CHAPTER ONE

1.1 INTRODUCTION

GENERAL IDEA OF LEADERSHIP

Leadership is a process in which a leader attempts to influence his or her

followers to establish and accomplish a goal or goals.

LEADERSHIP

The capacity to lead others: command lead.

An act or instance of guiding: direction guidance lead management. See

affect/ineffectiveness.

Leadership is the process through which an individual tries to influence another

individual or a group of individuals to accomplish a goal. Leadership is valued

in our culture especially when it helps to achieve goals that are beneficial to the

population such as the enactment of effective preventive health policies. An

individual with leadership qualities can also improve an organization and the

individuals in it whether it be a teacher who works to get better teaching

materials and after school programs or an employee who develops new ideas

and products and influences others to invest in them.

Leadership can be exhibited in a variety of ways and circumstances. Mothers

and fathers show leadership in raising their children with good values and

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encouraging them to develop to their potential. Teachers show it in inspiring

students to learn and to develop their intellectual capacity. Health care workers

can be leaders and develop services that meet the needs of the communities they

serve or work in collaboration with other organizations to create cost

effective prevention oriented programs and services.

Many studies have been done and many books and articles have been published

on this subject. Through this work a consistent set of leadership attributes has

emerged. An effective leader does most if not all of the following:

Challenge the Process—search out challenging opportunities take risks and

learn from mistakes.

Inspire others to come together and agree on a future direction or goal— create

a shared vision by thinking about the future having a strong positive vision and

encouraging others to participate.

Help others to act—help others to work together to cooperate and collaborate

by developing shared goals and building trust and help to make others stronger

by encouraging them to develop their skills and talents.

Set an example—behave in ways that are consistent with professed values and

help others to achieve small gains that keep them motivated especially when a

goal will not be achieved quickly.

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Encourage others—recognize each individual's contributions to the success of a

project.

Another way of defining leadership is to acknowledge what people value in

individuals that are recognized as leaders. Most people can think of individuals

they consider being leaders. Research conducted in the 1980s by James Kouzes

and Barry Posner found that a majority of people admire and willingly follow

people who are honest forward looking inspiring and competent

An individual who would like to develop leadership skills can profit from the

knowledge that leadership is not just a set of exceptional skills and attributes

possessed by only a few very special people. Rather leadership is a process and

a set of skills that can be learned.

The word leadership can refer to: the process of leading. Those entities that

perform one or more acts of leading.

Kouzes (2002) states that "Leadership is not a place it‘s not a positionand it‘s

not a secret code that can‘t be deciphered by ordinary people. Leadership is an

observable set of skills and abilities. Of course some people are better at it than

others."

In general terms leadership can be defined as the ability to influence the

behaviour of others.

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This definition can be expanded when considering leadership in organizations to

include the fact that the leader exerts influence within a working group in order

that the group may achieve group tasks or objectives. (T .Lucy 1997) leadership

is an everyday art involving the skill of leading and dealing with people. The

success in ruling new dominions is contingent upon both his ability to wield

power effectively and the existence of an opportunistic situation. Problems

which result within organizational members disagree on both the natures of the

goals of which people disagree on both the natures of the goals of which people

aspire and the act of leadership. Leadership as we use the term refers to

behaviour undertaken within the context of an organisational members behave.

It could be observed that leadership and management envisages deeply into

what the organization can achieve if the quality of recognition is accorded to

them. Leadership has been propounded to include the sources of influence that

are built into a position in an organizational hierarchy.

These include organizationally sanctioned rewards and punishments authority

as well as referent and expert power katz and kahn 1966 p.32. It could be seen

however that subordinates within the organization through not all seem to

enjoy the influence that exists all over and above the organization.

Leadership is very essential organization and greatly influences the whole

organization because achievements and results occur corollary to the traits being

projected by the leader. Leadership includes the ultimate source of power but

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has that positive ability in persuading other individuals and to be innovative in

decision making. According to Bennis and Nanus many organizations are over

managed and under led. The difference is crucial managed are people who do

things right but leaders are people who do the right things always.

Problems are bound to occur within every noted organisation and decision

making is bound to generate conflicts while initiating policies.

People are expected to coordinate. Whatever they are doing to achieve

organizational goals. In this light the notion of leadership act are those which

help a grouping meeting those stated objectives (Bavelas 1960:p491).in general

terms the acts of controlling other people consists uncertainty reduction which

entails making the kind of choice that permits the organization to proceed

towards its objective despite various kinds of internal and external variables.

The effectiveness of leadership has some characteristics which include forceful

threats a complete assertion of authority to the subordinates and a derived and

situational responsibility.

Note that in the society today not only the presence of rewards (positive and

negative) or the incentive appraisal could induce productivity but the feeling of

belongingness.

Improper leadership qualities within the organization have a negative impact on

the subordinates as well as the achievement of the organizational objective. An

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organization that has growth and forward looking has a good leadership and vis

a vis a bad or deteriorating organization has a bad leadership.

Leadership is always related to the situation. There is a growing awareness that

is a continuous interaction between the factors presents in any given situation

including for example the personal characteristics of the leader the tasks the

environment the technology the attitudes motivation and behaviour of the

followers and so on.

1.2 BRIEF HISTORY OF SIAMOND BANK PLC

Diamond Bank Plc began as a private limited liability company on March 21

1991 (the company was incorporated on December 20 1990). Ten years later

in February 2001 it became a universal bank. In January 2005 following a

highly successful Private Placement share offer which substantially raised the

Bank's equity base Diamond Bank became a public limited company. In May

2005 the Bank was listed on The Nigerian Stock Exchange. Moreover in

January 2008 Diamond Bank's Global Depositary Receipts (GDR) was listed

on the Professional Securities Market of the London Stock Exchange. The first

bank in Africa to record that feat.

Today Diamond Bank is one of the leading banks in Nigeria respected for its

excellent service delivery driven by innovation and operating on the most

advanced banking technology platform in the market. Diamond Bank has over

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the years leveraged on its underlying resilience to grow its asset base and to

successfully retain its key business relationships. And like a diamond our

strength makes us even more valued and valuable. Diamond Bank has won

several awards including the prestigious "Most Improved Bank of the Year"-

Thisday Newspapers "Best Bank in Mergers & Acquisition".

We have retained excellent banking relationships with a number of well-known

international banks allowing us to provide a bouquet of world class banking

services to suit the business needs of our clients. These international banking

partners include Citibank; HSBC Bank; ANZ Banking Group; ING BHF Bank

AG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank;

Commerzbank; and Nordea Bank Plc.

In 2008 and to ensure we grow with the needs of our customers we streamlined

our operations into three distinct strategic business segments: Retail banking

Corporate Banking and Public sector.

Diamond Bank continues to develop and to build on its core competencies. By

continually cutting from the rough we have improved our services and our

banking facilities. Like cutting from a rough gem to create a diamond of the

finest quality we are proud to have become a gem of a bank.

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1.3 STATEMENT OF THE PROBLEM AND SUB PROBLEM

The design of the investigation is to elicit the effect of the different leadership

styles in finance oriented and services oriented organization in order to

determine its distinct impact on the organizational behaviour of management

and employees in the case organization.

SUB PROBLEM I: The purpose of the study is to evaluate the factors of

leadership (the traits: intelligence initiative imagination communication the

skills analytical diagnostic conceptual the status recognition and the

situation) culture in the case organisation with the view to calculate their

contribution in attaining organisational objective. (Contribution to efficiency

and growth in profit).

SUB PROBLEM II: The object on the inquiry is to ascertain the most

favourable leadership style amongst autocratic democratic paternalistic and

laissez faire used in the case organisation to determine its influence on

management and employees.

SUB PROBLEM III: The intention of the investigation is to compare the

relationship (positive or negative) between leadership and organisational

behaviour in the finance and service oriented organisation to identify the effect

on work performance.

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SUB PROBLEM IV: The purpose of the study is to correlate the leadership

style to organisational behaviour of management and employees in DIAMOND

BANK to decide the trend and influence of leadership style on the

organisational behaviour of management and employees.

1.4 RESEARCH PROBLEM ORIENTED HYPOTHESIS

In aiming to go on with the stated problem of study the following research

problem oriented hypotheses are revealed.

HYPOTHSIS I: Leadership style that display intelligence initiative and

communication traits analytical diagnostic and conceptual skills recognition

and situation contributes certainly to attaining organisational efficiency and

growth in point.

HYPOTHESIS II: The leadership style that has no monopoly of authority

improves interpersonal relationship that employee oriented determines positive

reaction in form of contribution to decision making punctuality and work to

achieve company goals.

HYPOTHSIS III: Positive relationship between leadership and organisational

behaviour in the case of organisation will increase the work performance.

HYPOTHESIS IV: Positive correlation between the leadership style and

organisational behaviour in and DIAMOND BANK will lead to increase

performance to achieve organisational objectives and goals.

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1.5 OBJECTIVE OF THE STUDY

Research is basically aimed at determining ones view of related studies at every

time.

In the course of studying the aforementioned subject on the leadership style: one

will be able to determine those areas where the different types of leadership

styles have contributed immensely to organisation goals.

For the purpose of this study the behaviour of the management and employees

can be viewed as endogenous as well as exogenous. The researcher will

therefore proceed to express and state those objectives which the study is

expected to accomplish. They are as follows:

a. The value of the different factor of leadership (the leaders traits skills

and subordinates reaction status recognition and the prevailing situation)

in finance oriented as well as service oriented organisation.

b. To critically evaluate the nature of leadership in affecting work

performance

c. To determine the effect of leadership style and their basic relationship

with organisational behaviour

d. To highlight the adoption of any best leadership style that will suit the

organisation for effective productivity

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e. To inquire the extent leadership has been affecting decision making and

organisational effectiveness

f. To appraise any possible relationship and comparison on the effect of

leadership styles on organisational behaviour

Furthermore the research will assist future researchers in finding possible

solutions to the best leadership style after monitoring organisational behaviour

found in management and employees in different organisation.

1.6 SIGNIFICANCE OF THE STUDY

The significance of this study is basically a definite scope which will help elicit

all the problems and effect of different leadership styles. Also it will assist in

highlighting how management and employees react under stereotyped

condition.

In addition all the aforementioned and determined effects problems and

solutions will be critically viewed to serve as possible recommendations to

today‘s manager who may be willing to employ a particular leadership style. It

will forestall a better situation for the leader to select best type of leadership

system.

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1.7 LIMITATIONS OF THE STUDY

In pursing this investigation and study lots of impediments and obstruction

were encountered as the research progressed. All these impediments brought

about a conspicuous clause with the research work. They include lack of

relevant data due to poor respondent time constraint and financial conditions.

Lack of relevant data: The design of the study was negatively affected by the

nature of respondent which was projected by the workers within the case

organisation. The non challant attitude of most employees approached sample

of the studying population was discouraging relevant information needed for

the research was not made available easily to the researcher while the available

information were censored before being allowed to be used.

A. TIME CONSTRAINT: Time was also limited to the researcher in

carrying out the study effectively and efficiently. Time constraint was

experienced under dual stages. One was with the sample under population

study. They either schedule appointment that they cannot meet up with or

complain of limited time within their work though they are willing to

respond.

In addition the other was with the researcher. The research is being

carried out within limited semester time table which include the

understudy of other aspect of the course being read. This created a

situation of not rescheduling meetings for more comprehensive

interviews as may have been required.

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B. FINANCIAL CONDITION: Financial condition prevailing within the

economic system was a serious impediment. This includes transportation

fare to and from school to the case organisations. Also that of extracting

the essential information either through printing or photocopying of

relevant materials. Finance thus contributed immensely to limit the entire

scope of the research.

Although all these obstructions were envisaged and experienced efforts

were made to carry on with the research to achieve the expected and

desired result.

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