Effect of Leadership Styles on Organizational Performance in Selected Microfinance Banks in Makurdi Metropolis, Benue State, Nigeria
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Abstract
This study examined the effect of leadership styles on organizational performance in selected Microfinance Banks in Makurdi Metropolis, Benue State, Nigeria. The study utilized the survey research design using structured questionnaire to collate primary data from managers and employees of the selected Microfinance Banks in Makurdi Metropolis, Benue State Nigeria. The population is made up of fifty (50) respondents from the study area. Multistage sampling was used select the sector and the corresponding respondents for the study. The multiple linear regression analysis was used to examine the extent of the effect of leadership styles on the performance of the selected Microfinance in the study area. The results of the study indicates that democratic leadership style (DEMO) has a positive effect on performance of selected Microfinance Banks in Makurdi Metropolis, Benue State, Nigeria (PFMF) and the effect is statistically significant (p<0.05) and in line with a priori expectation. This implies that a unit increase in democratic leadership style (DEMO) will lead to a corresponding increase in performance of selected Microfinance Banks in the study area by a margin of forty (40) percent. Autocratic leadership style (AUTO) had a positive effect on performance of selected Microfinance Banks in Makurdi Metropolis, Benue State, Nigeria (PFMF) and the effect is statistically significant (p<0.05) and in line with a priori expectation. This means that a unit increases in Autocratic leadership style (AUTO) will lead to a corresponding increase in organizational performance by 39.0 percent. A negative effect exists between Laissez faire leadership style (LIAZ) has a negative effect on performance of selected Microfinance Banks in Makurdi Metropolis, Benue State, Nigeria (PFMF) and the effect is statistically significant (p<0.05) and not in line with a priori expectation. This means that a unit increases in Laissez-faire leadership style (LIAZ) will result to a corresponding decrease in performance of selected Microfinance Banks in Makurdi Metropolis, Benue State, Nigeria (PFMF) by a margin of 38.2 percent. It was concluded that the study concludes that democratic leadership style and a mix of autocratic leadership style in a short term are more appropriate in inducing the effectiveness of employees and thus improving the performance of Microfinance Banks in the study area. It was recommended among others that given the widely documented ineffectiveness of laissez-faire leadership styles and the results of this study, it is recommended that managers should discard this leadership style so as to improve organizational performance.
Keywords
Democratic, Autocratic, Laissez-faire, Performance, Microfinance, Benue, Nigeria.
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