Eefects of Leadership Styles on Employee Prformance

CHAPTER ONE INTRODUCTION 1. 0OVERVIEW This chapter covers the background information of the study, statement of the problem by the researcher and objectives of the study to be attained. It also covers the research questions, significant of the study as well as the scope of the study and its limitations. 1. BACKGROUND INFORMATION There is an ongoing problem about leadership styles and its impact on various aspects of employee performance and their work-related health.It has been suggested that leadership factors had an influence on the employee performance, although relationship between leaders and subordinates has gradually been more focused; but it is still scientifically unclear as to what extent and in what ways leaders influence the employee’s performance. The leader can be described as a possessor of the tools to create and change the structure and culture within an organization. The structural changes have led to new demands on employees’ flexibility and ability t o handle changes, which is referred to as a heath risk (Aronson & Sjogren, 1994).With the ever changing business landscape of more and innovative competitors, most service firms recognize the need to introduce innovations and new technologies within their organizational processes to stay in the market, or retain their competitive advantage compared to their rivals. An attempt was made to find out the correlation between leadership style of mangers and performance and satisfaction of managers and followers. Democratic/participative leadership style involves employees in decision making process (determining what to do and how to do it) to attain the organization goals.Using this style is not a sign of weakness, rather is a sign of strength that our employees will respect. This is normally used when you have part of information, and your employees have other parts. Note that a leader is not expected to know everything. This is why you employ knowledgeable and skilful employees. Using t his style is of mutual benefit. It allows them to become part of the team and allows you to make better decisions. A democratic leadership style will lead to the use of non-controlling tactics of influence in which managers and employees discuss work-related issues.It is also effective for the performance evaluation as illustrated below:- 1. 1. 1 Diagram showing performance evaluation. 1. 2STATEMENT OF THE PROBLEM The relationship between leadership style and employee performance has been a subject controversy by researchers (Nwadian 1998 and Adeyeni 2006). The controversy was centered on whether or not the leadership style influences the level of job performance among employees. Common observation shows that leadership style could perhaps have serious impact on human relationship hence affected the employee performance.For the purpose of high performance of employees and subordinates there was the need of using effective leadership style and also important. Research also described that effective leadership styles can enhance the employee performance and commitment with their job. So the execution of leadership styles is one way that with use of different leadership styles, leaders can construct commitment and job satisfaction of employees that increase their performance. 1. 3RESEARCH OBJECTIVES The general purpose of the study was to establish the relationship between employee’s performance and leadership style.The specific objectives of the study were: i) To identify the extent of democratic leadership style used in the organization. ii) To determine the indicators of employee performance. iii) To establish the relationship between democratic leadership style and employee performance. 1. 4RESEARCH QUESTIONS The study covers the questions which are from the objectives so that it answers them appropriately. i) To what extent does democratic leadership style improve employee’s performance? ii) What are the indicators of employee’s performan ce? iii) Is there good relationship between democratic leadership style and employee’ performance? . 5SIGNIFICANCE OF THE STUDY The study intends to bridge the gap between the researcher and other previous researchers who undertook a similar case study. This study will benefit other researchers in learning instruction such as universities to make reference from. It shall also benefit companies in the way that they will have knowledge about the use of democratic leadership style and employee performance. Employers will generally have an overview of how workable and effective democratic leadership style should be handled through the project.It is hoped that as a result of the study, employees at the middle management and lower level will benefit from more productive and efficiencies in performing their duties. 1. 6SCOPE OF THE STUDY The study was conducted in Mombasa Municipal Council in Coast Province Mombasa District at Mwembe Tayari. 1. 7LIMITATIONS OF THE STUDY 1. Time limi tation 2. Lack of funds to facilitate and complete the study 3. Lack of material for reference 4. Disclosure of information by the population. 1. 8DEFINITION OF TERMINOLOGIES 1. 8. 1LEADERSHIP STYLELeadership style is the behaviour of leader that has expressed ability to influence the subordinates toward the achievement of goals (Armandi Oppedisans & Sherman 2003). Leadership style has been classified in different ways in prior researches. Some of them are as follows:- 1. Participative Leadership Style Is defined as a leader who shares decision making with group members or subordinates (Dubrin, 1995). The leader will identify the problem, generate solutions and evaluate the alternatives together with subordinates.The decision-making of participative leadership style is decentralized authority throughout the organization (Steers, 1977). 2. Democratic Leadership Style Is defined as a friendly, helpful leader who encourages participation. A leader with a democratic leadership style sha res his or her power with subordinates and decisions are made by consensus or majority vote (Seidenberg & Snadowsky, 1976). Democratic leaders encourage subordinates to discuss and make decisions as a group on the policy and steps towards achieving goals. 3. Autocratic Leadership StyleIs defined as a directive leader, controlling, discouraging or suppressing participation. An autocratic leader centralizes power with little or no room for subordinates to participate in decision-making process (Seidenberg & Snadowsky 1976). Autocratic leader determine all policies, dictate techniques and activities, assign tasks and work partners to group members and are personal in their criticism and praise. 1. 8. 2INDIVIDUAL PERFORMANCE This can be stated as the product of ability multiplied by motivation it gives performance.Furthermore it can be the belief that performance is ultimately an individual phenomenon with environmental factors influencing performance primarily through their effort on t he individual determinants of performance. Despite the motivation to perform, it is necessary to briefly highlight the barriers that might affect the performance of employees. 1. 8. 3INFORMATION This is the processed data which was collected, interpreted and analyzed to give a meaning. 1. 8. 5POPULATION It refers to the entire group of individuals having a common characteristic. . 8. 6SAMPLE This is a small group obtained from the accessible population. 1. 8. 7SAMPLING It is the process of selecting a number of individuals for a study in such a way that the individual selected represent the population. 1. 8. 8STATISTICS This is the science of organizing, describing and analyzing data. CHAPTER TWO LITERATURE REVIEW 2. 0OVERVIEW This chapter covers all the literature review from different authors of different text books, Journals, newspapers, magazines and any other related source of obtaining information. 2. 1. 1PURPOSEThe purpose of the research was placed on managerial initiative, the technique had been applied to solve the following problems:- – Lack of operating flexibility – Low morale – Poor work quality – High labour turnover – High absenteeism 2. 1. 2DEMOCRATIC LEADERSHIP BENEFITS This brings about the following:- – Improvement of productivity – Improvement in quality of a product/service delivered – It reduces labour turnovers – It reduces need for direct supervision – Reduction in idle time – Increase of good communication which brings about feedbacks. 2. 2INFLUENCES OF PERFORMANCENevertheless, the principle influence on the organization performance is the quality of the workforce at all levels of the organization. The function that human resources can play in gaining a competitive advantage for an organization is empirically well documented (Brewster, Carey Dowling, Grobler, Holland and Warnich, 2003). For organizations to accomplish their goals, they must continually look f or better ways to organize and manage their work. There is a growing recognition that the primary source of competitive advantage is derived from an organization’s human resource.This was not always the case, as human resources were traditionally seen as a cost (Brewster, et al, 2003). Due to the realization that people are the most valuable assets in an organization, the importance of performance management has been pushed to the fore (Bartlett and Ghoshal, 1995). The complexity of managing organizations today requires managers to view performance in several areas simultaneously. The performance measurement system employed in an organizational must therefore measure the performance of all assets including the human ones.The Balance scorecard of Kaplan and Norton (1996) is a mechanism which provides a holistic measure of organizational performance. It is a set of measures that provide mangers a fast but comprehensive view of the business. The Balanced scorecard is not only a measurement system but also a management system, which enables organizations to clarify their vision and strategy and translate them into action (Kaplan ad Norton, 1996). It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.When fully deployed, the Balance Scorecard transforms strategic planning from an academic exercise into the nerve centre of an enterprise (Norton, 1999). The Balance scorecard includes both financial measures that tell the results of actions already taken, and operational measures that are the drivers of future financial performance (Kaplan and Norton, 1996). It can be seen that the individual’s performance has an impact on the organization’s wider objectives, and it is thus imperative that every employee’s performance should be managed.This process of performance management includes group assessments and peer reviews, as well as written repor ts (Hellriegel et al, 2004). In recent years performance management system have become more important because managers are under constant pressure to improve the performance of their organizations (Holloway, Francis Hinton, 1999). As the performance of organizations influence the organization’s continued existence, it is therefore necessary to discuss the notion of managing this performance. 2. 3IMPORTANCE OF PERFORMANCE Performance is important to us as a people and organizations.In fact, most of us believe that we can, and will, improve at what we do, and we expect others to improve over time as (Temple, 2002). People are an organization’s greatest assets individuals and organizations have learned about the importance of the role of people in an organization depends on its people (Barlett and Ghoshal, 1995). According to (Armstrong and Baron, 1998) states that the role of human resources is absolutely critical in raising performance in an organization. Ultimately it is the performance of many individuals which culminates in the performance of an organization context.According to (Hellriegel, et al 2004) states that performance management is an integral part of effective human resource management and development strategy. Performance management is an ongoing and joint process where the employee, with the assistance of the employer, â€Å"strives to improve the employee’s individual performance and his contribution to the organization’s wider objectives† (Hellriegel, et al 2004). According to Amos, et al (2004) defined performance management as â€Å"the process that begins with translating the overall strategic objectives of the organization into clear objectives for each individual employee†.Performance Management can also be seen to incorporate all of these aspects of human resource management that are designed to progress and/or develop the effectiveness and efficiency of both the individual and the organization (A mos, et at. , 2004). First-class performance management begins and develops with the employee’s understanding of the organization’s expectations (Hendrey, 1995). To elevate and sustain the level of work performance, managers must look past individual or team performance to a larger arena of play: the performance management system (Campbell, McCloy, Oppler and Sagar, 1993).The success of a performance management system is reliant on the commitment/support of an organization’s management. Performance Management Systems must be seen to reward personal development and achievement (Hendrey, 1995). Within the performance management field itself, it is important that targets are viewed to be fair and equitable across all groups. It is imperative that employees have confidence in their work and recognize that management supports them (Cherrington, 1994; Baird 1996).A good performance management system motivates employees to better their own performance, promotes self-mo tivation, and builds and strengthens relationships via open communication between employees and managers (Baird, 1986). 2. 4EMPLOYEE PERFORMANCE According to Amos, et al. (2004) states that â€Å"the effective management of individual performance is critical to the execution of strategy and the organization achieving its strategic objectives†. Performance cannot be left in anticipation that it will develop naturally, despite the employee’s natural desire to perform and be rewarded for it.This desire needs to be accommodated, facilitated and cultivated (Amos, et al 2004). In return for this performance, organizations extend themselves in various forms of acknowledgement (Foot and Hook, 1999). Individual performance has become a topical issue in today’s business environment, so much so that organizations go to great lengths to appraise and manage it (Armstrong and Baron, 1998). Whetten and Cameron (1998) states that individual performance is the product of ability multiplied by motivation.Furthermore, Cummings and Schwab (1973) concur with the belief that performance is ultimately an individual phenomenon with environmental factors influencing performance primarily through their effect on the individual determinants of performance-ability and motivation. Organizational leadership can be described as the leadership present within the organization, having a direct and indirect effect on individual employee performance – ability and motivation. According to Cummings and Schwab (1973) describe the need for at least minimal ability before an employee can carry out a task, regardless how motivated he may be.Similarly, an abundance of ability will riot result in successful performance if the employee is completely unwilling to perform adequately. This view is supported by Vroom (1964) who indicates that factors influencing individual performance within the organization are factors such as the ability of the willingness of the person to exert effort (motivation). 2. 4. 1LEADERSHIP Finally, organizational leadership can be described as the leadership present within the organization, having a direct and indirect effect on individual employee performance.This role of organizational leadership is further substantial in Hall’s (1996) Competence process, which depicts performance as a dependent collective competence. The competence process is a three-dimensional approach consisting of collaboration, commitment and creativity. The message conveyed by an organization’s leaders may be one that encourages and enables competence and, in turn, performance. 2. 4. 2FACTORS AFFECTING PERFORMANCE Despite the motivation to perform, it is necessary to briefly highlight the barriers that might affect the performance of employees.For organizations purposes factors affecting overall employee performance may be separated into two groups: Internal and external. Internal factors are those factors over which the organization ha in fluence and control, such a job descriptions and employee selection. External factors are those factors over which the organization has little or no control, such as demands for jobs grading systems (Hellriegel, et al. , 1999). Having outlined and defined individual performance, it is now necessary for this research, to review the relationship between performance and leadership. . 5PERFORMANCE AND LEADERSHIP Ultimately is the individual employee either performs, or fails to perform, a task. In order for an organization to perform, an individual must set aside his personal goals, at least in part, to strive for the collective goals of the organization. Thus, effective leadership enables greater participation of the entire workforce, and can also influence both individual and organizational performance (Bass, 1997; Mullins, 1999). The success of an organization is reliant on the leader’s ability to optimize human resources.A good leader understands the importance of employees i n achieving the goals of the organization and that motivating these employees is of paramount importance in achieving these goals. To have an effective organization, the people within the organization need to be inspired to invest themselves in the organization’s mission. The employees need to be stimulated so that they can be effective; hence effective organizations required effective leadership. To have an effective organization, there must be effective and stimulating relation between the people involved in the organization (Paulus, Seta and Baron, 1996).It is generally accepted that the effectiveness of any set of people is largely dependent on the quality of its leadership. Effective leader behaviour facilitates the attainment, of the followers desires, which then results in effective performance (Martiz, 1995; Ristow, et al. , 1999). Preliminary research undertaken by (Swanepoel et al. , 2000) found that outstanding leaders, in terms of effectiveness, are perceived to s how a strong and direct, but democratic and participative leadership style, and are seen as agents of change and visionaries who increase organizational performance.According to (Botha, 2001) concludes that the need of firms to flourish in the world of escalating competitiveness, of technological advances, of altering government regulations and of changing employee attitudes, requires an advanced level of leadership more than ever before. His views further demonstrate the importance of leadership in the business arena. Research data (Brand, et al. , 2000) has clearly shown that transformational leaders are more effective than transactional leaders regardless of how â€Å"effectiveness† has been defined. This can be further supported by research conducted by Ristow, et al. 1999), which concluded that there was a positive relationship between certain styles of leadership and organizational effectiveness within the administration of East Africa. 2. 5. 1CHANGES AFFECTING LEADERSH IP Leadership is a dynamic process, influenced by changing requirements of the task, the group itself and the individual members. The implication o this is that there is no â€Å"one best way† of leading, and leaders need to be able to exercise a range of behaviour to maintain their role effectively (G. A Cole 2002). Cole said that the leader’s principal role is to influence the group towards the achievement of group goals.In an official group, such as a production team, goals are set mainly, if not exclusively, by senior management. In an informal (unofficial) group, composed of people who have got together as friends and workmates, group goals are much more likely to be agreed on a consensus basis. Either way, the leader’s task is to gain the group’s commitment to these goals. Research studies conducted over the last thirty (30) years have suggested that there are at least four key variables which are crucial in any analysis of leadership. These are: 1. the attributes (knowledge, skills, attitude) of the leader 2. he nature of the task of goal 3. the nature of the group or team 4. the climate, or culture, of the organization. The most recent researches suggest that a contingency approach to leadership is likely to achieve the most productive balance between the need of the team, the requirements of the task, the nature of the organization climate and the pressures exerted by the situation or context. According to (G. A Cole 2002) elaborated that a contingency approach is one where the leader adopts his or her behaviour to suit the needs of the situation.Clearly, such a view makes leadership somewhat problematic in practice. 2. 6LEADER ATTRIBUTES The earliest studies of leadership focused on the personal qualities, or traits, of leaders. The thinking behind this approach was that the secret of leadership lies in some innate â€Å"qualities of leadership possessed by selected member of society†. Indeed, since most of the lead ing early exponents of management such as Henri Fayol and Frederick Taylor were themselves lively personalities as well as successful entrepreneurs, it is not surprising that personal qualities were the focus of attention.It is true that personal qualities – or charisma – can play a part in the exercise of leadership. Nevertheless, the so-called â€Å"trait theories† of leadership produced such varied accounts of the key characteristics that Handy (2976) mentions that by 1950 over 100 studies into leadership qualities could only find common features in about 5% of the cases studies. Although trait theories are largely discredited as an instrument of leadership theory, the qualities approach can have some useful applications in management training and development. . 7LEADERSHIP STYLE THEORIES Since the 1950s much of the study of leadership has centered on the behaviour, or style of the leader. If leadership is not much about personal attributes, the argument goes , then perhaps it is about the way in which the leader exercise leadership? The ‘style theorists’; as they have been called, were influenced by an earlier study by Lewin, Lippitt & White (1939) in which the effects of three different styles of leadership on the performance of groups in camp were studied.It was found that in terms of both goals achieved and member’s satisfaction, a democratic style was preferred to automatic or Laissez-faire styles. The style theorists have taken dimensions such autocratic-democratic and employee centre-task-centred in order to test ideas about leadership style and leadership effectiveness. Leadership effectiveness, or success, refers to performance that leads to: 1. the achievement of organizational goals 2. a high degree of commitments to those goals by the group 3. a high level of group member satisfaction.Reddin (1970), in a discussion on managerial effectiveness distinguishes three types of effectiveness. 1. Apparent effectiv eness – the extent to which the manager gives the appearance of being effective by maintaining a high input into the job, but where in reality, his or her achievements are disappointing. 2. Personal effectiveness – The extent to which the manager achieves his or her own objectives, as opposed to those of the organization. 3. Leader effectiveness – The extent to which the leader influences his or her followers to achieve group objectives.The concepts of leadership that we are concerned with in this are associated with leader effectives. That is to say, they are concerned with the results of leadership rather than the inputs they are concerned with the achievement of organizational rather than personal goals, and they are intimately concerned with the relationship between the leader ad his or her group. The way in which the leader approaches the task and people needs of the situation is commonly referred to as leadership style.There have been several well-known st udies into styles of leadership and these are summarized brief below. 2. 7. 1THE MICHIGAN STUDIES In a series of studies carried out in early 1950, Rensis Likert and his colleagues studies that behaviour of supervisor of both high-and low- producing groups. The researchers observed that supervisors of high-producing groups tended to be employee-centered in their approach. That is they paid attention to relationships within the group, exercised less direct supervision, and encouraged participation in decision-making.By comparison, supervisors of the low-producing groups tended to be more directive in their behaviour and appeared to be more concerned with the demands of the task than the needs of people in their groups. High-producing groupsLow producing groups Employee-centered approachTask-centered approach 2. 7. 2THE OHIO STUDIES These were also conducted in the early 1950, but from a slightly different perspective from the Michigan studies. The basis of the Ohio researches (Stogdi ll and Coons, 1957) was a leader Behaviour Description Questionnaire of some 150 items.The analysis suggested that unlike the Michigan conclusions, the two approaches represented separate dimensions. That is to say, people could be scored on consideration and on initiating structures. High Consideration Low LowHigh Figure 2. 7. 2: Initiating structure The researches found that employee satisfaction was greatest under leaders who were rated high on consideration. However, the context had a bearing on responses, since military groups tended to discount consideration in favour of initiating structure. 2. 7. 3MOGREGOR AND LEADERSHIPDouglas McGregor (1960), reflecting on leadership and motivation at work, took the available literature on organizations and examined contemporary managerial policy and practice. Leadership style may affect either positive or negative performance of employees. Leaders who practice democratic style do motivate their employees hence performance increases. When an employee is recognized as part and parcel of the organizational contributors then he/she tend to work hard towards the achievement of the set organizational goals. 2. EMPLOYEE JOB SATISFACTION AND LEADERSHIP STYLE According to Mosadegh Rad and Yarmohammadian (2006), employee job satisfaction refer to the attitude of employees towards their jobs and the organization which employees them. The researchers pointed out that job satisfaction is influenced by many organizational contextual factors ranging from salaries, job autonomy, job security, workplace flexibility to relationship. In particular, leaders within organizations can adopt appropriate leadership styles to affect employee job satisfaction, commitment and productivity.Previous studies have examined the relationship between employee job satisfaction and leadership behaviour in various settings such as healthcare, military education and business organizations (Chenand Silversthorne, 2005). These studies generally indicate th at employee job satisfaction in the public sector is just as important as it is in the private sector. Consistent with this, the present study intends to examine the relationship between leadership style and job satisfaction in the public sector.Leadership is a process of interaction between leaders and followers where the leader attempts to influence followers to achieve a common goal (Northhouse, 2010; Yuki, 2005). According to Chen and Chen (2008), previous studies on leadership have identified different types of leadership styles which leaders adopt in managing organization (e. g. Davis 2003; Spears and Lawerence, 2003, Dorfman and Gupta, 2004; Murray, and Riordam 2007). Among the more prominent leadership styles are burns (1978) transactional and transformational leadership styles.Transformational leaders emphasize followers’ intrinsic motivation and personal development. They seek to align followers’ aspirations and needs with desired organizational outcomes. In so doing, transformational leaders are able to foster followers’ commitment to the organizations and inspire them to exceed their expected performance (Silvanathan and Fekken, 2002, Jaokko and Ali 2006). With regard to day’s complex organizations and dynamic business environment, transformational leader are often seen as ideal agents of change who could lead followers in times of uncertainties and high to risk-taking.In contrast, transactional leaders gain legitimacy through the use of rewards, praise and promises that would satisfy followers’ immediate needs (Northhouse 2010). They engage followers by offering rewards in exchange for the achievement of desired goals. 2. 9LEADERSHIP STYLES AND CONCEPTS Leadership styles range widely from a job-or task-centered orientation to a people or relationship-centered one, with many other combinations. A participative style has special merit for consideration. A supervisor uses in trying to direct, activate or otherwise p rovide a motivational atmosphere for employees.It includes leadership traits skills attitudes and behaviour that employees perceive their supervisor to have and consistently use. According to John W. Newstorm (2001) study guide stated that leadership is one in which the leader sets goals, makes decisions, gives orders and demands obedience, autocratic style of leadership. A democratic or consultative style is one in which the leader presents problems, consults with relevant individuals or solicits ideas from those with expertise and interest before making decisions. It is highly consistent with the need to employees and assumptions of Theory Y.True participation gives one or more employees the right to explore problems, gather information, make decisions, and implement them. The positive results is employees are mentally and emotionally to its success. Conditions that should be in place to assist in having the participative approach succeed include:- 1. Adequate time to consult with employees. 2. The benefits of allowing participation must exceed the cost. 3. The issue must be sufficiently interesting to engage the workers’ mind and imaginations. 4. The problem must be within the supervisors area of job freedom. . Not all problems lead themselves to the participative approach and the supervisor and employees must understand this. Examples of formal programs that encourage employee participation include:- a) Suggestion systems, which invite individual employees to submit recommendations for work improvements. b) Quality circles and total quality programs which involve formal training and problem solving, group decision making, and statistical techniques to encourage employee to continuously search for improvements in their operations. ) Employee ownership plans, also called employee stock ownership plans (ESOPs) which allow employees to purchase shares of common stock in the company, thereby becoming art owners. When participate leadership fails its ofte n because:- a) It is uncomfortable to change old habits. b) It is attempted in a insincere fashion. c) Supervisors fail to follow through on employee input and decisions. d) Performance pressures produce fear and insecurity. e) Supervisors fear it could result in a loss of personal power. 2. 10SELECTING AN APPROPRIATE LEADERSHIP STYLELeadership styles should be selected with a keen sensitivity to individuals and circumstances involved. An autocratic, authoritative task centered style workers best in situations where the supervisor has lots of real power, the process requires strong control and rapport is good and in situations where just the opposite conditions prevail. A participative/democratic people centered style is best where the supervisor’s authority hasn’t been clearly spelled out or acknowledged, where the process and procedure are somewhat flexible, and where rapport is only average.For good performance in production or service delivery and contain style of leadership should be put in consideration as that employees are at easy and free from stress caused by bad leadership practices. When selecting an appropriate style one has to bear in mind that employees are people who have differences in both attitude likes and dislikes, so they should be all involved when coming 2. 11INTERVENING VARIABLES To understand how a leader can influence the performance of a group or individual employee or organizational subunit, it is helpful to examine intervening variables that determine employee performance.The six intervening variables in the model are based on earlier research and theory on determinants of individual and group performance (Hackman, Brousseau & Weiss, 1976). Unlike most other situations theories, the intervening variables are defined primarily. 1. Task Commitment – The extent to which unit member strive to attain a high level of performance and show a high degree of personal commitment to unit t ask objectives. 2. Ability and r ole clarity – The extent, to which unit members understand their individual job responsibilities, know what to do, and have the skills to do it. 3.Organization of the work – The extent to which effective performance strategies are used to attain unit task objectives and the work is organized to ensure efficient utilization of personnel, equipment, and facilities. 4. Cooperation and Mutual trust – The extent to which group members trust each other, share information and ideas, help each other and identify ;with ;the work unit. 5. Resource and Support – The extent to which the group has the budgetary funds, tools, equipment, supplies, personnel and facilities needed to do the work, and necessary information or assistance from other units. . External coordination – The extent to which activities of the work unit are synchronized with the interdependent activities in other parts of organization and other organizations (e. g. suppliers, clients, joint v enture partners). The intervening variables interact with each other to determine the effectiveness of a group or organizational subunit. A seriously deficiency in one intervening variable may lower group effectiveness. The greater the relative importance of a particular intervening variables the more employee performance will be reduced by a deficiency in this variable.The relative importance of the intervening variables depends on the type of work unit and other aspects of the situation. 2. 12SITUATIONAL INFLUENCE ON INTERVENING VARIABLES The situational can influence the intervening variables independently of anything done by the leader. There are two situational variables that influence task commitments are the formal reward system and the motivating properties of the work itself. Member commitment to perform the task effectively will be greater if the organization has a reward system that provides attractive rewards contingent on performance.Motivation is likely to be high for subordinates if work requires varied skills, is interesting and challenging, and provides automatic feedback about performance. Role clarity is affected by task structure, prior member’s experience, and external dependencies. Conditions that increase role ambiguity are as follows: 1. the task has multiple performance criteria that are somewhat incompatible with each other and priorities are unclear. 2. the task requires continuous coordination and mutual adjustment among members. 3. he nature of the work or technological is changing requiring new skills and procedures. 4. a crisis or emergency creates confusion and 5. work unit operations are frequently affected by changes in policies, plans or priorities determined by higher management or clients. 2. 13DETERMINANTS OF TEAM PERFORMANCE 1. Commitment to shared objectives Employee performance will be higher when they are highly motivated to attain shared objectives (Mackenzie and Ahearne 1997) Task commitment is higher when the team considers the objectives worthwhile and the strategy for attaining them appropriate.Leadership behaviours that are especially relevant for increasing members commitment to shared objectives include articulating an appealing vision of what can be accomplished by the team, describing the task in a way that links it to member values and ideals, explaining why a project or task is important, involving members in planning strategies for attaining the objectives and empowering members to find creative solution to problem. 2. Member skills and Role clarityTeam performance will be higher when members have the knowledge and skills necessary to do the work and they understand what to do, how to do it, and when it must be done. In a newly formed team, or when the team has a new type of task to perform, leader can clearly explain member responsibilities and relevant procures for performing specific types f activities (Marks, Zaccaro & Mathieu, 2000). 3. Internal Organization and Coordinat ion The performance of a team depends not only on the motivation and skills of members, but also on how members are organized to use their skills.The design of work roles and the assignment of people to them determine how efficiently the team has talented people but they are given tasks for which their skills are irrelevant, or if the team uses a performance strategy that is not consistent with members skills. 4. External Coordination The performance of a team also depends upon adjusting their activities to be consistent with the activities of interdependent units inside or outside the organization (include suppliers), and the need of clients who must be accommodated (Ancona 1990).Many specific types of leadership behaviours are relevant for improving external coordination. These include maintaining a network of contacts who can provide relevant information, monitoring external events to identify threat and opportunities for the team, meeting with clients o users to lean more about their needs, consulting with other units of the organization abut plans and decisions that affect them, and facilitating shared mental models that accurately describe the relationship between the team and its environment. 5. Resources and Political SupportTeam or group performance also depends on getting information, resources and political support needed to do the work (Druskat and Wheeler, 2003) Relevant resources such as budgetary funds, tools and equipment, supplies and materials and facilities. A production team cannot maintain a high level of output without a dependable supply of materials. Leadership behaviours that are relevant for obtaining necessary resources from outside include planning the resources required for a special project or activity. 6. Mutual Trust and CooperationEven a talented, well-organized team may fail in carrying out its mission unless there is a high level of cooperation and mutual trust among the members. Cooperation is more likely when members identi fy with the team, value their membership in it and are intrinsically motivated to support it. 7. Collective Efficacy and potency. Member/employee commitment depends in part on the shared belief of members that the team is capable of successfully carrying out it mission and achieving specific task objectives (Bandura 2000, Gallagher and Ensley 2002).This shared belief is called collective efficacy or potency. A highly confident team is also likely to have a more positive mood (Mannand Hirst 2002) Collective efficacy is likely to be higher for a team with strong member skills, a high level of mutual trust and cooperation, ample resources and a relevant performance strategy. Prior success can increase collective efficacy, which in turn can enhance a team of subsequent performance. 2. 14ADVANTAGES OF USING DEMOCRATIC LEADERSHP STYLEThe participant can result in high motivation of group members, the knowledge and experience of group members can be used in decision making. Employees may f eel more committed to goals and less resistant to managerial actions. Individual abilities can be developed through participation; they may be better informed as a result of two way communication that is from the employee to the leader and also from the leader to the employee. 2. 15DISADVANTAGES OF USING DEMOCRATIC LEADERSHIP STYLEAs discussed earlier this style of leadership can also have a few drawbacks to the leader and also to the organizations set goals. Some of them are; individuals may dominate the participation or make disruptive contribution, this approach can be very time consuming for the leader because of the use of two-way communication compromise can result in actions that are not the most effective. Conflict may be resolved by making the least offensive decision not the most effective; situation can develop where responsibilities are not clear cut.Participation may be viewed as a sign of inefficiency on part of a leader; subordinates may view leaders as incompetent to handle the job responsibilities. Employee performance will mostly depend on the leadership style used by the management; if it is favourable to be adapted then high productivity shall be experienced. So far the production to be maintained in employee some methods should be practiced that is manager may adopt to use a combination of two leadership style so as to balance both the employee and organization goals. 2. 16OTHER MANAGEMENT TECHNIQUESOther companies tend to use other styles of gathering information from their employees, such as management by walking around (MBWA) is a classic technique used by manages who are proactive listeners managers using this styles gather as much information as possible so that a challenging situation does not turn into a bigger problem. Listening carefully to employees’ suggestions and concerns with help evade potential crises, management by walking around benefits managers by providing unfiltered, real-time information about processes and po licies that is often left out of formal communication channels.By walking around, management get an idea of the level of morale in the organization and offer help if there is trouble. A potential concern of MBWA is the manager will second-guess employees’ decisions. The manager must maintain his or her role as coach and counselor, not director. By leading decision-making responsibilities with the employee, manager can be assured of the fastest possible response time. Competence (or competency) to the ability of a individual to perform a job properly.A competency is a set of defined behaviours that provide a structured guide enabling the identification, evaluation and development of the behaviours in individual employees. Some scholars see â€Å"competence† as a combination of knowledge, skills and behaviour used to improve performance or as state or quality of being adequately or well qualified, having the ability to perform a specific role. For instance management com petency might include systems thinking and emotional intelligence and skills in influence and negotiation. 2. 7BENEFITS OF GOOD LEADERSHIP STYLE Managing employee co-system performance facilitates the effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs or software and improved business and organizational results. It benefits the organization direct financial gain in sales gain, reduce costs in the organizational also decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goal. (Business Journal 2002).Good leadership style brings about motivated workforce which optimizes incentive plans to specific goals for over achievement, not just business as usual, improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals. It also improved management control, flexible responsible to management needs displays data relationships, provides well documented and communicated process documentation; organization development, performance can be thought of as Actual Results Vs Desired Results.Any discrepancy, where Actual is less than Desired, could constitute the performance improvement zone. (Business Journal 4th edition 2004) Performance Management and improvement can be thought of as a cycle. 1. Performance planning – where goals and objectives are established. 2. Performance coaching – where managers intervenes to give feedback and adjust performance. 3. Performance appraisal – where individual performance is formally documented and feedback delivered. A performance problem is any gap between Desired Results and actual Results.Performance improvement is any effort target at closing the gap between Actual Results and Desired Results. 2. 18CONCLUSION In summary, an overview of organizational performance was presented highlighting th e need for organizations to deliver results in the competitive business environment of today. As employees play a pivotal role in organizational performance, individual performance has become a topic issue, so much so that organizations go to great lengths to develop, manage and appraise it. In light of this, performance management and individual performance was discussed.Finally, the relationship between performance and leadership was discussed, demonstrating the relationship between them. It is clear that there is definitely a need to identify and implement leadership that enables East Africa Organization to become globally competitive. It has generally been acknowledged that organizational performance requires effective leadership and performance will suffer in direct proportion to the neglect of this. A broad overview of performance has been presented with some reference to its relationship with leadership. It is now important to discuss leadership in detail. CHAPTER THREE METHO DOLOGY . 0OVERVIEW This chapter covers the research design, population of the study, sample design/procedure, data collection instruments, data collection procedure and data analysis techniques. 3. 1STUDY AREA The research design is a case study which involves one single company where the research is to be undertaken. For this case the selected company is Mombasa Municipal Council of Mombasa. 3. 2POPULATION OF THE STUDY The targeted population of the research is the employees of Mombasa Municipal Council. Mombasa MunicipalNumber of employees Percentage Council targeted Top Management612% Middle level employee1836%Lower level employee2652% Total50100% 3. 3SAMPLE DESIGN/PROCEDURE The sampling method employed in undertaking this research was randomly sampling; where the population i. e employees were subdivided into three levels; top management, middle and lower level of employees. 3. 4DATA COLLECTION INSTRUMENTS In getting the relevant data for the research study, the following instru ments were used; a) Interview This involves interaction with the respondent. Direct interview of the top management and some few middle level employees was undertaken in an effort to get more necessary data relevant for this research.This method is of good advantage in the way that it is easier and clear to get feedback from the questions asked, more elaboration is given by the respondent. b) Questionnaire This is a set of questions properly designed in advance related to the subject of the interview. The questionnaire comprising of precise, short and logically segmental and concise questions calculated to retrieve the appropriate data that enabled the researcher make data based conclusions and recommendations, in reflection of the objective and fulfillment of the general purpose of the study. This method is of a good advantage in the way that:- . 5DATA COLLECTION PROCEDURE The event was carefully scheduled in a way that there was time for interview and for submitting of the questio nnaires to the intended respondents. The questionnaires were then collected after three days after having conducted the interviews. 3. 6DATA ANALYSIS TECHNIQUES Charts i. e pie charts, tables, bar graphs, bar charts were used to analyze the collected data. These illustrations were used to represent and interpret the collected data to meaningful and useful information. More clarification was carried in chapter four of the study. CHAPTER FOUR 4. DATA PRESENTATION AND ANALYSIS This chapter covers various findings collected from the field of study by the use of questionnaires and interview. In the analysis, the study simplifies the raw data collected in relation to the objectives of the study. The data was presented in the use of tables, charts and graphs to interpret the findings. 4. 1FINDINGS The targeted population were issued with questionnaires in various departments and collected as shown below in the table. Table 4. 1. 1 showing respondent rate |Employee |Questionnaires |Question naires ollected |Percentage | | |distributed | | | |Top managers |6 |6 |15% | |Middle level |18 |12 |30% | |Lower level |26 |22 |55% | |TOTAL |40 |40 |100% |The response shows that the company uses more than one leadership style. Some of the manager responded well. Figure 4. 1. 1 showing the employee response KEY: [pic] 4. 2LEADERSHIP STYLES USED IN THE ORGANIZATION The leadership style used based on the various department. The council used a combination of Autocratic and democratic style of leadership. Table 4. 2. 1 showing respondent on leadership styles |Leadership Style |Respondents |Percentage | |Autocratic |1 |2. % | |Participation |5 |12. 5% | |Combination of Autocratic & Participation |20 |50% | |Democratic | | | |Combination of Autocratic and Democratic |6 |15% | | 8 |20% | |TOTAL |40 |100% | Figure 4. 2. 1 showing leadership style in the organization. KEY [pic] In fig. 4. 2. 1, 50% of the respondent pointed out the leadership style used by the manager was a combination of Autocratic and Participation, 20% pointed Autocratic and democratic, 15% pointed participation, 12. 5% pointed Democratic and 2. 5% pointed autocratic leadership style. 4. 3EMPLOYEE PERFORMANCE DETERMINANTS The table below shows response on the determinants of employee performance.Table 4. 3. 1 showing determinant of employee performance |Employee levels |Respondent |Percentage | |Top managers |4 |10% | |Middle level |16 |40% | |Lower level |20 |50% | |TOTAL |40 |100% |Figure 4. 3. 1 showing the level of employees who are motivated. KEY: [pic] From the Pie Chart above the percentages of the respondent was 50% of the lower level employee, 40% from the middle level and 10% from the top management. This shows that most of the employees performed better when motivated financial than the non finance which was from the top senior managers. 4. 4DEMOCRATIC LEADERSHIP STYLE AND GOOD EMPLOYEE PERFORMANCE The table below shows employee response on democratic leadership style and employee perf ormance.Table 4. 4. 1 showing democratic leadership style and good employee performance |Good Employee levels |Respondent |Percentage | |Agree |18 |45% | |Strongly agree |22 |52. 5% | |Disagree |1 |2. % | |Strongly disagree |Nil |0% | |TOTAL |40 |100% | Figure 4. 4. 1 showing democratic leadership style and good employee performance KEY: [pic] From the figures the biggest percentage 52. 2% strongly greeted that democratic leadership style brings about good employee performance in the organization, 45% also agreed and the smallest percentage of 2. % disagreed. 4. 5ADVANTAGES OF DEMOCRATIC LEADERSHIP STYLE AND EMPLOYEE PERFORMANCE Employees are more productive when motivated by their leaders hence democratic style is best. It reduces employees’ conflict and stress caused by dictatorship style of leadership. It builds employee confidence, morale hence perform the best. 4. 6DEMOCRATIC LEADERSHIP STYLE REDUCES EMPLOYEE CONFLICT AT THE WORK PLACE The table below shows the responden t to the democratic leadership style & conflict reduction at the work place. Democratic leadership style reduces |Respondent |Percentage | |employee conflict | | | |Strongly agree |28 |70% | |Agree |10 |25% | |Disagree |1 |2. % | |Strongly disagree |1 |2. 5% | |TOTAL |40 |100% | Table 4. 6. 1 showing respondent to the democratic leadership style. 70% of the respondent pointed out that they strongly agreed on the fact that democratic leadership style reduces employee conflict hence increase productivity. 25% agreed and 2. 5% were not to agreeing to that. CHAPTER FIVE DISCUSSION, CONCLUSION AND RECOMMENDATION . 0DISCUSSIONS This chapter covers the conclusion and recommendations. It also fills the gap in between. From the study it was found that the company used more than one leadership style so that it may fit with their employees. The top managers used such different style to be compatible to their employee as a means of motivation so that they perform better. 5. 1CONCLUSIONS It was conducted that for employees to perform better some rules must be applied that is, good working tools, conducive environment, good employee relations, motivation, training of employee on relevant fields.Most of the respondent from the company pointed out that good leadership style may bring about good employee performance. Apart from that age also matters in the way that middle employee tend to be more active hence perform better than those in mid 50’s and above. 5. 2RECOMMENDATIONS In view of the findings the researcher recommendations were, that the company has to put in place good understanding of employees, on matters affecting them and their work. It was suggested that the management should put in place a good communication channel though which employee shall follow when in problem.The management should encourage employees to work as a team, share tasks to avoid overloading employees, share profit of the company, motivate the employees to even work extra harder in doing their jobs hence increase productivity. It is also very important to consider employees in formulation of policies and procedures of the organization; consult the employee so that they express their views on matters affecting them. It was recommended that employees to be given good working tools, share tasks, ideas and also given an opportunity to acting positions of managers so that they have experience as well as motivating them to perform better.Employees will be more committed if the roles and tasks are well defined to reduce role conflict as who is to do what and where or when at the work place. Doing so shall build the employees morale to work hard and gives them confidence to work towards the set goals an objectives of the organization. 5. 3GAPS TO BE FILLED There was a gap to be filled by other researchers. It was not clear whether the leadership style affected the employee’s performance or there’re were other factors affecting them to perform poorly. REFERENCE S . Armstrong and Baron (1998) Performance Management – The New Realities 2. Brewster Cobbler Holland and Warnich, 2003. Contemporary issues in Human Resource 3. Bartlett and Ghoshal (1995) – Harvard Bus Review 4. Norton (1999) The balanced scorecard: Participant’s Workbook 5. Hellriegel et al (2000) Management Second South Africa Edition 6. Hallaway, Francis Hinton (1999) The International Journal of Public Sector Management 7. Amos et al 2004 Human Resource Management 2nd Edition 8. Cherrington 1994, Baird (1986)Organization Behaviour 9. Foor and Hook (1999) Introduction to Human Resource Management 10. Cummings and Schwab (1973) Performance in Organizations determinants and appraisal 11. Bass 1997; Mullins 1999 Leadership and Performance beyond expectations 12. Brand, et al, (2000) Organizational development and transformation 13. Leadership in Organization by Gary Yuki 14. Supervisory Management by P. W. Betts (Seventh Edition) 15. Study Guide Supervision 8t h edition by John W. Newstorm APPENDICES APPENDIX I WORK PLAN OF THE PROJECT Activity |Schedule | |Proposal writing |October 2011 | |Proposal submission |October 2011 | |Data collection |October 2011 | |Data Analysis & Presentation |November 2011 | |Typing setting, editing and printing |November 2011 | |Submission |December 2011 | APPENDICES APPENDIX II FINANCIAL BUDGET |Item |Quantity |Price (Ksh. ) |Amount | | | | |(Ksh. | |Stationary | | | | |Fullscapes |1 ream |@500/= |500. 00 | |Printing papers |1 ream |@500/= |500. 00 | |Typesetting & Printing |50 pages |@20/= |1,000. 00 | |Photocopy |50 pages |@3/= |150. 00 | |Binding |2 copies |@50/= x2 |100. 0 | |Transport |- |- |800. 00 | |Tools | | | | |Pen |2 pieces |@20/= x 2 |40. 00 | |Pencil |1 piece |@10/= |10. 00 | |Ruler |1 piece |@20/= |20. 00 | |Other expenses |- | |200. 0 | |Total | | |3,320. 00 | ———————– DEMOCRATIC+IMPROVED+FAVOURABLE LEADERSHIPPERFORMANCEEMPLOYEE ST YLEEVALUATION Low structure/ High Structure/ High consideration High consideration Low structure/ High Structure/ Low consideration Low consideration Lower level employee Line manager Middle staff Autocratic & Participation Autocratic & Democratic Participation Democratic Autocratic Lower level employee Middle level Top level Strongly agree Agree Disagree