Leadership Style Paradigm Shift and Organisational Performance: A Case of the Nigerian Cement Industry

Abstract

This study focused on the effect of changes in leadership styles on organisational performance in a cement manufacturing firm in Ogun State of Nigeria. A total of 385 participants were selected for the study using stratified random sampling technique. Questionnaire and in-depth interview were used for data collection. Quantitative data collected were analysed using descriptive and inferential statistics while the in-depth interview (qualitative data) was analysed using content analysis. The two hypotheses which guided the study were tested using Chi-square test and Spearman correlation coefficient. The result of empirical test revealed a significant relationship between changes in leadership style and organisational performance in the post-acquisition context. Specifically, the result also showed a significant correlation between transformational, transactional and democratic leadership styles and organisational performance after the change of management. Restrictive leadership style was the dominant approach before the change, which was inhibitive of optimum performance, while supportive and collaborative leadership modes which manifested and characterised the post-acquisition era were more conducive to the creation of enhanced organisational performance. The study concluded that leadership styles adopted by the organisation since the post-acquisition period allowed more involvement and greater participation of the workforce resulting into maximal overall performance in the organisation.

Keywords: Leadership style, organisational performance, institutional goal, management and work place.