THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEES PERFORMANCE IN THE OIL INDUSTRY

1.0 Introduction

1.1 Background of Study

Since years back, leadership and its special role in corporation has received quite a wide spread research attention. Irrespective if many decades of broad and careful study, numerous questions remain unanswered.

Leadership covers a very conspicuous position of group or organizational conduct. It is the heart of an organization, which without; organization or group cannot properly function. It is obvious, that leadership ensures orderliness in an organization when an economic venture is undertaken by an organization with a view to maximizing economic opportunities it calls for person to supervise, direct, control, and co-operation to ensure effectives. This point to the role of leadership in an organization.

Leadership cannot be completely delineated from management, though the former can be spoken of in relation to unorganized groups, while the later exist in an organized structure. At the same time most effective manager is a leader, and understands how leadership function is key towards understanding management itself. Montgomery (1960) define “leadership as the capacity and will to rally men and women to common purpose and the character which inspires confidence”

Furthermore, leadership as been defined in term of “ability to influence” that is simple but profound, a person may have a position of leadership, if he is not affecting thoughts and action of others, he is not a leader, however, the underlying in leadership are power and authority or the rights bestowed on the leader's position to make decision, assign task to subordinates.

Maxwell (1960) likened leadership to an open umbrella held by a hand; the hand of the leader of that organization. Under the protection of that umbrella are all the department of the organization. The success of each department can never, will never raise any higher leadership set standard, whether the organization is a business, a church, or a family. The higher the standard the more effective the leadership. Thus, in the sense leadership is not the activity of a single individual worker can meet the tremendous demand of achieving the objective of the organization alone. Individual workers cannot be separated from the whole (organization) though individual leadership is important yet cannot be separated from the whole organization.

In addition, the studies on leadership so far, have confirmed that there is no single basic pattern of abilities and personality traits characteristics of all leaders.

Macgregor .O. (1960:180) stated that “personality characteristics of the leader are vital, but those which are essential differ considerably depending on circumstances. Even without a single institution such as industry, different circumstances require different leader's characteristics. The leadership requirement by a young growing company for example are different functions (sales, finance, production, etc) demand rather different abilities and skills of leadership.

To crown it all, the essence of this to fine out the effect of leadership style on employee performance. The extent in which effective leadership is synonymous to the survival of business or organization. However, this study will enlighten managers to be effective leaders and not leader by position rather disposition. And how to be employee oriented: go to their employee, connect, find common ground, and empower them to succeed so as to achieve the organizational set goals.

The impact of using unstable leadership style in a situation can be grievous. This has reduced the moral of many employees and even made them vow never to take introduction from such managers again. These therefore, are problems I believe if not checked might result in disastrous, disintegration, disharmony and chaos in the organization.

1.2 Statement Of The Problem

Poor leadership style in an organization results in effective employee performance. The oil sector, which should be the main driver of the economy, makes minimal contribution to country gross domestic product, has turned to be disastrous effect on the nation, many of participants blame the poor leadership in the oil sector.

Why as 50years of oil export not transformed Nigeria into an industrial giant? Why as its massive oil wealth not banished mass poverty amongst its citizen? Why does the world 14th largest oil producing country still import fuel and petrochemicals: why it is that Nigeria is the only country were the oil producing communities lack infrastructure, school; healthcare facilities and employment (Tajuidee suleman 2004). The reason according to oil industry expert: and a stakeholder is failure of leadership. Nigeria is the only oil producing country in the world was illegal oil bunkering and smuggling is an issue, because of ineffective leadership style in the organization.

Therefore, due to problems of bad leadership in the organization, the organization as suffered both internally and externally. Internally, on the employee's performance. Externally, on the country's economy. However, the impact of using unstable leadership style in a situation can be grievous.

This has reduced the moral of many employees' and even made them vow never to take instruction from such manager again.

1.3 Aim and Objective of the Study

The aim of the study is to examine the Impact of Leadership Style on Employees Performance in the Oil Industry using Agip Oil Company PH as a case study. In achieving this aim, the following specific objectives were laid out as follows:

1. To examine the impact of leadership style of employee's performance
2. To identify the appropriate leadership style to use in different situation in the organization.
3. To evaluate effective leadership as the determinant factor of achieving organizational goals.
4. To measure good leadership and its influence on the employee's performance.
5. To examine the impact of motivation as the tool for improving employee's performance

1.4 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• What are the impacts of leadership on employee's performance?
• What are the appropriate leadership styles suitable in different situations in the organization?
• How does effective leadership determine the achievement of the organizational goals?
• How can we estimate or appraise good leadership and its influence on the employee performance?
• How can employee be energizing so as to improve their performance?

1.5 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There is no relationship between transformational leadership style and employee attitude to work in both companies
• H1: There is relationship between transformational leadership style and employee attitude to work in both companies

Hypothesis Two

• H0: There is no relationship between transactional leadership style and employee attitude to work in both companies
• H1: There is relationship between transactional leadership style and employee attitude to work in both companies

Hypothesis Three

• H0: There is no relationship between transformational leadership style and employee commitment in both companies
• H1: There is relationship between transformational leadership style and employee commitment in both companies

Hypothesis Four

• H0: There is no relationship between transformational leadership style and employee attitude to work in both companies
• H1: There is relationship between transformational leadership style and employee attitude to work in both companies

1.6 Significance of Study

The human factor as noted in management is a simple most important resource. This study ensures to help as well as tackle the leadership problems challenging oil companies in River state and attainable remedies to these problems. Those in other parts of the country will therefore achieve from this study the private and public sectors firms also are not exempted from these achievements and will find this study relevant since they experience nearly similar type of environment.

The study will also assist potential business investors on the basic issues of how to effectively and efficiently utilize the human resources in their organizations.

Scholars and researchers with ensure interest on this area of study will as well as find this work relevant. However, leadership subsumed under management effort is substantial and cannot be criticized.

1.7 Scope of Study

The study focuses on the Impact of Leadership Style on Employees Performance in the Oil Industry using Agip Oil Company PH as a case study. Oil companies operating in River State were selected for this important study with special preference to those in Port Harcourt. Respondent sort for are line managers, supervisors and personnel managers since they perform the leadership roles in organizations.

1.8 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.9 Operational Definition of Terms

Leadership Style: As use in this study, implies the way which influence process is exercised. It is the characteristics ways in which the leadership relates to his subordinates or employees.

Effectiveness: This implies the ability of an organization in achieving its objective. It is doing the right thing.

Efficiency: This is the optimum level o9f a given resources which the organization may fully utilize to produce a given unit of output/ waste. However, it is act of doing things right.

Employee Performance: This is the employee's behavior directed towards the requirement of the job as well as productivity and profitability of the organization. It involves the employee utilized potentials towards attainment of the organizational goal.

Goal Congruence: This is as used in this work refers to the agreement of employer and employee to wards the achieving the goal of the organization. It is harmonious activities between the organizational policy and the employee so as to obtain the required targets.

Organization: This is the coalescing of sub-system so as to achieve specified objectives. It is a system of critically co-ordinate activities of two or units.

Situational Leader: As used in this study mean leadership styles depending on the circumstances that arise at particular time in a given organization so as to attain the organizational target.