Influence of transformational leadership on employee’s performance



1.1: Background of the Study

Leadership is the backbone of organization development, because without good leadership, it will be difficult to achieve the organizational goal or even to adapt to the occurring changes, either inside or outside the organization. A leader must be capable of making changes at the organization he leads in order to get a better organizational performance. A leader must be able to create visions, to develop strategies, and to use his power to influence his subordinates as required by the organization. Therefore, an organization needs a leader having such characteristics. One of the leaders having the said characteristics is the transformational leader.

The transformational leadership can be defined as a leadership covering the undertakings for organizational changes. In the views of Pawar and Eastman (1997), a transformational leader establishes a dynamic organizational vision frequently required for creating innovation. Bass and Avolio (1994) state that a leader could transform his subordinates in (four) ways, they are simply “The Four I’s”, namely: Idealized Influence, Inspirational Motivation, Intellectual Stimulation and Individualized Consideration. In line with the demand for a change in an organization, the model of transformational leadership focusing on organizational transformation is believed to play the important role in every organization. The transformational leader can create vision and environment motivating his subordinates to make achievement exceeding their expectation. Under such a circumstance, the subordinates feel to have a trust, admiration, loyalty and respect to their leader, so that they are motivated to do more than what is being expected and finally they feel satisfied.

Transformational leadership helps build the work groups and in the integration of individual goal and that of the groups. Transformational leader has the ability to equalize his future vision with that of his subordinates, and heighten his subordinates’ needs into a level higher than what they need (Hater and Bass, 1988). A vision must be transferred by means of persuasion and inspiration, not by using a decree or force. Such vision must be strengthened by the decisions and actions of the said leader.

Transformational leadership is defined as leaders that transform the value, needs, aspirations, followers’ priorities and also motivate their followers to exceed expectations (Bass et al. 2004).

Transactional leadership and transformational leadership is developed based on Maslow’s opinion on basic human needs. A lower level employee’s needs such as physical needs, safety and affiliation can be fulfilled by practicing transactional leadership. On the other hand, to fulfill a higher level of employee’s needs like dignity and self-actualization is only possible by practicing transformational leadership. Transformational leadership is an ability that is possessed by leaders to influence their subordinates to raise awareness on the importance of work results, prioritizing group significance, and to raise the needs of their subordinates to a higher degree to achieve better quality of life (Yukl 2009).

Performance is defined as the result from a person’s effort which is achieved by the presence of effort, ability and task perception (Bryman 2012). Effort is the result of motivation, satisfaction, and organisational commitment that shows the amount of energy (physical and mental) used by an individual in initiating a task. While effort is an individual’s characteristics in doing a task, an effort is usually not directly influenced on short-term period. Task perception are pointers or clues in which individuals believe that they can materialize their efforts into their jobs. According to (Robbins 2003) employee performances are notes of achievements which resulted from a certain task in a certain period of time. In addition, a manager’s performance can be seen from output, product quality, productivity, cost management, safety and health, employees’ relationship and development (Armstrong 2003).

1.2: Statement of Problem

But just like other developing countries, farming has become more and more complex and demands intellectuals from time to time. For the sake of rice milling business’ progress, rice milling industries in Ebonyi state needs a good understanding of motivation, behavior, and performance that urges continuous example to deliver organization performance.

One of the key elements to sustain effective performance is leadership quality. Sparrow et al. (2000) noted that there are still large numbers of managers in shipping companies that are still largely practicing authoritative style of leadership that holds the responsibility to raise the social status, involvement, motivation and private loyalty of employees to their manager.

Based on that issue, it can be concluded that this research aims to analyze the influence of transformational leadership on employee performance.

1.3: Objectives of the Study

The major objective of this study is to investigate the influence of transformational leadership on employee’s performance. Specifically, this study attempts to accomplish the following objectives:

1: to determine the relationship between transformational leadership and employee performance in Abakaliki Rice Mill.

2: to determine the impact of transformational leadership on employee performance in Abakaliki Rice Mill.

1.4: Research Questions

In order to achieve the aforementioned objectives, this study aims to answer the following research questions:

1) What is the relationship between Transformational Leadership and Team Performance in Abakaliki Rice Mill?

2) What are the impacts of transformational leadership on employee performance in Abakaliki Rice Mill?

1.5: Research Hypothesis

Hypothesis 1

H0: Transformational leadership has a negative significant influence on employees’ performance in Abakaliki rice mill.

H1: Transformational leadership has a positive significant influence on employees’ performance in Abakaliki rice mill.

Hypothesis 2

H0: there is no significant impact of transformational leadership on employee’s performance in Abakaliki rice mill.

H1: there is a significant impact between transformational leadership and employee’s performance in Abakaliki rice mill.

1.6: Significance of the Study

This project work is a very important study as it provides insight into the influence of transformational leadership on employees’ performance. It provides information on transformational leadership and their implications to the policy makers, employees and the other stakeholders of rice milling industry in Abakaliki. To also ascertain the truthfulness weather transformational leadership impacts negatively or positively on employees’ performance and proffer solutions and recommendations for right policy formulations in solving leadership problems. This study will also serve as a reference research work for the society’s further studies.

1.7: Scope of the Study

This research is expected to focus on the influence of transformational leadership on employees’ performance in Abakaliki rice milling industry.

1.8: Limitations of the Study     

This study is limited to one academic year and also limited as a result of insufficient information and data. This study is also limited by time considering that the researcher had to attend to other aspects of her study other than the research work since both the research work and academic studies have to be done at the same time.

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