THE EFFECT OF LEADERSHIP ON POLICY FORMULATION AND IMPLEMENTATION IN THE MANUFACTURING FIRMS IN ENUGU STATE

M.Sc Work on Leadership and Management
CHAPTER ONE
INTRODUCTION

1.1       BACKGROUND OF THE STUDY
The success of any organization very much depends on the quality of its leadership. It is leadership that recruits the requisite personnel, trains them on the job, sets standards on what are required, assigns workers to jobs, monitors and disciplines staff, and relates with the society and government. Leadership works with people to achieve the goals of the enterprise. According to Tebe (2008:15), policy formulation has to be endorsed by leadership for others in the organization to react to it. Leadership actions are devoted to helping a group to attain its objectives. Leadership is the ability of management to induce subordinates to work towards group goals with confidence and keenness. 

Leadership also implies that the leader accept responsibility for the achievement of the group objective and it is therefore essential for trust and  co-operation from both sides  to be in evidence all the time. Bass and Bernard (2000:142) note that leadership is not synonymous with administrative ability and that numerous attempts have been made to analyse the nature of leadership. One is to contrast authoritarian and democratic leadership styles (Tebe, 2008:93).

  
There are different types of leadership styles of which the authoritarian and democratic are the prominent ones. The authoritarian leader gets others to do things by giving them little scope to influence decisions. They use fear, threats, authority and personality to get their way. The democratic leader seeks to persuade and considers the feelings of persons and encourages their participation in decision making. Tebe (2008:93) notes that the democratic method gives followers greater job satisfaction and enables them to co-operate better, but there is doubt as to whether decisions taken under this sort of leadership are better.   Nwakpuda (2003:42) argues that production may suffer and moralities also because outside influences like government, exert pressure and, if a leader becomes too employee-centered, consumers as well as production may suffer and morality may fall (Bass & Pearl, 2000:131)

According to Chigbu (2009:64), leadership can be formal, that is having delegated authority, and can exert great influence. Informal leaders can initiate action, but do not have the same authority. The choice of leadership styles, therefore, should be based on an accurate diagnosis of the environment, noting that effective leadership depends on many conditions.
The elements of persuasion, compulsion and example may be considered to be essential to effect good leadership. It has also been said that a leader should make his job to be known to all and that it is more important to be recognized than to be popular. Montgomery (2000:40) describes a leader as one who can be looked up to, whose personal judgment is trusted, and who can inspire and win the hearts of those he leads, gaining their trust confidence and explaining what is needed in language which can be understood.

Chester and Barnard (2007.114) note that in any function, a leader should have the following attributes- skill, technology, perception, knowledge, physique, memory, imagination, determination, endurance and courage. It must be carefully, noted that the leadership qualities that are needed in a particular situation are not usually found in any one individual. From this it can be seen that, if a particular vacancy has to be filled, the strengths and weaknesses of the person who is being appointed should be considered, along with   those of the people he will be working with (Pencil, 2004: 36). Policy formulation and implementation is the brain behind of any business. It is necessary to observe that every action of management is guided by policy. The extent to which policy is implemented as well as quality of the policy varied from one organization to another. According to McPeterside (2008:10), policy formulation and implementation takes queue from the view of transformational leadership. He observes further that the entire organization is scheduled for change when the leader is envisioned enough to enact policies that will bring change. As observes Taylor (2009:128), every policy well implemented places organizations on a better kneel. This is informed by taking cognizance of all the resources available to leadership at the time of making the policy.

A successful leader can be considered to be perceptible and flexible and able to act appropriately. In one situation he is strong, in another he is permissive. It is worth noting also that the formal status of an individual does not indicate the ability he has to influence others. As such, ability is rather a combination of his position and his personality (Ufomba, 2007:91). This work looks at the effect of leadership on quality policy formulation in manufacturing firms with particular reference to Innoson Plastics Limited, Emenite Limited and Hadis & Dromedas.

1.2       STATEMENT OF THE PROBLEM
Policy formulation and implementation are leadership driven (Imaga, 2000:246)Unfortunately, some managers in leadership positions in organizations do not quite appreciate their roles in this respect. This makes the quality of products vary and the company market shares in the industry dwindle significantly. Unarguably, this does not augur well with the profitability and subsequent growth of firms. Some studies has argued that poor policies on leadership orientation concerning quality control measures, customer satisfaction, as well as employees welfare constitute the resultant effect of dwindled growth of many firms (Chukwu and Agunta, 2009:76, Mamah and Fabian, 2009:23). While this has been a major research issue in the developed nations such as the United State of America, Great Britain, China and Japan, empirical evidence concerning the developing countries such as Nigeria is still inadequate.

Research efforts to uncover the causes of failure in leadership roles on quality policy formulation and implementation has revealed training inadequacy. Another is poor orientation on the best leadership style that can improve organizational performance through effective employees offering (Ezeh and Onodugo, 2002). They have been controversies concerning the best style of leadership to be incorporated in the company policy guideline. This issue is yet unsettled even in the theories as several arguments still exist. Some argue that democratic style is best in a competitive business environment while autocratic style will hold better in the military setting (Muna, 2008). Others do not find such argument to be statistically significant (Murray, 2011).

Another issue yet unsettled is the role of leadership in formulating policies affecting the organizational environment. The environment of business is crucial to its existence and very critical to growth sustainance. Unfortunately, many firms do not realize this fact until they face problems. Business envirnment include the customers, competitors, government, amongst others. Studies have proved that low customer satisfaction could result in withdrawal of patronage (Oshumbiyi, 1989, Ezeh, 1999, etc). This invariably will give rise to loss of market share and in the long-run, failure of the firm. Records of firms that have failed due to this fact abound both in Nigeria and even in the advanced nations.

Research concerning leadership and quality policy formulation in private manufacturing firms is very new in Nigeria and as such, empirical studies this area is seriously lacking. Consequently, there exist several research gaps including the difference between autocratic and democratic leadership style and their impact on quality policy formulation in the manufacturing firms, the rate at which leadership training and development impact on quality policy formulation in the manufacturing firms; environmental factors influence on leadership and quality policy formulation and implementation; and, implication of unhealthy policies on the productivity and profitability of manufacturing firms in Nigeria. Generally, it is observed that many Nigerian organizations are over- managed and under- led. This research therefore exposits an empirical framework for prototype manufacturing firms in Nigeria which can capture the aforementioned lacuna.

1.3          OBJECTIVES OF THE STUDY
The primary objective of this research is to examine the effect of leadership on policy formulation and implementation in the manufacturing firms in Enugu state. Other specific objectives include:

        i.            To identify area where democratic and authocratic leadership styles are mostly practiced.
     ii.            To examine, if any, the impact of leadership styles on policy formulation concerning quality.            

   iii.            To determine the extent to which leadership ensures that policies made are effectively implemented and directed towards attainment of organizational goals

   iv.            To evaluate the rate at which leadership training and development impact on quality policy formulation in the manufacturing firms in Enugu state

      v.            To examine how environmental factors could influence leadership towards quality policy formulation and implementation in these manufacturing firms

   vi.            To explore the implication of unhealthy policies on the productivity and profitability of these manufacturing firms.


1.4          RESEARCH QUESTIONS
Based on the statement of research problem and the objectives of the study, this research sort answers to the following questions:
1.      What is the relationship between autocratic leadership and democratic leadership with respect to quality policy formulation in the manufacturing firms in Enugu state?
2.      To what extent do leadership in manufacturing firms ensures that policies made are effectively directed towards attainment of organizational goals?
3.      To what extent do leadership training and development impact on quality policy formulation and implementation in the manufacturing firms in Enugu state?
4.      How could environmental factors influence leadership towards quality policy formulation and implementation in these manufacturing firms?
5.      What is the possible implication of poor policies on the productivity and profitability of these manufacturing firms?

1.5          RESEARCH HYPOTHESES
Consistent with the statement of problem, the research objectives, and the research questions, the following null hypotheses were formulated for the study:
H01:     There is no significant relationship between autocratic leadership style and democratic leadership style with respect to quality policy formulation in the manufacturing firms.
H02:    Leadership does not significantly ensure that policies made are effectively directed towards attainment of organizational goals.
H03:     Leadership training and development have not shown any significant impact on quality policy formulation and implementation.
           H04:     Environmental factors do not significantly influence leadership        towards quality policy formulation and implementation in these            manufacturing firms.
H05:     Unhealthy policies do not significantly impact on         productivity and profitability of these manufacturing firms.


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1.6       SIGNIFICANCE OF THE STUDY 
This study will be of immense benefit to several groups of people both in the business organizations and in the academics. First, it will be of relevance to managers and leaders in the manufacturing organizations in Nigeria espacially, the firms that will be studied in Enugu state. The aim of every manufacturing firm is to achieve maximum level of product quality at the lowest possible cost and to achieve a larger market share.  The quality of policy which is a direct function of leadership thus become very vital to the attainment of such goal. Policy formulation directs all functionality and aspect of work done by managers.

In terms of knowledge acquisition, this study will contribute to training of managers of manufacturing firms on best practices both in policy formulation and in action. At the end customer satisfaction will be achieved and the performance and profitability of the organization will be realized.

Furthermore, the clients and end-users of the products of the manufacturing firms will benefits immensely from the outcome of this study. This is because, the findings of the study is expected to be very informative to managers and owners concerning the best leadership styles that can ensure customer satisfaction through quality and offering.

The outcome of this research is also expected to be of significance to industry watchers and analyst. This group of people will utilize the platform of this study in their analysis on leadership and policy formulation in Nigerian firms. Similarly, the general public, through the findings of this research, will be better informed on the existence and operations of the selected companies.

Academically, this study will contribute to the enrichment of literature in policy making and leadership. It will empirically establish the significant impact of leadership on quality policy which invariably will be vitally informative to analyst and policy makers. The study is expected to provide important information to guide future researchers.

1.7       SCOPE OF THE STUDY
 This study focused on the private manufacturing firms located in Enugu state. It contextually covered the subject matter of leadership and quality of policy formulation and implementation in these manufacturing firms. The geographic sites of the firms are all situated within the Enugu metropoliesThe time frame within which the study captured is the period 1999 till present. This is a thirteen (13) years study which starts from the beginning of the present democratic period and covers all subsequent policies that affect the manufacturing firms in Nigeria.

1.8       LIMITATIONS OF THE STUDY
This study was affected by some constraints. They include:
Attitude of the Respondents: To get relevant data from the respondents was not very easy. It involved several follow ups before quality responses was ascertained from the respondents. Even at that, some were still not easily convinced as to the academic nature of the research and the protection of their privacies. The nature of secrecy of information resulted in limited or uncensored data collection.

Time: I also encountered time management challenge. It was not too easy to share my time with the family activities, work and the research.

Financial: Finance was also a major impediment in attaining the efficient and optimal result of this study.

1.9       HistorICAL BACKGROUND OF THE ORGANIZATIONS UNDER Study

Emenite Nigeria Limited
Emenite Nigeria Limited is a private limited liability company and a major player in the organized private sector. It was established in 1961 under the relevance policy of the Government in collaboration with Eastern Nigeria Government. As regional governments devolved into states, so the ownership structure of Emenite was changing as more states were created in the Eastern Region. It produces Asbestos and Aluminum roofing sheets, nails and rubbers. It has market outlets in almost every town in the South East, South- South and North Central towns of Markurdi, Gboko, Otukpo, Lokoja, Ankpa and Taraba state. In each location, it has major distributors from which retailers buy. Since its incorporation in 1961, the company has gained a wealth of experience through meeting the requirements of the construction industry in promoting the development of Nigeria through the manufacture of high and marketing it's fibre cement roofing and ceiling products and the supply of high quality goods and services. The foundation stone of the company was laid on 3rd October 1961 by late Dr. Hon. M. I. Okpara, the Premier of the then Eastern Nigeria. With the assistance of its European partners, the Belgian Etex Group, the company is well able to meet the  requirements of the demanding market through a continuing programme of technical improvements, strict quality  controls and emphasis on customer satisfaction. The mission of the company is "to be the leader in the manufacture and sale of high quality building products with  zero waste management culture and to sustain the business in a profitable manner  with the knowledge that Emenite will stand by you while continually improving the  creativity motivation and safety of all our employees." Emenite Limited is renowned for her high level of safety awareness and implementation among its staff, management and stakeholders. The management continually pursues a safe, healthy, accident-free and pollution-free environment for the entire staff and the public. It is in continuation of these efforts, that a well articulated set of safety rules, health hazards precautions and prevention were put together in a General Information, Rules & Regulation on Health, Safety & Environment in Emenite Limited. In a large company like Emenite, successful and accident-free operations can only be achieved by working within a framework of carefully formulated rules and regulations. It may be of interest to know that Emenite Limited replaced asbestos with Poly Vinyl Alcohol (PVA) fibre in the year 2000 to make her products asbestos free. Every staff is given a safety induction on commencement of duties in Emenite Limited.

Innoson Group of Companies Limited
It is a one man company owned by Innocent Chukwuma. It is however, a lays company by local standards. Many expatriates are working there especially from china. It manufactures different categories of plastics. It is located at Emenite, Enugu. It has factory at Nnewi where many foreigners work. The products are found in every part of the federation through wide distribution and through numerous distributors (distribution channels).

Innoson Nigeria Limited is an indigenous blue chip company engaged extensively in the importation, assembly and marketing of automotive components, accessories and motorcycles. Incorporated in July, 1987, the company has grown to become one of the major importers, suppliers and assemblers of motorcycles and motorcycles spare parts to outermost part of West African sub-region and beyond.

Innoson Nigeria Limited started in 1986 as a trading outfit by buying Honda Motorcycle parts and over a period of time was recognized as the major dealer of Honda Motorcycle parts of the time. As time progressed, Innoson started importing the motorcycle parts and accessories into the country and having had the vast knowledge and experience in the motorcycle business sometime in 1994, the company entered into joint venture of assembling motorcycle in Nigeria with a Chinese Motorcycle Manufacturer. The assembly was in manual form and this usually forced the price of assembled motorcycle up and at the end, the company was making little or no profit.

The company never relented in efforts in breaking through her dream in making sure that motorcycles are sold to the masses at affordable prices hence in 1995, Innoson installed a fully automated assembly plant which can produce up to 1,000 units of motorcycle per day and has helped reduce the prices of thier different brands of motorcycle. The company dream has actually been realized as her prices now ranges from N50,000 - N60,000 per unit as against N55,000 - N75,000 per unit as before. Also, Innoson are working extremely harder to ensure that the factory in Emene, Enugu State produce most of her components used in the assemblage of motorcycles.

Hardis and Dromedas
This is a company based at Emene Enugu, which started operation in 1993.  It produces household items such as soaps, disinfectants and antiseptics. Their products include Isol soap, Isol disinfectant and Isol germicides etc. It is 100% indigenous firm and the products are subscribed. It has distributors round the nation.

1.10    Definition of Terms
Influence: This is defined as a change in the behaviour of somebody or members of a group in anticipation of a reaction from others (Adenmosun, 2000).

Leadership: This is the ability to influence others. It is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own potential (Eboh, 2008).

Leadership Qualities: This has to do with the innate potential or ability to aspire others with your own abilities, and the confidence behind those abilities that highlight your attributes as a person (Antoinette, 2008).

Leadership Style: An approach of giving direction, motivating people and implementing plans. They could appear in differnt forms including democratic style, transactional style, visionary style, autocratic style, laizzer faire, etc (Muna, 2008, Murray, 2011, etc).

Motivation:  The driving force within individuals by which they attempt to achieve some goals in order to fulfil some need of expectations. It is an influencing factor geared toward better performance (Onanusi, 1998).

Policy Implementation: Implementation, according to Pressman and Wildavsky (1973: xiii-xv), "means just what Webster dictionary and Roget thesaurus say it does: to carry out, accomplish, fulfill, produce, complete." According to their seminal book, Policies become programs when, by authoritative action, the initial conditions are created... Implementation, then, is the ability to forge subsequent links in the causal chain so as to obtain the desired result."

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