (2003) that transformational leaders can motivate and increase
followers’ motivation and organizational commitment by getting them to solve problems creatively
and also understanding their needs. Price (1997) further suggests that employees are far more likely
to be committed to the organization if they have confidence in their leaders. However, contingent
reward behavior that represent transactional leadership have been found to be reasonably associated

40
with performance and work attitudes of followers although at a lower level than transformational
leadership behaviours (Bass, 1990a; Bass &Avoilio, 1990c) studies outside of the United State in
diverse organizational settings revealed that context and contingencies were of importance as a
source of variance in observations of transformational leadership, but the fundamental phenomena
transcended organizations, cultures and countries (Bass, 1997). In Spain, Molero and Morales (1994)
completed a study in 40 primary health care centers of the transformational leadership of the centre
in which coordinates earned higher MLQ scores on each of the transformational factors. Team
members found it was more acceptable for such coordinators to organize, manage, control and
evaluate their performance and greater feeling of autonomy existed when the coordinators were seen
as transformational.

In the Philippines, Catanyag (1995) observed that schools prepared their students more efficiently
when school principals obtained higher transformational scores on the MLQ than the scores from
teachers. In Austria, Geyer and Steyrer (1998) demonstrated that MLQ transformational ratings of
120 branch bank managers predicted long-term branch market share and customer satisfaction, in
Canada, Howell and Avoilio (1993) noted that the transformational, but not the transactional scores
of department, supervisors in a large Canadian financial institution predicted consolidated
departmental performance one year later. Parallel findings were obtained in studies and Dutch
managers (Den Hartog, 1997), and supervisor on North Sea oil platforms off of Scotland (Carnegie,
1995).

Lee (2005) found that transformational leadership correlates significantly with organizational
commitment with samples of research and development professional in Singapore. He also noted
that, transactional leadership did not have significant relationship with organizational commitment.

In 2011, a study conducted by Alqudah (2011), noted that there was a strong positive relationship
between the transformational leadership behaviors and organizational commitment in all three of its
dimensions. Alqudah (2011) also noted that a weak but significant correlation exist between laissez-
faire leadership and both affective and continuous commitment.

A few exceptions, however, were reported; for example, a study conducted by Baloch and associates
(2010) in Pakistan amongst 312 private sector college teachers, indicated that transformational
leadership had 31% impact on employees’ commitment while transactional leadership styles

41
indicates that managers may anticipate lesser conflict between supervisors and general employees in
organizations when employee’ values reflect their culture, indicating a cultural bias to leadership and
organizational commitment.

Avolio and Bass (1991) proposed a hierarchical ordering of leadership constructs with respect to
their relationship with performance. They purported that transformational leadership would be most
highly correlated with effectiveness followed by transactional and passive styles of leadership
(passive management by exception and laissez-faire leadership). Their assumption has been
confirmed in meta-analysis by Gaspar (1992), Fuller, Patterson, Hester and Stringer (1996), Lowe,
Kroeck and Sivasumbramaniam (1996), as well as Dumdum, Lowe and Avolio (2002).

In a South African study, Nyengane (2007) indicated that there is a positive relationship between
transformational leadership behaviours and positive relationship between transactional leadership
behaviors and continuance commitment, which is in contrast to Lee’s (2004) Singaporean study.
Nyengane’s (2007) correlation result also showed a weak but significant negative correlation
between laissez-faire leadership behaviours and effective commitment.

2.3.5 The Relationship between Leadership Style and Employee Commitment

The benefits of organizational commitment have been well documented in the extent management
literature (Davenport, 2010). Committed employees are less likely to develop patterns of tardiness or
to be chronically absent from work (Davenport et al. 1974). Gbadamosi (2003) contends that the
more favourable an individual attitude towards the organization, the greater the individual’s attitude
toward the organization, as well as their willingness to exert more effort on behalf of the
organization. Employees that are committed are also less likely to leave the organization to explore
others.

Accumulating evidence suggests that leadership style is positively associated with work attitudes and
behaviours at both an individual and organizational level (Dumdum, Lowe &Avolio, 2002).
Correlation analysis shows that transformational and transactional leadership style is related to
employees’ organizational commitment (Marmaya et al, 2011). In particular, there is considerable
research now available suggesting that transformational leadership is positively associated with
organizational commitment in variety of organizational settings and cultures (Guang-lu et al, 2012;
Muerera, 2008; Avolio et al, 2004; Bono & Judge, 2003; Walumbwa& Lawler, 2003; Damdum et al,

42
2002; Koh. Steers &Terborg, 1995; Lowe et al, 1996).”A major motivation for this study derives
from, the urgent challenge of attending competitive advantage through the effective utilization and
retention of skilled knowledge workers in a multi-cultural South Africa. Various past studies cover
different aspects of leadership and its relationship with organizational commitment (Sabir et al,
2011). Despite this, not enough empirical research studies, on the drivers of organizational
commitment amongst South African knowledge workers have been published (Bargaim, 2002;
Kinnear, 2000). Shokane, Stanz and Slabbert, in 2004 undertook a study to describe the nature of
leadership in South African organizations in pursuit. World class competitive status: They
concluded that the administrative nature of the public sector environment may be limiting the
derivation of transformational leadership in the Public Sector institution, and that the Tertiary Sector
Institution is significantly a transformational organization compared with the Private Sector
Corporation and the Public Sector Institution.

Studies in organizational commitment in Australian and South African Accounts (Clayton &
Hutchison, 2001), Secondary Education Educators in the Western Cape (Bull, 2005), Eskom Eastern
Region (Nyengane, 2007), the South African Motor manufacturing industry (Manetje& Martins,
2009), the telecommunications industry (Visagic, 2010), the accounting and information technology
environment (Lumley et al, 2011) were conducted; however, studies within other Parastatal in South
Africa are still to be conducted.

2.4 Current Literature Review

Various authors such as Satogdill (1974), Yukl (2009), Scilbach (1983), and others agree that
leadership is a critical factor in the success or failure of an organization; excellent organizations
begin with excellent leadership and successful organizations reflect their leadership (Bass, 1994;
1997).

Three major leadership theories that have been developed over time are the trait theories,
behavioural theories and situational contingency theories. Each of these approaches describes
different dimensions of leadership and their effects on the relationship between leaders and their
followers. The following literature focuses on transformational and transactional in specific:

43
Transformational Leadership
The term “transformational leadership”, was originally coined by James Downton in a 1973 paper on
rebel leadership. It was James MacGregor Burns who brought the term to wider parlance in his
classic study of political leadership in the 1978 book simply entitled “leadership” (Bryman, 2011). In
recent years, there has been shown that transformational leaders generate greater commitment in
their followers than do those who use other leadership styles (Avolio, 1999; Bass, 1998).
Transformational leaders encourage problem solving in followers rather than constantly providing
solutions and directions and a greater pool of knowledge (Buhler, 1995). Bass and Avolio (1994)
suggest that a consequence of this behavior is that followers develop the capacity to solve future
problems which might be unforeseen by the leader. Dubinsky, Yammarino, Jolsen and William
(1995) also suggest that leaders who are intellectually stimulating often possess a high level of risk-
taking because of their capability to trust the abilities of their followers. Individuals who work for
transformational leaders may willingly expand their job descriptions as they develop a greater
conception of the organization as a whole (Avoilio& Bass, 1991). According to Bass and Avolio
(2000), transformational leadership is defined by five key dimensions i.e. idealized influence
attributes (refers to the socialized charisma of the leader); idealized influence behavior (which refers
to the charismatic actions of the leader, whereby individuals transcend their self-interest for the sake
of the organization and develop a collective sense of mission and purpose); inspirational motivation
(refers to the way in which transformation leaders energize their followers by articulating a
compelling vision of the future –creating enthusiastic excitement, raising followers expectations, and
communicating confidence that followers can achieve ambitious goals); intellectual stimulation
(refers to the way in which transformational leaders question the status quo, appeal to followers’
intellect, stimulate them to question their assumptions, and invite innovative and creative solutions
to problems); and individualized consideration (refers to leadership behavior that contributes to
follower satisfaction by paying close attention to the individual needs of followers, acting as a
mentor or coach, and enabling them to develop and self-actualize).

Transactional Leadership
In his seminal work on leadership, James MaeGregor Burns (1978) defines transactional leadership
as the first form of interaction between leaders and followers (Marturano& Gosling, 2007). Bass
(1985) and Bass and Avolio (1997) described transactional leadership in terms of two characteristic

44
use of contingent rewards and management by exception. They described contingent reward as the
reward that the leader will bestow on the subordinate once the latter has achieved goals that were
agreed to. Contingent reward is, therefore, the exchange of rewards for meeting set objectives. By
making and fulfilling promises of recognition, pay increases and advancement for employees who
perform well, the transactional leader is able to get things done. Bass (1985) therefore argues that by
providing contingent rewards, a transactional leader might inspire a reasonable degree of
involvement, loyalty, commitment and performance from subordinates.

Transactional leaders may also rely on active management by exception which occurs when the
leader monitors followers to ensure mistakes are not made, but otherwise, allows the status quo to
exist without being addressed (Bass &AVolio, 1997). In passive management by exception, the
leader intervenes only when things go wrong (Nyengane, 2007). In general, one can conclude that
transactional leadership is an exchange relationship that involves the reward of effort, productivity
and loyalty.

45
 CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Area of Study

Based on the complexity that governs the leadership style of UAC of Nigeria Plc, Lagos state
the researcher has seen the above company as a level ground to carry out this research. This
will enable the researcher get better answers to most of the questions posed in this study.

3.1 Research Design and Sources of Data

A research design encompasses the methods of procedures employed to conduct scientific
research (web dictionary, 2015).The design of a study defines the study type and sub-type,
research question, hypothesis, independent and dependent variables, experiment design if
applicable, data collection methods and statistical analysis plan.

According to Osuola (2001), research is a process of arriving at a dependable solution to a

problem through planned and systematic collection, analysis and interpretation of data. It is a
vital tool for advancing knowledge which is an exercise usually carried out to fully analyze
and understand existing problems in achieving this research design becomes key.

The source of data will be from questionnaires administered to some selected staff of UAC
of Nigeria Plc, Lagos state.

3.2 Study Population and Sample Size

The study population is one hundred (100) staff of UAC of Nigeria Plc, Lagos state of wish
both senior and junior cadres were selected at random.

A sample size is the act of choosing or observation on replicates to include in a statistical

sample. The sample size is an important feature of any empirical study in which the goal is to
make inferences about a population from a sample size.

A portion carefully selected from the population to represent the population adequately is
known as the sample. The essence of sampling is to reduce a large survey to a manageable
size. The selection must be done in a deliberate fashion so that the portion can be taken to

46
represent the group of all possible participants (Awotunde, 1997). The sample size is one
hundred staff of UAC of Nigeria Plc, Lagos state. The prominence in the use of sampling is
that is cheaper, quicker and often the only feasible method of defending reliable information
about the population. Convenient sampling selection method was used on selected
respondent numbers. In all, one hundred (100) staff were administered with the
questionnaires of which 96 were filled and returned but the other 4 were misplaced by
respondents.

3.3 Instrumentation
A well-structured research instrument was developed and tested. A questionnaire for the
research work was administered to one hundred staff of the UAC of Nigeria Plc, Lagos. This
questionnaire was developed after a discussion with my supervisor; items were edited and
selected bearing in mind the research questions in chapter one.

3.3.1 Instrument Validity

Osuola (2010), defined validity as the process of finding out the degree to which researcher
or test indeed measures what is purported to measure. Validity of instrument refers to how
valid the research work is, and the questionnaire that were used to gather the data for the
research work are without duplication. The validity of the instrument used will involve pilot
testing where content validity will be used to ascertain the appropriateness of the content of
the instrument involving taking representative questions from each of the sections of the unit
and evaluating them against the desired outcomes.

This refers to how valid the research work is. This research work is valid and questionnaires
that were used to gather data for the research work are without duplication.

3.3.2 Reliability of Instrument

According to Osuola (2010) reliability of instrument is a process of obtaining information on
the degree to which a measure will yield similar result for the subjects at different times or
under different conditions of a consistent, dependable and accurate way. Reliability of
instrument refers to how reliable the instruments used are: primary data drawn from the
questionnaires. A Test-Retest Reliability method will be applied due to the consistency of a
measure evaluated over time. The primary data was drawn from the questionnaires with text

47
books, the internet, journals, articles, other research work and periodicals were used as
secondary data. This makes the research work reliable.

3.4 Method for Data Collection

For the purpose of the research work, the method of data collection used by the researcher
will be both primary and secondary sources of data.

3.4.1 Primary Data

Primary data is a term for data collection directly from a source (Nachimias,1979). These are
data that has been subjected to processing or any other manipulation. Therefore the major
form of primary data used by the researcher is questionnaire.

3.4.2 Questionnaire
These are questions drafted and presented for answering with a view to drawing conclusions
based on the opinion of the respondents. It is used to enable the researcher gather information
for analytical purpose. The researcher employed this method by presenting well-structured
questionnaires containing questions that deal with the leadership style and employee
commitment with UAC of Nigeria Plc, Lagos state as study case.

3.5 Secondary Data

Secondary data are data collected by someone other than the direct user or respondent.
Common sources of secondary data for social sciences include census, organizational records
and data collection through qualitative methodology or quantitative research (web definition
2015). These consist of data or information already available and are for existing literatures
such as text books, lecture notes, journals, magazines, periodicals, articles, newspapers and
internet.

3.6 Method of Data Analysis

There are different methods of analyzing data. For the purpose of this research work, the
simple percentage method would be used in the data analysis, while the chi-square method
would be used to test the hypothesis.

The chi-square formula is as follows:

48
X2 = ∑(Fo – Fe)2
Fe
Where:
X2 = Chi-square

F0 = Observed frequency

Fe = Expected frequency

The expected frequency is calculated using formula:

Σ = R x C

Σ = Expected frequency

R = Summation of the row cells

C = Summation of the column cells

Df = (r-1)(c-1)

Where Df = Degree of freedom

r = number of rows

c = number of columns

Decision Rule

The decision rule here depends on the value obtained from the chi-square calculation. If the
value of the chi-square calculated is greater than the value of the table, the null hypothesis
(Ho) will be rejected while the alternative hypothesis (H 1) will be accepted and vice-versa.
However the degree of freedom is calculated using the formula (r-1)(c-1).

49
3.7 Limitation of the Study
In the course of the study, the researcher was faced with several constraints; one of the
constraints was the short time period within which the research was to be completed. Other
constraints are inadequate funds, insufficient materials and data.

The researcher also encouraged human factor constraint as some of the company officials
were not forthcoming and also ready to assist the researcher with necessary information’s
about the organization.

Access to classified information such as the data needed may not be easily retrieved but
efforts will be made to get the important information needed.

50
 CHAPTER FOUR

DATA ANALYSIS, FINDINGS AND DISCUSSION

4.0 Introduction
This chapter presents, interprets and analyze the data collected in the process of this research
and investigation conducted. The chapter is based on the research questions contained in
chapter one. This contribution and response of the questionnaire are shown in this chapter.

It also concentrates on the presentation of the response to the questionnaire. The data are also
collected and edited to be presented, analyzed and subjected to the chi-square statistical
techniques for findings.

4.1 Data Presentation

The data is based on the respondent’s response and examination of leadership styles and
employees commitments to organizational opinion of the goals with staff of UAC of Nigeria
Plc in Lagos. The opinions are rescued on simple percentage tabulation for proper
understanding and accompanied with interpretation and narration there in. A total of One
hundred (100) questionnaires were distributed to the staff of UAC of Nigeria Plc Lagos and
all were filled and returned successfully.

TABLE 4.1.1 Respondents by Gender

GENDER FREQUENCY PERCENTAGE %

MALE 63 63
FEMALE 37 37
TOTAL 100 100
Source: Field Survey, 2022

Table 4.1.1 shows that majority 63% of the respondents was male and 37% of the
respondents were female which implies male are more than female.

51
 TABLE 4.1.2 Represents Designation

DEPARTMENT FREQUENCY PERCENTAGE

%
ADMINISTRATION DEPARTMENT 30 30

FINANCE DEPARTMENT 32 32

RECRUITMENT, PROMOTION AND 38 38

DISCIPLINE
TOTAL 100 100

Source: Field Survey, 2022

Table 4.1.2 shows that 68% of the respondents are in Administration, Recruitment,
Promotion and department of UAC of Nigeria Plc which implies more of the activity in the
organization is centered on the Administration, Recruitment, Promotion and Discipline
reduce to the population.

TABLE 4.1.3 Questionnaire Administered to target population at UAC of Nigeria Plc,

Lagos.

CATEGORY FREQUENCY PERCENTAGE %

SENIOR STAFF 30 30
JUNIOR STAFF 70 70
TOTAL 100 100
Source: Field Survey, 2022

Table 4.1.3 above shows the categories/total population of the employees’ sample. The top
management staff indicates 30 representing 30% of the sampled population: Junior staff
indicated 70 representing 70% respectively.

52
 TABLE 4.1.4 Educational qualifications of Respondents

OPTIONS FREQUENCY PERCENTAGE %

NO FORMAL EDUCATION 2 2
PRY SIX 3 3
SSCE 10 10
ND/NCE 12 12
BACHELORS 70 70
DEGREE/EQUIVALENT
POST GRADUATE/MSc 3 3
TOTAL 100 100
Source: Field Survey, 2022

According to educational attainment 70 out of 100 representing 70% of the employee

respondents completed a Bachelor degree or its equivalent. 3 out of 100 representing 3%
completed a full-fledged master degree or it’s equivalent. 10% completed secondary level.
The highest percentage when it comes to educational qualification belongs to that of
employees with Bachelor’s degree on its equivalent. Only employees earned post graduate
degrees and their equivalent. Again, from the same study of Gurbuz and Dikmenli (2007), it
is possible that employees with high qualifications (Bachelor degree and higher) might
extend more cooperation, willingness, communicational honesty to answer the survey
especially if it aims for their career development.

TABLE 4.1.5 Respondents year of work experience

YEAR OF FREQUENCY PERCENTAGE %

EXPERIENCE
0-5 YEARS 8 8
6-10 YEARS 60 60
ABOVE 10 YEARS 32 32
TOTAL 100 100
Source: Field Survey, 2022

53
 Table 4.2.4 shows that least of the respondents have work experience of 0-5years in UAC of
Nigeria Plc are 8% while 6-10 years at 60% are the majority while those with 10years and
above at 10%.

Table 4.1.6: Research question 1: UAC OF NIGERIA PLC is faced with different
Leadership issues.

VARIABLES NO OF PERCENTAGES %
RESPONDENTS
Yes 90 90
No 10 10
Not sure 0 0
Total 100 100

Source: Field Survey, 2022

Majority of the respondents 90 representing 9% indicated Yes and 10 respondents

\representing 10% indicated No this means that UAC OF NIGERIA PLC is faced with
different Leadership issues as an organization.

Table 4.1.7: Research question 2: UAC OF NIGERIA PLC has a specific leadership
style to influence on employees’ commitment seen there.

VARIABLES FREQUENCY PERCENTAGES%

Yes 80 80
no 16 16
Not sure 4 4
Total 100 100
Source: Field Survey, 2022

The above table summarized the response to the question. 80% of the respondents answered
Yes, while 16% disagreed and only 4% answered ‘Not Sure’. This research finding shows
that 80 respondents representing 80% formed the majority agreed that UAC OF NIGERIA

54
 PLC have a specific leadership style which is an effective toll to measure employees’
commitment and performance.

Table 4.1.8: Research question 3: Leadership style has influence on employees’

commitment in UAC of Nigeria Plc

VARIABLES NO OF PERCENTAGES%
RESPONDENTS
Yes 40 40
No 50 50
Not sure 10 10
Total 100 100
Source: Field Survey, 2022

The table shows that 40% of the respondents agreed that leadership style has influence on
employees’ commitment in UAC of Nigeria Plc, while 50% disagreed and 10% ‘Not Sure’.
This implies that when the leadership styles in an organization is change then the employee
commitment level can also be changed in UAC of Nigeria Plc.

Table 4.1.9: Research question 5: everything in an organization start and end with
leadership including employee commitment in UAC of Nigeria Plc

RESPONSES FREQUENCY PERCENTAGES%

Yes 41 41
No 53 53
Not sure 6 6
Total 100 100
Source: Field Survey, 2022

The question on everything in an organization starts and ends with leadership including
employee commitment in UAC of Nigeria Plc shows that 41% responded ‘Yes’, 53%
responded ‘No’ while 6% responded ‘Not Sure’. This implies that improvement in leadership
including employee commitment does not improve staff performance of UAC of Nigeria Plc.

55
 Table 4.1.10: Research Question 6: Leadership style has a link with the achievement of
goals in an organization in UAC of Nigeria Plc.

RESPONSES FREQUENCY PERCENTAGES%

Yes 65 65
No 30 30
Not sure 5 5
Total 100 100
Source: Field Survey, 2022

The respondents view on leadership style has no link with the achievement of goals in 4:10
above revealed that 65% respondents representing 65% indicated “Yes”, 30% respondents
representing 30% indicated “No” 65% majority views revealed that leadership style has a
link with the achievement of goals in UAC of Nigeria Plc.

Table 4.1.11: research question 7: leadership style has no relationship with the
achievement of goals in an organization in UAC of Nigeria Plc.

Responses Frequency Percentages%

Yes 45 45
No 52 52
Not sure 3 3
Total 100 100
Source: Field Survey, 2022

The respondents views on leadership with the achievement of goals in an organization in

UAC of Nigeria Plc as shown in table 4.4.11: above revealed that 45 respondents
representing 45% indicated “No” and 3% respondent representing 3% indicated not sure, the
52% majority views revealed that leadership, style has an impact on the relationship with the
achievement of goals in an organization in UAC of Nigeria Plc.

56
 Table4.1.12: Research question 8: leadership style has a relationship with the
achievement of goals in an organization in UAC of Nigeria Plc.

RESPONSES FREQUENCY PERCENTAGE%

Yes 90 90
No 5 5
Not sure 5 5
Total 100 100
Source: Field Survey, 2022

The respondents views on leadership style has a relationship with the achievement of their
goals in an organization in UAC of Nigeria Plc as shown in table 4.1.12: above revealed that
5 respondent representing 3% indicated “No”, 90 representing (90%) majority views revealed
that leadership style has a relationship, with the achievement of goals in an organization in
UAC of Nigeria Plc.

Table 4.1.13: research question 9: If an organization is having problem with the

achievement of their goals, the leadership should be changed in UAC of Nigeria Plc.

RESPONSES FREQUENCY PERCENTAGES%

Yes 80 80
No 18 18
Not sure 2 2
Total 100 100
Source: Field Survey, 2022

The respondents views on “if an organization is having problem with the achievement of
their goals, the leadership should be changed in UAC of Nigeria Plc” as shown in table
4.1.13: above revealed that 80 respondent representing 80% indicated “Yes”, 18 representing

57
 (18%) majority views revealed that the leadership should be changed in UAC of Nigeria Plc,
if the organization is having problems with achievement of their goals.

Table 4.1.14: Research question 10: Organization is should be encouraged to take

serious the issue of training for their leadership since it may determine the achievement
of goals in UAC of Nigeria Plc.

RESPONSES FREQUENCY PERCENTAGES%

Yes 95 95
No 5 5
Not sure 0 0
Total 100 100
Source: Field Survey, 2022

The respondents views in organization question 10: organization should be encouraged to

take seriously the issue of training and achievement and retraining for their leadership, since
it may determine the achievement of goals in UAC of Nigeria Plc on views as shown in table
4.1.14 above revealed that 95 respondents representing 95% indicated ‘Yes’ and 5
respondents presenting 5% indicated ‘No’. This shows that training and retraining for their
leadership may determine the achievement of goals in UAC of Nigeria Plc.

4.2 Findings of the Study

Based on the above presentation the researcher has been found out that:
(i) Leadership style in UAC of Nigeria Plc has a way of affecting the level of employees’
commitment in the organization.
(ii) Leadership style in UAC of Nigeria Plc has no influence on employees’ commitment
based on the data presented above.
(iii) Leadership style has influence on employee commitment in UAC of Nigeria Plc
(iv) If the leadership in UAC of Nigeria Plc is changed then the employee commitment
level can also be changed to enhance better productivity.
(v) Everything in UAC of Nigeria Plc starts and ends with leadership most especially
employees.

58
(vi) Leadership style in UAC of Nigeria Plc has a link with the achievement of goals of
the organization.
(vii) Leadership style has relationship with the achievement of goals in UAC of Nigeria
Plc.
(viii) UAC of Nigeria Plc is having problems with the achievement of its goals,
and requires that leadership be changed.
(ix) UAC of Nigeria Plc should be encouraged to take seriously the issue of
training and retraining for their leadership, since it determines achievement of organizational
goals.

4.3 Discussion of findings

Based the above findings, leadership style has influence on employees’ commitment in UAC
of Nigeria Plc, Lagos and has relationship with the achievement of organizational set goals.
In this case the researcher observed that almost all the staff of UAC OF NIGERIA PLC
supports the fact that without good leadership style employed in UAC OF NIGERIA PLC no
employee commitment will be recorded or achieved. This makes the type of leadership style
practised by an organization a major player to it achieving its set objectives because without
employee’s commitment no organizational goal will be achieved as illustrated by Bass
(1994).

Leadership style in UAC of Nigeria Plc has a way of affecting the level of employees’
commitment likewise enhancing better organizational productivity.

It was also discovered that everything in UAC of Nigeria Plc starts and ends with leadership,
most especially employees and has a link with the achievement of goals of the organization.
Leadership style has relation with the achievement of goals in UAC of Nigeria Plc because
the group is having problems with the achievement of their goals, and requires that the
leadership be changed.
Lastly, it is necessary that UAC of Nigeria Plc be encouraged to take seriously
the issue of training and retraining of their staff on key leadership methods, since it
determines achievement of organizational goals based on staff dedication and achievement.

59
4.4 Test of Hypotheses
The questionnaires distributed and retrieved will be analyzed in this section. This will be
tested using the chi-square method and analysis noted in the preceding chapter. Findings
from the chi-square table vis-à-vis the calculated value will form the basis for deciding on
whether to reject or accept the hypothesis.

Chi-square formula is given as

X2 = (O-E)
Te

Where X2= Chi-square

O = Observed frequency

E= expected frequency

Alpha Level
This is the level of significance to which the researcher wishes to subject the analysis to. A
choice of 95% which indicates that the research is 95% accurate with only 5% possibility
error is made.

Decision Rule

If X2 calculated is less than the X2 tabulated [X2t] is greater than the X2 calculated on the
other hand, reject the null hypothesis(Ho) if the X2t is less than X2 calculated.

i.e. if X2c >X2t reject H0 and accept H1

if X1t>X2c accept H0 and accept H1

60
4.4.1.1: Test of Hypothesis One for Senior Staff UAC of Nigeria Plc

The 4.4.1: Showing Heads of Department of UAC of Nigeria Plc, Lagos responses to the
selected question in hypothesis one.

SELECTED YES NO NOT TOTAL

QUESTION SURE
QUESTION 1 22 3 3 28
QUESTION 2 28 2 3 31
QUESTION 3 14 0 0 14
QUESTION 4 16 3 4 23
TOTAL 80 8 12 100
Source: Field Survey, 2022

NOTE: The above data represent the observed frequency to companies the expected
frequency.

Expected frequency (E) = Row total * column total

Grand Total

Positive Responses (Yes) = 80 * 28 = 22.4

100

Negative responses (No) = 8 * 33 =3

100

Not Sure responses (E) = 12 * 14 =2

100

61
 Table 4.4.2: Test of hypothesis one for senior staff of UAC of Nigeria Plc.

O E O-E (O-E)2 (O-E2)/E

22 22 O O O
3 3 0 0 0
3 2 1 1 0.5
28 22 6 36 1.64
2 3 -1 1 0.33
3 2 1 1 0.5
14 22 -8 64 2.9
0 3 -3 9 3
0 2 -2 4 2
16 22 -8 64 2.9
3 3 0 0 0
4 2 2 4 2
∑X2 15.44
Source: Field Survey, 2022

Dt = (r-1) (c-1)

= (3-1) (4-1)

= (2) (3) = 6

At 5% level of significance with 6ct, the critical value of the chi-square(X2) from the chi-
square distribution table 15.2.592.

DECISION:

Since the chi-square calculated are 15.44 which exceed the critical value of 12.592, then the
null hypothesis (Ho), which says Leadership styles has no influence on employees’
commitment, is rejected. Then rejecting the null hypothesis (Ho) and accepting the
alternative hypothesis (Hi) which says that leadership styles have influence on employees’
commitment.

62
 Table 4.4.3 Test of hypothesis one for junior staff of UAC of Nigeria Plc.

SELECTED QUESTION YES NO NOT SURE TOTAL

QUESTION 1 100 0 0 100
QUESTION 2 94 3 3 100
QUESTION 3 93 2 5 100
QUESTION 4 95 1 4 100
TOTAL 382 6 12 400
Source: Field Survey, 2022

Positive responses (Yes) = 382 * 100 = 96

400

Negative response (No) = 12 * 100 =2

400
Not Sure responses (E) = 12 * 100 =3
400

Table 4.4.6 Test Of Hypothesis One Of Junior Staff Of UAC of Nigeria Plc.

O E O-E (O-E)2 (O-E2)

E
100 96 4 16 0.17
0 2 -2 4 2
0 3 -3 9 3
94 96 -2 4 0.04
3 2 1 1 0.5
3 3 0 0 0
93 96 -3 9 0.09
2 2 0 0 0
5 3 2 4 1.33
95 96 -1 1 0.01
1 2 -1 1 0.5

63
 4 3 1 1 0.33
∑X2 7.97
Source: Field Survey, 2022

Dt = (r-1) (c-1)

= (3-1) (4-1)

= (2) (3)

=6

At 5% level of significance with 6ct, the critical value of the chi-square (X2) from the chi-
square distribution table is 12.592

DECISION

Since the chi-square calculated are 7.97 which is less than the critical value of 12.592, then
the null hypothesis (Ho) which says leadership styles has no influence on employees’
commitment in an organization is accepted. Then accepting the null hypothesis (Ho), the
alternative hypothesis (Hi) which says leadership styles has influence on employees’
commitment in an organization is rejected.

Table 4.4.7: Test of Hypothesis Two for Senior Staff of UAC of Nigeria Plc

SELECTED YES NO NOT TOTAL

QUESTION SURE
QESTION 6 1 23 1 25
QESTION 7 20 4 1 25
QESTION 8 18 2 3 25
QESTION 9 21 0 4 25
TOTAL 60 29 9 100
Source: Field Survey, 2022

Expected frequency (E) = Row total * column total

Grand total

64
 Position responses (Yes) = 60 * 25 = 15
100

Negative responses (No) = 29 * 25 = 7.25

100

Not sure responses (E) = 9 * 25 = 2.25

100

Table 4.4.7 Test of Hypothesis Two for Senior Staff UAC of Nigeria Plc

O E O-E (O-E)2 (O-E2)

E
1 15 -14 196 13.07
23 7.25 15.75 248.06 34.22
1 2.25 -1.25 1.5625 0.69
20 15 5 25 1.67
4 7.25 -3.25 10.5625 1.46
18 15 3 9 0.6
2 7.25 -5.25 27.5625 3.80
3 2.25 0.75 0.5625 -7.25
21 15 6 36 7.4
0 7.25 -7.25 -52.5625 -7.25
4 2.25 1.75 -3.0625 1.36
∑X2 52.96
Source: Field Survey, 2022

Dt = (r-1) (c-1)

= (3-1) (4-1)

= (2) (3)

=6

65
 At 5% level of significance with 6dt, the critical value of the chi-square (X2) from the chi-
square distribution table is 12.592.

DECISION
Since the chi-square calculated is 52.96 which exceed the critical value of 12.592, then
leadership styles has no relationship with the achievement of organizational goals is rejected.
Therefore, the alternative hypothesis (Hi) is accepted that leadership styles has relationship
with the achievement of organizational goals.

TABLE 4.4.8 Test of Hypothesis Two Junior Staff UAC of Nigeria Plc

SELECTED YES NO NOT TOTAL

QESTION SURE
QUESTION 6 2 98 2 100
QUESTION 7 3 92 4 100
QUESTION 8 93 2 5 100
QUESTION 9 98 4 4 100
TOTAL 196 196 15 400
Source: Field Survey, 2022

Expected frequency (E) = Row total x Column total

Grand Total

Positive responses (Yes) = 196 *100 = 49

400

Negative responses (No) = 196 * 100 = 49

400

Not Sure (No) = 196 * 100 = 49

400

66
 Table 4.4.9 Test of Hypothesis Two for Junior Staff UAC of Nigeria Plc

O E O-E (O-E)2 (O-E2)

E
2 49 -47 2209 -45.08
98 49 49 2401 49
2 49 -2 4 -1
3 49 46 2116 -43.18
92 49 43 1849 37.73
4 49 0 0 0
93 49 44 1936 39.51
2 49 -47 2209 -45.08
5 49 1 1 0.25
98 49 49 2401 49
4 49 -45 2025 -41.33
4 4 0 0 0
∑X2 15.41
Source: Field Survey, 2022

Dt = (r-1) (c-1)

= (3-1) (4-1)

= (2) (3)

=6

At 5% level of significance with 6dt, the critical value of the chi-square (X2) from the chi-
square distribution table is 15.41.

Decision

Since the chi-square calculated is 15.41 which exceeds the critical value of 12.592, then the
null hypothesis (Ho): Leadership styles has no relationship with the achievement of

67
organizational goals is rejected. Therefore, the alternative hypothesis (Hi) is accepted which
says leadership styles has relationship with achievement of organizational goals.

68
 CHAPTER FIVE

CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction
The summary of findings and recommendations of the study topic; “An examination of
leadership styles and employees commitment to organizational goals UAC of Nigeria Plc” is
presented hereafter which a conclusion will be drawn.

The discussion in this chapter focuses on answering the research question which is presented
in chapter one.

5.1 Summary of Findings

Based on the study, it shows that UAC of Nigeria Plc engages in an examination of
leadership styles and employees’ commitment and it has a great effect on the performance of
the organization in achieving the set goals and objectives of the company.

Based on the test of hypothesis one on the senior staff, alternative hypothesis is accepted that
leadership style and commitments have an impact on UAC of Nigeria Plc. Test of hypothesis
one of junior staff also shows that the alternative hypothesis is accepted that leadership styles
and employees commitment have an impact on UAC of Nigeria Plc.

Test of hypothesis two for senior staff revealed that alternative hypothesis is accepted while
that on examination of leadership styles and employees commitment has impact on the
quality of service of UAC OF NIGERIA PLC staff is rejected.

Therefore, the alternative hypothesis Hi is accepted that an examination of leadership styles

and employees commitment has impact on the quality of service of UAC of Nigeria Plc.

The test of hypothesis two junior staff also revealed that alternative hypothesis is accepted
leadership styles and employees commitment of staff of UAC of Nigeria Plc. Therefore, the
leadership styles and employees commitment should be encouraged even more evaluated
timely and implemented at all levels of operations in the company to achieve positive staff
response towards their targeted goals. As to the administrative purpose of the leadership
styles and organizational commitments, it found out that UAC OF NIGERIA PLC staff have

69
 shown agreement with the purpose of the leadership styles which can guide in the promotion
of an employee, as the current appraisal system of the management of the company makes it
necessary for the promotion of an employee the attainment of a very satisfactory rating, thus,
the high awareness of the employee on this item.

As a guide towards achieving the objectives of this study, research reviewed various relevant
literatures in the field of leadership style and employees commitments. For easy
understanding, the researcher adopted a random sampling method which gave a general
representation of the population as pointed out in chapter three.

The data collected through primary source were clearly presented and analyzed in chapter
four.

The following were revealed in the analysis of the data:

i) The staff of leadership and style and employees commitments to organizational goals on
UAC of Nigeria Plc in Lagos state. Gave their responses when the questionnaires were
administered.
ii) That the leadership style and employees commitment has a significant role in the promotion
of employees according to the responses by the staff.
iii) That the examination of leadership styles and employees’ commitment has immense effect
in recognizing employees’ performance in an organization. Also the high degree of
perception regarding the role of leadership styles by the literature stating that, performance
appraisal practice in the public sector remains very important around the globe because it
created the impression that governments are concerned about the performance of the their
employees and they are keen to detect poor performance and reward excellence.
iv) That the leadership styles and employees commitment have helped to positively control and
check the effectiveness of staff in the UAC of Nigeria Plc.
v) That the leadership styles and employees commitment can identify areas of employees’
strengths and/or weaknesses.

70
 5.2 Conclusion
From the findings, it is concluded that there is a significant relationship between the impact
of Leadership styles, employees’ commitment and organizational performance of UAC OF
NIGERIA PLC staff.

The following conclusions were made from the investigation carried out to evaluate the
leadership styles, employee commitment and organizational performance of UAC of Nigeria
Plc. On the overall, the study finds the employees are in agreement with all the items
regarding the administrative purpose and developmental purpose of their company,

Findings also show that, it can aid in the decision regarding the transfer of employee, as the
leadership styles and commitments is a basis for the employees career development including
transfers. Additionally, they can help in the decision whether to terminate the employees due
to poor performance, as the leadership and employee commitment of UAC OF NIGERIA
PLC group companies makes its ground for dropping from the rolls and termination of an
employee who obtains an unsatisfactory or poor rating.

The current study has given a valuable insight as to the employees perception about the
purpose of their examination of leadership; overall, the study has shown that the employees
are in agreement with all the items regarding the administrative purpose and developmental
purpose of their job performance, efficiency, effectiveness and productivity.

As a result, this research shows that for UAC of Nigeria Plc to achieve its goals and
objectives no single leadership style should be used but rather a combination or
diversification of leadership styles and employees commitment should be put in place.

5.3 Recommendations
Based on the findings of this research the following recommendations for the improvement
of the current leadership styles employees commitments system of staff of UAC of Nigeria
Plc are deemed appropriate by the researcher:

i. Review feedback mechanism of the current leadership styles especially on effective ways of
asking and receiving feedbacks on performance of employees in the UAC of Nigeria Plc.

71
ii. Training for the heads of offices or supervisors for higher level performance management
techniques that would equip them on improved employee’s performance.
iii. There should be continuous training for employees on achieving higher performance outputs.
iv. Eliminate the common rating errors such as the leniency errors and tendency.
v. Errors committed by the heads of offices or supervisors should be clearly stated to be
deliberated by the management.
vi. There should be modification of some guidelines on job, leadership styles, employees’
commitment, identification of criterion on duties and responsibilities or the job identification
of employees.

5.4 Suggestion for Further Research

There is need for experimental study to determine more causes of late implementation of
internal control as it affects organizational efficiency. The sample size for the research study
could be extended beyond the study to cover a wider scope. This is due to the fact that, the
selected organization used to cover a wider this research limits to some extent the
generalization of the findings.

Therefore, the researcher hereby suggests the following topics for possible further research:

a. The effects of an examination of leadership styles and employee commitments to

organizational efficiency.
b. The review of a computerized leadership performance within the organizational structure.
c. The impact of leadership styles on the organizational productivity.

72
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 APPENDIX A

Faculty of Management Sciences,

National Open University of Nigeria

Lagos Study Centre, Lagos

Dear Respondent,

LETTER OF INTRODUCTION

I am a student of the above institution carrying out a research work “AN ASSESSMENT OF THE

EFFECT OF LEADERSHIP STYLES ON EMPLOYEES COMMITMENTS TO

ORGANIZATIONAL SUCCESS IN UAC NIGERIA PLC, LAGOS, NIGERIA”.

I would be grateful for your considered responses and I undertake that all information provided will

be treated as confidential with utmost secrecy.

Thanks for your cooperation.

AGBO ESTHER ENE

(RESEACHER)

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 APPENDIX B

QUESTIONNAIRE

SECTION A: BIOGRAPHICAL INFORMATION

Fill or tick where necessary only one answer is needed except when you are asked to make
comments or otherwise.
1. What is your Gender?

Male ( ) Female ( )

2. What is your Marital Status?

Single ( ) Married ( )

3. What is your Experience in organization?

Below 5 years ( ) 6-10 years ( ) Above 10 years ( )

4. What is your Rank/Position?

Civil Servant ( ) Private/Business( )

83
 SECTION B: MEMBERS OF STAFF OF UAC OF NIGERIA PLC, LAGOS
Fill or tick where necessary, only one answer is needed except when you are asked to make
comments or otherwise

1. Leadership style in an organization has a way of affecting the level of employees’ commitment
seen there?
Yes( ) No( ) Not Sure( )

2. Leadership style in an organization has no influence on employees’ commitment seen there?

Yes( ) No( ) Not Sure( )

3. Leadership has influence on employee commitment an organization?

Yes( ) No( ) Not Sure( )

4 If the leadership in an organization is changed then the employee commitment level can also be
changed?
Yes( ) No( ) Not Sure( )

5. Everything in an organization starts and ends with leadership including employee?

Yes( ) No( ) Not Sure( )

6. Leadership style has a link with the achievement of goals in an organization?

7. Leadership style has no relation with the achievement of goals in an organization?

Yes( ) No( ) Not Sure( )

8.Leadership style has a relation with the achievement of goals in an organization?

Yes( ) No( ) Not Sure( )

9. If an organization is having problem with the achievement of their goals, the leadership should be
changed?

84
Yes( ) No( ) Not Sure( )

10. Organizations should be encouraged to take seriously the issue of training and retraining for their
leadership, since it may determine achievement of goals?
Yes( ) No( ) Not Sure( )

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 PROJECT PROPOSAL

PROJECT PROPOSAL ON AN ASSESSMENT OF THE EFFECT OF LEADERSHIP

STYLES ON EMPLOYEES COMMITMENTS TO ORGANIZATIONAL SUCCESS IN UAC
NIGERIA PLC, LAGOS, NIGERIA
Leadership is a topic with a broad appeal as most of the people are consciously or
unconsciously involved in the process of being influenced or influencing others in the role of
leadership. People are always interested in knowing the components that contribute to
making an ordinary person a great leader. To investigate the several problems faced during
examining leadership styles. The objectives of these studies were as follows: to find out the
type of leadership style organizations prefer; to find out who are the beneficiaries of
leadership styles and to examine the effects of leadership styles in an organization. The
source of data will be from questionnaires administered to some selected staff of UAC of
Nigeria Plc, Lagos state. The study population is one hundred (100) staff of UAC of Nigeria
Plc, Lagos state of wish both senior and junior cadres were selected at random. A sample size
is the act of choosing or observation on replicates to include in a statistical sample. The
sample size is an important feature of any empirical study in which the goal is to make
inferences about a population from a sample size. A portion carefully selected from the
population to represent the population adequately is known as the sample. The essence of
sampling is to reduce a large survey to a manageable size. The selection must be done in a
deliberate fashion so that the portion can be taken to represent the group of all possible
participants. The sample size is one hundred staff of UAC of Nigeria Plc, Lagos state. The
prominence in the use of sampling is that is cheaper, quicker and often the only feasible
method of defending reliable information about the population. Convenient sampling
selection method was used on selected respondent numbers. In all, one hundred (100) staff
were administered with the questionnaires of which 96 were filled and returned but the other
4 were misplaced by respondents. A well-structured research instrument was developed and
tested. A questionnaire for the research work was administered to one hundred staff of the
UAC of Nigeria Plc, Lagos. This questionnaire was developed after a discussion with my
supervisor; items were edited and selected bearing in mind the research questions in chapter
one. Validity of instrument refers to how valid the research work is, and the questionnaire
that were used to gather the data for the research work are without duplication. The validity

86
of the instrument used will involve pilot testing where content validity will be used to
ascertain the appropriateness of the content of the instrument involving taking representative
questions from each of the sections of the unit and evaluating them against the desired
outcomes. This refers to how valid the research work is. This research work is valid and
questionnaires that were used to gather data for the research work are without duplication.

87