Hiring the right person in the automotive field isn’t easy. Vehicle makers often spend months trying to fill roles like plant managers, operations leads, or senior engineers. In many cases, HR teams face a shortage of skilled candidates, long hiring cycles, and poor fit after onboarding. These delays slow production, increase turnover, and cause frustration across departments.
But there’s a better way. By working with experienced automotive executive search consultants, companies can reduce hiring time and find high-performing leaders. These experts know the auto sector inside out. They understand the demands of OEMs, Tier 1 suppliers, EV startups, and even traditional manufacturers. This article explains how these consultants help streamline recruitment in the automotive industry and why many top manufacturers now rely on their services.
Why the Automotive Sector Requires Specialized Talent
The automotive world is changing fast. From electric vehicles to AI-powered assembly lines, today’s production plants need leaders who are flexible and technical. According to a recent McKinsey report, the global auto industry is undergoing a transformation that could shift 45% of labor needs in just a few years.
Recruiting for such a sector isn’t like hiring for general office jobs. Leadership roles demand both engineering knowledge and hands-on experience in lean manufacturing, supply chain optimization, or Six Sigma processes. That’s why a general recruiter may struggle to identify the right candidate—especially when time is limited and the cost of delay is high.
What Makes Automotive Executive Search Consultants Different?
Unlike regular recruitment firms, automotive executive search consultants specialize in senior roles in manufacturing, engineering, logistics, and operations. They’re not just posting jobs online—they’re reaching out to people who are already performing well in competing firms.
They have access to:
Passive talent networks (people not actively job-hunting)
Industry-specific benchmarks
Up-to-date hiring trends
Leadership assessment tools tailored to automotive roles
This niche knowledge lets them act quickly and place candidates who are more likely to succeed and stay long-term.
Benefits of Working with an Automotive Industry Executive Search Partner
1. Faster Hiring Cycles
Internal teams often take 3–6 months to fill executive roles. With external support, that timeline can be cut in half. Consultants bring ready-to-interview candidates to the table and handle the early screening process, saving weeks of effort.
2. Access to Proven Leaders
Recruiters working in the automotive industry executive search often have past placements in top OEMs and suppliers. They know who’s moving, who’s retiring, and who’s open to offers. This insider knowledge can lead to faster placement and better matches.
3. Lower Turnover Risk
Candidates sourced through expert consultants tend to stay longer because they’re matched not only by skill but also by company culture. These professionals assess personality fit, values, and leadership styles to reduce future hiring mistakes.
4. Market Intelligence
Beyond finding candidates, these consultants offer market salary insights, competitor hiring trends, and recommendations for job descriptions that attract top-level talent.
Key Roles Commonly Filled in Automotive Executive Search
Here are some of the common high-impact roles often filled with the help of search consultants:
Plant General Manager
VP of Operations
Supply Chain Director
Head of Quality Control
Chief Engineer – Powertrain or EV
Director of Automation or Manufacturing Systems
Whether it’s a mid-sized factory or a global EV brand, these positions can’t be left vacant for long. Each one plays a key role in keeping the business running.
Case Study: How Executive Search Reduced Hiring Time by 50%
A Mexico-based vehicle parts manufacturer was looking to expand operations into northern states. The company needed a bilingual operations director with experience in lean manufacturing and regional vendor relations. After three months of no success through internal HR, they hired an automotive executive search consultant.
Within 30 days, the consultant delivered a shortlist of four qualified candidates. The final hire joined within 60 days—cutting the original time-to-hire estimate in half. Within a year, plant output had increased by 27% under the new leadership.
What to Expect When Partnering with a Consultant
If you’re considering working with a professional recruiter for senior roles, here’s how the process usually goes:
Discovery Call: Understand company needs, culture, and role requirements.
Candidate Mapping: Identify a pool of matching professionals across regions.
Outreach and Screening: Engage, interview, and assess shortlisted candidates.
Client Interviews: Only the top 3–5 profiles are forwarded for consideration.
Offer Management: Help close the offer and ensure a smooth onboarding.
Some firms also offer a 90-day or 6-month follow-up to check placement success.
How Automotive Executive Search Consultants Support Expansion
As more car manufacturers shift operations to Mexico or scale EV production lines, they need leadership that understands automation, logistics, and local labor laws. Consultants bring value here by connecting clients with bilingual managers, engineers with regional knowledge, or leaders familiar with cross-border operations.
Companies entering new markets can’t afford hiring delays or poor matches. That’s why tapping into automotive industry executive search firms gives them an edge from day one.
Choosing the Right Search Firm
If you’re in HR or lead operations, here’s what to look for when choosing a consultant:
Automotive experience: Ask about past clients and placements in your industry.
Speed and process clarity: How long does it take to deliver candidates?
Replacement guarantee: Will they help find a replacement if the candidate exits?
Regional reach: Especially important for cross-border hiring in North America.
Not all executive recruiters are equal. Go for those with deep roots in automotive.
Final Thoughts
Automotive companies face fierce pressure to improve operations, expand into new markets, and reduce time-to-hire for mission-critical roles. Working with automotive executive search consultants gives manufacturers access to pre-vetted talent that can make an impact from day one. From managing EV production lines to leading supplier networks, the right leadership makes all the difference.
So, if your internal team is struggling to find the right people, it might be time to rely on experts in the automotive industry executive search. With their support, your next top hire may be closer than you think.
FAQs
1. What does an automotive executive search consultant do?
They help vehicle manufacturers find top-level talent for senior roles like plant managers, engineers, and supply chain leads.
2. Why do automotive companies prefer using executive search firms?
They reduce hiring time, improve candidate quality, and offer access to passive talent not found through job ads.
3. How long does it take to hire with an executive search partner?
Most consultants can present qualified candidates within 2–4 weeks, much faster than internal teams.
4. Is executive search only for large automotive manufacturers?
No, mid-size and growing companies also benefit from specialized hiring support, especially in competitive regions.
5. How do I choose the right automotive executive search firm?
Look for firms with proven placements in the auto sector, fast delivery timelines, and regional experience.
Behind every successful business is not just a great product or service, but a great team. For John Giardino of Massapequa, leadership is less about telling people what to do and more about creating an environment where teams thrive. His philosophy is simple: when you build strong teams, you build strong businesses.
Giardino’s leadership approach begins with hiring and developing the best. In his view, businesses grow only as fast as their people grow. He looks for talent not just with skill, but with drive, accountability, and a hunger to improve.
“Hiring the right person is only half the battle,” Giardino explains. “The real work is helping them develop, giving them challenges, and showing them they have a future in the company.”
Peer Reviewing and the Buddy System
One of Giardino’s unique principles is the use of peer reviewing and buddy systems. By pairing team members together, he ensures accountability, faster learning, and better results.
“When two people work in tandem, the quality is five times higher,” says John Giardino. “Peer accountability isn’t about criticism — it’s about raising each other’s standards.”
This system creates a culture where no one operates in isolation. Everyone is part of a feedback loop designed to improve performance and outcomes.
Small, Self-Contained Teams
Giardino also believes in small, self-contained teams — units that have everything they need to succeed without waiting on outside resources. This setup creates speed, agility, and ownership within each group.
“Smaller teams move faster,” Giardino explains. “They communicate better, they hold each other accountable, and they execute without layers of bureaucracy.”
Courageous Conversations
Another cornerstone of Giardino’s leadership is the commitment to courageous conversations. He believes the best teams don’t avoid difficult discussions — they face them with respect.
“Strong teams don’t hide from conflict,” says John Giardino of Massapequa. “They embrace it, challenge ideas, and then align around the best solution. Respectful disagreement is how you get to the truth.”
This principle ensures that innovation and improvement are constant. Teams are encouraged to speak up, question assumptions, and refine ideas together.
Respect and Integrity as Non-Negotiables
For Giardino, a winning team culture must be grounded in respect and integrity. He insists that businesses cannot sacrifice ethics or dignity — not even 1%. This creates trust, both internally among team members and externally with customers.
“When people feel respected and know integrity is non-negotiable, they give their best,” says Giardino. “That’s the foundation of loyalty and high performance.”
Why Teams Win More Than Individuals
While some businesses are built around individual leaders, Giardino’s philosophy is that teams create lasting success. Individuals may win occasionally, but only well-built teams win consistently.
For small businesses in particular, the strength of the team often determines whether the company can grow, scale, and compete with larger players. This is why Giardino prioritizes systems, culture, and structures that make teamwork the default mode of operation.
A Massapequa Leader With a People-First Mindset
Though his leadership journey has extended beyond his hometown, John Giardino of Massapequa remains rooted in the belief that business is ultimately about people. His focus on building teams, fostering respect, and creating accountability reflects both his personal values and his business philosophy.
Conclusion
For John Giardino, building winning teams is not a slogan — it’s the core of his leadership. By hiring and developing the best, creating buddy systems, empowering small self-contained teams, and encouraging courageous conversations, he builds cultures where people perform at their highest potential.
The result is simple but powerful: when teams win, businesses win. And for Giardino, that principle is as true in Massapequa as it is in any market around the world.
A critical juncture in many industries, particularly those operating 24/7 or with complex processes is the shift handover. This seemingly routine transfer of responsibility from one team or individual to the next holds immense power – it can either reinforce a robust safety culture or introduce vulnerabilities that lead to incidents, errors, or even tragedies. In an increasingly interconnected and data-driven world, the traditional, often informal, shift handover software is no longer sufficient. Building a true culture of safety demands a smarter, more systematic approach, with technology playing a pivotal role in ensuring seamless, accurate, and comprehensive communication.
For decades, shift handovers have often relied on verbal communication, handwritten notes, and personal memory. While these methods can work in simple scenarios, they are inherently prone to significant risks in complex environments:
Information Gaps and Omissions
Verbal handovers are susceptible to critical information being forgotten, misunderstood, or simply not communicated. A hurried exchange can miss crucial details about equipment status, pending tasks, or emerging risks.
Ambiguity and Misinterpretation
Without standardized procedures or clear documentation, verbal instructions can be interpreted differently by the incoming team. This ambiguity can lead to incorrect actions, delays, or a failure to address pressing issues.
Lack of Accountability
When information is not formally documented, it becomes difficult to track who communicated what, and when. This lack of a clear audit trail can hinder investigations into incidents and make it challenging to assign responsibility or identify systemic weaknesses.
Fatigue and Distraction
Both outgoing and incoming shifts may be experiencing fatigue, especially during long shifts or at odd hours. This can impair their ability to effectively communicate or absorb critical information, leading to errors.
Inconsistent Practices
Without a standardized approach, each shift may develop its own informal handover rituals. This inconsistency can breed confusion and create disparities in the level of detail or attention given to critical safety information.
The Imperative of a Culture of Safety
A “culture of safety” is more than just a set of rules; it’s a shared commitment within an organization where safety is a core value, guiding every decision and action. In such a culture, employees feel empowered to speak up about concerns, learn from mistakes, and proactively identify and mitigate risks. Smart shift handover is not merely a procedural improvement; it is a fundamental pillar in establishing and sustaining this culture.
Elements of Smart Shift Handover
Transforming the shift handover from a potential weak link into a strength requires a multi-faceted approach, integrating technology, standardized processes, and a commitment to continuous improvement.
The Competitive Advantage of Safety Culture
Beyond the ethical imperative, building a strong culture of safety through smart shift handover offers tangible competitive advantages:
Reduced Incidents and Accidents: Fewer safety incidents lead to lower costs associated with repairs, downtime, insurance claims, and legal fees.
Enhanced Employee Morale and Retention: Employees feel safer, more valued, and more confident in their roles when clear communication and safety are prioritized.
Regulatory Compliance: Adherence to robust safety protocols often aligns with regulatory requirements, reducing the risk of fines and penalties.
Conclusion
The shift handover, often overlooked, is a linchpin in operational safety. By moving beyond traditional, error-prone methods and embracing smart shift handover strategies, organizations can fundamentally strengthen their culture of safety. This involves leveraging digital platforms for standardization, prioritizing comprehensive yet concise communication, fostering interactive collaboration, investing in thorough training, and committing to continuous improvement through robust feedback loops. The investment in smart shift handover is not just about preventing incidents; it’s about building a more resilient, efficient, and ultimately, more successful organization that prioritizes the well-being of its people and the integrity of its operations.
Emmanuella, O., OGUNRO, V. O., OLADIMEJI, S. B., IBOSIOLA, J. O., & ABUBAKAR, Y. S. (2026). Strategic Decision-Making Practices and Organizational Performance of Selected Pharmaceutical Firms in Owo, Ondo State. International Journal of Research, 12(4), 877–907. https://doi.org/10.26643/ijr/2026/22
The study investigates the relationship between strategic decision-making practuces and organizational performance of selected pharmaceutical firms in Owo, Ondo state. Intuition Strategic Decision-Making (ISDM), Rational Strategic Decision-Making (RSDM) and Participatory Strategic Decision-Making (PSDM) were used as proxy for measuring strategic decision-making practices while organizational performance was measured using productivity (PRD). Using the sample size of 94, 120 questionnaire were administered to staff of selected pharmaceutical firms in Owo and 116 was retrieved for analysis. Descriptive survey design was adopted. Descriptive statistics, correlation and multiple regression alongside ANOVA were carried for data analysis using SPSS (26). The findings revealed that intuition strategic decision-making (ISDM) and participatory strategic decision-making (PSDM) were positively and significantly related with organizational performance while rational strategic decision-making (RSDM) was positively and insignificantly related with organizational performance during the study under review. In concluaion, the study revealed that strategic decision-making practices is positively and significantly related with organizational performance. Furthermore, it indicates that strategic managers or decision makers worked with these practices in determining and providing solutions of treating issues that they may or have encounter by adopting these practices in actualizing their aims and objectives during the study under review. It was recommended that, firms should encourage the use of these SDM practices such as intuition strategic decision-making, rational strategic decision-making and participatory strategic decision making as it enhances performance of both the employees and organization.
Organizations do consider how strategic decisions are made and not only how it affects their activities and relationship with the environment though it differs between cultures as the implications and degree varies (Abubakar et al., 2019). The modern top managers’ responsibilities go beyond supervising internal activities which includes different tasks and the external environment where the business operates (George et al., 2019). Management do design procedures for strategic management to address factors that may influence an organizations’ ability to prosper and grow thereby achieving optimal positions (Anwar & Abdullah, 2021). According to Asikhia and Mba (2021) a good decision-maker chooses actions that might give best outcome after researching on the alternatives and consequences. Strategic decision-making is an important area in organization as it clearly shows the responsibility of the top management level. For enhanced organizational performance, quality decisions, team member participation, consensus are necessary (Yılmaz & Ameen, 2022).
The growth, productiveness and successes of any entrepreneurial firms or business organization in this contemporary period in the history of business wellness and stability depends mostly on effective strategic decision-making practices among decision makers in an organization (Eromafunu et al., 2022). Moreso, in todays’ competitive and dynamic business world, strategic decision-making is vital for organizations to lead or stay ahead and it strategic decision-making do encourages continual progress and organizational culture in terms of innovation. Thereby, managers may be able to identify areas that needs improvement and take advantage on new ideas by continuous testing or research and reassessing such ideas or strategies which will eventually lead to long-term success and growth (Gagan, 2023).
1.1 Statement of the Problem
Aladesoun et al. (2020) assert that in both private and public decision-making contexts, it is recognized that decisions yielding positive outcomes may also entail negative repercussions. A common challenge in decision-making processes, whether within organizations or under government oversight, is the potential for interference from organizational owners or the current administration. In certain organizations, governmental intervention presents a significant obstacle to effective decision-making, either through direct involvement in organizational operations or by influencing policy formulation that directly or indirectly impacts organizational functioning. Despite the persistent presence of such challenges, which range from management’s inability to make sound decisions to deficiencies in manpower and communication channels necessary for implementing decisions effectively, there remains a prevailing understanding of the importance of decision-making as a fundamental tool within every organization ((Malecka 2020).
The majority of management research tends to concentrate on decision-making within risky environments due to the feasibility of modeling and experimenting with expected utility maximization such as (Malel & Kemboi, 2019; Malecka 2020; Yilmaz & Ameen, 2022; Muzanenhamo & Chikosha, 2022). Academic scholars and practitioners emphasize the significance of strategic decision-making practices in evaluating organizational performance across various dimensions such as innovation, entrepreneurship, technology, knowledge, economics, healthcare, and overall organizational performance such as Ewah 2018; Sev et al. 2018; Alosani et al. 2020; Asikhia and Mba 2021; Al-Hashimi et al. 2021; Nauhaus et al. 2021; Sinnaiah et al. 2023 and revealed how strategic decision-making impacts on organizational performance.
Put differently, prior investigations into the characteristics or factors influencing the effectiveness of strategic decision-making have not produced widely applicable results or conclusions. Consequently, further empirical research is needed to ascertain which practices, characteristics or factors contribute to strategic decision-making effectiveness within organizations before definitive assertions can be made and this study aims to address this gap. Thus, the study investigated the relationship between strategic decision-making practices and organizational performance of selected pharmaceutical firms in Owo, Ondo state.
1.2 Research Questions
The under-listed research questions have been highlighted for this study:
i. Does intuition strategic decision-making influence organizational performance of pharmaceutical firms in Owo, Ondo State?
ii. To what extent has rational strategic decision-making impacted on organizational performance of selected pharmaceutical firms in Owo, Ondo state?
iii. Does participatory strategic decision-making influence organizational performance of selected pharmaceutical firms in Owo, Ondo state?
1.3 Research Objectives
This study seeks to:
i. Examine the influence of intuition strategic decision-making on organizational performance of selected pharmaceutical firms in Owo, Ondo state.
ii. ascertain to what extent rational strategic decision-making impacts on organizational performance of selected pharmaceutical firms in Owo, Ondo state.
iii. determine the influence of participatory strategic decision-making on organizational performance of selected pharmaceutical firms in Owo, Ondo state.
1.4 Scope of the Study
The study investigates the relationship between SDM practices and organizational performance using intuition strategic decision-making, rational strategic decision-making and participatory strategic decision-making in measuring SDM practices (independent variable) while productivity was used in measuring organizational performance (dependent variable). Descriptive research design was adopted using primary source of data with a sample size of 94 (ninety-four) which was done using stratified probability sampling technique of staff in selected pharmaceutical firms in Owo, Ondo state. Multiple regression analysis was carried out alongside ANOVA using SPSS version 26. The timeframe for this study was within the month of September, 2023 to February, 2024.
2.0 Literature Review
2.1 Organizational Performance
The main goal of any business is to make profit and to achieve this, organizations would put in place methods in attaining it and what drives organizations’ failure or success has been a vital subject in business which has led to investigating determinants of organizational performance (Taofeeq et al., 2019). Organizational performance has engaged the focus of many researches as performance most times are measured in monetary terms using indicators such as sales turnover, profitability. Though the interest in the research of performance is due to the fact it is the major primary objective of every business and the survival of the business depends solely on how profitable the outcome of the organization is (Orishede, 2020).
It also refers to as the capacity of a firm to realize set objectives thereby the organization achieve its goals through effective and efficient utilization of its resources and it can be reflected due to the results of the organizations’ common objectives and the method used or implemented are consistently used (Tsai et al., 2020; Sarraf & Nejad, 2020). According to Al-Hashimi et al. (2021) it can be defined as an analysis of an organizational performance as compared to its objectives and goals and it is measured in both financial and non-financial terms (Camilleri, 2021; Sinnaiah et al., 2023). Though there are different factors that can be related with organizational performance such as conflict, social influences, cross-cultural and organizational structures (Madume et al., 2024). For this study productivity will be use as proxy for organizational performance.
2.1.1 Productivity
Aladesoun et al. (2020) stated that performance of a business which determines its continued existence and development is largely dependent on the degree of productivity of its workers. Productivity is a total measure of the efficiency or capacity to transform inputs that is raw materials into finished products or services. Also, productivity is a measure that shows how well essential resources are used to achieve specified objectives in terms of quality and quantity within a given period of time. It is suitable when measuring the actual output produced compared to the input of resources, taking time into consideration (Omenazu, 2022).
2.2 Strategic Decision Making
The goal of strategic decision-making is to maximize an organizations long-term success by planning for the future (George et al., 2019). Making decisions that are important in terms of precedents created, actions performed or resources committed, strategic decision-making is a specific sort of decision-making and there is a difference between strategic decisions and tactical and operational ones (Abdullah & Othman, 2019). An important aspect of SDM is to assess the strength of organizational capacity is to maintain its position as regards changing environment as well as making daily choices and deal with issues (Adigbole et al., 2019; Ur Rehman et al., 2019). It is a systematic and logical move by top managers in choosing best approach to success in line with organizations’ long-term goals and expectations (Harappa, 2020; Aladesoun et al., 2020). It is often a non-routine and very important to organizations where top management usually plays important role which consists of competitive approaches and moves they developed to attracts customers (Osazevbaru, 2021).
According to Eromafunu et al. (2022) SDM has over-time surfaced as one of the main active phases of recent business researchers and management. Among different forms of decision- making facets, strategic decisions are very vital decisions and they play ilk central roles in any organization. SDM is very useful when addressing poorly structured issues for which there are no possible solution procedures (Asikhia & Mba, 2021). Thus, SDM involves the use of decision support systems including external and internal environmental factors that may influence the performance of managers while making decisions (Omenazu, 2022).
2.2.1 Intuition Strategic Decision-Making
One of the areas of strategic decision-making in an organization is where the strategic thinker is often based on his/her intuitive attributes in predicting what might happen and thereby take precaution steps to ascertain its expectations by nurturing the ideas being associated with inner feelings (Battaglio et al., 2019). Intuition is a fast mental perception of circumstances of decision based on past experiences without focus or reference on the main thinking of the subject matter to be decided and it is not unreasonable or administrative due to the fact that it is based on years of experience that enables top managers to opt for solutions to issues without must interest in hectic calculations as well as guesses (Ali, 2019). Though some researches have highlighted in their studies the roles of strategic thinking process among some managers within the concept of cognitive capacities which postulate that mental flexibility can influence it (Al-Jaifi and Al-Rassas, 2019; Barlach and Plonski, 2021).
Moreso, it is vital to know that making decisions depends on the problems faced by the organizations and not all problems or issues require and utilizing the process of intuition uses available information which may quicken the process of decision-making (Bozhinov et al., 2021; Sinnaiah et al., 2023).
2.2.2 Rational Strategic Decision-Making
This approach of strategic decision-making is linked by the existence of a specific and reliable detailed quantitative analysis of alternatives in decision taken thereby relatively state boundaries of the issue being analyzed and solution is identified by optimizing the selecting alternatives and development process (Deslatte, 2020). For decision-making it should be taken into consideration the efforts is to minimize risk, uncertainty, environmental instability amongst others which might influence and structure of decision-making mechanism based on hierarchical relationships that is being applied and predetermined in the organization (Nagtegaal et al., 2020; Acciarini et al., 2021).
Most scholars agree that this type of strategic decision-making will assist managers highlight issues, produce effective solutions, select the most important solutions and apply then evaluate the solution. (Hamidullah et al., 2021).
2.2.3 Participatory Strategic Decision-Making
According to Al-Hashimi et al. (2021) Participatory strategic decision-making refers to as the extent to which relevant people in organization are involved in the process of decision-making and it is the best way of securing dissemination of ideas for implementation. It should have a positive effect when successfully implemented due to the fact that it involves employees with sufficient knowledge and information of a particular circumstances or issues of place and time thereby diverse perspectives that are essential in making high quality decision (Aleksovska et al., 2021). Participatory strategic decision-making provides opportunities in achieving their agreed solutions, improved commitment and develop sense of ownership. With high level of this strategic decision-making practices, it is an important mechanism in increasing organizational adaptability to deal with uncertainties and unpredictable situations in the external environment during the process of implementation. Thus, participatory strategic decision-making also can demonstrate the objectivity of decisions to a multitude of accountability forums and increase equity (Cepiku & Mastrodascio, 2021).
2.4 Conceptual Framework
INTUITION STRATEGIC DECISION-MAKING
RATIONAL STRATEGIC DECISION-MAKING
PARTICIPATORY STRATEGIC DECISION-MAKING
STRATEGIC DECISION-MAKING PRACTICES
ORGANIZATIONAL PERFORMANCE
PRODUCTIVITY
Figure 2.0: Conceptual paradigm
(Researcher’s conceptualization, 2024)
From the diagram above, strategic decision-making practices (independent variable) is measured with intuition strategic decision-making, rational decision-making and participatory decision-making while organizational performance (dependent variable) is measured with productivity.
2.5 Theoretical Review
This study made use of Satisficing theory and Garbage-Can theory
2.5.1 Satisficing Theory
Simon (1957) introduced the concept of bounded rationality, which acknowledges that decision-makers face constraints such as limited information, time, and cognitive capacity due to the dynamic and competitive nature of industries and business environments. Instead of aiming for optimization, decision-makers operate within these limitations by working with simplified and restricted knowledge to arrive at satisfactory, compromise choices, a concept termed “satisficing” (Marshall, 1998). Simon argued against the existence of pure optimization in the real world, asserting that only “good enough” alternatives are attainable.
In contrast to the rational decision-making paradigm, bounded rationality emphasizes the pragmatic pursuit of satisfactory outcomes rather than exhaustive optimization (Williams, 2002). It acknowledges the inherent uncertainty and complexity of decision-making processes, recognizing that the search for the optimal solution may be endless, impractical, and costly. Instead, bounded rationality suggests that decision-makers are better served by accepting compromise solutions that adequately address the challenges they face, rather than endlessly seeking the elusive “best” solution (Ahmen et al., 2014; Elikwu & Mohammed, 2019).
2.5.2 Garbage-Can Theory
Cohen et al. (1972) were among the first to explore the garbage-can model within the realm of organizational decision-making (DM), aiming to refine and adapt prevailing theoretical frameworks to better understand empirical observations (Olsen, 2001). This model is widely regarded as the most unpredictable and fluid approach to strategic decision-making (SDM), typically manifesting in organizations grappling with high levels of uncertainty. Strategic decisions are triggered by participants’ attention to issues and opportunities, as well as their level of engagement in the decision-making process. These decisions unfold within environments characterized by incomplete rationality (Teasley & Harrell, 1996).
In complex environments, problems and solutions defy straightforward translation into a logical sequence of steps, as proposed by the rational decision-making model. Decision-making processes that deviate from the assumptions of traditional models are often labeled as “organized anarchies.” These environments typically exhibit three key traits. Firstly, decision-makers may possess ambiguous, inconsistent, or conflicting preferences. Secondly, there is often a lack of clarity regarding the technology or methodology employed in decision-making processes, leading to solutions being discovered through trial and error rather than through systematic analysis. Finally, decision-makers exhibit varying degrees of flexibility, and their alignment towards a common goal may be uncertain.
In relating this theory with the strategic decision-making, scholars have suggested that Cohen and his associates introduced the garbage-can model as a reaction to the perceived inadequacies of rational models in addressing decision-making challenges within complex and turbulent environments (Eisenhardt & Zbaracki, 1992). Olsen (2001) further elucidates that the garbage-can model aims to shed light on empirical observations, refining existing organizational DM theories to offer greater clarity. Unlike other models, it eschews a linear policy development process, as such an approach would be deemed overly rational (Tiernan & Burke, 2002).
2.6 Empirical Review
Malel and Kemboi (2019) determined the influence of strategic decision making on the performance of commercial banks in Eldoret town, Kenya which was reinforced by the theory of innovation diffusion. The study findings showed that innovation strategy have a positive and significant influence with (β=0.244, p< 0.05) on performance of commercial banks in Eldoret town. The study recommends that the management of commercial banks need to at all times evaluate and monitor the implementation of the decision reached for them to have an overview of their progress and if they are achieving their intended goals and objectives.
Asikhia and Mba (2021) evaluated the impact of strategic decision-making on organizational performance, highlighting those effective decisions stem from thorough information analysis. Through a systematic review of articles, the paper sheds light on factors affecting organizational performance, such as management, employee behavior, decision-making processes, and environmental dynamics. Drawing on Herbert Simon’s administrative behavior theory, the study concludes by affirming the vital role of strategic decision-making in enhancing organizational effectiveness.
Al-Hashimi et al. (2021) developed and evaluated an integrated model of the strategic decision-making process and its outcomes within public organizations. Their model incorporates procedural rationality, intuition, participation, and constructive politics as factors influencing the successful implementation of strategic decisions. The study found that successful implementation fully mediated the relationships between procedural rationality, participation, constructive politics, and the outcomes of strategic decisions.
Eromafunu et al. (2022) investigate the influence of strategic decision makers’ characteristics on effective strategic decision-making in various government agencies and commissions in Delta state, Nigeria. The findings reveal a significant positive relationship between strategic decision makers’ cognitive diversity and effective strategic decision-making. However, no direct relationship was found between cognitive complexity and effective decision-making. Interestingly, when cognitive complexity was considered alongside cognitive diversity, a positive correlation emerged.
Yılmaz and Ameen (2022) determined the impact of strategic decision-making in improving organizational performance and the relationship between strategic decision-making and organizational performance, identifying the demographic characteristics of manager and learn about decision-making approaches and their role in organizational performance. The study was a descriptive cross-sectional design. The findings indicated the existence of the relationship and correlation between the research variables, which stated that depending on strategic decision-making will lead to increase organizational performance and employee performance, this revealed an impact of strategic decision-making on organizational performance.
Muzanenhamo and Chikosha (2022) examined the effect of strategic decision-making context on organizational performance in culturally diverse occupational settings of Bindura Nickel Mine. Descriptive research design was adopted. It was established that leader psychological path and follower psychological path had a significant direct effect on organizational performance, while legislative context, economic context and firm resources had some weak association. It was concluded that strategic decision-making context is the predictor of organizational performance. Finally, recommends further research on the impact of strategic influence and strategic talent development on organizational performance.
Omenazu (2022) focused on presenting and discussing the relationship between strategic decision-making and organizational performance in greater depth. The findings shed light on the factors that influence managers’ decision-making and performance, such as the environment in which they work and the leadership style they employ. Strategic decisions involving the use of decision support systems, as well as internal and external environmental factors that influence the performance of managers in making them, have been shown to have an impact on the performance of strategic decisions that have a direct impact on the overall performance of the organization.
Sinnaiah et al. (2023) presented a conceptual framework for integrating strategic thinking factors, organizational performance and the decision-making process. This involves a synthesis of literature and proposes a framework that explores the relationship between strategic thinking enabling factors, organizational performance and the moderating effect of decision-making styles which includes strategic thinking enabling factors (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis), organizational performance and the moderating effect of decision-making styles (intuitive and rational). From the results in conceptual model, it remains to be tested in actual practice.
2.7 Research Gap
The majority of management research tends to concentrate on decision-making within risky environments due to the feasibility of modeling and experimenting with expected utility maximization such as (Malel & Kemboi, 2019; Malecka 2020; Yilmaz & Ameen, 2022; Muzanenhamo & Chikosha, 2022). Academic scholars and practitioners emphasize the significance of strategic decision-making practices in evaluating organizational performance across various dimensions such as innovation, entrepreneurship, technology, knowledge, economics, healthcare, and overall organizational performance such as Ewah 2018; Sev et al. 2018; Alosani et al. 2020; Asikhia and Mba 2021; Al-Hashimi et al. 2021; Nauhaus et al. 2021; Sinnaiah et al. 2023 and revealed how strategic decision-making impacts on organizational performance.
Put differently, prior investigations into the characteristics or factors influencing the effectiveness of strategic decision-making have not produced widely applicable results or conclusions. Consequently, further empirical research is needed to ascertain which practices, characteristics or factors contribute to strategic decision-making effectiveness within organizations before definitive assertions can be made and this study aims to address this gap. Thus, the study investigated the relationship between strategic decision-making practices and organizational performance of selected pharmaceutical firms in Owo, Ondo state.
3.0 RESEARCH METHODOLOGY
3.1 Research Design
The study used a descriptive survey research design. Descriptive survey is restricted to factual registration and that there is no quest for an explanation why reality is showing itself this way (Voordt, 2014). This ensures objectivity and neutrality in drawing conclusions (Mugenda & Mugenda, 2003). This was appropriate for the study since it sought to create the actual understanding of strategic decision-making practices and organizational performance.
3.2 Population of the Study
The population of this study, consists of staff of selected pharmaceutical firms in Owo, Ondo State. Table 1 illustrates the selected pharmaceutical firms along-side with the number of staff.
Table 1: Distribution of staff of selected branches
S/N
NAME OF PHARMACY
NUMBER OF STAFF
1
Chinare Ani Pharmacy
12
2
Emmayemi Pharmacy
12
3
Femih Pharmacy Ltd
13
4
Godman Pharmacy
10
5
HealthWatch Pharmacy
23
6
Ifeoluwa Medicine Store
10
7
Jobath Pharmacy
14
8
N. O. Chrisval Pharmacy
11
9
Wellfast Pharmacy
10
10
Wondacare Limited Pharmacy
8
Total
123
Source: Field Survey, 2024
3.3 Sample and Sampling Technique
The sample size for the study is 94 staff of selected pharmaceutical firms in Owo, Ondo state. The sampling technique used for this study was stratified random probability sampling technique. The reason for the choice was due to the fact that the firms consist of different units (full and contract staff), the selection was done based on these categories to ensure that all employees are represented in the choice of the sample. The sample size for this study was arrived at using Taro Yamane formular which is illustrated below:
3.4 Research Instrument
The instrument used to gather information in this research work was primary data through the use of questionnaire. The questionnaire seeks information about the respondents’ demographic data and opinion on the impact of strategic decision-making practices on organizational performance of selected pharmaceutical firms in Owo, Ondo state. All statement items were measured on a five-point Likert scale ranging from Strongly Agree (SA) to Strongly Disagree (SD).
3.5 Validity and Reliability of Instrument
The validity of the research instrument used for this study was carried out, the questionnaire design was given to my supervisor for vetting and after series of corrections on the instrument, it was discovered to be valid based on the variables used for this study. Therefore, face and content validity were used for the research instrument. The result of the reliability test shows that each of the variables are reliable since they are more than 0.828 coefficient which is illustrated below.
Table 2: Result of Reliability Test (n=)
Construct
Number of Items
Cronbach’s Alpha Coefficient
PRD
5
0.821
ISDM
5
0.922
RSDM
5
0.810
PSDM
5
0.733
Overall Alpha
0.828
Source: Researcher’s Fieldwork, 2024.
3.6 Method of Data Analysis
Data analysis was in two parts. Frequencies, means and percentages were used to describe the characteristics of the sample. Further, regression analysis was used to infer meaning about the entire population from the sample findings. Analysis of variances, model summaries and regression coefficients were used to describe the characteristics of population of study. Statistical Package of Social Sciences (SPSS) version 26 and excel were used as the principal data analysis tools. The findings were presented in tables.
3.7 Model of Specification
This comprises of the elements used in measuring the independent variable (Strategic Decision-Making Practices) which are Intuition Strategic Decision-Making (ISDM), Rational Strategic Decision-Making (RSDM), Participatory Strategic Decision-Making (PSDM) on the dependent variable (Organizational Performance) which is measured by Productivity (PRD).
The model for the study is functionally state below:
ⅈ = Samples of Selected Pharmaceutical firms in Owo, Ondo State.
The apriori expectation for this study is stated that:
β1, β2, β3 > 0, the reason been that the variables used here is a process dimension
4.0 Data Presentation and Analysis
From the total number of 120 (one hundred and twenty) questionnaire distributed to all staff of selected pharmaceutical firms in Owo, Ondo state, 116 (one hundred and sixteen) questionnaire was retrieved representing 97% for analysis.
4.1 Demographic Characteristics
Table 4.1: Demographic Characteristics of Respondents
Demographic Characteristics
Categories
Frequency
Percentage
Gender
Male Female Total
44 72 116
38 62 100
Age
21 – 30 years 31 – 40 years 41 – 50 years 51 and above Total
48 32 26 10 116
41 28 22 9 100
aaMarital Status
Married Single Widow/Widower Divorced/Separated Total
41 52 5 18 116
35 45 4 16 100
Qualification
O’ Level ND/NCE HND/B.Sc. MBA/M.Sc. PhD Total
24 48 36 6 2 116
21 41 31 5 2 100
Work Experience
0 – 2 years 3 – 5 years 6 – 10 years Total
40 52 24 116
34 45 21 100
Designation
Chief Executive Officer Manager Pharmacist Laboratory Officer Front Desk Officer Secretary Cashiers Cleaners Total
8 10 12 14 34 8 18 12 116
7 9 10 12 29 7 16 10 100
Source: Researchers’ computation (2024)
From Table 4.1, 116 respondents’ staff of selected pharmaceutical firms in Owo, Ondo state were captured for gender, 44 representing (38%) were male while 72 representing (62%) were female. This indicates that staff of selected pharmaceutical firms in Owo, Ondo state are more dorminated with female. Out of 116 respondents captured for age, 48 staff representing (41%) ranged between 21-30 years, 32, (28%) of staff captured were between 31-40 years, 26, (22%) of staff ranged between 41-50 years while 10, (9%) were within the range of 51 years and above. This implies that most of the staff of these selected pharmaceutical firms are young and fit for responsibilities. Out of 116 respondents captured for marital status, 41 staff representing (35%) were married, 52, (45%) were single, 5, (4%) were stated as widows/widowers and 18, (16%) were recorded as divorced/separated. This implies that the majority of the staff working at these firms are single. 116 respondents recorded for qualification, 24 staff obtained Ordinary Certificate representing (21%), 48 of them obtained ND/NCE representing (41%), and 36, (31%) attained HND/B.Sc, 6, (5%) were having either MBA or MSc while 2, (2%) were PhD holders. This shows that these firms have more of ND/NCE certificates holders. For work experience, out of 116 respondents recorded, 40, (34%) have spent between 0 – 2 years, 52 (45%) have spent 3 – 5 years, 24 respondents representing (21%) have spent 6 – 10 years working experience in these firms. This indicates that they have more dedicated and competent staff who have been with them for long. Finally, 8 respondents representing (7%) are CEO of these selected firms, 10, (9%) recorded were managers, 12, (10%) are stationed pharmacist of these selected firms, 14, (12%) are laboratory staff, 34, (29%) are recorded as front desk officers of these selected firms, 8, (7%) are secretaries, 18, (16%) recorded are cashiers while 12, (10%) are cleaner of these firms. This implies that the selected pharmaceutical firms have more of front desk officers that other designated staff during the period under review.
The summary of descriptive statistics from the above table indicates that during the study under review, the average productivity (PRD) is 5.67 with a standard deviation of 1.42, a minimum of 2.64 and a maximum of 8.64, this implies that organizational performance is been determined based on how the top managers or decision makers made use of their essential resources effectively well in accomplishing their objectives in terms of quality and quantity during the period under review. Intuition strategic decision-making (ISDM) on average is 4.35, with a standard deviation of 2.21 and minimum of 6.31, maximum of 11.05 which shows that they were able to predict what might happen in the future by taking precaution steps to ascertain their expectations thereby nurturing ideas based on past experience in solving issues that may arise. Rational strategic decision-making (RSDM) on average is 4.121 with a standard deviation of 2.651, a minimum value of 10.51 and a maximum value of 11.44 this indicates that the decision makers were able to highlight issues thereby providing effective solutions by selecting the most important solutions to apply then evaluate the solution. Participatory strategic decision-making (PSDM) on average is 5.42 with a standard deviation of 2.55, a minimum value of 11.46 and a maximum value of 14.51 this shows that managers or decision makers allow employees to participate in providing ideas or solutions in solving issues concerning their firms. Thereby, providing opportunities in achieving agreed solutions, improvement in commitment and developing sense of ownership.
4.2.2 Correlation Analysis
Table 4.3: Pearson Correlation Matrix of the Dependent Variable and Independent Variable
Variable
PRD
ISDM
RSDM
PSDM
PRD
1.000
ISDM
.863**
1.000
RSDM
.681**
.641**
1.000
PSDM
.721**
.664**
.671**
1.000
**Correlation is significant at the 0.000 level (2-tailed). Sample size =116
Source: (SPSS Output Own Survey Result, 2024)
The table above present the relationship that exists between strategic decision-making practices variables (intuition strategic decision-making, rational strategic decision-making and participatory strategic decision-making as against organizational performance (productivity) of staff of selected pharmaceutical firms in Owo, Ondo state. It revealed that intuition strategic decision-making (ISDM) shows a positively and strongly relationship with productivity (PRD) at 0.863 representing 86%. Rational strategic decision-making (RSDM) shows a positive and average relationship with productivity (PRD) at 0.681 representing 68% while participatory strategic decision making (PSDM) indicates a positive and strong relationship with productivity (PRD) at 0.721 representing 72%. Therefore, the table presented shows that the variables tested were significant statistically at 0.000 which indicates that strategic decision-making has a direct relationship with organizational performance.
4.2.3 Regression Analysis
Table 4.4 Multiple Regression Results
Model Summary
Model
R
R Square
Adjusted R Square
Std. Error of the Estimate
1
.671a
.443
.316
1.84069
a. Predictors: (Constant), Productivity, Intuition Strategic Decision-Making, Rational Strategic Decision Making and Participatory Decision-Making
ANOVAa
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
254.640
63
68.361
14.132
.000b
Residual
1159.670
560
8.654
Total
1417.110
595
a. Dependent Variable: Productivity
b. Predictors: (Constant), Intuition Strategic Decision-Making, Rational Strategic Decision Making and Participatory Decision-Making
Coefficients
Model
Unstandardized Coefficients
Standardized Coefficients
t
Sig.
B
Std. Error
Beta
1
(Constant)
2.522
1.132
2.227
.000
Intuition Strategy Decision-Making
.236
.113
.246
2.088
.000
Rational Strategic Decision-Making
.150
.066
.163
2.272
.063
Participatory Strategic Decision-Making
.242
.057
.225
4.298
.001
a. Dependent Variable: Productivity
Source: Researcher’s Computation (2024).
Source: SPSS Version 26.0
4.2.4 Discussion of Findings
The study investigates the relationship between strategic decision-making practices and organizational performance of selected pharmaceutical firms in Owo, Ondo state. Three components of strategic decision-making practices were examined, intuition strategic decision-making, rational strategic decision-making and participatory strategic decision-making in relationship with the dependent variable organizational performance which was measured with productivity. From the findings intuition strategic decision-making (ISDM) shows a coeff-value of 0.236, t-value of 2.088 and P-value of 0.000 which is positive and significantly related to organizational performance. which implies that strategic managers or decision makers of the selected pharmaceutical firms under review were able to predict the issue that might arise in future thereby providing solutions based on their past experiences. This is related to the studies Al-Hashimi et al. (2021); Yilmaz and Ameen (2022); Sinnaiah et al. (2023) which indicates a positive and significant relationship with organizational performance. Rational strategic decision-making (RSDM) has a coeff-value of 0.150, t-value 2.272 and P-value 0.063 implying that RSDM is positively and insignificantly related to organizational performance during the study under review, which indicates that they were not able analyzed some of the possible solutions provided in solving their issues which might lead to these firms not actualizing their objectives if this option is opted for. The result of the findings did not aligns with the studies carried out by Al-Hashimi et al. (2021); Nauhaus et al. (2021); Asikhia and Mba (2021); Yilmaz and Ameen (2022); Sinnaiah et al. (2023) whose findings stated that rational strategic decision-making is positively and significantly related to organizational performance. Participatory strategic decision making (PSDM) has a coeff-value of 0.242, t-value of 4.298 and P-value of 0.001 which means that PSDM is positively and significantly related to organizational performance. This implies that the decision makers of these pharmaceutical firms provide opportunities for employees to participates in providing solutions or ideas thereby achieving agreed solutions, improvement of commitment and developing sense of ownership during the period under review. This study aligns with the studies carried Sev et al. (2018); Al-Hashimi et al. (2021); Asikhia and Mba (2021); Muzanenhamo and Chikosha (2022) which states that participatory strategic decision-making is positively and significantly related with organizational performance during the study under review.
From the study it reveals that strategic decision-making practices is positively and significantly related with organizational performance of selected pharmaceutical firms in Owo, Ondo state which aligns with the studies of Sev et al. (2018); Malel and Kemboi (2019); Aladesoun et al. (2020); Arend (2020); Al-Hashimi et al. (2021); Asikhia and Mba (2021); Muzanenhamo and Chikosha (2022); Bonnyventure et al. (2022); Yilmaz and Ameen (2022); Eromafunu et al. (2022); Sinnaiah et al. (2023); Gagan (2023) during the study under review.
5.0 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
This study investigates the relationship between strategic decision-making practices and organizational performance of selected pharmaceutical firms in Owo, Ondo state. Three components of strategic decision-making practices examined which are intuition strategic decision-making, rational strategic decision-making and participatory strategic decision-making in determining the relationship with organizational performance (productivity). The results show that intuition strategic decision-making (ISDM) and participatory strategic decision-making (PSDM) were positively and significantly related with organizational performance while rational strategic decision-making (RSDM) was positively and insignificantly related with organizational performance during the study under review. Thus, the study revealed that strategic decision-making practices is positively and significantly related with organizational performance. Furthermore, it indicates that strategic managers or decision makers worked with these practices in determining and providing solutions of treating issues that they may or have encounter by adopting these practices in actualizing their aims and objectives during the study under review.
5.2 Recommendations
Based on the result above, the following recommendations are highlighted below:
That firms should encourage the use of these SDM practices such as intuition strategic decision-making, rational strategic decision-making and participatory strategic decision making as it enhances performance of both the employees and organization.
That firm’s decision makers should more conscious when adopting intuition strategic decision-making as it is based on steps in ascertaining expectations.
That decision makers should encourage the use participatory strategic decision-making as its one of the best method of motivating and providing opportunities of employees to showcase their abilities and capabilities in the organization for better commitment development of employee.
References
Abdullah, N. N., & Othman, M. B. (2019). Examining the effects of intellectual capital on the performance of Malaysian food and beverage small and medium-sized enterprises.
Technology, 10(2), 135-143.
Abubakar, A. M., Hamzah E., Maher Ahmad A., & Elçi A. (2019). Knowledge management, decision-making style and organizational performance. Journal of Innovation & Knowledge, 4(2), 104-114.
Acciarini, C., Brunetta, F., & Boccardelli, P. (2021). Cognitive biases and decision-making strategies in times of change: a systematic literature review. Management Decision, 59(3), 638-652.
Adam, A., Lindahl, G., & Leiringer, R. (2020). The dynamic capabilities of public construction clients in the healthcare sector. International Journal of Managing Projects in Business, 13(1), 153-171.
Adigbole, E., Osemene, O., & Fakile, O. (2019). Strategic management accounting and information for managerial decision making in selected manufacturing firms in Kwara State. Ilorin Journal of Management Sciences, 132-144.
Ahmen, A. Bwisa, H., & Otieno, R. (2014). Strategic decision making: process, models, and theories. Journal of Business Management and Strategy, 5(1), 78-104.
Aladesoun, C. B., Ayoade, A. A., Adegbola, M. M., Olaniyan, I. H., & Akinde, B. O. (2020). Role of strategic decision making on employees productivity. International Journal of Academic Information Systems Research, 4(8), 45-56.
Al-Hashimi, K., Weerakkody, V., Elbanna, S., & Schwarz, G. (2021). Strategic decision making and implementation in public organizations in the gulf cooperation council: the role of procedural rationality. Public Administration Review, 82(5), 905-919.
Al-Jaifi, H. A., & Al-Rassas, A. H. (2019). The financing decision puzzle of technology-based firms: evidence from Malaysia. International Journal of Business and Globalization, 22(2), 225-239.
Ali, M. S. (2019). Strategic thinking and strategic decisions-making. International Journal of Research in Social Sciences and Humanities, 9(3), 457-469. Retrieved from http://www.ijrssh.com
Alosani, M. S., Yusoff, R., & Al-Dhaafri, H. (2020). The effect of innovation and strategic planning on enhancing organizational performance of Dubai police. Innovation and Management Review, 17(1), 2-24.
Arend, R. J. (2020). Strategic decision-making under ambiguity: a new problem space and a proposed optimization approach. Business Research, 13, 1231-1251. Retrieved from https://doi.org/10.1007/s40685-020-00129-7
Asikhia, O. U., & Mba, C. N. (2021). The influence of strategic decision making on organizational performance. The International Journal of Business and Management, 9(1), 333-338. DOI No.: 10.24940/theijbm/2021/v9/i1/BM2101-050
Babatunde, A., & Sanusi, M. (2020). Impact of strategic planning on organizational performance in first bank Nigeria Plc, Osun state. Journal of Management and Social Sciences, 9(2), 23-30.
Barlach, L., & Plonski, G. A. (2021). The Einstellung effect, mental rigidity and decision-making in startup accelerators. Innovation and Management Review, 18(3), 276-291.
Battaglio, P., Paolo, B., Nicola, B., & Paola, C. (2019). Behavioral public administration Ad Fontes: a synthesis of research on bounded rationality, cognitive biases, and nudging in public organizations. Public Administration Review, 79(3), 304-320.
Bonnyventure S, N., Bwonya J., E., Owouri P. J., Mudany J O., & Ogutu M. (2022). The nexus b etween strategic decision-making, strategic communication and organizational performance: a critical literature review. Journal of Strategic Management, 6(3), 37-49. Retrieved from https://doi.org/10.53819/81018102t2071
Bozhinov, V., Joecks, J., & Scharfenkamp, K. (2021). Gender spillovers from supervisory boards to management boards. Managerial and Decision Economics, 42(5), 1317-1331.
Camilleri, M. A. (2021). Using the balanced scorecard as a performance management tool in higher education. Management in Education, 35(1), 10-21.
Cohen, B. J. (1996). Is expected utility theory normative for medical decision-making ? Medical Decision-making , 16(1), 1-6.
Cohen, M. D., March, J. G., & Olsen, J. P. (1972). A garbage can model of organizational choice. Administrative Science Quarterly, 1, 1-25
Deslatte, A. (2020). Positivity and negativity dominance in citizen assessments of intergovernmental sustainability performance. Journal of Public Administration Research and Theory, 30(4), 563-578.
Eisenhardt, K. M., & Zbaracki, M. J. (1992). Strategic decision-making. Strategic Management Journal, 13(S2), 17-37.
Elikwu, M. I., & Mohammed, M. N. (2019). Strategic decision making: effect on sustainable operational performance of small manufacturing businesses in Nigeria. Proceedings of the FMS 2019 International Conference on Managing Nigeria Economic Diversification: Lessons from other Climes, at the Nnamdi Azikiwe University, Awka, Anambra State, Nigeria, 13th-15th June, 2019, Scoa Heritage Publishers, pg. 875-889
Eromafunu, G. E., Akpoyibo, G., & Isaac, A. P. (2022). Effective strategic decision-making and strategic decision makers’ characteristics: the role of cognitive diversity and complexity. European Journal of Business and Innovation Research, 10(6), 18-33.
Ewah, S. (2018). Managing the dynamics of strategic decision making. International Journal of Social Sciences and Management Review, 1(1), 60-70.
Gagan, D. (2023). Strategic decision-making: a crucial skill for business managers. World Journal of Advanced Research and Reviews, 20(3), 1639-1643.
George, B., Walker, R. M., & Monster, J. (2019). Does strategic planning improve organizational performance: a meta‐analysis. Public Administration Review, 79(6), 810- 819.
Hamidullah, M. F., Riccucci, N. M., & Lee, I. P. (2021). Citizens’ perceptions of closing the gender pay gap: an experimental study. Public Management Review, 23(7), 1032-1055.
Harappa, D. (2020). Strategic Decision Making: Harappa Learning Private Ltd.
Madume, W. C., Okereke, E. J., & Omojefe, G. O. (2024). Strategic planning and organizational performance of manufacturing firms in Rivers state, Nigeria. Asian Journal of Economics, Finance and Management, 6(1), 63-73.
Malel, S. K., & Kemboi, A. (2019). Influence of strategic decision making on performance of commercial banks in Eldoret Town, Kenya. Journal of Business and Management, 21(10), 58-66. DOI: 10.9790/487X-2110015866
Małecka, M. (2020). The normative decision theory in economics: a philosophy of science perspective: the case of the expected utility theory. Journal of Economic Methodology, 27(1), 36-50.
Muzanenhamo, L., & Chikosha, F. (2022). Strategic decision-making context and organizational performance in Bindura Nickel Mine. International Journal of Research Publication and Reviews, 3(10), 2304-2310.
Nagtegaal, R., Tummers, L., Noordegraaf, M., & Bekkers, V. (2020). Designing to debias: measuring and reducing public managers’ anchoring bias. Public Administration Review, 80(4), 565-576.
Nauhaus, S., Luger, J., & Raisch, S. (2021). Strategic decision making in the digital age: expert sentiment and corporate capital allocation. Journal of Management Studies, 58(7), 1934- 1961. doi:10.1111/joms.12742
Olsen, J. P. (2001). Garbage cans, new institutionalism, and the study of politics. American Political Science Review, 95(1), 191-198.
Omenazu, S. (2022). Strategic management, decision making and organizational performance: case study of construction industry Malaysia. Journal of Positive School Psychology, 6(3), 6100-6113. Retrieved from http://journalppw.com
Osazevbaru, H. O. (2021). Empirical examination of top management characteristics and strategic decision making. Trendy v podnikání – Business Trends, 11(2), 35-49. Retrieved from https://doi.org/10.24132/jbt.2021.11.2.35_49
Williams, S. (2002). Making better business decisions: Understanding and improving critical thinking in problem-solving skills. London: Sage Publications Incorporation.
Sarraf, F., & Nejad, S. H. (2020). Improving performance evaluation based on balanced scorecard with grey relational analysis and data envelopment analysis approaches: case study in water and wastewater companies. Evaluation and Program Planning, 79, 101762
Sev, J. T., Faajir, F., & Emakwu, J. (2018). The impact of managerial decision making process
on organizational performance: a study of Nigerian breweries Plc and Guinness Breweries Nigeria Plc Lagos. Nigerian Journal of Management Sciences, 6(2), 20-35.
Simon, H. A. (1957). Models of man: social and rational. Mathematical essays on rational human behavior in a social setting: New York, John Wiley.
Sinnaiah, T., Adam, S., & Mahadi, B. (2023). A strategic management process: the role of decision-making style and organisational performance. Journal of Work-Applied Management, 15(1), 37-50. DOI 10.1108/JWAM-10-2022-0074
Taofeeq, D. M., & Adeleke, A. Q. (2019). Factor’s influencing contractors risk attitude in the Malaysian construction industry. Journal of Construction Business and Management, 3(2), 59-67.
Teasley III, C., & Harrell, S. W. (1996). A real garbage can decision model: Measuring the costs of politics with a computer assisted decision support software (DSS) program. Public Administration Quarterly, 479-492.
Tiernan, A., & Burke, T. (2002). A Load of Old Garbage: Applying Garbage–Can Theory to Contemporary Housing Policy. Australian Journal of public administration, 61(3), 86-97.
Tsai, F. M., Bui, T. D., Tseng, M. L., Wu, K. J., & Chiu, A. S. (2020). A performance assessment approach for integrated solid waste management using a sustainable balanced scorecard approach. Journal of Cleaner Production, 251, 119740.
Ur Rehman, S., Bhatti, A., & Chaudhry, N. I. (2019). Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs. Journal of Global Entrepreneurship Research, 9(1), 1- 24.
Yılmaz, V. A., & Ameen, S. S. H. (2022). The role of strategic decision-making on organizational performance among managers of organizations in Iraq. Türk Kamu Yönetimi Dergisi, 3(2), 120-130.
Emmanuella, O., & Oluwasola, I. J. (2026). Leadership Styles and Employees’ Performance of Private Tertiary Institutions in Ibadan, Oyo State. International Journal of Research, 12(4), 559–588. https://doi.org/10.26643/ijr/2026/21
The study investigates the relationship between leadership style and employees’ performance of tertiary institutions in Ibadan, Oyo state. Four (4) variables of leadership style were examined, autocratic leadership style, democratic leadership style, transformational leadership style and transactional leadership style in relationship with the dependent variable employees’ performance. Cross sectional survey research design was used for this study with population of 585 using stratified random probability sampling technique and a sampling size of 238 while 205 respondent’s questionnaire were retrieved for analysis. From the result of the analysis carried out using Robust Ordinary Least Square Regression (ROLS), it was discovered that Democratic Leadership Style (DELS) and Transformational Leadership Style (TFLS) were positively and significantly related to Employees’ Performance (EP) while, Autocratic Leadership Style (AULS) shows a positive but insignificant relationship with Employees’ performance (EP) and Transactional Leadership Style (TSLS) shows a negative and insignificant relationship with Employees’ Performance (EP) of private tertiary institutions in Ibadan, Oyo state. The study concludes transformational leadership style should be practiced because of its creativity as well as performance and supportive nature also, knowledge can easily be shared amongst employees when organizations are using a transformational leadership style and thus promoting organizational culture and improving overall performance.
Adekunle (2020) posited that leadership is an important factor in every human activity and the realization of human aims and objectives but, Zamin and Hussin (2021) argue that the adopted leadership style and work climate impact commitment levels of the employees and influence job performance. Anyaegbunam and Anekwe (2021) posited that the success or failure of any organization depends on the leadership and the styles. Different leadership styles contribute to improving organizational performance and the capacity to overcome leadership challenges encountered in organizations. These styles include autocratic, bureaucratic, charismatic, laissez-faire, participative, transformational and transactional leadership styles which allow a leader to connect employees’ or organizational performance (Onwuegbuna, 2022). Leadership style is the most important factor for the development of any private or governmental organization or any educational institution. Thereby creating influence, and motivation to lead employees to achieve pre-determined goals and objectives (Wase & Jeyaprabha, 2022).
1.1 Statement of the Problem
In today’s business world, the flow of life depends mostly on the effectiveness of leadership styles such as survival of the organization, development as well as effective performance. Though, the present global economy is driven by profitability, innovation and performance (NawoseIng’ollan & Roussel, 2017). The Nigerian university system has been overwhelmed with numerous challenges which have seen the nation’s universities being ranked below 100th worldwide. Also, despite all these challenges, administrative and leadership direction have continually gathered these challenges (Yusuf-Habeeb & Yusuf, 2017). Currently, most organizations stress creating the workflow and team to improve efficiency in their organizational performance (Al-Malki & Wang, 2018).
According to Agarwal (2020) Leadership style is an important area as it enables employees to work effectively and efficiently in an organization and leadership styles adopted by managers in an organization promote organizational objectives and goals. Although, there are progress and understanding of leadership styles in Nigeria and especially the impacts of democratic leadership style on employees’ performance at tertiary institutions in Nigeria and how some tertiary institutions are yet to realize goals due to challenges related to leadership style (Idowu, 2019; Manza, et al., 2020; Onwuegbuna, 2022). Though the issue leading to this study may be listed as rising from unsuitable applications of leadership styles responsible for a poor working relationship that ties employees and management of tertiary institutions. And most studies have been carried out as regards leadership style and employees’ performance in developed countries but in Africa especially Nigeria studies carried out are mostly in the area of banking, and companies but research carried out in Nigeria on tertiary institutions is not much.
Though, most researchers have worked on leadership style and employees performance in Nigeria such as Ajibade, et al., (2017); Orji, et al. (2017); Kalu and Okpokwasili (2018); Ekpenyong (2020); Amussah, et al. (2020); Nwagbala, et al. (2021); Adegboyega and Awolusi (2021); Akpoyibo (2022) and Onwuegbuna (2022). But few researchers have been able to work on tertiary institutions in Nigeria recently such few scholars are Yusuf-Habeeb and Yusuf (2017); Odunlami, et al. (2017); Kalu and Okpokwasili (2018); Idowu (2019); Manza, et al. (2020); Onwuegbuna (2022). It was observed that these researchers mainly used transformational, transactional, charismatic, participatory, and laissez-faire as components of leadership style while autocratic, and democratic amongst others were not used in measuring leadership style and employees’ performance of tertiary institutions in Nigeria. Another aspect is the methodology where the questionnaire was not measured based on a multi-factor leadership questionnaire. Therefore, this study made use of this scaling factor by Bass (1995) and Yousef (2000) scale of measuring employee performance. Also, the study emphasized an understanding of leadership style the underlying factors, issues and influence on employees’ performance at private tertiary institutions in Ibadan, Oyo State, Nigeria.
1.2 Research Questions
The study investigates the following
What is the impact of autocratic leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State?
Does democratic leadership style influence employees’ performance at private tertiary institutions in Ibadan, Oyo State?
What is the relationship between transformational leadership style and employees’ performance at private tertiary institutions in Ibadan, Oyo State?
How does transactional leadership style impact employees’ performance at private tertiary institutions in Ibadan, Oyo State?
1.3 Research Hypotheses
To provide answers to the research questions derived from this study, the following hypotheses were formulated:
H01: There is no significant impact of autocratic leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State.
H02: There is no significant influence of democratic leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State.
H03: Transformational leadership style has no relationship with employees’ performance at private tertiary institutions in Ibadan, Oyo State.
H04: There is no significant impact of transactional leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State.
1.4 Scope of the Study
The study investigated the relationship between leadership styles and employees’ performance at private tertiary institutions in Ibadan, Oyo State. The choice of Lead City University, Ibadan was conceived because of the closeness of the area to the researcher and the fact that it is one of the largest private universities in Ibadan, Oyo State, Nigeria. The population was based on the academic and non-academic staff of the school. The study used four (4) leadership style components (autocratic, democratic, transformational and transactional leadership styles) which serve as the independent variables and described their impact on employees’ performance which is the dependent variable. The study used a stratified random probability sampling technique in selecting the sampling size of the population while Robust Ordinary Least Square regression analysis was carried out in determining the significance level of each variable and the timeframe for the study was September 2023 to January, 2024.
2.0 Literature Review
2.1 Employees’ Performance
Employee performance is important for an organization as a measure of success in running any business, because the higher the performance, the higher the chance to achieve organizational goals (Pradana, et al., 2020). Though the company expects employees to have good performance given the importance of employee performance, it can be said that performance improvement is one of the important aspects of human resource management for the company which can be carried out if employees have good quality work so that employees can work competently and can complete work on time according to predetermined standards (Fakhri, et al., 2020). Organizations as well need to pay massive attention to their employees and their welfare, because happy and motivated employees are the sole channel through which organizations can become successful organization (Insan & Masmarulan, 2021). Furthermore, employee performance is focused on examining how well an individual employee performs at their job over a given period. Employee performance is also a critical review of the jobs that have been done and completed by an employee over some time by analyzing how the job is done either promptly or otherwise (Alheet, et al., 2021; Amegayibor, 2021).
Belete (2020) argued that leadership styles refer to the pattern of leaders’ behaviour that characterize a given leader or various patterns of behaviour favoured by the leader during the process of directing and influencing employees (Efendi & Graduate, 2020; Amussah, 2020). It is a style that invites and directs followers or employees to achieve common goals by creating a work environment that is more authoritative, controlled, effective and directed (Abadiyah, et al., 2020). Bastari, et al. (2020) stated that a leader’s influence is known to make improvements to employees in achieving company goals. while, leadership style is associated with the actions of a leader when leading and providing guidance (Rohman et al., 2020). Through leadership style, an effort can be formed to influence or direct employees or followers by mobilizing available human and material resources effectively and efficiently throughout the management process to achieve the desired objectives or goals (Purnomo et al., 2020). Leadership style in an organization is one of the factors that play a significant role in enhancing the interest and commitment of employees in the organization (Zamin & Hussin, 2021; Clinton & Ogbor, 2021). Leadership styles determine the level of employee participation in decision-making and the way an organization is run administratively (Akpa, et al., 2021; Wase & Jeyaprabha, 2022). For this study, autocratic, democratic, transformational and transactional leadership styles are used in measuring leadership style.
2.1.3 Autocratic Leadership Style
This type of leadership is often best used in situations where crisis arises when decisions must be made quickly and without dissent. It is valuable when organizations face a crisis or when an urgent problem arises that requires immediate attention (Al-Khajeh, 2018). This kind of style sometimes irreparably hinders organizational growth because there is a tendency to force their direct reports to perform tasks in a constricted manner (Belete, 2020). Also, in this leadership style, there is no collective vision and slight motivation among leaders and employees. Also, commitment, innovation and creativity are eliminated (Amussah, 2020; Wase & Jeyaprabha, 2022). Thus, the autocratic leadership style is a classical leadership approach, and the corporate equivalent of dictatorship or tyranny and which is marked by the leader having complete authority and the subordinates obeying the instructions of the leader without questioning and without receiving an explanation or rationale for such instructions (Khudhair, et al., 2022).
2.1.4 Democratic Leadership Style
According to Priarso, et al. (2018) in a democratic leadership style, leaders dynamically encourage and stimulate group decisions and group discussions. Some characteristics of the democratic leadership style are the fact that group members are encouraged to share ideas and opinions, even if the leader retains the final say over decisions, members of the group feel more engaged in the process and innovative ideas are welcome and encouraged as well as rewarded. And because it yields a lot of benefits, employees are encouraged to share their thoughts which can lead to better ideas and more innovative solutions to issues (Sadia & Aman, 2018). This type of leadership style is the opposite of the autocratic leadership style and in this leadership style, the leaders are generally more people-oriented and the feelings of their subordinates or employees (Derese, 2020). Democratic leadership style is a very open and collegial style of running a team and researchers have found that this learning style is usually one of the most effective and leads to higher performance (Belete, 2020; Saputra, & Mahaputra, 2022).
2.1.5 Transformational Leadership Style
Transformational leadership style according to Idowu (2019) is the process of influencing major changes in attitudes and assumptions of organizational members and building commitment to the organization’s mission or objectives (Eliyana, et al., 2019). Transformational leaders or managers do encourage their subordinates or employees to view the problem from a new point of view, provide support and encouragement communicate vision, and stimulate emotions and identification (Bastari, et al., 2020; Derese, 2020).
Amussah (2020) stated that transformational leaders motivate their followers in such a way that it goes beyond the usual rewards and monetary exchanges (Alheet, 2021; Patzelt, et al., 2021; Udin, 2021; Baig, et al., 2021). Osano (2022) opined that the importance of this leadership style, leaders in an organizational workplace cannot be over-emphasized as this set of leaders have the capacity and needed skills to solve problems, transform the organization and take the organization to greater heights to achieve better results for the organization (Dey et al., 2022). Thus, the transformational leadership style creates valuable and positive change in the followers with the end goal of developing followers into leaders (Wase & Jeyaprabha, 2022; Weber, et al., 2022).
2.1.6 Transactional Leadership Style
The transactional leadership styleentails the interchange process that results in the compliance of employees or subordinates. Though the leader made the request, it is unlikely to inspire excitement for or devotion to the mission’s goal and concentrates on having internal players complete the necessary duties to enter the organization’s desired outcomes (Idowu, 2019). Transactional leaders exhibit behaviours related to both corrective and constructive aspects where the constructive behaviour style is labelled contingent reward and the corrective style is labelled management by exception (Chang, 2019). Managers in this leadership style fulfil their obligations solely by creating good working conditions, without paying attention to meeting objectives or goals (Daniels et. al., 2019). Transactional leader work according to the principle of good performance and the employee will receive a sufficient reward (Aun, et al., 2019). The transactional leadership style involves an exchange relationship between managers and employees in the direction of establishing goals thereby clarifying the role and task required (Udovita, 2020). Transactional leaders focus mainly on maintaining the status quo and they are oriented to enhance the present way of doing things (Wahyuni, et al., 2020). Therefore, the transactional leadership style is the process whereby leaders can entice subordinates to perform and thereby achieve desired outcomes by promising rewards and benefits for the accomplishments of tasks and administering punishments when the task is not well accomplished (Kabiru & Bula, 2020; Holbert, et al., 2021).
AUTOCRATIC LEADERSHIP STYLE
DEMOCRATIC LEADERSHIP STYLE
TRANSFORMATIONAL LEADERSHIP STYLE
TRANSACTIONAL LEADERSHIP STYLE
EMPLOYEES’ PERFORMANCE
LEADERSHIP STYLE
2.4 Conceptual Framework
Figure 2.1: Conceptual Framework of the Study
(Researchers Computation, 2024)
Based on the review of available literature, a conceptual framework is shown in Figure 2.1. The focus of the framework is to investigate the relationship between leadership style and employees’ performance. Where leadership style is the independent variable which is measured with autocratic leadership style, democratic leadership style, transformational leadership style and transactional leadership style while the dependent variable is employees’ performance.
2.5 Theoretical Review
2.5.1 Transformational Leadership Theory
This theory (also known as relationship theory) focuses on the connections formed between leaders and followers (Bass & Avolio, 2000). This theory is premised on a leadership style that inspires followers to improve performance by focusing on the wants and needs of the organization as well as the personal concerns of its members (Munir & Aboidullah, 2018). Leadership effectiveness under this theory is dependent on individualized consideration, intellectual stimulation, inspirational motivation and idealized influence (Ewell, 2018; Getachew & Erhua, 2018). Idealized influence refers to when transformational leaders act as role models to their subordinates such that the followers identify themselves with a high level of morale and enthusiasm to fulfil the demands of leader whom they respect, admire and trust (Bass & Avolio, 2000). Leaders using this approach can motivate others, to want to change, improve and be led (Hall, 2002; Ewell, 2018) and possess high ethical and moral standards (Getachew & Erhua, 2018),
2.5.2 Path-Goal Theory
The path-goal theory was developed by Martin Evans in his 1970 paper, “The Effects of Supervisory Behaviour on the Path-Goal Relationship” and was refined by Robert House in his 1971 paper, “A Path-Goal Theory of Leader Effectiveness”. The theory is based on specifying a leader’s style or behaviour that best fits the employee and work environment to achieve a goal (Malik, 2013). Also, this theory can be explained as a leadership style whereby a leader exhibits certain contextual behaviours that align the follower’s goals with the organization’s goals and direct the followers to choose the best paths to achieve these goals (Malik, 2013). The goal of this leadership style is the improvement of employee productivity by focusing on employee satisfaction and motivation (House, 2015). The Path-Goal leadership theory is based on the Vroom expectancy theory in which an individual will act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual (Ghiasi & Limoni, 2015). The Path-Goal theory posits that leaders may not only use varying behaviours with different subordinates but might use different behaviours with the same subordinates in different situations (Rego et al., 2012; Malik, 2013).
In relating this theory with leadership style, leaders that lead utilizing a Path-Goal leadership style reward and encourage their followers for goal achievement and also provide their followers with the necessary direction, clarity and assistance with the elimination of obstacles for them to attain their goals (Malik, 2013). House (2015) identified four leadership styles namely directive, supportive, participative and achievement-orientated leadership (Ewell, 2018). The directive leader is a type of leader that schedules the tasks of the followers and directive leaders also provide guidance to the followers and let them know exactly what is expected from them (Rohman et al., 2018). Achievement-oriented leaders expect their followers to perform at their highest level by setting goals for them to reach (House, 2015). Supportive leaders aim to show concern for the needs of the followers by employing friendly interaction and participative leaders use collective decision-making by consulting the followers and using their suggestions before making any decisions (Priyashantha, 2016). The theory posits that leaders may use different behaviours with subordinates in a similar situation and or employ varying behaviours with the same subordinate in different situations and this theory suggests that depending upon subordinates, and situations, different leadership behaviours will increase acceptance of leader by subordinates, level of satisfaction and motivation to improved performance (Ghiasi & Limoni, 2015).
2.6 Empirical Review
Clinton and Ogbor (2021) examined the impact of a strategic leadership approach on organizational performance. The findings reveal that democratic and laissez-faire leadership styles have a significant relationship with the performances of staff while the autocratic leadership style has no significant relationship with the performances of staff of GTB in Asaba. Anyaegbunam and Anekwe (2021) examined the effects of leadership styles on employee performance with particular reference to Life Breweries Plc, Onitsha. The study revealed among others that there is a positive and significant relationship between the leadership style in the organization and employees’ performance. Nwagbala, et al. (2021) examined the relationship that exists between transformational leadership style and participatory leadership style on employee performance in Stanel World, Awka, Anambra State. The findings were that there is a significant relationship between leadership style and employee performance by showing a positive relationship between participative leadership style and employee while showing a positive relationship between transformational leadership style and job satisfaction. Adegboye and Awolusi (2021) examined the effect of leadership style on employee productivity in the Nigerian oil and gas industry using Chevron Nigeria Limited as a case study. Results of the descriptive and regression analysis indicate that the autocratic leadership style is the most predominant in the Nigerian Oil and Gas followed by laissez-faire, bureaucratic, transactional, democratic and charismatic leadership styles. Udin (2021) provides new insights into uncovering the black box related to the relationship between transformational leadership and employee performance. Using a literature review from various previous studies in the last five years (2017-2021), the result of this study justifies that transformational leadership, in various organizational settings and sizes, has a significant effect on employee performance. Iman, et al. (2021) explained the influence of leadership and work motivation on employee performance at private universities within the province of Southeast Sulawesi which is mediated by knowledge-sharing behaviour. A survey approach and explanatory research method were used. The results obtained showed that leadership has a positive and significant effect on employee performance and knowledge-sharing behaviour. Negash, (2021) examined the effect of leadership styles such as transformational, transactional, laissez-faire, democratic and autocratic on employees’ performance at Debre Berhan wood processing PLC. Descriptive and explanatory research designs were applied to cross-sectional data collected from 202 sample respondents. Results revealed that transformational leadership exerted the highest positive influence on employee performance followed by democratic, transactional, and laissez-faire leadership styles respectively, while autocratic leadership style had a negative significant effect on employee performance. Amegayibor (2021) explored the association between leadership styles and employee performance in a family-owned manufacturing business. A quantitative approach and a correlational design were adopted with a census technique of sampling 400 employees, an interview schedule, multiple linear regression, and SPSS 16.0 version were carried out for analysis. The results revealed that autocratic, charismatic, and paternalistic leadership styles influence employees’ performance. Also, autocratic, charismatic and visionary leadership styles influence error reduction. Furthermore, paternalistic and visionary leadership styles influence employees’ quality of work. Osano (2022) investigated the influence of leadership style on employee performance in Kenya. A descriptive design and survey design were adopted for the study. The result indicated that the transformational leadership style influences employee performance, the transactional leadership style showed that it has a positive and significant influence on employee performance, the participatory leadership style influences employee performance and the autocratic leadership style influences employee performance. Wase and Jeyaprabha (2022) assessed the practices of leadership styles that influence employees’ job performance. The results of the research were mixed which revealed positive results and negative results. The result of the analysis carried out showed that transformational and servant leadership behaviours positively and significantly influence employees’ performance at the workplace. While autocratic and transactional leadership behaviours are not significant in influencing employees’ performance. Khudhair, et al. (2022) identified the impact of leadership style on employee performance using a sample size of 100 from one private organization in Selangor, Malaysia conducted with a convenience sampling technique. From the result, regression coefficient analysis shows that there is a significant and positive impact of democratic and laissez-faire leadership styles on employee performance. While autocratic leadership style shows a negative significant impact on employee performance. Imam and Sopiah (2022) explored a systematic literature review on the influence of leadership style on employee performance. The results of the study revealed that the leadership style of a leader is to solve the problem by approaching each employee to build an emotional approach so that the relationship between leaders and employees can run well.
Onwuegbuna (2022) examined the impact of the democratic leadership style on employees’
performance in selected private universities in Ota, Ogun State, Nigeria. The findings show that the democratic leadership style has an impact on employees’ performance in Nigerian private universities. Akpoyibo (2022) investigated leadership style and employees’ performance in the Nigerian banking industry with particular reference to GTB Plc. Survey design was carried out using both primary and secondary sources. It was resulted that the staff of GTB are familiar with different leadership styles of which several are practiced by management towards employees and that the leadership styles practiced at GTB include the participatory style, democratic as well as the charismatic leadership style that the team leaders GTB create a conducive work environment which that helps employees do their jobs also, that the management of GTB provides sufficient assistance to employees who go through hard times and that the type of leadership style adopted by top management at GTB motivates employees in performing their jobs.
2.7 Research Gap
Most studies have been carried out as regards leadership style and employees’ performance in developed countries but in Africa especially Nigeria studies carried out are mostly in the area of banking, and manufacturing companies but research carried out in Nigeria on tertiary institutions is not much. Though, most researchers have worked on leadership style and employees performance in Nigeria such as Ajibade, et al. (2017); Orji, et al. (2017); Kalu and Okpokwasili (2018); Ekpenyong (2020); Amusa, et al. (2020); Nwagbala, et al. (2021); Adegboyega and Awolusi (2021); Akpoyibo (2022) and Onwuegbuna (2022). But few researchers have been able to work on tertiary institutions in Nigeria recently such few scholars are Yusuf-Habeeb and Yusuf (2017); Odunlami, et al. (2017); Kalu and Okpokwasili (2018); Idowu (2019); Manza, et al. (2020); Onwuegbuna (2022). It was observed that these researchers mainly used transformational, transactional, charismatic, participatory, and laissez-faire as components of leadership style while autocratic, and democratic amongst others were not used in measuring leadership style and employees’ performance of tertiary institutions in Nigeria. Another aspect is the methodology where the questionnaire was not measured based on a multi-factor leadership questionnaire. Therefore, this study made use of this scaling factor by Bass (1995) and Yousef (2000) scale of measuring employee performance. Also, the study emphasized an understanding of leadership style the underlying factors, issues and influence on employees’ performance at tertiary institutions in Ibadan, Oyo State, Nigeria.
3.0 METHODOLOGY
This study makes use of a cross-sectional survey research design to investigate the relationship between leadership style and employees’ performance at private tertiary institutions in Ibadan, Oyo state. The main reason for this survey was to gather the proper information to provide insight into leadership style and employees’ performance of private tertiary institutions in Ibadan, Oyo State, Nigeria. This study focused on Lead City University because it is one of the largest, most populated and most well-known private universities in Ibadan amongst other private universities. The population of this study consists of a staff of Lead City University in Ibadan, Oyo State, Nigeria. The total population for this study is 585 (five hundred and eighty-five). Table 3.1 illustrates the selected outcome alongside the number of staff of both academic and non-academic staff of the school.
3.1: Distribution of staff of selected branches
S/N
ITEM
NUMBER OF STAFF
1
Academic Staff
347
2
Non-Academic Staff
238
TOTAL
585
Source: Field Survey, 2023
The sample size for this study was approximately 238 using the Slovin’s formula which is illustrated below.
3.1 Reliability of Instrument
Table 1: Alpha Test for Reliability, Consistency and Validation
The table above shows Cronbach Alpha test for reliability, consistency and validity of the study instrument which is the questionnaire. The minimum acceptable value for Cronbach’s alpha is 0.50; Below this value the internal consistency of the common range is low. Meanwhile, the maximum expected value is 0.90; Above this value is perceived as redundancy or duplication. Alpha values between 0.55 and 0.90 is usually preferred. In this study, the Cronbach Alpha test results as seen from the table above shows a value of 0.61 which makes the instrument for this study reliable and valid.
3.2 Method of Data Analysis
The method of data analysis was of two parts. The first part consists of the frequencies, means and percentages which were used to describe the characteristics of the sample. The second part was the regression analysis used to infer meaning about the entire population from the sample findings. Also, analysis of variances, model summaries and regression coefficients were used to describe the characteristics of the population of study while STATA version 14 and Microsoft Excel were used as the principal data analysis tools.
3.3 Model of Specification
This comprises the elements used in measuring the independent variable (Leadership Style) which are Autocratic Leadership Style (AULS), Democratic Leadership Style (DELS), Transformational Leadership Style (TFLS) and Transactional Leadership Style (TSLS) on the dependent variable which is employees’ performance.
The model for the study is functionally stated below:
β1 – β3 > 0 = Coefficient of AULS, DELS, TFLS and TSLS
Ɛⅈ = Error term
ⅈ = Samples of Lead City University Ibadan, Oyo State, Nigeria.
The a priori expectation for this study is stated:
β1, β2, β3, β4 > 0, the reason is that the variables used here are a process dimension
4.0 Data Presentation and Analysis
Particularly, a total of 240 questionnaire were sent out to the respondents for data generation as shown in the table below:
Table 1: Analysis of Questionnaire
Questionnaires
Copies
Percentage
Retrieved
205
85%
Un-retrieved
35
15%
Sent copies
240
100%
Source: Author Compilation from field work, 2024
The result from the analysis of the retrieved questionnaire shows that out of the 240 questionnaire that were sent, 205 of them were retrieved. This represented 85% of the total questionnaire sent and this was the number that was used for analysis in the subsequent sections that will follow. 35 of the questionnaires could not be retrieved, representing 15% which is not significant.
4.1 Data Analysis
Correlation Analysis
In examining the association among the variables, we employed the Spearman Rank Correlation Coefficient (correlation matrix), and the results are presented in the table below.
Table 4.7: Correlation analysis
| ep auls dels tfls tsls
————-+———————————————
ep | 1.0000
auls | 0.1418 1.0000
dels | 0.5966 0.0306 1.0000
tfls | 0.6561 0.2370 0.4046 1.0000
tsls | -0.0431 -0.0089 -0.0701 0.0144 1.0000
Author’s computation (2024)
In the case of the correlation between leadership styles and employee performance, the above results show that there exists a positive and weak association between autocratic leadership style and employee performance (0.1418). There exists a positive and moderate association between democratic leadership style and employee performance (0.5966). There exists a positive and high association between transformative leadership style and employee performance (0.6561). There exists a negative and weak association between transactional leadership style and employee performance (-0.0431). However, to test our hypotheses a regression results will be needed since correlation test does not capture cause-effect relationship.
Regression Analysis
Particularly, to examine the cause-effect relationships between the dependent variables and independent variables as well as to test the formulated hypotheses, we used a robust regression analysis since our results reveal the presence of heteroskedasticity. The robust regression and the OLS results obtained is presented and discussed below.
Table 2: Regression Result
EP Model(OLS)
EP Model(Robust Regression)
CON
0.42{0.549}
0.86{0.239}
AULS
0.10{0.452}
0.18{0.216}
DELS
0.44{0.000} ***
0.40{0.000} ***
TFLS
0.50{0.000} ***
0.44{0.000} ***
TSLS
-0.01{0.945}
-0.09{0.536}
F-statistics Wald Statistics
20.32 (0.00) ***
14.95 (0.00) ***
R- Squared
0.53
0.53
VIF Test
1.14
Heteroscedasticity Test
5.62 (0.0177) **
Note: (1) bracket {} are p-values
(2) **, ***, implies statistical significance at 5% and 1% levels respectively
In the table above, we observed from the OLS pooled regression that the R-squared value of 0.53 shows that about 53% of the systematic variations in employee performance for the period of interest was jointly explained by the independent variables in the model. This implies that employee performance cannot be 100 percent explained by the leadership style variables. The unexplained part of employee performance can be attributed to the exclusion of other independent variables that can impact on employee performance but were excluded because they are outside the scope of this study. However, there are captured in the error term. The F-statistic value of 20.32 and its associated P-value of 0.00 shows that the OLS regression model on the overall is statistically significant at 1% level, this means that the regression model is valid and can be used for statistical inference.
Test of Hypotheses
Following the above, the discussion of the robust regression results became imperative in testing our hypotheses. The below is a specific analysis for each of the independent variables using the robust regression for the models.
Hypotheses 1: There is no significant impact of autocratic leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State.
The results obtained from the robust regression reveals that the variable of autocratic leadership {0.18 (0.216)} as an independent variable to employee performance appears to have a positive insignificant impact on employee performance. This therefore means we should accept the null hypothesis and reject the alternate hypothesis. Hence, there is no significant impact of autocratic leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State. This implies that autocratic leadership style insignificantly improves employees’ performance at private tertiary institutions in Ibadan, Oyo State during the period under study.
Hypotheses 2: There is no significant influence of democratic leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State.
The results obtained from the robust regression reveals that the variable of democratic leadership style {0.40 (0.000)} as an independent variable to employee performance appears to have a positive significant influence on employee performance. This therefore means we should reject the null hypothesis and accept the alternate hypothesis. Hence, there is no significant influence of democratic leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo state. This implies that democratic leadership style significantly improves employees’ performance at private tertiary institutions in Ibadan, Oyo state during the period under study.
Hypotheses 3: Transformational leadership style has no relationship with employees’ performance at private tertiary institutions in Ibadan, Oyo State.
The results obtained from the robust regression reveals that the variable of transformational leadership style {0.44 (0.000)} as an independent variable to employee performance appears to have a positive significant impact on employee performance. This therefore means we should reject the null hypothesis and accept the alternate hypothesis. Hence, transformational leadership style has no relationship with employees’ performance at private tertiary institutions in Ibadan, Oyo State. This implies that transformational leadership style significantly improves employees’ performance at private tertiary institutions in Ibadan, Oyo State during the period under study.
Hypotheses 4: There is no significant impact of transactional leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State.
The results obtained from the robust regression reveals that the variable of transactional leadership style {-0.09 (0.536)} as an independent variable to employee performance appears to have a negative insignificant effect on employee performance. This therefore means we should accept the null hypothesis and reject the alternate hypothesis. Hence, there is no significant relationship of transactional leadership style on employees’ performance at private tertiary institutions in Ibadan, Oyo State. This implies that transactional leadership style insignificantly decreases employees’ performance at private tertiary institutions in Ibadan, Oyo State during the period under study.
5.0 CONCLUSION AND RECOMMENDATIONS
The managing style of a leader is essential to the success of teamwork which leads to organizational growth. In many cases, leaders are not aware of the essential wants and needs of their employees or subordinates, or they fail to understand the difference between the individuals involved in the team. A successful organization is a reflection of excellent leadership. Hence, we investigate the relationship between leadership styles on employees’ performance in private tertiary institutions in Ibadan, Oyo State. Based on the findings of the study, we conclude that autocratic leadership style insignificantly improves employees’ performance at private tertiary institutions in Ibadan, Oyo State during the period under study. However, we also conclude that democratic leadership and transformation leadership style significantly improves employees’ performance at private tertiary institutions in Ibadan, Oyo State during the period under study. Finally, we conclude that transactional leadership style insignificantly decreases employees’ performance at private tertiary institutions in Ibadan, Oyo State during the period under study.
5.3 Recommendations
This study has sufficiently established different positions on the impact of leadership styles on employees’ performance in private tertiary institutions in Ibadan, Oyo state. Based on the findings of this study, we carefully recommend that:
Transformational leaders as well as democratic set of leaders have the capacity and needed skills to solve problems, transform the organization and take the organization to greater heights to achieve better results for the organization.
REFERENCES
Abadiyah, R., Eliyana, A., & Sridadi, A. R. (2020). Motivation, leadership, supply chain management toward employee green behavior with organizational culture as a mediator variable. International Journal of Supply Chain Management, 9(3), 981-989.
Adegboye, O., & Awolusi, O. D. (2021). The effect of leadership styles on employee’s productivity in the Nigerian Oil and Gas Industry. Information Management and Business Review, 13(1), 47-64.
Adekunle, O. A. (2020) The effects of leadership styles on organizational behavior and performance in some selected organizations in Nigeria. Journal of Public Affairs, 7(3), 45-57.
Ajibade, O. E., Ajayi, T. O., & Shobowale, O. (2017). Leadership style and employees’ performance in Nigerian Federal Polytechnics: a study of Federal Polytechnic, Ilaro, Ogun State. Journal of Public Administration, Finance and Law, 11, 17-30.
Akpa, V. O., Asikhia, O. U. & Okusanya, A. O. (2021). Leadership styles and organisational performance in Nigeria: qualitative perspective. International Journal of Engineering and Management Research, 11(1), 46-53.
Akpoyibo, A. G. (2022). Leadership style and employee performance in Guaranty Trust Bank Plc, Abraka, Delta State, Nigeria. International Journal of Business and Law Research, 10(4), 47-56.
Alheet, A., Adwan, A., Areiqat, A., Zamil, A., & Saleh, M. (2021). The effect of leadership styles on employees’ innovative work behavior. Management Science Letters, 11(1), 239-246.
Al Khajeh, E. H. (2018). Impact of leadership styles on organizational performance. Journal of Human Resources Management Research, 2(1) 20-26.
Amussah, A. (2020). Leadership styles and its impact on employee performance. (Published Master’s Thesis), Graduate School of Social Sciences Business Administration Program, Near East University, Nicosia, Cyprus.
Amegayibor, G. K. (2021). Leadership styles and employees’ performance: a case of family- owned manufacturing company, Cape Coast. International Journal of Financial, Accounting, and Management, 3(2), 149-164.
Anyaegbunam, C. E., & Anekwe, E. A. (2021). Investigate the effect of leadership style on employee’s performance. International Academy Journal of Management, Marketing and Entrepreneurial Studies, 8(2), 175-184. Retrieved from: asasubmitpaper@gmail.com
Aun, I. I., Olota, O. O., Ajayi, O., & Sanusi, S. I. (2019). Effect of leadership styles on employees’ performance: a study of seven-up Plc. Global Management Review, 13(1), 10-23. Doi:10.34155/GMR.19.1301.02
Baig, S. A., Iqbal, S., Abrar, M., Baig, I. A., Amjad, F., Zia-ur-Rehman, M., & Awan, M. U. (2021). Impact of leadership styles on employees’ performance with moderating role of positive psychological capital. Total Quality Management and Business Excellence, 32(9-10), 1085-1105.
Bass, B. M., & Avolio, B. J. (2000). MLQ Multifactor Leadership Questionnaire. Redwood City: Mind Garden.
Bastari, A., Eliyana, A., & Wijayanti, T. (2020). Effects of transformational leadership styles on job performance with job motivation as mediation: a study in a state-owned enterprise. Management Science Letters, 10(12), 2883-2888.
Belete, J. (2020). The effects of leadership style on employee’s performance in case of Kaffa Zone Government Offices, South West Ethiopia. International Journal of Engineering Science and Computing, 10(7), 26756-26773.
Clinton, E., & Ogbor, J. O. (2021). Strategic leadership approach and employee performance in the banking sector in Nigeria. International Journal of Economic Perspectives, 15(1), 265-284. Retrieved from https://ijeponline.org/index.php/journal/article/view/46
Chang, H. (2019). Does leadership matter: study of leadership style, job performance and job satisfaction. Business Economics, 11(2), 1-28. doi: 10.5937/poseko12-16191
Derese, S. (2020). The impact of leadership style on employee performance: the case of EPUC. International Journal of Academic Multidisciplinary Research, 4(8), 49-69.
Dey, M., Bhattacharjee, S., Mahmood, M., Uddin, M. A., & Biswas, S. R. (2022). Ethical leadership for better sustainable performance: the role of employee values, ethical behavior and climate. Journal of Net Production, 337(1), 130527. Retrieved from: https://doi.org/10.1016/j.jclepro.2022.130527
Efendi, M. N. R. S. R., & Graduate. (2020). The performance of employees influenced by leadership styles and compensation. International Journal of Multicultural and Multireligious Understanding, 292-299.
Ekpenyong, J. N. (2020). The impact of leadership style on employees performance in a business organization: a case study of Guarantee Trust Bank Plc, Abuja. (Master’s Thesis), Department of Human Resource Management, National College of Ireland, Ireland.
Ewell, J. (2018). Revitalizing a student organization by applying transformational leadership. Journal of Leadership Education, 17(3), 208-218.
Fakhri, M., Pradana, M., Syarifuddin, S., & Suhendra, Y. (2020). Leadership style and its impact on employee performance at Indonesian national electricity company. The Open Psychology Journal, 13(1), 321-325.
Getachew, D. S., & Erhua, Z. (2018). The influences of transformational leadership on collective efficacy: the moderating role of perceived organizational support. International Journal of Organizational Innovation, 10(4), 7-15.
Ghiasi, M., & Limoni, S. T. 2015. Investigating the factors affecting the level of job satisfaction among the librarians at central library of Islamic Azad University of District 3. Library Philosophy and Practice, 1350, 1-3.
Holbert, J., Madhakomala, R., Saparuddin, S., & Timotius, E. (2021). The influence of leadership styles on employees’ job satisfaction in public sector organizations in Indonesia. Management Science Letters, 11(4), 1393-1398.
House, R. J. (1971). A path-goal theory of leader effectiveness. Journal of Administrative Science Quarterly, 16(1), 321-338.
House, J. (2015). Leadership Styles. Encyclopedia of Educational Leadership and Administration. California: Sage Publications.
Idowu, S. A. (2019). Impact of leadership styles on employees’ work performance in some south-western Nigerian private universities. Economics Insights-Trends and Challenges. 8(4), 27-46.
Imam, S., & Sopiah, A. (2022). The influence of leadership style on employee performance: systematic literature review. International Journal for Multidisciplinary Research, 4(6), 1-13.
Iman, N., Nurwati, Hatani, L., & Juharsah. (2021). Effect of leadership and work motivation on employee performance through knowledge sharing behavior. Archives of Business Research, 9(11), 34-50.
Insan, A., & Masmarulan, R. (2021). Effects of leader-member exchange and organizational culture on work engagement and employee performance. Management Science Letters, 11(3), 879-886.
Kabiru G. K., & Bula, H. (2020). Influence of transactional leadership style on employee performance at selected commercial banks in Nairobi city county, Kenya. International Journal of Research and Innovation in Social Science, 4(9), 520-524.
Kalu, D. C., & Okpokwasili, N. P. (2018). Impact of autocratic leadership style on job performance of subordinates in academic libraries in Port-Harcour, Rivers state, Nigeria. International Journal of Research – Granthaalayah, 6(10), 212-220. Retrieved from https://doi.org/10.5281/zenodo.1486215.
Malik, S. H. (2013). Relationship between leader behaviors and employees’ job satisfaction: a path-goal approach. Pakistan Journal of Commerce & Social Sciences, 7(1), 209- 222.
Mamza, I. Y., Abdullahi, S., & Usman, M. (2020). Effect of leadership styles on employees’ performance in Nigeria Institute for Trypanosomiasis Research, Kaduna State. African Scholar Journal of Management Science and Entrepreneurship, 18(7), 23-44.
Munir, F., & Aboidullah M. (2018). Gender differences in transformational leadership behaviors of school principals and teachers’ academic effectiveness. Bulletin of Education & Research, 40(1), 99-113.
NawoseIng’ollan, D., & Roussel, J. (2017). Influence of leadership styles on employees’ performance: a study of Turkana County, Kenya. International Journal of Business and Social Science, 8(7), 82-98.
Negash, B. W. (2021). Effect of leadership style on employees’ performance: the case of Debre Berhan wood processing Plc. (Doctoral Thesis), Department of Management, college of Business and Economics, Debre Birhan University, Ethiopia.
Nwagbala, S. C., Ifureze, P. C., & Agbo, S. (2021). An assessment on leadership styles and employee performance in Stanel World, Awka, Anambra State. International Journal of Business and Management Research, 2(3), 1-17.
Odunlami, S. A., Awosusi, O. O., & Awolusi, O. D. (2017). The influence of leadership styles on employees’ performance: a study of selected private universities in Ogun State, Nigeria. Global Journal of Commerce and Management Perspective, 3(2), 26-32.
Onwuegbuna, G. N. (2022). Democratic leadership style and employees’ performance in the Nigerian educational sector: a study of Bells University of Technologsy, Ota and Crawford University, Igbesa, Ogun State, Nigeria. International Journal of Management, Social Sciences, Peace and Conflict Studies, 5(1), 155-164.
Orji, M. G., Olowu, D. M., Boma, S. A., & Akhimien, E. (2017). Leadership styles and employee performance in Nigerian higher educational institutions. American Journal of Environmental and Resource Economics, 2(1), 12-21. doi: 10.11648/j.ajere.20170201.12
Osano, M. P. (2022). Influence of leadership style on employee performance: a case of membership associations in Kenya. (Master’s Thesis), Chandaria School of Business, United States International University, Africa. South Africa.
Patzelt, H., Gartzia, L., Wolfe, M. T., & Shepherd, D. A. (2021). Managing negative emotions from failed entrepreneurial projects: when and how can supportive leadership help employees. Journal of Business Venturing, 36(5), 106129. Retrieved from https://doi.org/10.1016/j.jbusvent.2021.106129
Pradana, M., Pérez-Luño, A., & Fuentes-Blasco, M. (2020). Innovation as the key to gain performance from absorptive capacity and human capital. Technology Analysis & Strategic Management, 32(7), 822-834.
Priarso, M. T., Diatmono, P., & Mariam, S. (2018). The effect of transformational leadership style, work motivation, and work environment on employee performance that in mediation by job satisfaction variables in Pt. Gynura Consulindo. Business and Entrepreneurial Review, 18(2), 165-176.
Priyashantha, K. G. (2016). The impact of leadership styles on employee performance: analysis of the intervening effect of employee retention to the relationship of leadership styles and employee performance. (Published MBA Thesis), Faculty of Management and Finance, University of Ruhuna, Matara, Sri Lanka. Retrieved: https://www.researchgate.net/publication/359420981
Purnomo, B. R., Eliyana, A., & Pramesti, E. D. (2020). The effect of leadership style, organizational culture and job satisfaction on employee performance with organizational commitment as the intervening variable. Systematic Reviews in Pharmacy, 11(10), 446- 458.
Rego, A., Sousa, F., Marques, C., & Cunha, M. (2012). Authentic leadership promoting
employees’ psychological capital and creativity. Journal of Business Research, 65(1), 429-437.
Rohman, A., Eliyana, A., Purwana, D., & Hamidah. (2020). Individual and organizational factors’ effect on knowledge sharing behavior. Entrepreneurship and Sustainability Issues, 8(1), 38-48.
Sadia, A., & Aman, A. (2018). Transformational leadership and organizational performance; the mediating role of organizational innovation. SEISENSE Journal of Management, 1, 59-75.
Saputra, F., & Mahaputra, M. R. (2022). Effect of job satisfaction, employee loyalty and employee commitment on leadership style: human resource literature study. Dinasti International Journal of Management Science, 3(4), 762-772.
Udin, U. (2021). Transformational leadership and employee performance inside the black box. International Journal of Management Studies and Social Science Research, 3(6), 82-87.
Udovita, V. (2020). Conceptual review on impact of leadership style on employee performance. International Journal of Business and Management Invention, 9(9), 16- 23.
Wase, D. M., & Jeyaprabha, R. B. (2022). The influence of leadership styles on employees performance in Bole sub city education sectors Addis Ababa, Ethiopia. International Journal of Innovative Research in Engineering and Management, 9(4), 109-113. Retrieved from: https://doi.org/10.55524/ijirem.2022.9.4.18
Weber, E., Buttgen, M., & Bartsch, S. (2022). How to take employees on a digital transformation journey: an experimental study of complementary leadership behaviors in managing organizational change. Journal of Business Research, 143(1), 225-238. Retrieved from https://doi.org/10.1016/j.jbusres.2022.01.036
Yousef, D. (2000). Organizational commitment: a mediator of the relationships of leadership behavior with job satisfaction and performance in a non-western country. Journal of Managerial Psychology, 15(1), 6-24.
Yusuf-Habeeb, M., & Yusuf, I. (2017). Effects of leadership style on employee performance in Nigerian Universities. Global Journal of Management and Business Research, 17(7), 26-33.
Zamin, S. A., & Hussin, F. (2021). Effect of leadership styles and work climate on job performance: a mediating role of organizational commitment among university lecturers in Pakistan. Ilkogretim Online, 20(2), 24-31.
Project management success hinges on clear, consistent, and purposeful communication across all stakeholders. Strong communication channels create alignment, drive accountability, and ensure every team member understands their role in achieving project objectives.
Building Strong Communication Foundations
Project managers must establish robust communication frameworks from day one. Clear guidelines for information sharing prevent misunderstandings and keep projects on track. Regular check-ins and status updates maintain momentum while addressing challenges proactively.
Communication Infrastructure Development
Reliable communication systems form the backbone of successful project execution. Investing in robust communication tools ensures seamless information flow between team members and stakeholders. Building redundant communication channels prevents costly project delays.
Modern project teams span multiple time zones and locations, making reliable connectivity essential. Global teams need dependable communication tools that bridge geographical gaps, and many project managers find that aninternational sim card keeps them connected with their teams across borders. Technology removes traditional communication barriers while fostering collaboration.
Essential Communication Channels
Daily standup meetings and check-ins
Project management software platforms
Team collaboration tools
Documentation repositories
Strategic Communication Planning
Every successful project requires a well-defined communication strategy. Project managers must identify key stakeholders and determine appropriate communication frequencies for each group. Communication plans should outline escalation paths for critical issues.
Establishing communication protocols helps teams navigate complex projects effectively. Regular feedback loops ensure continuous improvement throughout the project lifecycle. Clear documentation standards help preserve important project information.
Stakeholder Engagement
Different stakeholders require varying levels of project detail and updates. Executive stakeholders need high-level progress reports focused on business impacts and ROI. Technical teams require detailed specifications and regular troubleshooting sessions.
Building trust with stakeholders demands consistent and transparent communication. Regular status meetings keep everyone aligned on project goals and milestones. Open channels for feedback encourage stakeholder buy-in and support.
Crisis Communication Management
Project managers must prepare for unexpected challenges and setbacks. Having pre-defined communication protocols for crisis situations prevents panic and maintains order. Quick response times during critical situations preserve stakeholder confidence.
Clear escalation paths ensure the right people receive important information promptly. Documentation of crisis responses helps teams learn from past experiences. Regular crisis simulation exercises prepare teams for real emergencies.
Cross-Cultural Communication
Global projects require sensitivity to cultural differences in communication styles. Understanding cultural nuances helps prevent misunderstandings and builds stronger relationships. Project managers should provide cultural awareness training for team members.
Time zone considerations impact meeting schedules and response expectations. Teams should establish core hours for real-time collaboration when possible. Cultural holidays and observances deserve respect in project planning.
Communication Tools and Technology
Tool Type
Primary Use
Best For
Key Features
Video Conferencing
Team Meetings
Remote Teams
Screen Sharing
Chat Platforms
Quick Updates
Daily Communication
Instant Messaging
Project Software
Task Management
Progress Tracking
Timeline Views
Email
Formal Communications
Documentation
Thread Tracking
Measuring Communication Effectiveness
Regular surveys help gauge team satisfaction with communication methods. Project managers should track response times and information flow efficiency. Metrics help identify communication bottlenecks and areas for improvement.
Data-driven improvements strengthen communication processes over time. Team feedback provides valuable insights into communication challenges. Regular assessments help optimize communication channels.
Documentation Best Practices
Clear documentation guidelines ensure consistent information capture across teams. Project managers must establish templates for different document types to maintain uniformity. Regular document reviews keep information current and relevant.
Version control systems prevent confusion and maintain document integrity. Team members need appropriate access levels to relevant documentation. Automated backup systems protect critical project information.
Virtual Team Dynamics
Remote teams require specialized communication approaches to maintain engagement. Virtual team-building activities strengthen relationships across geographical boundaries. Regular video interactions help team members forge personal connections.
Project managers should create opportunities for informal virtual interactions. Online collaboration tools facilitate spontaneous discussions and idea sharing. Virtual coffee breaks and social sessions build team camaraderie.
Stakeholder Analysis Techniques
Understanding stakeholder communication preferences improves engagement effectiveness. Regular stakeholder mapping exercises identify changing project influences. Communication strategies must adapt to evolving stakeholder needs.
Influence matrices help prioritize communication efforts across stakeholder groups. Project managers should track stakeholder sentiment through regular feedback channels. Data-driven stakeholder analysis guides communication resource allocation.
Communication Risk Management
Project managers must identify potential communication breakdowns before they occur. Risk mitigation strategies should address language barriers and technological challenges. Regular communication audits help prevent information bottlenecks.
Backup communication channels ensure continuous information flow during disruptions. Team members need clear guidelines for escalating communication-related risks. Contingency plans should address various communication failure scenarios.
Performance Feedback Loops
Effective feedback systems strengthen team performance and project outcomes. Regular one-on-one sessions provide opportunities for detailed performance discussions. Project managers should document feedback conversations for future reference.
Team members need clear metrics for measuring their communication effectiveness. Performance reviews should include communication-specific goals and objectives. Continuous feedback helps team members improve their communication skills.
Change Communication Strategy
Change initiatives require carefully planned communication approaches. Project managers must sequence change announcements to maintain team stability. Clear messaging helps team members understand and adapt to changes.
Change impact assessments guide communication timing and methods. Team members need opportunities to provide feedback on proposed changes. Regular updates keep stakeholders informed of change progress.
Meeting Management Protocols
Efficient meeting protocols maximize team productivity and engagement. Clear agendas and time management strategies keep discussions focused. Meeting facilitators must ensure all voices receive appropriate attention.
Post-meeting summaries capture key decisions and action items. Team members need designated roles for meeting documentation and follow-up. Regular meeting effectiveness reviews help optimize future sessions.
Looking Forward
Communication methods continue evolving with new technology and tools. Project managers must stay current with communication trends and best practices. Adapting communication strategies ensures continued project success.
Take action today to strengthen your project’s communication framework. Assess your current communication methods and identify areas for improvement. Remember, effective project communication drives successful outcomes and builds stronger teams.
Frequently Asked Questions
How often should project status meetings occur?
Weekly status meetings work best for most projects, with daily standups for agile teams.
What’s the best way to handle conflict in project communications?
Address conflicts promptly through direct, private conversations focused on solutions.
How can we improve remote team communication?
Implement regular video calls, use collaborative tools, and establish clear communication expectations.
Even if the way that you’ve run your business has worked for you up to this point, it’s always worth considering your options. Sometimes, those options are represented by small adjustments or changes; other times, it could be a more fundamental shift. Just because everything has worked well up to this point, that doesn’t mean that it always will.
You need to be ahead of the curve when implementing these kinds of changes – understanding exactly how the change will help and knowing when the right time is to move away from your current way of working.
Technology Driven
Perhaps the way that you’ve been doing things up to this point is unable to keep pace with the onward march of technology, leading to a situation where you need to integrate some new tools. This can be difficult because it often requires getting all of your employees trained and familiar with the latest technology – but the results could be more than worthwhile. Consider what a Kubernetes migration could do for your brand, for example. If achieved correctly, this could allow your team to have a much greater degree of flexibility in how they develop, and your audiences will notice that difference in your output. Being able to keep pace is something that can feel intangible, but over time, that might give way to more efficient work.
Financially Driven
Understandably, it could be that these changes are stemming from a financial need. You might feel as though this change is a good opportunity to create more money in your budget, or it might be that you need to downsize following a difficult period in your company’s history. There will be times when this overlaps with another intention – such as shifting to a remote working model, because it means that you’ll be able to save money that you’re currently spending on an office.
It could also be the opposite. Things could be going well, which might mean an expansion is on the cards. As your business grows, however, you might not be able to command the whole of it as you once were, making delegation an absolute necessity for ensuring smooth operations.
People Driven
It might be that you want your business to be thought of as an ideal workspace for your employees (both now and in the future). This could be something you decide to implement through a change in your work structure, a shift in how your company views your employees and how valuable they are to your business. It’s easy enough to just say this, but people might not feel that difference taking effect until you make good on your word.
There is a sort of push-pull between employers who want their staff back in the office and the employees who prefer the balance that their lives get through remote working. It’s a blanket generalization, but understanding your own staff and the work that they do could help you to create a flexible working arrangement that benefits everyone.
Abstract— This paper explores the role of transformational leadership in driving innovations and modernization efforts within organizations. By synthesizing empirical research from the past two decades, we examine the key components of transformational leadership and their impact on organizational change, innovation processes, and modernization initiatives. The findings highlight the significant influence of transformational leadership on fostering a culture of innovation, enhancing employee creativity, and facilitating successful organizational transformations.
In an era of rapid technological advancements and global competition, organizations face the constant challenge of innovation and modernization. Transformational leadership has emerged as a critical factor in navigating these challenges successfully. This leadership style, characterized by idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration [1], has been shown to play a pivotal role in driving organizational change and fostering innovation.
This paper aims to synthesize empirical research on transformational leadership and its impact on innovation and modernization efforts. By examining recent studies and meta-analyses, we seek to provide a comprehensive understanding of how transformational leaders influence organizational outcomes in the context of innovation and change.
II. Transformational Leadership: Theoretical FRAMEWORK
Transformational leadership theory, first introduced by Burns and further developed by Bass, posits that leaders can inspire and motivate followers to achieve extraordinary outcomes [2]. Bass and Avolio expanded on this concept, identifying four key components of transformational leadership [3]:
1. Idealized Influence:
Leaders serve as role models, earning respect and trust from followers.
2. Inspirational Motivation:
Leaders articulate a compelling vision and inspire enthusiasm for shared goals.
3. Intellectual Stimulation:
Leaders encourage creativity and innovation by challenging assumptions and seeking new ideas.
4. Individualized Consideration:
Leaders attend to individual needs and provide support for personal growth.
These components form the foundation for understanding how transformational leaders drive innovation and modernization within their organizations.
Fig.1. Transformational Leadership in Innovation & Modernization
III. Transformational Leadership & INNOVATION
Empirical research has consistently demonstrated a positive relationship between transformational leadership and innovation. A meta-analysis by Deng et al. found that transformational leadership significantly predicts individual and team-level innovation performance [4]. The study revealed that transformational leaders foster innovation by:
· Creating a supportive climate for creativity and risk-taking
· Encouraging divergent thinking and challenging the status quo
· Providing resources and support for innovative projects
· Recognizing and rewarding innovative efforts
These findings are supported by Greimel et al., who examined the role of transformational leadership in virtual teams [5]. Their integrative literature review highlighted that transformational leaders effectively promote innovation in digital environments by leveraging technology to inspire, stimulate, and support team members.
IV. Transformational Leadership in Modernization Efforts
Modernization efforts often involve significant organizational changes and the adoption of new technologies. Schmitz et al. investigated the impact of transformational leadership on technology integration in schools [6]. Their study revealed that transformational leaders:
· Empower teachers to use technology in more demanding ways
· Create a shared vision for technology integration
· Provide individualized support to address teachers’ concerns and needs
· Foster a culture of continuous learning and experimentation
These findings underscore the importance of transformational leadership in guiding organizations through complex modernization processes.
VI. Empirical Evidence from Recent Studies
Recent empirical research has provided additional insights into the relationship between transformational leadership and innovation in various contexts:
Tegor et al. found that transformational leadership positively influences organizational competitiveness by enhancing employee skills and fostering innovation [9].
Ystaas et al. conducted a systematic review in the healthcare sector, revealing that transformational leadership improves patient outcomes by promoting innovative practices and creating a supportive work environment [10].
Kilag et al. demonstrated the positive impact of transformational leadership on educational innovation, highlighting its role in driving curriculum reforms and teaching methodologies [11].
Pratiwi and Amini showed that transformational leadership enhances lecturer involvement in higher education institutions, leading to increased innovation in teaching and research [12].
Asbari found that transformational leadership, combined with organizational structure and learning culture, significantly enhances school innovation capacity [13].
These studies collectively reinforce the crucial role of transformational leadership in driving innovation across various sectors and organizational types.
VII. Challenges and Future Directions
While the positive impact of transformational leadership on innovation and modernization is well-established, several challenges and areas for future research remain:
Contextual Factors:
Lawrason et al. highlighted the need for more research on how contextual factors influence the effectiveness of transformational leadership development programs [14].
Virtual Environments:
Greimel et al. called for further investigation into the unique challenges and opportunities of transformational leadership in virtual teams [5].
Cross-cultural Applicability:
More research is needed to examine the effectiveness of transformational leadership across different cultural contexts [2].
Long-term Effects:
Longitudinal studies are required to assess the sustained impact of transformational leadership on innovation and modernization efforts over time.
Integration with Other Leadership Styles:
Future research should explore how transformational leadership can be effectively combined with other leadership approaches to maximize innovation outcomes [15].
VIII. CONCLUSION
This review of empirical research demonstrates the significant role of transformational leadership in driving innovations and modernization efforts. By inspiring followers, fostering creativity, and creating a supportive environment for change, transformational leaders are uniquely positioned to guide organizations through the challenges of innovation and modernization. As organizations continue to face rapid technological advancements and global competition, the principles of transformational leadership offer a valuable framework for leaders seeking to drive positive change and innovation within their organizations.
Acknowledgment
I would like to express my deepest gratitude to the researchers, scholars, practitioners, and experts whose invaluable contributions have laid the foundation for this research. Your dedication, insights, and pioneering work have been instrumental in shaping the understanding and knowledge within this field. Without your relentless pursuit of excellence, this research would not have been possible. Thank you for your commitment to advancing the boundaries of knowledge, which continues to inspire and guide future endeavors.
References
[1] B. M. Bass and R. E. Riggio, Transformational leadership. Psychology press, 2006.
[2] B. M. Bass, “Two decades of research and development in transformational leadership,” European journal of work and organizational psychology, vol. 8, no. 1, pp. 9-32, 1999.
[3] B. M. Bass and B. J. Avolio, “Transformational leadership and organizational culture,” Public administration quarterly, pp. 112-121, 1993.
[4] C. Deng, D. Gulseren, C. Isola, K. Grocutt, and N. Turner, “Transformational leadership effectiveness: an evidence-based primer,” Human Resource Development International, vol. 26, no. 5, pp. 627-641, 2023.
[5] N. S. Greimel, D. K. Kanbach, and M. Chelaru, “Virtual teams and transformational leadership: An integrative literature review and avenues for further research,” Journal of Innovation & Knowledge, vol. 8, no. 2, p. 100351, 2023.
[6] M. L. Schmitz et al., “Transformational leadership for technology integration in schools: Empowering teachers to use technology in a more demanding way,” Computers & Education, vol. 204, p. 104880, 2023.
[7] A. E. Rafferty and M. A. Griffin, “Dimensions of transformational leadership: Conceptual and empirical extensions,” The leadership quarterly, vol. 15, no. 3, pp. 329-354, 2004.
[8] M. M. Korejan and H. Shahbazi, “An analysis of the transformational leadership theory,” Journal of fundamental and applied sciences, vol. 8, no. 3, pp. 452-461, 2016.
[9] T. Tegor, J. Johannes, R. I. K. Jaya, and S. N. Thasimmim, “Skill, Transformational Leadership, And Competitiveness: Relationships In A Love Triangle,” Al-Tanzim: Jurnal Manajemen Pendidikan Islam, vol. 7, no. 2, pp. 422-434, 2023.
[10] L. M. K. Ystaas et al., “The impact of transformational leadership in the nursing work environment and patients’ outcomes: a systematic review,” Nursing Reports, vol. 13, no. 3, pp. 1271-1290, 2023.
[11] O. K. Kilag et al., “Transformational Leadership and Educational Innovation,” International Multidisciplinary Journal of Research for Innovation, Sustainability, and Excellence (IMJRISE), vol. 1, no. 1, pp. 110-114, 2024.
[12] S. N. Pratiwi and A. Amini, “Efforts to Increase Lecturer Involvement through Organizational Culture, Transformational Leadership and Economic Prosperity,” Al-Tanzim: Jurnal Manajemen Pendidikan Islam, vol. 7, no. 1, pp. 150-164, 2023.
[13] M. Asbari, “The Effect of Transformational Leadership, Organizational Structure and Learning Culture on School Innovation Capacity,” PROFESOR: Professional Education Studies and Operations Research, vol. 1, no. 02, pp. 22-32, 2024.
[14] S. V. Lawrason, R. B. Shaw, J. Turnnidge, and J. Côté, “Characteristics of transformational leadership development programs: A scoping review,” Evaluation and Program Planning, p. 102354, 2023.
[15] P. C. Susanto, L. Agusinta, A. Setyawati, and A. R. P. Panjaitan, “Determinant Organization Commitment and Development Organization: Analysis Servant Leadership, Transformational Leadership, Transactional Leadership,” Formosa Journal of Multidisciplinary Research, vol. 2, no. 3, pp. 541-558, 2023.
Dr. Raj Vayyavur (Senior, IEEE) is a distinguished transformation expert, practitioner, and leader in the IT field with over two decades of experience. He currently serves as the Director of Enterprise Architecture at Public Consulting Group (PCG). His comprehensive expertise spans Enterprise Architecture (EA), Artificial Intelligence (AI), Project Portfolio Management, Software Engineering, IT Management & Governance, and more. Dr. Vayyavur is renowned for his strategic vision, deep technological expertise, and strong business acumen, which he uses to lead transformative initiatives that align IT strategies with business objectives, driving organizational success and delivering measurable outcomes.
A prolific author, Dr. Vayyavur has published numerous research papers on technology, enterprise architecture, and project portfolio management, solidifying his position as a thought leader in the field. His work has been featured in leading journals and conferences, offering actionable insights and bridging the gap between theory and practice. He frequently speaks at prestigious forums, including IEEE conferences, where he shares his insights on the latest trends in technology and enterprise architecture.
Holding advanced degrees in Computer Science, Business Administration, an MBA, and a Doctorate, Dr. Vayyavur is committed to continuous learning and staying at the forefront of industry developments. His active participation in the IEEE and PMI communities, where he serves as a senior member, reviewer, judge, and chair for various committees, further reflects his dedication to advancing the field.
Through his visionary leadership, Dr. Vayyavur has set new standards for technology management, earning recognition as a sought-after transformation expert known for driving innovation and excellence in every project he leads.
“He listened to my idea for a minute, started (resumed) playing the game (on PlayStation) and said, ‘Do what you want, I have complete belief in you.’ And the next day I started bowling over the stumps.” Said Ravichandran Ashwin in an interview with Cricbuzz decoding the strategy of Warner’s dismissal (in Bengaluru Test, 2017) that he had mentally worked out, to his Captain. Need I say anything more about how should a good leader be? “Ashwin had picked up 2 wickets in the first innings including that of Warner and in the second innings he ran through the Australian batting line-up by picking six for 41 as India drew level with a 75-run victory.
India then went on to win the series 2-1.” (Source: Hindustan Times) Virat has, for sure, set some high standards in always backing the instincts of his bowlers and letting them experiment freely, while also chipping in with his valuable inputs and setting the wickets of/field for particular batsmen.
“All three of us — Ishant (Sharma), (Jasprit) Bumrah, and I want to bowl with a new ball. When we are not able to choose, we approach Virat to decide. But he throws the ball back in our court saying whatever you all decide is fine by me,” Shami said. Source: India TV
“We were playing the 3rd Test against Sri Lanka at the Feroz Shah Kotla. It was getting into a draw and Chandimal was batting on 140 or 150, Ash was bowling, Chandimal hit one towards midwicket. It was in the mandatory overs, the match was going to end and he got a 248 in that match if I am not mistaken. And he runs as if his life depended on that ball, picks that ball and does an acrobatic throw,” R Sridhar, The fielding Coach of Team India told FanCode.
“You have a captain, who comes out to fielding practice till the time he is bleeding, I have seen that. There have been times where I would tell him – Virat enough. I have to save Virat from Virat sometimes. You have a captain like that, for me, it’s a dream come true,” he added. Source: cricketaddictor.com
During an exclusive interview on Star Sports Cricket Connected, Gautam Gambhir said, “He was always a very smart cricketer, but then he turned his entire T20 career into a very successful one, just by being supremely fit. Probably because he does not have the strength of Chris Gayle, he doesn’t have the ability of AB de Villiers, he probably does not have the ability of somebody likes Jacques Kallis or Brian Lara. The biggest strength he’s got is now his fitness and he’s turned that into his game as well, that’s why he has become so successful, so you got to give it to the guy. The most important thing is that he runs really well between the wickets, not many people do it.” Source: m.mid-day.com Also checkout: https://internationaljournalofresearch.com/2020/06/09/virat-kohli-the-man-who-brought-about-a-fitness-revolution-in-global-cricket/
“I remember when I was new in the team he backed me a lot. In fact, now also, he is always there for me. He always appreciates your skills and we have a great tuning together,” he further added.
Kuldeep further went on to reveal Kohli’s best quality. “The best quality of Virat is that he also understands the team and its player’s well which makes our job easy on field,” he said.
In an interview also with Hindustan Times, Chahal said that Virat ‘talks me out of the negative mindset’. Even if I am being hit by a batsman, Virat Bhaiya turns to me and talks me out of that negative mindset. That rapport is also there when we play for RCB.
On Star Sports’ show Cricket Connected, Yuzvendra Chahal said, “I have been playing with him for around 6 years now since our RCB days. One thing I have learned is that he is a down to earth person. No matter how much fame he has got, he will take everyone with him — whether it’s personal or on field; that I have learned from him.”
I know that he’s a gym freak and how he has changed his body. I want to learn that from him. I have seen him since he was 18-19- the transformation after 2012 or 2013, if anyone adopts even 30 per cent of what Virat did, it’s more than enough.”
In a recent chat in the fifth episode of ‘The Mind Behind’,
Rahul was questioned which batsman he would pick if he had to select someone to bat for his life. In his reply, the 27-year-old named Kohli as his choice. “I’ll go with Virat because I know, everybody knows he is a great player,” he said. We share a great friendship and he will give it all to save my life”.
“Virat, Rohit (Sharma) or Ravi sir don’t come and teach you the game. They have given me that freedom,” said Hardik Pandya.
“The security that they gave me backing with all their heart helped big time. That was the reason I started taking decisions on my own,” he added
Being blatantly honest here, maximum of these quoted statements of the articles are published within the previous 24 hours only. And if I go on to find more instances to support the fact how great a leader this man is, I’d terribly fail cause there are umpteen number of incidents happening ever since the guy became the Test Captain in 2015 post World Cup and India’s full-time captain in early 2017 and there are a lot more bound to happen provided that he stays motivated & passionate, which I know, you know, whole of India knows and the entire cricketing fraternity knows too, that he would and the blessings from the God keep outpouring.
Kohli smashed his 28th ODI ton with a stunning knock of 111* off 115 deliveries during the 5th India Vs West Indies ODI on 6th July, 2017 in Jamaica while chasing 206.
However, one is always in the learning phase and never *The know-it-all* or *The Perfect* and Virat has always continued to keep this thing in mind, neglecting the impact of rankings on his game & mindset, but at the same time, staying grounded and expressing gratitude for the achievements. He is always keen to explore, learn more and improve consistently without thinking of the results cause they automatically follow if the process is done rightly and the intention is to drive the team forward. Let’s hear the man himself post he won all the 3 ICC awards in 2018. https://www.facebook.com/icc/videos/363263704471608/?app=fbl