IMPACT OF LEADERSHIP STYLE ON THE PERFORMANCE OF SELECTED TRANSPORT COMPANIES IN BENUE STATE, NIGERIA

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Author

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Department of Business Administration and Management

ABSTRACT 
This study surveyed the impact of leadership style on the 
performance of selected transport companies in Benue State, 
Nigeria. Three transport companies were drawn in Benue State for 
the study, namely: Benue Links Nigeria Limited with its headquarters 
located at Wurukum, Makurdi, the Benue State capital. Denjim 
Transport Company has its own corporate headquarters at 97 Gboko 
Road Makurdi, Benue State while Iwiene Nigeria Limited has its head 
office located at 55 Onitsha Street, Wuru Makurdi, Benue State, 
Nigeria. Inherent to poor leadership style which had impeded on the 
performance of these companies had led to this study. The 
researcher adopted a survey design, with a population of 120 drawn 
from the selected companies. This was achieved through proportional 
stratified random sampling techniques. A five points rating scale 
questionnaire was used to collect primary data from the research 
population. The collected data were analyzed and interpreted using 
percentage and mean statistic while the hypothesis were tested with 
chi-square. The study discovered that leadership style affect 
organizational performance of any given company. That the style of 
leadership a manager adopted has a direct effect on the 
organizational performance of the employee. The study among others 
things discovered are, that participatory style of leadership and 
delegation of duties enhances the employee performance and 
attainment of corporate goals and objectives. The study therefore 
concludes that achievement of organizational goal and objective 
depends solely on the leadership style an organization adopted. It 
therefore recommends that, since leadership style is one of the basic 
tools used in attainment of organizational goal/objective, every 
organization should ensure that the right leader man their 
organization in order to achieve their set goal/objective.
TABLE OF CONTENTS 
Title Page i 
Declaration ii 
Approval Page iii 
Dedication iv 
Acknowledgements v 
Abstract vi 
Table of Contents vii 
List of Tables viii 
CHAPTER ONE 
Introduction 1 
1.1 Background to the Study 1 
1.2 Statement of the Problem 6 
1.3 Objectives of the Study 10 
1.4 Research Questions 10 
1.5 Research Hypotheses 11 
1.6 Significance of the Study 11 
1.7 Scope of the Study 12 
1.8 Limitations of the Study 13 
1.9 Contextual Definition of Terms 13 
References 14 
CHAPTER TWO 
Review of Related Literature 15 
2.1 Conceptual Framework 15 
2.1.1 Concept of Leadership 15
2.1.2 Important Implication of the Definitions 17 
2.1.3 Principles of Leadership 18 
2.2 Theoretical Framework 21 
2.2.1 Theories of Leadership Styles 21 
2.2.2 Leadership Factors 25 
2.3 Leadership Styles 27 
2.3.1 Transformational Leadership Style 28 
2.3.2 Transformational Leadership Critics 31 
2.3.3 Transactional Leadership Style 33 
2.3.4 Abraham Maslow’s Context 34 
2.3.5 Qualities of Transactional Leadership Style 37 
2.3.6 Laissez-Faire Leadership Style 38 
2.3.7 Transformational versus Transactional leadership 40 
2.3.8 Determinants of Leadership Style 42 
2.4 Organizational Performance 45 
2.4.1 Importance of Organizational Performance 46
2.4.2 Leadership Style and Organizational Performance 48 
2.4.3 The Role of Leadership in Organizational Performance 55 
2.4.4 Management and Organizational Performance 55 
2.5 Empirical Study 57 
2.5.1 Benue Link Nigeria Limited 57 
2.5.2 Denjim Transport Company 58 
2.5.3 Iwiene Nigeria Limited 59 
References 61
CHAPTER THREE 
Research Methodology 65 
3.1 Research Design 65 
3.2 Population of the Study 65 
3.3 Sample and Sampling Technique 66 
3.4 Instrument for Data Collection 67 
3.5 Method of Data Collection 67 
3.6 Test of Validity and Reliability 68 
3.7 Method of Data Analysis 68 
References 70 
CHAPTER FOUR 
Data Presentation and Analysis 71 
4.1 Data Presentation 71
4.2 Test of Hypotheses 75 
4.3 Discussion of Findings 78 
CHAPTER FIVE 
Summary of Findings, Conclusion and 
Recommendations 80 
5.1 Summary of Findings 80 
5.2 Conclusion 80 
5.3 Recommendations 81 
5.4 Suggestions for Further Studies 82 
Bibliography 93 
Appendix



CHAPTER ONE 
INTRODUCTION 
1.1 BACKGROUND TO THE STUDY 
Leadership is conceived as a process where one or more persons 
influence a group of person to move in a certain direction. The word 
leadership has been used in various aspects of human endeavour 
such as politics, business, academics and social works. Messick and 
Krammer (2004) argue that the degree to which the individual exhibits 
leadership traits depends not only on his characteristics and personal 
abilities, but also on the characteristics of the situation and 
environment in which he finds himself. Therefore, an individual will 
support the organization if he believes that through it his personal 
objective and goals could be met, if not, the person’s interest will 
decline. 
Among the objectives of any organization are profit making and 
attainment of maturity and liquidity status. In the pursuit of these 
objectives, organizations allocate scarce resources to competing 
ends. In the process they provide employment, provide goods and 
services, purchase goods and services and, thus contribute to the 
growth of the society and economy at large. Unamaka (1995)
observes that, the effectiveness of this process is greatly determined 
by the availability of and access to personnel, finance, machinery, 
raw material and possibility of making their goods and services 
available to their customers. 
The extent to which members of the organization contribute in 
harnessing the resources of an organization equally depends on how 
well the managers or leaders of the organization understand and 
adopt appropriate leadership style in performing their roles as 
managers and leaders. Thus efficiency in resource mobilization, 
allocation, utilization and enhancement of organizational productivity 
depends, to a large extent, on leadership styles among other factors. 
Chuang (2005) explains that the excellent leader not only inspires 
subordinates’ potential to enhance efficiency, but also meets their 
requirements in the process of achieving the common target of the 
organization. Fry (2003) states that leadership as a use of leading 
strategy to offer inspiring motive and to enhance the staff’s potential 
for growth and development in the organization. Burn’s (1975) 
approach is that leadership influences subordinates to exert greater 
effort in the pursuit of higher-order needs; support a greater vision for their work group or organization and in the course perform beyond 
expectations. 
Stoner (2000) defines leadership as a process of directing and 
influencing the task of related activities of group members. It can also 
be seen as the process of influencing other people to achieve 
organizational objectives. Bass (1982) defines leadership as an 
interaction between members of a group. Leaders are agents of 
change, persons whose act affect other people more than other 
people’s act affect them. 
Leadership occurs when one group member modifies the motivation 
or competence of others in the group. Also, Nongo (2009) states that 
leadership entails an unequal distribution of power between leaders 
and group members. Group members have power, but leaders 
usually have more powers. According to Rachin (2001) leadership is 
directly connected to the practice to which people are dedicated. The 
most substantial of leaders is their influential personality that has 
positive relation with the follower, job satisfaction and the 
performance (Joseph, 2011). Leadership style is the manner and 
approach of providing direction, implementing plans and motivating

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