2.0INTRODUCTIONThissection will review the literature on leadershipstyle and performance.

Conceptual clarification of leaders, leadership andleadership styles will be examined. Theories of leadership which will form thetheoretical frameworks for this study will also be examined and reviewed.Empirical studies will also be reviewed. 2.1 CONCEPT OF LEADERS ANDLEADERSHIP Leaders are theindividuals in the organization who set the tone and culture (Batista-Taran, Shuck, Gutierrez, & Baralt, 2009). A leader is aperson who influences people to achieve a goal or an objective (Yukl, 1994) and everyorganization needs a leader, as leaders play a very important role.

 A capable leader is one who directs and guildshis followers to achieve the desired goals. A leader is a person who can influence the behaviourof his followers to achieve the set goals. According to Squires (2001),leadership is about having followers who have the utmost faith in you and canconform to what you stand for, thus, it is concerned with the spiritual aspectof their work.  A leader is a personwho inspires his subordinate through influence and directions, motivating hisfollowers to perform specific tasks for the accomplishment of the statedcorporate objectives (R.

M., T.A.

, & A.S., 2012). Simply put, thedefinition of a leader is “someone who sets the directionfor his people to follow, in an effort to influence them” (Fustin, 2013). Successful leaders needto understand themselves, their followers and the tasks and procedures thatgovern the organization as a whole. A leader needs confidence and strategiesfor working competently across a wide range of diverse issues – from creatinglearning associations where workers mature and develop as everyday leaders tomanaging the conflict inevitable in an organization from fostering the hierarchicalclarity that comes from sound structures and policies to unleashing energy andcreativity through bold visions (Gallos, 2008). Lee and Chuang (2009), clarifythat the excellent leader not only inspires subordinates to perform moreefficiently but also meets the requirements for achieving organizationalgoals.  Leadership is about social impactas the leaders influence their followers’ conduct, attitude and motivations.

Leaders play an important role in the attainment of organizational goals. 2.2 THEORIES OF LEADERSHIPThestudy of leadership is crucial and has been an important part of the narrativeon management and organization conduct from time immemorial. It has fostered manydebates in most professional communities worldwide.

 Every organization seeks to constantly developgood leaders, as this will inevitably bring about success. However, the logicalissue with this attempt is that there are countless leadership theories andstyles. There have been a number of theories explaining leadership styles; thisis likely because of the complexity of the concept of the term leadership whichcan be viewed from different perspectives.

There are different schools ofthought on leadership. Some people believe that leadership is a natural trait,that leaders are rather born not made while some people believe that leaders aremade and nobody is born a leader. These differing opinions make it difficultfor professionals to agree on which particular theory or style a leader shouldadopt to enhance their organizations and also to develop great leaders. Indeed,as stated in (Schwandt & Marquardt, 2000), “no other role in organizationshas received more interest than that of the leader”. Consequently, severaltheories of leadership abound, a few of which are discussed below.  2.2.1Trait Theories:TheTrait Theory posits that personal characteristics like personality traits,cognitive skills, and inter-personal skills can determine an individual’spotential for leadership roles and can distinguish leaders from non-leaders(Furham, 2005).

Thus, the Trait Theory establishes the fact that, leaders areborn and not made, that leadership is unique to certain individuals. As Parry andBryman (2006) put it, “nature is more important than nurture”; that is to say,an individual’s predisposition to leadership (his or her “nature”) has agreater influence than the environment within which they are raised.  Thetrait theory often identifies a particular attribute an individual possessesand compares this to the personality or behaviouralcharacteristics shared by leaders that have come before them. However, thetheory is flawed in the sense that there are people that possess the qualitiesof a leader but are not leaders and individuals who possess all the traits asopposed to individuals who are leaders that have certain singular traits. Thismakes it difficult to use trait theories to explain leadership as traits cannotbe accurately measured. (Ackerman & Heggestad, 1997; Judge, Jackson, Shaw,Scott, & Rich, 2007). 2.2.

2Situational Theories:TheSituational, also known as Contingency, theory of leadership is more concernedwith the context of applied leadership as it relates to the situation at handand the followers of the organization. Here, leadership focuses on situationalvariables: the leader adjusts their leadership style to correspond to their ownpersonal characteristics and the situation at hand (Krumm, 2001). Proponents ofthis theory are of the belief that for a leader to be effective, they shouldknow how to adapt their personal characteristics to the situation. 2.2.3Behavioral Theories:Behavioralleadership theory holds that great leaders are made not born. This leadershiptheory focuses on what actions leaders take and their concern for people andproduction processes. The theory states that an individual or person can learnthe art of leadership through teachingand observations and the success of that leader can be defined in terms of hisaction.

(Nahrgang, Morgeson, & Ilies, 2009). Asa result of the presumed failures and failings of early studies in the Traittheory, researchers from the 1940s through the 1960s began studying behaviours exhibited by leaders as a means toseparate leaders from non-leaders. The primary difference between studying leadershipbehaviours and leadership traits, is thattraits are the attributes one possess, thus trait studies attempted to mould the “great man” who had inborncharacteristics that can supposedly make one a good leader. Behaviors, on the other hand, can be taught and learnedand by being taught these behaviors, managers are trained to develop an effectiveleadership style and in turn, the people under them can be trained to be betterleaders (Nahrgang, Morgeson, & Ilies, 2009). 2.

2.4Participative Theories:Participativeleadership theory is of the opinion that an ideal leadership style, is that whichwelcomes the input and contributions from those who are affected by thedecision at hand or are a part of theteam and such inputs are accepted and are put into accounts. These leadersencourage members of their team to play a role by participating and contributingand this helps team members feel more relevant and in turn, committed to thedecision-making process. In participative theories, however, the leader retainsthe right to allow the contributions. It is otherwise referred to as transactionalleadership. Transactionalleadership is focused more on “exchanges” between leader and follower, it is atheory which promotes compliance. The followers are rewarded or punished for eithermeeting specific objectives or performance criteria or not meeting the requiredgoals (Jung, 2001).

The leader provides rewards and positive reinforcement. Transactionalleadership is more practical in nature because of its emphasis on meetingspecific targets or objectives, thus, it is more practical in nature (Jung,2001). An effective transactional leader recognizes and rewards followers’accomplishments in a timely manner. However, subordinates of transactionalleaders are not necessarily expected to think innovatively and may be monitoredon the basis of predetermined criteria. Poor transactional leaders may be lessperceptive to problems within among their followers or within theirorganization and thus, less likely to intervene before these problems grow outof their reach while more successful transactional leaders make fitting movesin an auspicious manner (Jung, 2001).

Atransactional leadership style is appropriate in many settings and may supportadherence to practice standards but not necessarily receptiveness todevelopment. RelationshipTheories:Relationshiptheories, also known as transformational theories focus on the connectionsformed between leaders and followers. Transformational leaders are greatinfluencers who inspires and motivates employees by helping them know the importanceand the benefits of the task. These leaders are particular about individualsperforming their duties and not entirely focused on the performance of the groupas a whole. Leaders with this style often have high ethical and moralstandards. Transformationalleadership can be likened to charismatic or visionary leadership.Transformational leaders are inspirational leaders, who focus on motivatingtheir followers in ways that go beyond rewards.

Transformational leadershipoperates especially well in close, personal supervisory relationships, comparedwith more distant and impersonal relationships (Howell & Hall-Merenda,1999), and closer supervision is often more typical in mental health settings.This close relationship may be typical of a supervisor-supervisee relationshipand is also captured in the notion of “first-level leaders” (Priestland &Hanig 2005), who are thought to be important because of their proximity tosupervisees in an organizational setting. A transformational leader aims toexpand and their followers’ motivations through the expression of the value andimportance of the leader’s goals (Howell, 1997; Gardner, Avolio, 1998).  2.3EMPIRICAL FRAMEWORKStudies on leadership have been ongoing for a longtime, researchers have carried out various studies which are distinguishable tothe present study. One of such studies is one carried out by Koech & Namusonge (2012) on the effects of leadership styles on organizationalperformance at state-owned corporations in Kenya. The researcher specificallysought to discover the degree to which various leadership styles such as laissez-faire,transactional and transformational on organizational performance at state-ownedcorporations in Kenya. A descriptive survey research based on the perceptionsof middle and senior managers in thirty (30) state-owned corporations based inMombasa, Kenya was undertaken.

A structured, self-completed researchquestionnaire was thereafter distributed.  Various factors and three independentvariables were identified and measured. These were transactional; transformationaland laissez-faire leadership styles. The dependent factor was represented bythe degree to which the organization has achieved its business objectives inthe previous financial year. Correlation analysis was employed to discover theleadership styles that influence organizational performance. The relationship betweenthe transformational-leadership factors and organizational performance ratings wasrecorded as high, whereas the relationship between the transactional-leadershipbehaviours and organizational performancewere relatively low. There was no significant correlation between laissez-faireleadership style and organizational performance.  From the study, recommendations aboutlaissez-faire leadership styles were made as managers were advised to getinvolved in the organization’s affairsand should give maximum guidance to their subordinates; effective reward systems should be formulated and employed by managers.

It wasfurther recommended that managers should: inspire subordinates by providingmeaning and challenging to work; and become a role model to his subordinates byhelping them improve and stimulate subordinate efforts to become moreinnovative & creative; and lastly, for the achievement and growth of theorganization, managers should pay greater attention to each of his followersneeds. The study is similar to the present study as it determined the impact ofleadership styles on organizational performance. It, however, differs in thatit was carried out in state-owned cooperationwhile the present study is aimed at evaluating the leadership style andperformance in an e-commerce industry. Another study similar to this present one isthat of Abasilim (2014) which reviewed organizational performance in Nigerian work environment and how itrelates to transformational leadership.  It relied on secondary data as its main source of information; however, a reviewof available literature for description and analysis of the subject matter werereviewed and this could serve as the primary method of study.

 The researcher revealed the important roleleadership style plays in an organizational performance, with particularreference to transformational leadership style. This, however, depends on the situation and the environment of the organization.It implied that transformational leadership style will be best appropriate forensuring organizational performance in Nigerian work environment.  Consequently, the study recommended that noparticular leadership style is the best and that leaders should adopt aleadership style that is suitable for the environment and the situation inorder for organizations to improve or ensure optimal organizationalperformance. Leaders should attend leadership submits and training schools toenhance their leadership style and for the benefit of their organizations.

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