Project Topic:
TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL RESILIENCE OF MANUFACTURING FIRMS IN PORT HARCOURT
Abstract
The study examines the relationship between transformational leadership and organizational resilience of manufacturing firms in Port Harcourt. In this research, the survey method was employed. The study was designed to focus on selected manufacturing firms in Port Harcourt. The population of the study is made up of (216) management staff of manufacturing firms in Port Harcourt which include Wesly Paint and new Revoc Nigeria Limited all in Trans Amadi Port Harcourt. The Taro yemes formula was used to determine the sample size of 140. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage while the hypotheses were tested with used of chi-square. Data collected was coded into SPSS version 22. The study showed a significance relationship between transactional leadership and organizational resilience in selected manufacturing firms in Port Harcourt. Based on the findings of the study, we recommended that management should exert idealized influence with the aim to build trust and confidence as they set out roles to play for subordinates to imitate which will improve their adaptive capacity, management should exert idealized influence towards robustness. They should develop intellectual stimulation ability that improves the organizational adaptive capacity and management should take challenges, takes risk and solicits follower’s ideas through intellectual stimulation to enhance the robustness level by the organization.
Table of Contents
Title Page i
Cover Page ii
Dedication iii
Certification iv
DEDICATION Error! Bookmark not defined.
ACKNOWLEDGEMENTS vii
Abstract viii
Table of Contents ix
List of Tables xi
List of Figures xii+
CHAPTER 1 13
INTRODUCTION 13
1.1 BACKGROUND OF THE STUDY 13
1.2 STATEMENT OF THE PROBLEM 16
1.3 OBJECTIVES OF THE STUDY 16
1.4 RESEARCH QUESTIONS 17
1.5 RESEARCH HYPOTHESES 17
1.7 Scope/ Limitation of the Study 18
1.8 Definition of Terms 19
CHAPTER 2 20
LITERATURE REVIEW 20
2.1 Conceptual Framework 20
2.1.1 Concept of Transformational Leadership 20
2.1.2 Dimensions of Transformational Leadership 22
2.1.3 Organizational Resilience 23
2.1.4 Dimensions of organizational resilience 26
2.1.5 Relationship between Transformational Leadership and ganizational Resilience 28
2.2 Theoretical Framework 30
2.2.1 The Theory of Transformational Burns (1978) 30
2.2.2 Theory of Transformational Bass (1985) 31
2.3 Empirical Review 32
CHAPTER 3 34
RESEARCH METHODOLOGY 34
3.1 Research Design 34
3.2 Population of the Study 34
3.3 Sample and Sampling Techniques 35
3.4 Methods of Data Collection 36
3.5 Method of Data Analysis 36
3.6 Questionnaire Design 37
3.7 Data Analytical Techniques 37
3.8 Reliability and Validity 38
CHAPTER 4 39
DATA PRESENTATION AND ANALYSIS 39
4.1 Data Collection and Presentation 39
CHAPTER 5 47
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 47
5.1 Summary 47
5.2 Conclusions 47
5.3 Recommendations 49
References 50
Appendix I 53
APPENDIX II 54
List of Tables
Table 4.1: Questionnaire Administration and Retrieval……………………38
List of Figures
2.1.5 Relationship between Transformational Leadership and ganizational Resilience 28
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organizational resilience is a continuously moving target which contributes to performance during business as used a crisis situation (Mitroff 2005). It requires organization to adopt and to be highly reliable and enable them to manage disruptive challenge (Durodic 2003).
Organizational resilience is vital as being resilient involved providing opportunities for organizations to gain competitive advantage (Parsons, 2001). Halicize (2008) describes organizational resilience to involve organizations ability to survive and potentially even thrive in times of crisis. Global turbulence is a constant phenomenon because change, environmental volatility uncertainty and instability are the only constraints in an ever changing economic world, organizations faced an unprecedented and growing number or possible disruptions to their status quo; from history many organization fails, a current risk management and governance models adopt scalable resilience metrics (Wieland &Wallenburg, 2013). For firms to cope and succeed in this current turbulent environment of uncertainty and change organizations must move from the traditional/conventional risk and governance models and focus instead on resilience. Marcus & Macaulay (2008) carried out a study on organizational resilience as a key to anticipation, adaptation and recovery which focuses on how the organization can better foresee its future, and how it can become adaptive to changes and address crises and adversity. The British standard defined organizational resilience to include the extent of an organization to anticipate, prepare for, and responds and adopt to incremental changes and sudden disruption and prosper. Transformational leadership focuses on ensuring revolutionary change in organization through attaching to the organization’s vision (Sullioan & Decker, 2001). In this case, a leader work with subordinates to identity needed change as they create vision to guide change through inspirational guide. For the past years business leaders have become aware of the need for resilience in firms operations.
Transformational leadership is a modern approach towards leadership. Thamrin (2012) has defined transformational leadership as what leaders’ do in order to transforms the values, needs, aspirations, followers’ priorities and also motivates their followers to exceed expectations.
Transformational leadership theory has captured the interest of many researchers in the field of organizational leadership over the past three decades. Burns developed this theory (1978) and later Bass (1978, 1985). The major premise of the transformational leadership theory is the leader’s ability to motivate the follower to accomplish more than what the follower planned to accomplish (Metwally, 2014). Transformational leadership has four components: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (Thamrin, (2012). Transformational leaders inspire followers to accomplish more by concentrating on the follower’s values and helping the follower align these values with the values of the organization. Furthermore, Burns identified transformational leadership as a relationship in which the leader and the follower motivated each other to higher levels which resulted in value system congruence between the leader and the follower (Metwally, 2014).
Transformational leadership has been associated with the personal outcomes, (Arnold K, Barling J, Kelloway K., 2000) of the follower as well as organizational outcomes. Research has shown that transformational leadership impacts follower satisfaction (Metwally, 2014) and commitment to the organization (Givens 2008). Research has also shown that transformational leadership impacts employee commitment to organizational change and organizational conditions (Arnold K, Barling J, Kelloway K., 2000). Due to its impact on personal and organizational outcomes, transformational leadership is needed in all organizations (Givens 2008).
Leadership is associated with organizational and employee performance, (Thamrin 2012). Leadership plays an important role in determining employees’ commitment. Researchers have found that employees who are pleased with their supervisors/leaders and feel that they are being treated with respect and are valued by their management feel more attachment with their organizations ( Usman A 2011). Commer P., (2013), defined employee commitment as worker’s level of involvement with his job and organization. Organizational commitment can be attributed as employees’ loyalty and faithfulness towards organization and his intensions to be the part of that organization. Organizational commitment has significant importance because committed workers have less intension to quit the job, less often absent and highly motivated to perform at advanced level. An employee’s commitment to an organization is usually a choice that they make depending on their environmental surroundings.
The researcher found through various literature that academic works as it concerns transformational leadership and organizational resilience.
1.2 STATEMENT OF THE PROBLEM
The main approach to understanding leadership style is based on the cultural background of the leader and members of the workforce, the environment and the leader’s personal orientation of the entity and life matter generally.
In recent times, subordinates or employees seems to be influence by different types of leadership style which have contributed immensely to the failure in the result of the employees performance in business organizations.
This is followed by development of the contingency model which was developed fried fiddler and his associate. In the proposal, effective group organizational resilience is said to be dependent on the proper match between the leader style degrees of influence on the control subordinate. Three situational criteria were identified which could be manipulated to create proper match with the behavioural orientation of the leader. The three criteria identified are: Leader member relation, Task structure and Position power. By the leader member relation, he meant the degree of influence trust and respect subordinates have their leader and are willing to follow the leader’s guidance. The task structure emphasize on the degree of which procedure had been established for job assignment.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study was to investigate the relationship between transformational leadership and organizational resilience. The specific objectives are as follows:
1. To examine the relationship between Inspirational and organizational resilience in selected manufacturing firms in Port Harcourt.
2. To examine the relationship between Intellectual Stimulation and organizational resilience in selected manufacturing firms in Port Harcourt.
3. To examine the relationship between Idealized Influence and organizational resilience in selected manufacturing firms in Port Harcourt.
1.4 RESEARCH QUESTIONS
1. To what extent does Inspirational Motivation associate with organizational resilience in selected manufacturing firms in Port Harcourt?
2. To what extent does Intellectual Stimulation associate with organizational resilience in selected manufacturing firms in Port Harcourt?
3. To what extent does Idealized Influence associate with organizational resilience in selected manufacturing firms in Port Harcourt?
1.5 RESEARCH HYPOTHESES
HO: There is n significance relationship between transactional leadership and organizational resilience in selected manufacturing firms in Port Harcourt.
HA: There is a significance relationship between transactional leadership and organizational resilience in selected manufacturing firms in Port Harcourt.
1.6 SIGNIFICANCE OF THE STUDY
This research aimed at creating awareness and assessing transformational leadership and organizational resilience. Therefore, the study is expected to be of much value to the people as follows;
Members of the firm will be informed on importance of transformational leadership and organizational resilience. Also, it will help decision makers to formulate difference strategies which will help the implementation of transformational leadership and organizational resilience. The researchers will be benefited by identifying variable areas for further research, and will be used as an additional reference to researchers on transformational leadership and organizational resilience.
1.7 Scope/ Limitation of the Study
The scope of this study is delimited into the followings:
Content Scope: The specific areas of transformational leadership, the study investigated include; inspirational motivation, intellectual and idealizes influence. Whereas, the areas of organizational resilience include response, robustness and resourcefulness.
Geographical scope: This study covers an examination of strategic contributions of transformational leadership and organizational resilience.
Unit of Analysis: This is a macro study because it is interested in ascertaining the survival of an organization in this direction. Hence, it is a micro level study. In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.
Firstly, the time constraint’s the time frame provision for this study was short.
Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.
Thirdly, poor response from the respondent and inability to access the entire population of the study.
1.8 Definition of Terms
TRANSFORMATIONAL LEADERSHIP: Is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders.
LEADERSHIP: The action of leading a group of people or an organization, or the ability to do this.
ORGANIZATIONAL RESILIENCE: Organizational resiliency refers to an organization’s ability to create an environment that enhances career resiliency of their employees.
RESOURCEFULNESS: Resourcefulness means the ability to adapt to crises, respond flexibly and when possible transform a negative impact into a positive. For a system to be adaptive means that it has inherent flexibility, which is crucial to enabling the ability to influence of resilience.
RESPONSE: Response means the ability to mobilize quickly in the face of crises. This component of resilience assesses whether an organization has good methods for gathering relevant information from all parts of society and communicating the relevant data and information to others, as well as the ability for decision makers to recognize emerging issues quickly.
ROBUSTNESS: Robustness incorporates the concept of reliability and refers to the ability to absorb and withstand disturbances and crises.
SUBORDINATE: A person under the authority or control of another within an organization.
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