INFLUENCE OF LEADERSHIP ON ORGANISATIONAL PERFORMANCE (A STUDY OF AIICO INSURANCE PLC LAGOS.)

Abstract

The performance of any work organization is a function of many factors. Previous studies have not been able to explain organizational performance within the context of leadership. Consequently, the study examined influence of leadership on organizational performance in AIICO Insurance Plc. Lagos. The Path Goal theory of leadership was employed as framework. The research design was purely surveyed and the sample size was 150. Multi-stage sampling technique involving purposive and systematic sampling method was employed. The data collection instrument was purely questionnaire. While 66.0% of the respondents were males, 34.0% were females. The highest proportion of the respondents (34.7%) were 29years and above, the remaining proportion (2.7%) were 60years and above. While 39.3% were Bachelor degree holders, 12.7% were Masters degree holders and the highest proportion (40.0%) were Diploma holders. While 52.0% of the respondents had 5years and above working experience, 10.0% had 16- 20 years working experience in the organization. As to whether leadership styles adopted in the work place promoted high quality of work among employees, 44.0% strongly agreed, 50.7% agreed and 5.3% disagreed. As to whether decision making in the work place involved both workers and management, 15.3% strongly agreed, 67.3% agreed, 7.3% disagreed while 10.1% strongly disagreed. On the issue of good personality trait in leadership as a factor that could accelerate high output, 25.3% of the respondents strongly agreed, 64.7% agreed, 2.7% disagreed, while 7.3% strongly disagreed. On the issue of leadership promoting workers’ unity as a method for target achievement, 64.6% of the respondents agreed with this view, 36.0% strongly agreed, while no respondents disagreed with the view. Hypothesis one showed significant relationship between types of leadership style and quality of work by the workers. Hypothesis two revealed that no significant relationship existed between leadership style adopted and quantity of work done by employees. Hypothesis three demonstrated positive association between leadership personality traits and attitudes of employees to work. Hypothesis four showed significant relationship between leadership team building capacity and employees’ target achievement. Organisational performance goes a long way to determine the success of any work organization. In view of this, AIICO insurance plc and other work organisations should embrace democratic and participatory leadership approach that could facilitate standard work performance.