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EFFECT OF LEADERSHIP STYLE ON COOPERATIVE FINANCIAL PERFORMANCE. A STUDY OF ENUGU STATE COLLEGE OF EDUCATION (TECHNICAL), MULTIPURPOSE COOPERATIVE SOCIETY LIMITED, ENUGU.


Project topic for Entrepreneurial Studies department

CHAPTER ONE

INTRODUCTION

  •       Background Of Study

Cooperative formation tends to have some unique factors that improve sustainability and continuity on the basis of financial performance, effectiveness and efficiency. The improvement in financial status leads to staff hard work and good behavior towards the organization as norms, values and objectives helps in improving culture of an organization.

Organization look for managers who can manage effectively and efficiently. But each manager is unique with his or her style depending on the situation and inclined paradigm. Managerial style is the pattern of thinking, feeling and behaviour that a manager uses to deal with people and situation. A manager has several managerial styles such as autocratic, bureaucratic, charismatic, democratic and laissez faire (Nwachukwu, 1998).

According to Basse (1982), there are managers with only one managerial style. However, most managers have a combination of those five managerial styles, although they can only be classified in various ways. Managerial style has a great impact on the organization’s operation. Effective managerial style can increase productivity, bring about empowerment, boost up staff morale, motivation and contributes positively to organization and so on. Leadership happen to be the core and of course the Nervous system in organizational solvency. (Hogan & Curphy, 1994; House Aditya, 1997; Judge & piccolo, 2004). Leadership leads to more productivity and profitability, but the extent of success depends on the style of the leader and the systematic environment created for staff functionality.

1.2       Statement of the Problem

Organization spend large amount of money in putting together some effective managerial skills. This trend also relates to Enugu State College of Education Technical (ESCET), Enugu. Besides, research on management’s leadership style and organizational performance are limited and most staff do not know adequately about management’s leadership style and the Co-operative financial performance. Many organizations nowadays have considerable leadership problems and the style to be adopted in leading staff for optimum financial performance. Over the years, organizations have faced the bureaucratic leadership. Consequently, many leadership ideas within the last century have affected the general effectiveness of organization’s productivity (Heurieglet, 2004). Leadership has characteristics that distinguishes it as a dynamic symbolic movement where every employee looks up to for adjustment when necessary. These characteristics explain the vital sensitive and proper positioning of leaders in organization.

The absence of effective leadership is a serious problem endemic in Enugu State College of Education Technical (ESCET), Enugu. It is obvious that the resultant outcome is low financial performance, poor staff performance, absence of motivation, poor growth and development of the co-operative.

1.3       Objective of the Study

The main objective of this study is to examine the effect of leadership styles on cooperative financial performance. A case study of Enugu State College of Education Technical (ESCET) Multipurpose Cooperative Society Ltd, Enugu.

Specifically, the study seeks to:

1.     Determine particular type of leadership style being used in Enugu State College of Education Technical (ESCET) Multipurpose Cooperative Society Ltd, Enugu (2009 – 2019).

2.     To assess the impacts of identified leadership style on financial performance.

3.     Identify the problems associated with leadership in Enugu State College of Education Technical( ESCET) Multipurpose Cooperative Society Ltd, Enugu.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

1.4       Research Questions:

1. What type of leadership style is used in Enugu State College of Education Technical (ESCET) Multipurpose Cooperative Society Ltd, Enugu?

2. What are the impacts of the leadership style on the financial performance of the cooperative society?

3. What are the problems associated with leadership in Enugu State College of Education Technical (ESCET), Multipurpose Cooperative Society Ltd, Enugu.

1.5       Hypothesis:

The following are the hypothesis derived:

1. H0: effective leadership style does not contribute toward organization growth and development

    H1:  effective leadership style contributes toward organization growth and development

2. H0: effective leadership style does not increase financial performance of Enugu State College of Education Technical (ESCET), Multipurpose Cooperative Society Ltd, Enugu.

    H1: effective leadership style increase financial performance of Enugu State College of Education Technical (ESCET), Multipurpose Cooperative Society Ltd, Enugu.

  •       Significance of the Study

  This study was pragmatically embarked upon with the hope that it will be helpful to Enugu State College of Education Technical ESCET, Enugu and the entire Co-operative Organizations within and outside the state.

The study also aimed at helping the management to know the benefits gained in applying effective leadership training in an organization.

The study will also encourage more student to take up a study in “Cooperative Management,” its process and administration as it discloses the challenges and duties in which they must meet in a future time.

It will also be used for academic purposes and act as a reference point for students, and other departments in the school of business.

  •       Scope of the Study:

The study is limited to Enugu State College of Education Technical (ESCET), Multipurpose Cooperative Society Ltd, Enugu. The study also emphasized on the factors that contribute to effective leadership style and financial performance.

1.8       Definition of Terms:

  • Leadership: the capacity of someone to lead others.
  • Performance: carrying into execution or action.
  • Autocratic: holding independent and arbitrary powers of government.
  • Laissez Faire: a policy of governmental non-interference in economic affairs.
  • Democratic: constructed upon the principle of government by the people.
  • Organizational Performance: comprises the actual output or result of an organization as measured against its intended outputs.
  • Leadership Style: is a leader’s method of providing direction, implementing plans, and motivating people.
  • ESCET: stands for Enugu State College of Education Technical
  • Management: the use of limited resources to achieve predetermined specific goals.
  • Cooperative: cooperation between individuals or parties.

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