LEADERSHIP STYLE AND ORGANIZATIONAL PERFORMANCE OF DEPOSIT MONEY BANKS IN RIVERS STATE, NIGERIA.

Résumé

This study examined the relationship between leadership style and organizational performance of deposit money banks in Rivers State, Nigeria. The study adopted the cross sectional survey design and a total population of five hundred and ninety-four managers and supervisors of nineteen (19) deposit money banks that are licensed with international and national authorization were covered and a census study was carried out. The data was collected using copies of questionnaires which were personally administered to the respondents. The bivariate hypothesis was tested using the Spearman Rank Order Correlation Coefficient in order to ascertain the relationship between the dimensions of leadership style (transformational leadership, transactional leadership and charismatic leadership) with the measures of organizational performance (innovation, competitive advantage and customers satisfaction). The multivariate analysis was carried out using the Partial Correlation in order to ascertain the moderating influence of organizational climate on the relationship between leadership style and organizational performance. The result of the analysis revealed that transformational leadership and charismatic leadership have a significant positive relationship with the dimensions of organizational performance. However, transactional leadership had no relationship with innovation and customers’ satisfaction but it was negatively related with competitive advantage. The study also revealed that organizational climate does significantly moderate the relationship between the predictor and criterion variable. Hence, it was concluded that the leadership style displayed in the deposit money banks do influence the performance level of the organization. The study recommended among others that the bank managers should utilize transformational leadership, which provides a positive work environment, suitable for growing new and innovative ideas that will have positive impact on the organization in the future.