Full Project – Impact of democratic leadership style on employee performance

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CHAPTER ONE

• INTRODUCTION

 1.1   BACKGROUND OF THE STUDY

The special roles of leaders in organizations have, for some time, received wide spread of research attention.

Leadership is one of those elusive attributes that separate effective managers from less effective ones. There are as many definitions as there are commentator. Many associate leadership with one person leading. Four things stand out in this respect first; first to lead involves influencing others.

Secondly, are the followers.

Thirdly, leaders seem to come to their followers when there is crisis on a special problem. In other words, they often become visible when an innovative response is needed.

Moreover, democratic leaders are those who have a clear idea of what they want to achieve and why. Thus leaders are people who are able to think and act creatively in non routine situation and who set out to influence the actions, beliefs and feelings of others. In this sense, bring a “leader’’ is personal it flows from an individual qualities, attempt to define the concept of democratic leadership style, the evidence regarding the personal characteristic of democratic leaders, the way they acquire and maintain authority etc. Recently studies have shown that the ideas of attributing only all effective leaders shown that ideas of attributing only physical traits to leadership quality is wrong, not at all effective leaders have been healthy indeed some people like; Franklin Delanmed Rosereilete and John .F Kennedy have had physical disabilities strongly as quoted in lawless (1976), further confirmed this statement by postulating that someone does not because leader by virtue of the possession of some combination of trait but the pattern of personal characteristics of the leader must be some relevant relationship to the characteristics, activities and goals of the followers.

However, democratic leadership style needs a new mix of competencies to properly shape their broad and develop the subordinated to meet the 21^st century challenges. Shifting cultures, rapidly changing teaching and other factors will requires new patterns of leadership. The 21th century leadership will need greater awareness of diverse factors and new states of competencies characteristic that leader to success on the job to help the make relevant correct and timely decision in leadership of changing and leadership of people.

The profile of the Nigerian Bottling Company

The Nigerian Bottling company plc (NBC) was incorporated in November 1951 as a subsidiary of the Atlantic Georgia Leventis group with the franchise to bottle and sell coca-cola product in Nigeria from a humble beginning as a family business, the business has grown to become a predominant bottler of non alcoholic beverage in Nigeria responsible for the manufacture and sale of over 33 different coca-cola brand other popular brand of beverage produced by the company such as even water, five alive fruit juice and the newly introduced born energy drink.

The company presently has 13 bottling facilities and over so distribution warehouse located across the country since production started, NBC plc has remained the target bottling of non- alcoholic beverage in the country in term of making it the largest market in African.

Today the company is part of the coca-cola Hellenic company (CCHBC)  one of the coco-cola company’s largest anchor bottles world-wide COHBC operated in 28 countries serving 540 million consumers and selling over 1.3 billion unit cases of beverages annually.

The company recently embarked on a restricting exercise to expand further its market share and growth profit.  It invested in a new stated of the art can filling and packing line at the Apapa plant. The plant has since begun to produce the first soft drink can that is wholly packed in Nigeria. This is in addition to a new bottling plant in Abuja, investment infrastructure, distribution and delivery facilities.

• STATEMENT OF THE PROBLEM

The failure of companies emanated partly as a result of ineffective leadership style in a particular situation, environment, subordinates etc. It is often implied that the style that make it possible for employees not to perform efficiently such as;

1. The problem of delayed and longer decision making process.
2. The problem of having a final decision of a democratic leader.

• The argument of taking the final decision since the leadership style does not have a positive result on the group of the employee.

1. The problem of attributes or activities noticeable in the organization can have a correlation with employee’s performance.
2. The problem of different schools of thought while some see it as a necessary style that is capable of improving employee performance in the organization
3. The problem of different opinion of numerous or various people in an organization can bring situational factors that can affect the democratic leadership style.

• Objective Of The Study

Based on the above, this study shall find out the following objectives

1. To investigate the effect of democratic leadership style on employees performance in the Nigerian Business environment.
2. To evaluate the importance of leader employee’s relation in organizations success.
3. To identify the problems associated with leader employee’s relationship in the business environment.
4. To examine whether the adoption of democratic leadership style has any correlation with employee performance
5. To investigate whether situational factors affect the democratic leadership style in Nigerian Bottling Company.
   • Research Questions

In view of the above problems, the questions that were asked within the company are as follows

1. To what extent does democratic leadership style influence employee’s performance?
2. How do leaders employee relations affect organizational growth?
3. Does the adoption of democratic leadership style have any correlation with employee’s performance?
4. To what extent are the problems associated with leader employee’s relationship in the business environment?
5. Do situational factors affect the democratic leadership style on the Nigerian Bottling Company?
   • Research Hypotheses

Research hypothesis are prepositions about a research formulated for empirical testing. They are tentative statements of the expected relationship(s) between two or more variables. In order to test the validity of the information obtained from the problems and objectives of this research, the following hypothesis are formulated;

HYPOTHESIS ONE

H0: democratic leadership style has no significant influence on employee’s performance.

HYPOTHESIS TWO

HO: the adoption of democratic leadership

HO: leader employee relations have no significant influence on organizational growth

Hi: leader employee relations have significant influence or organizational growth

HYPOTHESIS THREE

HO: the adoption of democratic leadership style has no correlation with employee’s performance

HI: the adoption of democratic leadership style has correlation with employee’s performance.

HYPOTHESIS FOUR

HO: the problems associated with leader employees have no significant relationship in the business environment

HI: the problems associated with leader employee’s have significant relationship in  the business environment

• Scope Of The Study

This study is limited to coco-cola Bottling Company Owerri.

The company is chosen as the case study. The study is also style to the effect of democratic leadership style on employee’s performance. Interest would also be focused or directed towards the problems militating against their effective application of democratic leadership style in the private sector and employee’s performance as a result of this leadership style.

• LIMITATIONS OF THE STUDY

The limitations of this study lie on the under-listed constraints.

1. There were insufficient journals and textbooks on this topic which led to scanty information that subsequently affected the literature review. However the research made use of the available ones.
2. There was non-existence of already made research work on this topic hence, the researcher encountered difficulties in the course of carrying out this research work.
3. Time and duration of this project work was too short and this adversely affected the research work.
4. Lack of finance was also one of the limitations faced by the researcher during the time of conducting this research work
5. Lastly, another major constraint was inadequate co-operation by the respondents which reduced the amount of data collected.
   • SIGNIFICANCE OF THE STUDY

In every input towards achievement in any organization, there is always, the need to ascertain the comparative advantages. It is hoped that this project will help the owner’s and management of organization in the private sector to know the vital role democratic leadership style played in the improvement of employee’s performance in the organization when properly applied. This study will comprehensively expose the factors militating against the effective application of democratic leadership style in the private sector and its effect on employee’s and organizations performance. This research will also help the employee’s to adjust to the change of time. This work will go as far as to serve as an academic reference for students

1.9 DEFINITIONS OF TERMS

The following relevant terminologies used are hereby defined

EMPLOYEES: this refers to paid workers, employee are vital resources without which normal production cannot take place.

LEADERSHIP: this refers to the ability to influence, motivate and direct others in order to attain desired objectives

DEMOCRATATIC LEADERSHIP STYLE: this is a style of leadership where the leader shaves the decision making activities with his subordinates without relinquishing his responsibility and authority.

LEADER: these refer to people who have the ability to influence, motivate and direct others to attain desired objectives.

MANAGEMENT: this refers to the process by which the manager execute the functions of planning, organizing directing and controlling the organizations activities through the co-ordination of the required human and materials resources for the achievement of the organization objectives.

DECISION MAKING: this is the process of gathering and evaluating alternatives and making choices among them.

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Full Project – Impact of democratic leadership style on employee performance