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.
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 metropolies. The 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
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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