University of Ghana http://ugspace.ug.edu.gh UNIVERSITY OF GHANA THE INFLUENCE OF LEADERSHIP STYLE ON EMPLOYEE TASK PERFORMANCE IN THE MICROFINANCE INDUSTRY. BY ANGELINA KUORKOR LARTEY (10169422) A PROJECT WORK SUBMITTED TO THE DEPARTMENT OF ORGANISATION AND HUMAN RESOURCE MANAGEMENT, UNIVERSITY OF GHANA BUSINESS SCHOOL, LEGON IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF A MASTER OF ADMINISTRATION DEGREE. JULY 2019 1 University of Ghana http://ugspace.ug.edu.gh DECLARATION I do hereby declare that this work is a result of my own research and has not been presented by anyone for any academic award in this or any other university. All references used in the work have been fully acknowledged. I bear sole responsibility for any shortcomings in the work. ……………………………………………… ……………………………… ANGELINA KUORKOR LARTEY DATE (10169422) 2 University of Ghana http://ugspace.ug.edu.gh CERTIFICATION I hereby certify that this long essay was supervised in accordance with Guidelines and supervision of dissertation laid down by the University of Ghana, Legon. ……………………………………………….. ………………………… DR. KWASI DARTEY-BAAH DATE (SUPERVISOR) DEDICATION 3 University of Ghana http://ugspace.ug.edu.gh This work is dedicated to my Husband, Mr. Daniel L. Lartey for all the support with the kids during the weekends when I had to be in school. To my Children, Jayden, Princess, Angel and Jerome for understanding and coping without mummy during my period of study. To Parents Mr. and Mrs. E.D. Nikoi for all their support and encouragement. Thank You all for being a part of my life. I love you all and may God bless you. ACKNOWLEDGEMENT 4 University of Ghana http://ugspace.ug.edu.gh I am very grateful to the almighty God for seeing me through this course. There is no way I could have done it on my own, it has just been by His grace. I want to say a big thank you to my supervisor Dr. Kwasi Dartey-Baah of the Department of Organisation and Human Resource Management, University of Ghana for finding time out of his busy schedule to coach me in the writing of this work. I am very grateful for all the support. I am also very grateful to my brother, Mr Emmanuel Nikoi for all the support in putting this work together. God richly bless you for all your efforts. Finally, I am very grateful to all my friends who in one way or the other supported me and encouraged me throughout the duration of the course and the putting together of this work. God bless you all abundantly. I appreciate the efforts of everyone who helped to make this work a reality. TABLE OF CONTENTS DECLARATION i 5 University of Ghana http://ugspace.ug.edu.gh CERTIFICATION ii DEDICATION iii ACKNOWLEDGEMENT iv TABLE OF CONTENTS v CHARPTER ONE 1 INTRODUCTION 1 1.0 Background of the Study 1 1.1 Statement of the Problem 5 1.2 Objectives of the study 6 1.3 Research Questions 7 1.4 Research hypothesis 7 1.5 Significance of the Study 7 1.6 Scope of the Study 8 1.7 Chapter Disposition 8 CHARPTER TWO 10 LITERATURE REVIEW 10 2.0 Introduction 10 2.1 Definition of Leadership 10 2.2 Definition of Leadership Style 10 2.3 Leadership Theories 11 2.4 The Qualities or Traits Approach 12 2.5 Leadership Styles 12 2.5.1 Autocratic Leader 13 2.5.2 Democratic Leader 14 2.5.3 Laissez-faire (Permissive leadership) Style 14 2.6 Dimensions of Transformational leadership 18 2.7 Dimensions of Transactional leadership 19 CHARPTER THREE 27 METHODOLOGY 27 3.0 Introduction 27 3.1 Research design 27 6 University of Ghana http://ugspace.ug.edu.gh 3.2 Population 28 3.3 Sample and Sampling Technique 29 3.4 Source of Data 29 3.5 Instrument for Data Collection 29 3.6 Procedure for Data Collection 30 3.7 Method of Data Analysis 30 3.9 Ethical considerations 31 CHAPTER FOUR 32 RESULTS, ANALYSIS AND DISCUSSION OF FINDINGS 32 4.0 Introduction 32 4.1 Demographic characteristics of respondents 32 4.2.1 Gender distribution of respondents 32 4.2.2 Age distribution of respondents 33 4.2.3 Distribution of the educational level of respondents 34 4.2.4 Number of years in the organization 35 4.3 Hypotheses testing 36 CHAPTER FIVE 44 SUMMARY, CONCLUSION AND RECOMMENDATIONS 44 5.0 Introduction 44 5.1 Summary of Findings 44 5.2 Conclusion and Recommendations 45 5.2.1 Conclusion 45 5.2.2 Recommendations 46 REFERENCES 48 APPENDIX 51 ABSTRACT 7 University of Ghana http://ugspace.ug.edu.gh The study examined the impact of leadership styles on task performance in the micro-finance industry. The study is a quantitative in nature and adopted a cross-sectional research approach. With a sample of 118 employee sampled from Micro-finance firms and were drawn using the convenience sample technique. The researcher gathered data on the variables of interest and used both descriptive and inferential statistics to analyze the data and test the various hypotheses. Data was collected through the administration of questionnaires and was analyzed using SPSS. The findings of the research disclosed that the transformational leadership style was the dominant style in the Micro-finance industry. Again, it was discovered that transformational leadership style had a significant positive relationship with task performance; whiles transactional leadership style also correlated positively with task performance. From the findings of the study, it was deduced that gender did not account for any major differences in leadership experience among employees. It was thus recommended that managers are trained and encouraged to exhibit both transformational and transactional leadership in order to engender task performance among their employees. 8 University of Ghana http://ugspace.ug.edu.gh CHARPTER ONE INTRODUCTION 1.0 Background of the Study Leadership is an important area in management that occupies the central position in our everyday lives. It involves the skill of leading and dealing with people. One thing among the human group is that there is always a leader otherwise the group cannot live to achieve its purpose. The success in leading a group is contingent upon both leaders’ ability to hold power effectively. The problems which result within organizational members disagree on both the nature of the goals of which people aspire and the art of leadership. Leadership in this work refers to behaviour undertaken within the context of an organization that influence the ways in which other organizational members behave. It could be observed that leadership and management are deeply into what the organization can achieve if quality recognition is accorded to them. Leadership includes the source of influences that are built into positions in an organizational hierarchy. These include organizational sanctioned rewards and punishment authority and also expert power. It could be seen however that subordinates within the organization, though not all seem not to enjoy the influence that is above them in the organizational hierarchy. Four things stand out in this respect. First to lead involve influencing others (Schneider, 2008) Second, where there are leaders, there are followers. Third, leaders seem to come to the forefront when there is crisis or special a problem. In other words, they often become visible when an innovative response is needed. Fourth, leaders are people who have a clear idea of what they want to achieve (goal) and as such have to develop the best strategies and adopt the effective 9 University of Ghana http://ugspace.ug.edu.gh leading style which are goal oriented to influence their subordinates in achieving their goals (Walumbwa, 2007). Since an organization cannot progress by depending on one or two individuals’ effort, there is the need for a manager (leader) to enhance the collective effort of each and every subordinate to adopt organizational goals as their personal goals. What leadership style will the manager adopt in order to witness an increase in each subordinate performance that will lead to accomplishing the organizational goals, he or she must first start by understanding what the organization requires from him/her, understand the goals of the organization, and understand the type of employees he or she is dealing with. Additionally, the leader should understand the industry or the type of company they are in, and to exercise just the style that will be appropriate for both the organization and the employees in that particular organization. Mwita (2000) stated that performance is a major multi-dimensional construct aimed at achieving results and has a strong link to strategic goals of an organization. In an attempt for managers to achieve these results (strategic goals), most of them have made subordinates to become curious about the special traits behaviour and styles that their leaders might exhibit at their job side. This case has made us aware that there is a correlation between the way leaders in an organization should lead and manage their employees and their performance because it leadership style affect the output of employees. It is with this question that we can align the work of Timothy (2011) with the result he concluded from his study on “The effect of Leadership Style on Organizational Performance of some small scale enterprises in Lagos State Nigeria”, this study was carried out on two leadership styles; the transactional and the transformational leadership style and at the end he concluded that the 10 University of Ghana http://ugspace.ug.edu.gh transactional leadership style was more appropriate in inducing performance in small scale enterprises than transformational leadership style. This study does not rule out the use of transformational leadership style and support the use of transactional leadership style, but rather stated that transactional leadership style has proved to work better in this case than the transformational leadership style. Therefore, it is necessary in every organization for personnel’s in leadership position to identify their industry, know what the goals of the organization are and adopt appropriate the leadership style that will be appropriate to enable subordinates to work in accordance to achieve organizational goals. Leaders need a new mix of competencies to properly shape their board and develop their subordinates to meet 21st-century challenges. Shifting of cultures as well as the rapidly changing technology and other factors require new patterns of leadership. The 21st-century leaders will need greater awareness of diverse factors and new sets of competencies - characteristics that lead to success on the job help them make relevant, correct and timely decisions in the leadership of change and leadership of subordinates. Bennis (1989) stated that it is the skill of influencing people to work enthusiastically toward goals which are identified for being the goals for the common good of all” and assert that; the key to leadership is accomplishing the task at hand while building relationships. Tasks are important for the day to day survival of all organizations. Whiles developing people and teams are important for the ultimate performance of the organization. This implies that leaders must build good relationships with their subordinates in order to achieve set goals. In the past several decades, management experts have undergone a revolution on how they defined leadership and what their attitudes are towards it. They have gone from a very classical autocratic approach, and 11 University of Ghana http://ugspace.ug.edu.gh somewhere along the line, it was determined that not everything old was bad and not everything new was good, no particular leadership style can be considered the best or the worst. Rather different styles were needed for different situations and each leader needs to know when to exhibit a particular approach. There are many ways to lead and every leader has his or her own style. Some of the more common styles include; i. Autocratic leadership style ii. Democratic leadership style iii. Laissez-faire leadership style iv. Transactional leadership style v. Transformational leadership style and vi. Transfor-sactional leadership style Due to these different leadership styles, there are different meanings. Drucker (1996) defines leadership as “doing the right things’’. A particular approach of leadership style undertaken by any manager in an organization, would influence the organization in a particular way, either positively (high employee performance) or negatively (low employee performance). This is because many organizations are relying on the ability of management to control employees’ behaviour, many leaders are relying on theory X with the assumption that employees are untrusting with regards to accessing confidential or propriety business since they may have dislike for their work and can only be forced by their leaders to work. According to Wall et al., (2004), performance is an increasingly important concern for the services providing companies especially within the financial sector. This is because there is demand for high services standard across the services industry and customers are increasingly 12 University of Ghana http://ugspace.ug.edu.gh becoming very complicated. As a result, subordinate response in rendering services to the increasing demand of their leaders will determined the type of leadership style leaders has to use Dessler, (2011). A leader who demands high performance can employ appropriate styles to harmonize his or her subordinates to increase their performances to meet organisational goals demand. On the other hand, the style leaders (organizational managers) employed by managers might be militating against the performances of their subordinates because of the way they perceive their leaders (manager’s style). In view of this, this study was carried out to find out how leadership styles affect performance of its employees in the Microfinance institutions in Ghana. 1.1 Statement of the Problem Employee performance signifies individual’s work achievement after exerting required effort on the job which is associated with the individual, getting a meaningful work done, engaged profile, and compassionate colleagues/employers around (Hellriegel, Jackson, & Slocum, 1999; Karakas, 2010). It also includes executing defined duties, meeting deadlines, team input, and achieving departmental goals. In various institutions and organizations such as: Microfinance institutions, the need for sound leadership styles which include corporate approaches, authoritative approaches and laissez-faire approaches to leadership is vital. Some studies have shown that organizations performance is a function of the organization’s leadership style and behaviour (Chen & Barnes, 2006). This is because leadership styles affect the managerial roles within an organisation and it includes the extent to which goals are 13 University of Ghana http://ugspace.ug.edu.gh communicated and shared by each employee which directly has an impact on the employee’s job performance. However, the influence of leadership style on employee performance which translates to organisational performance especially in Ghana has not been given much attention and this has given much concerns and called for various radio discussions with the recent closures of micro finance organisations throughout the country. House and Aditya (1997) have criticized leadership studies for focusing excessively on superior to subordinate relationships while excluding organizational and environmental variables as well as all the other functions that leaders perform. Fenwick and Gayle (2008) have indicates that most findings are inconclusive and difficult to interpret. 1.2 Objectives of the study This study generally investigates the relationships that exist between managers’ leadership styles (transformational & transactional), and task performance. Specifically, this study seeks: 1. Assess the most dominate leadership style that exists among managers in the Micro- finance industry in Ghana. 2. To investigate the relationships between the leadership styles (transformational and transactional) and task performance in the Micro-finance industry in Ghana. 3. To determine if gender of managers’ influences leadership styles in the Micro-finance industry in Ghana. 14 University of Ghana http://ugspace.ug.edu.gh 1.3 Research Questions In light of the research objectives, the study poses the following research question. 1. What is the most dominate leadership style existed by managers in the micro-finance industry in Ghana? 2. What is the relationships between leadership styles (transformational and transactional) and task performance in the micro-finance industry in Ghana? 3. Is there a significant gender difference among managers’ leadership styles in the micro- finance industry in Ghana? 1.4 Research hypothesis Based on the research objectives and questions, the study proposed to test the following hypotheses. H1: Transformational leadership style is the most dominate leadership style. H2: a. Transformational leadership style has significant positive effect on task performance. b. Transactional leadership style has a significant positive effect on task performance. H3: There is a significant gender difference among managers’ leadership styles. 1.5 Significance of the Study This study was carried out because leadership is the main weapon of the organization through better leadership managers can achieve their organizational goals and can increase their productivity also of the organization positive leadership influence a big impact on the workers 15 University of Ghana http://ugspace.ug.edu.gh and the turnover of the organization. The study will help in recommending a leadership framework for the Microfinance industry in Ghana. This study is intended to investigate whether employees’ task performance is related to the leadership style adopted by the management. The aim of this study is to contribute to the promotion of existing frontier or boundary between human knowledge and strengthen the relationship between the management/employer and the employees in the Microfinance industry in Ghana. The study is also important as it will enable the industry to adopt just the right leading style that will enable them to witness maximum performance from their employees. 1.6 Scope of the Study This study focuses on the influence of transformational leadership and transactional leadership styles of managers on task performance. More specifically, the study focuses on the perception of the leadership style of managers by employees working at the headquarters of selected micro- finance companies in Ghana. 1.7 Chapter Disposition This study is organised into five (5) chapters to enhance understanding. Chapter One which is the introduction to the study comprises of the background to the study, the statement of the problem, objectives, significance of the study and the scope of the study among others. The second chapter contains the review of theoretical and empirical literature that are of relevance to the topic and the objectives of this study. The chapter ends with a empirical literature review to illustrate the interrelationships of the study variables. Chapter Three contains methodology selected for the 16 University of Ghana http://ugspace.ug.edu.gh study, design of the study, the population, sample and sampling techniques, as well as the methods for collecting and analysing data, among others. Chapter Four comprises of the data analysis and results presentation as well as identified managerial issues. It also captures the demographic details of the respondents, and the testing of hypotheses as outlined in the first chapter. Chapter Five discusses of the research findings, a summary of the whole study, gives an adequate conclusion, and ends of with recommendations for practice and for future research. 17 University of Ghana http://ugspace.ug.edu.gh CHARPTER TWO LITERATURE REVIEW 2.0 Introduction This chapter deals with the review of studies and literature of various researches pertaining to the topic. A review of leadership literature reveals an evolving series of ‘schools of thought’ from the ‘great man’ notion of heroic leaders, through trait theories, behaviourist theories, situational leadership, and contingency theory, on transactional, transformational and transfor-sactional leadership. Each of these offers some insights in to qualities of successful leaders, but there has been a shift in focus from the characteristics and behaviours of the individual to the recognition of the importance of responding to different situations and contexts and the leaders’ role in relation to the followers. 2.1 Definition of Leadership According to Hughes (2008), leadership is a complex phenomenon involving the leader, the followers, and the situation. In the book titled Management Principles (2007:208) leadership is described as the process of influencing employees to work willingly toward the achievement of organisational objectives. Leadership is related to motivation, interpersonal behaviour and the process of communication (Mullins, 2007). 2.2 Definition of Leadership Style 18 University of Ghana http://ugspace.ug.edu.gh Leadership style is the recurring pattern of behaviours exhibited by a leader (Schermerhorn, Davidson, Poole, Simon, Woods and Chau, 2011). DuBrin (2006) defines leadership style as the typical pattern of behaviour that a leader uses to influence his or her employees to achieve organisational goals. Leadership style is the manner in which a leader provides direction, implements plans and motivates people, and their approach to each of the functions (Jooste, 2009). 2.3 Leadership Theories Due to its complex and variable nature, there are many alternative ways of analyzing leadership (Mullins, 2007). While these fundamental theories can be applied in all settings, they are particularly important in the forensic laboratory setting for three reasons (Becker et al., 2010). First, leadership theory provides a basis for understanding operational concepts and is important for all leaders to understand. Second, these fundamental theories are particularly influential in work settings that require a high degree of responsibility, monitoring, measurement, and control mechanisms, including policies, procedures, and systematically derived, professionally accepted practices. Military, public safety, hazardous, and highly regulated environments such as forensic laboratories are included in this domain. Third, many laboratory managers have limited exposure to leadership theory. Technology managers such as forensic scientists are often promoted into management because of specific technical skills and an aptitude for influencing others. Often these managers have not had an opportunity for formal or informal training in leadership theory (Becker et al., 2010). 19 University of Ghana http://ugspace.ug.edu.gh 2.4 The Qualities or Traits Approach The first approach assumes that leaders are born and not made (Mullins, 2007). However, More and Miller (2015) identify the traits approach as qualities or characteristics a person possesses when functioning as an effective leader. Jones and George (2011) notice that although this model is called the “trait” model, some of the personal characteristics that it identifies are not personality traits per se but, rather, are concerned with a leader’s skill, abilities, knowledge, and expertise. Research into leadership traits can be regarded as unsuccessful: in 70 years over three thousand trait studies have been conducted and no one has compiled a universal list of traits that all successful leaders possess (Smith, Cronje, Brevis and Vrba, 2011). Traits alone are not the key to understanding leader effectiveness (Jones and George, 2011). The lack of progress in this model has, however served as an incentive to researchers to study other variables concerned with leadership (Smith et al., 2011). 2.5 Leadership Styles Daft (2008:38) states that, one study that served as a precursor to the behaviour approach recognized autocratic and democratic leadership styles. The autocratic democratic model according to Botha, Cunningham, Musengi, Visser, Williams, Lotz, Booysen, Smith, Bosch and Banhegyi (2007), indicate that the leadership style should be adapted to the characteristics of the 20 University of Ghana http://ugspace.ug.edu.gh leader, the subordinate, and the nature of the situation. In the work situation, it has become increasingly clear that managers can no longer rely solely on their position in the hierarchical structure as a means of exercising the functions of leadership. In order to get the best results from subordinates, the manager must also have regard for the need to encourage high morale, a spirit of involvement and co-operation, and a willingness to work (Mullins, 2007). The attention given to leadership style is based on the assumption that subordinates are more likely to work effectively for managers who adopt a certain style of leadership than they will for managers who adopt alternative styles (Mullins, 2007). Mullins (2007) classified broadly, the style of leadership towards subordinate staff and the focus of power within a simplified three- fold heading, the authoritarian (or autocratic) style, democratic style and a laissez-faire (genuine) style. 2.5.1 Autocratic Leader Daft (2008) describes an autocratic leader as one who tends to centralize authority and derive power from position, control of rewards, and coercion. Autocratic leaders are considered task- oriented because they place heavy emphasis on getting tasks accomplished (DuBrin, 2006). The manager alone exercises decision-making and authority for determining policy, procedures for achieving goals, work tasks and relationships, control of rewards or punishments (Mullins, 2007). The autocratic leader is at the centre of attention and usually exercises power with little trust or confidence in the followers. As a result of this attitude, followers in the system fear and mistrust their leader (Jooste, 2009). Jooste (2009) also states that autocratic leadership is 21 University of Ghana http://ugspace.ug.edu.gh appropriate in a crisis; in difficult, complex situations; or in a situation where quick decisions must be made. 2.5.2 Democratic Leader Daft (2008) describes a democratic leader as one who delegates authority to others, encourages participation, relies on subordinates’ knowledge for completion of tasks, and depends on subordinate respect for influence. One key reason as indicated by (DuBrin, 2006) is that in this complex world, the leader does not have all the answers. Recent research suggests that team leaders and team members can share leadership. The leadership functions are shared with members of the group and the manager is more part of a team. The group members have a greater say in decision-making, determination of policy, implementation of systems and procedures (Mullins, 2007). Democratic leadership leads to increased productivity and job satisfaction (Jooste, 2009). 2.5.3 Laissez-faire (Permissive leadership) Style According to Cole (2010), the laissez-faire leader is a leader who is uninvolved in the work of the unit. According to Mullins (2007), the manager consciously makes a decision to pass the focus power to members, to allow them freedom of action ‘do as they think best’, and not to interfere; but is readily available if help is needed. Permissive leadership is based on the premise that all followers are ambitious, creative, responsible and willing to accept the organisation’s goals (Jooste, 2009). This is a low supportive style in which neither the task nor the work is advanced. Frustration among members is common, which, in turn, creates anxiety throughout the group. This style is very effective in groups who show high degree of cooperation, motivation, self-directedness Fiedler argues that leadership effectiveness may be improved by changing the 22 University of Ghana http://ugspace.ug.edu.gh leadership situation (Mullins, 2007). In the Microfinance industry, leadership approach to situations seldom changes to accommodate different organisational situations. Leadership is a process of interaction between leaders and followers where the leader attempts to influence followers to achieve a common goal (Northouse, 2010; Yukl, 2005). According to Chen and Chen (2008), previous studies on leadership have identified different types of leadership styles which leaders adopt in managing organizations (e.g., Davis, 2003; Spears & Lawrence, 2003; House, Hanges, Javidan, Dorfman, & Gupta, 2004; Hirtz, Murray, & Riordam, 2007). Among the more prominent leadership styles are Burns’ (1978) transactional and transformational leadership styles. Transformational leaders emphasize followers’ intrinsic motivation and personal development. They seek to align followers’ aspirations and needs with desired organizational outcomes. In so doing, transformational leaders are able to foster followers’ commitment to the organizations and inspire them to exceed their expected performance (Sivanathan & Fekken, 2002; Miia, Nichole, Karlos, Jaakko, & Ali, 2006; Bass & Riggio, 2006; Bass, 1985, 1998). Ali (2012) defined leadership as an interpersonal influence exercised in a situation and directed, through the communication process, toward the attainment of the specialized goal or goals. According to Northouse (2004), leadership is directing a group of people to accomplish designated goal (cited in Packard, 2009). Yukl (2008) defined leadership as a process where one person exerted influence intentionally to a group of people in an organization through relationship, structure, and guide. Leadership, as defined by Gharibvand (2012) is how the leader communicates in general and relates to people, the way in which the leader motivates and trains the subordinates and the way leaders provides direction to his/her team to execute their tasks. Sharma & Jain (2013) defined leadership as a process of which a person influences other people to accomplish an objective and directing in a 23 University of Ghana http://ugspace.ug.edu.gh way that makes it more cohesive and coherent. Dahl (1989) and Fishkin (1991) proclaimed that democratic leadership influences people in a manner consistent with the basics of democratic principles and processes, such as deliberation, equal participation, inclusiveness and self- determination (cited in Gastil, 1994). According to White & Lippitt (1960), democratic leaders actively encourage and stimulate group decisions and group discussions (cited in Choi, 2007). Dartey-Baah (2015) defined characteristic of democratic leaders as influential, helpful, knowledgeable, a good listener, encouraging, guiding, respecting and situation-centered. Likewise, Puni et al., (2014) stated that democratic leadership style centralised more on people and interaction is greater within the group. In accordance to Khan, et al. (2015), autocratic leadership is where manager retains as much power and decision-making authorisation as possible. Melling and Little (2004) stated that autocratic leaders are high-handed leaders and are the centre of every activities that go on in the establishment and all authority emanated from them and ends with them (cited in Akor, 2014). According to Iqbal, et al. (2015), autocratic leaders are characterized by an “I tell” philosophy; autocratic leaders tell other people what to do. Nwankwo (2001) and Enoch (1999) described autocratic style as a leadership style where leaders exclusively make decisions and production is emphasized at the expense of any human consideration (cited in Akor, 2014). Deluga (1992) proclaimed that laissez-faire leadership style is associated with unproductiveness, ineffectiveness and dissatisfaction (cited in Koech & Namusonge, 2012). According to Bass and Avolio (1997), laissez faire leaders avoid making decisions, the provision of rewards and the provision of positive/negative feedback to subordinates (cited in Mester, et al., 2003). Jones and Rudd (2007) described laissez-faire leadership as leadership in an inactive form characterized by 24 University of Ghana http://ugspace.ug.edu.gh unwillingness to be actively involved and a view that the best leadership comes from disassociation from activities. Cilliers, Van Eeden and Van Deventer (2008) stated that these leaders avoid active participation in responsibility of goals setting and avoid being involved when leadership direction is needed (cited in Ejimabo, 2015). Billig (2015) defined three classical styles of leadership in decision making: autocratic, democratic and laissez-faire. According to Molloy (1998) “Grid” was first established by Robert Blake and Jane Mouton and was published in 1964. Blake and Mouton’s (1982) managerial grid reflected two dimensions of leadership; “Concern for People” reflecting to the degree to which leader care for team member’s needs, areas of personal development and interest when deciding how best to achieve goal, whereas “Concern for Production” refers to the degree how leader focuses on company productivity, efficiency and objectives when deciding how best to achieve goals (Bolden, et al., 2003). Situational leadership originally was developed by Hershey and Blanchard (1969; 1979; 1996) to describe leadership style and stress the need to connect leadership style to the maturity level of the followers (cited in McCleskey, 2014). According to Graeff (1997) and Grint (2011), this theory emphasized that instead of applying just one leadership style, successful leaders should change the leadership style based on the details of tasks and the maturity of their followers as well as having a rational understanding of a situation (cited in McCleskey, 2014). With regard to today’s complex organizations and dynamic business environment, transformational leaders are often seen as ideal agents of change who could lead followers in times of uncertainties and high risk-taking. In contrast, transactional leaders gain legitimacy through the use of rewards, praises and promises that would satisfy followers’ immediate needs 25 University of Ghana http://ugspace.ug.edu.gh (Northouse, 2010). They engage followers by offering rewards in exchange for the achievement of desired goals (Burns, 1978). Although transformational leadership is generally regarded as more desirable than transactional, Locke, Kirkpatrick, Wheeler, Schneider, Niles, Goldstein, Welsh, & Chah, (1999) pointed out that such contention is misleading. They argued that all leadership is in fact transactional, even though such transactions are not confined to only short term rewards. An effective leader must appeal to the self-interest of followers and use a mixture of short-term and long-term rewards in order to lead followers towards achieving organizational goals. 2.6 Dimensions of Transformational leadership Avolio, Bass, and Jung (1997) identified four dimensions of transformational leadership. These are idealized influence, inspirational motivation, intellectual stimulation and individualized consideration. Idealized influence concerns the formulation and articulation of vision and challenging goals and motivating followers to work beyond their self-interest in order to achieve common goals (Dionne, Yammarino, Atwater & Spangler, 2004). In this dimension, leaders act as role models who are highly admired, respected and trusted by their followers (Bass & Riggio, 2006). According to Bass and Riggio (2006), leaders with great idealized influence are willing to take risks and are consistent rather than arbitrary by demonstrating high standards of ethical and moral conduct. Inspirational motivation refers to the way leaders motivate and inspire their followers to commit to the vision of the organization. Leaders with inspirational motivation foster strong team spirit 26 University of Ghana http://ugspace.ug.edu.gh as a means for leading team members towards achieving desired goals (Antonakis, Avolio, & Sivasurbramaniam, 2003; Bass & Riggio, 2006). Intellectual stimulation is concerned with the role of leaders in stimulating innovation and creativity in their followers by questioning assumptions and approaching old situations in new ways (Bass & Riggio, 2006; Nicholason, 2007). They always encourage their followers to try new approaches or methods to solve the old problems. Individualized consideration refers to leaders paying special attention to each individual follower’s need for achievement and growth by acting as a coach or mentor (Bass & Riggio, 2006; Nicholason, 2007). 2.7 Dimensions of Transactional leadership Bass and Avolio (1995) proposed that transactional leadership consists of three dimensions, namely contingent rewards, management by exception (active) and management by exception (passive). Contingent reward refers to leaders clarifying the work that must be achieved and use rewards in exchange for good performance. Management by exception (passive) refers to leaders intervening only when problem arise whereas management by exception (active) refers to leaders actively monitoring the work of followers and make sure that standards are met (Antonakis et al., 2003). 2.8 Task Performance 27 University of Ghana http://ugspace.ug.edu.gh There is a general understanding among researchers that performance is an important variable in work organization (Suliman, 2001) and has become a significant indicator in measuring organizational performance in many studies (Wall et al., 2004). Employee performance can also be measured through the combination of expected behavior and task-related aspects (Motowidlo, 2003), even though performance is often determined by financial figures. In reality, performance that is based on an absolute value or relative judgment may reflect overall organizational performance (Gomez- Mejia, Balkin & Cardy, 2007; Wall et al., 2004). However, Wiedower (2001) asserted that performance measure that is based on the performance appraisal items offers higher reliability in evaluating performance. High performance employees pursue higher level of individual and organizational performance which involve quality, productive, innovation rate and cycle time of performance (Bharadwaj, 2005) and therefore they will be able to assist organisation to achieve its strategic aims and sustaining the organisation competitive advantage (Dessler, 2011). Thus, in order to attract and sustain higher employee satisfaction and performance, employer need to treat their workers as the most important internal resources and gratify them (Jin, 2007) because committed and satisfied employees are normally high performers that contribute towards organizational productivity (Samad, 2007). In general, job performance is defined as actions or behaviours relevant to organizational goals which includes both productive and counterproductive employee behaviours that contribute to or detract from organizational goals (Hunt, 1996). Viswesvaran and Ones (2000) introduced a more recent definition of job performance as behaviour and outcomes that employees undertake that are contribute to organizational goals. This means job performance refers to the effectiveness of individual behaviours that contribute to organisational objectives and should consist of task performance and contextual performance 28 University of Ghana http://ugspace.ug.edu.gh (Motowidlo, 2003). Both constructs are influenced by different factors, for instance job-related experience determines task performance while individual’s personality type determines contextual performance (Jex & Britt, 2008). Gomez-Mejia et al., (2007) argues that term task performance may need to redefine to essentially broaden this construct to include non- productivity or extra-role dimensions such as cooperation, helping co-workers and superiors and generalized tendencies toward compliance. Organ further proposed that job performance should be measured to the extent to which employee engage in organizational citizenship behaviours. Sarmiento and Beale (2007) refer job performance as the result of two elements, which consist of the abilities and skills (natural or acquired) that an employee possesses, and his/her motivation to use them in order to perform a better job. According to Jex and Britt (2008), performance is oftentimes assessed in term of financial figures as well as through the combination of expected behaviour and task related aspects. In this study, the meaning of job performance refers to task performance or in-role job performance as defined by Motowidlo (2003) as the organization’s total expected value on task related proficiency of an employee, or fulfilment of tasks that are required by the formal job description. In other words, task performance is the behaviors related specifically to performing job-related matters. In human resource management studies, task performance has been measured using a range of criterion measures, including supervisory ratings, productivity indexes, promotability ratings, sales total, and turnover rate. Although these indicators might be presumed to reflect performance at various degrees, Gomez- Mejia et al., (2007) stated that task performance should be distinguished into quality of work done, quantity of work performed, and interpersonal effectiveness. Therefore, from the above definitions it is clear that job performance is related to the extent to which an employee is able to 29 University of Ghana http://ugspace.ug.edu.gh accomplish the task assigned to him or her and how the accomplished task contributes to the realization of the organizational goal. (Mawoli and Babandako, 2011). Empirical Studies Ojokuku, et al. (2012) conducted a research on the Impact of leadership Style on Organizational Performance: A Case Study of Nigeria Bank in Nigeria. The sample size used by the researchers is 60. The study contained twenty of random picked banks in Ibadan, Nigeria. A structured questionnaire was used to collect data from the heads of accountants, heads of operations, and branch managers on face-to-face basis. Inferential statistical tool was used and one hypothesis was formulated to analyse data. Regression analysis was used to study the dimensions of significant effect of leadership style on followers and performance. The findings showed that there was positive and negative correlation between performance and leadership style. There was 23 percent variance of performance found in leadership style jointly predict organizational performance. This study concluded that transformational and democratic leadership styles have positive effect on both performance and followers, and are highly recommended to Microfinance institutions especially in this global competitive environment. Dalluay & Jalagat (2016) conducted a research on title Impacts of Leadership Style effectiveness of Managers and Department Heads to Employees’ job Satisfaction and Performance on Selected Small-Scale Businesses in Cavite, Philippines. The sample size used is 150. Survey questionnaires were designed to study the effects of manager leadership styles on employees’ performance and satisfaction. 150 respondents were selected from corporations in Cavite, Philippines through random sampling with Slovin formula wit n= N/(1+Ne2). Data were analysed by using weighted mean, percentages, multiple regression and correlation coefficient. 30 University of Ghana http://ugspace.ug.edu.gh Percentages specifically were used to analyse demographic variables (gender, age, length of service and leadership styles). Weighted mean were used to survey questionnaires on leadership styles, and correlation coefficient and multiple regression were used to study the relationship between variables on leadership style, job performance and job satisfaction. The finding concluded that corporations should constantly making the most of leadership style which enhances employees performance and employee job satisfactory level even though there is still rooms for improvements. A researched was conducted by Widayanti & Putranto (2015) on Analysing the Relationship between Transformational Leadership and Transactional Leadership Style on Employee Performance in PT.TX Bandung in Indonesia. The sample size used by the researcher is 92. The objective of this research is to find the relationship between transactional and transformational leadership to employee performance and the significant relationship between these two variables. This research consists of primary and secondary data. Primary data was collected through Multifactor Leadership Questionnaire (MLQ) based on Slovin Theory method. Secondary data was collected from the office assessment of employee performance. Validity and reliability test were used to measure quality of data. Multiple regression analysis is used to find the relationship because it has more than one independent variable. Data was sent for pass the classic assumption tests such as multicollinearity test, normality test, heteroscedasticity test and autocorrelation test before multiple regression analysis. The result proved that transactional and transformational leadership has positive relationship and it effects to employee performance either concurrently or partially. 31 University of Ghana http://ugspace.ug.edu.gh Akram, et al. (2012) conducted a research title How Leadership Behaviours Affect Organizational Performance in Pakistan. Sample size used by the researchers is 1000, where 500 questionnaires were distributed to managers and another 500 to employees of various private and public sector companies in 66 cities through random selection. Non-probability sampling technique is used in this study. Two questionnaires were designed for managers and employees. Questions were related to leadership behaviours and organizational performance. Five point Likert scale was applied. Correlation analysis and regression analysis were applied to analyse the relationship and the effect of leadership behaviours on performance. SPSS version 16 was used to analyse the reliability of questions, and the reliability was checked in term of Cronbach’s Alpha. The findings concluded that leadership behaviours are interrelated and have high positive impact with employee performance. Nasir, et al. (2014) did a research on The Relationship of Leadership Styles and Organizational Performance among IPTA Academic Leaders in Klang Valley Area in Malaysia. The study used correlation methods to measure the relationship between leadership styles and organizational performance. Five public universities in Selangor were chosen. 201 academic leaders were chosen as the sample size. The questionnaire prepared in a form of closed-ended questions. The survey instruments from Kouzes and Posner Leadership Practices inventory-Individual Contribution Self Survey (1997) and Multifactor Leadership Questionnaire (MQL) had been adapted. Likert-Scale was used. All data were analysed by using SPSS version 20.0. The hypothesis testing from normality test with Normal Probability Plots for variables and other visual presentation measures such as histogram and box plot. Pilot test is used to test the consistency of questionnaire. Cronbach’s alpha is used to test reliability. The findings concluded 32 University of Ghana http://ugspace.ug.edu.gh that leadership behaviours are interrelated and have high positive impact with organizational performance. Leng, et al. (2014) did research on title in The Impact of Leadership Styles on Employee Commitment in Retail Industry in Malaysia. Sample size used by the researchers is 384. The researchers used questionnaires as the research instrument. SAS software version 9.3 was used to run tests of reliability, Pearson correlation and linear regression. The findings concluded that there was a significant impact of leadership styles towards employee commitment. Sakiru, et al. (2013) conducted a research on title in Relationship between Employee Performance, Leadership Styles and Emotional Intelligence in an Organization in Malaysia. Sample size used by the researchers is 180. Data was collected using three instruments; Multifactor Leadership Questionnaire, ECP and parastatal performance evaluation process. ISSN: 2289-4519 Page 117 Work performance was taken and recorded using organization’s performance evaluation process. ECP factors are used to measure emotional intelligence. Cronbach’s alpha reliability coefficient is used for MQL factors. Linear regression analysis is used. These findings concluded that there is a substantial relationship between worker performance with emotional intelligent and leadership style. Ismail, et al. (2011) worked on a research titled Interaction between Leaders and Followers as an Antecedent of Job Performance: An Empirical Study in Malaysia. Sample size used by the researchers is 200. This study used a cross-sectional method to integrate the research literature, the in-depth interview, pilot study and the actual survey to collect data. Convenience sampling 33 University of Ghana http://ugspace.ug.edu.gh technique was used. SPSS version 16 is used to analyse validity and reliability of data. Pearson correlation analysis and descriptive statistic is used to access research variables. Standardized coefficient of Stepwise regression analysis was used. The findings confirmed that interaction between leaders and followers does act as full antecedent of job performance. Based on various studies conducted before, several variables have been adopted in this study to measure employee performance. Democratic leadership has been adopted as an independent variable (Iqbal, Haider and Anwar, 2015). Autocratic leadership was also adopted as an independent variable (Akor, 2014; Iqbal, Anwar and Haider, 2015;). Laissez-faire leadership was also adopted as an independent variable (Wang & Huynh, 2013; Barbu, 2011). Employee performance has been adopted as the dependent variable (House, 1991; Haddad, 2011; Sean & Hong, 2014; Malik, 2014). CHARPTER THREE METHODOLOGY 3.0 Introduction This chapter deals essentially with the methods and procedures used to gather and analysed the data in this study with the view to verify the hypothesis as stated. It comprises the research design, population of the study, sampling/sampling techniques, instruments for data gathering, validation of research instruments administration of research instruments, and methods of data analysis. 34 University of Ghana http://ugspace.ug.edu.gh 3.1 Research design A research design specifies the methods and procedures for acquiring the information needed to structure and solve the research problem and stipulates what information is to be collected, from what sources, and by what procedures (Reddy & Acharyulu, 2008). A good research design ensures that the information obtained is relevant to the research problem, and that it is collected by objective and economical procedures (Smith & Albumn, 2010). There is no single best research design. Instead, different designs offer an array of choices, each with certain advantages and disadvantages. This study is a quantitative study and for the purpose of fulfilling the objectives of the study and ensuring the replicability and reliability of the study, the researcher adopted the cross-sectional research design. According to Babbie (2008), a cross-sectional survey research provides a quantitative or a numeric description of trends, attitudes, or opinions of a population by studying a sample of that population. Again, a cross-sectional survey is a study on small or large populations at one point in time by selecting a sample from the desired population so as to discover relative incidence, distribution and interrelations (Neuman, 2011). The researcher deemed this design to be the best suitable one because the study sought to learn about a large population by surveying a sample from the study population at one point in time due to the fact that it is extremely/highly impractical to study the entire population of interest. 3.2 Population 35 University of Ghana http://ugspace.ug.edu.gh Brewerton and Millward (2002) asserted that in research it is impractical to investigate all member of a target population hence, the need to draw a sample from this population of interest. The results from the study of the sample can be used to make inferences about the entire population as long as it is truly representative of the population (Creswell, 2009). A sample is a portion of the population of interest selected to partake in the study (Polit & Hungler, 1999). The target population for the study consist of both management and staff members of following Microfinance Organisations; i. Credo Microfinance Limited ii. Cash Cow Microfinance Limited iii. My Dad Microfinance Limited iv. Do Capital Microfinance Limited v. Ghana Microfinance Association 3.3 Sample and Sampling Technique A sample size of One hundred (118) respondents was drawn from the population. Convenient sampling was used to select respondents. Creswell (2009) defined convenience sampling as a technique where subjects are selected due to their accessibility and proximity to the researcher. The author also opined that the sampling in question is very easy to be carried out as there only few rules governing how the sample should be selected. The choice for this sampling technique is due to the fact that there is limited time thus researcher decided to use readily available employees who were willing to partake in the study. 3.4 Source of Data 36 University of Ghana http://ugspace.ug.edu.gh Primary data type was collected by the researcher. It was obtained from respondents through the administration of questionnaires. The researcher made use of primary data because it helped to know what is actually happening on the ground and also came out with findings and recommendations. 3.5 Instrument for Data Collection Questionnaire was the main instrument to be used to collect data for the study. This is to enhance the truthfulness of the data regarding the study. The questionnaire was designed to contain simple question based on the set objectives of the study. It was simple and easy to understand to ensure respondents provided relevant data to meet the objectives of the study. The questionnaire contained relevant close ended questions for the purpose of attaining the research objectives of the study. The questionnaires were made up of three parts. Section A was structured to collect data on the various leadership styles within the respective organisations and Section B was designed to gather data to examine the impact of leadership style on employee performance. 3.6 Procedure for Data Collection An introductory letter was obtained from the various Microfinance Organisation with respect to the study. Data was collected from a number of employees and management of these organisations as well as the Ghana Microfinance Association. Questionnaires was handed out to individuals or personnel who work at the various departments and the researcher personally 37 University of Ghana http://ugspace.ug.edu.gh delivered and collected the questionnaires; this was made possible as a special meeting was scheduled with the respondents at their free or less busy times. 3.7 Method of Data Analysis The data gathered was analyzed using the Statistical Package for Social Science (SPSS) version 24.0. The study employed regression analysis, independent t test and descriptive statistics in analyzing the various hypotheses. The statistical test used are parametric tests because it was assumed that the measurement of the variable is on at least an interval scale; also that there is homogeneity and equal variance among the variables. The study adopted the 0.05 alpha level for the analysis. 3.9 Ethical considerations The researcher ensured that ethical considerations such as the rights of research participants (informed consent), protection from harm, privacy and confidentiality as well as the dignity of the participants were given a considerable amount of consideration. Before the researcher administered the data collection instrument, the participants were briefed on the purpose of the study participants and confidentiality was assured. Respondents voluntarily partook in the study with no form of coercion and they were at liberty to pose questions pertaining to the study, as well at free will to decline their participations in the study. 38 University of Ghana http://ugspace.ug.edu.gh 39 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR RESULTS, ANALYSIS AND DISCUSSION OF FINDINGS 4.0 Introduction This section presents the findings from the study, analysis and discussion of the findings. It begins with a general information about the Microfinance Industry in Ghana. This is followed by an analysis of the influence of leadership style on employee performance which translates to organisational performance especially in Ghana. The findings and discussions on the relationships between the variables are then presented. The discussion and analysis are done with respect to the research objectives stated in section one. 4.1 Demographic characteristics of respondents For the purpose of having a fair idea about the background of the respondents that partook in the study, the researcher gathered data on the demographic characteristics of the respondents such as gender, age, educational level, years of service and so on. 4.2.1 Gender distribution of respondents Table 4.1 Gender distribution of respondents Gender Frequency (N) Percentage (%) Female 88 74.6 Male 30 26.4 Total 118 100 Source: Field Data, 2019 40 University of Ghana http://ugspace.ug.edu.gh Table 4.1 above presents the results of the gender distribution of the respondents that were engaged in this study. From Table 4.1, the results indicate that a total of 118 respondents were sampled for the study, of which 88 respondents (representing 74.6% of the respondents) are female. The remaining 30 respondents representing 26.4% are male. This is an indication that the finance industry in Ghana is hugely female dominated. This could be as a result of the nature of the work in the financial sector considering that most of its procedures and processes do not require employees with highly physical abilities to carry and move heavy objects and machinery which may be considered as a less adept choice of work for most males. Again because of the cultural prejudices ascribed to men who work in female ‘specified’ jobs, most males will rather prefer to work in other sectors than in the micro-finance sector. This provides the most plausible reason for the results showing more female respondents than male respondents. 4.2.2 Age distribution of respondents Table 4.2 Age distribution of respondents Age (years) Frequency (N) Percentage (%) 20 – 29 13 11.0 30 – 39 39 33.1 40 – 49 60 50.8 50 – 59 6 5.1 Total 118 100 Source: Field Data, 2019 Table 4.2 above presents the results of the age distribution of the respondents. The results from the table shows that 6 respondents (5.1%) fall under the 50 – 59 years’ category. 13 respondents representing 11% of the sample fell between the ages of 20 and 29 years. Also, the results 41 University of Ghana http://ugspace.ug.edu.gh indicated that the age group of 30 – 39 years has 39 respondents (33.1%) within that category. Finally, the age group of 40-49 also recorded 60 respondents, representing 50.8% of the sample. A majority of the respondents (94.9%) are relatively in the prime stages of their careers in the micro-finance industry (i.e. they fall within the ages of 20 and 49 years), this is an indication that the micro-finance sector in Ghana is dominated by very young and exuberant employees who are working in prime stages of their professions. It is also important to emphasize that perhaps the nature of work in the financial sector makes it more attractive to younger people. 4.2.3 Distribution of the educational level of respondents Table 4.3 Highest educational level of respondents Educational Level Frequency (N) Percentage (%) O/A Level /SS/WASSCE 9 7.6 Diploma/HND 89 75.4 First degree 15 12.7 Master’s degree 4 3.4 Professional Certificate 1 0.9 Total 118 100 Source: Field Data, 2019 Table 4.3 below shows the highest educational level of the respondents. From the table, majority of respondents (89 respondents) representing 75.44% have attained a diploma or HND. Also, 15 respondents, which tally with 12.7% of the sample, have a First degree. It was observed that 9 respondents (7.6%) have a either an O’ Level, A’ Level, an SSCE or WASSCE certificate. Also, 4 respondents, which correspond to 3.4% of the respondents, have a master’s degree. Only one 42 University of Ghana http://ugspace.ug.edu.gh (1) respondent (0.9%) had a professional certificate. First and foremost, the result indicate that majority of the respondents sampled have one form of education or another which are necessary to work within the formal sector. Again, the result further shows that persons employed to work in the financial sector in Ghana need some basic education because of the fact that majority of work in the micro-finance industry in Ghana primarily requires the simple ability to read and write and require much critical and analytical thinking. 4.2.4 Number of years in the organization Table 4.4 Years of service Years of service Frequency (N) Percentage (%) 0 – 2 years 29 24.6 3– 5 years 57 48.3 6 – 10 years 16 13.6 11-20 years 12 10.2 21 years and above 4 3.4 Total 118 100 Source: Field Data, 2019 The results indicating the number of years one has spent in the organization was presented in table 4.4. The results show that majority of respondents (57 respondents) representing 48.3% have worked with the organization for 3 to 5years. This is followed employees who have worked for between 9-2 years (29 respondents; 24.6%). Also, the results indicated that 16 respondents (13.6%) fell under the category of 6 to 10 years whiles 12 respondents (10.2%) fall within the 11 – 20 years category. Finally, only 4 respondents (3.4%) have worked for between 21 years and above. The results indicate that majority (96.6%) of respondents have worked in their 43 University of Ghana http://ugspace.ug.edu.gh organisations for a very long time and are highly experienced. This is corroborated by Hiller et al. (2006), who noted that individuals with higher levels of organizational commitment tend to have a sense of belonging and identification with a particular organization or industry and an increased desire to stay and work in that industry or profession because their knowledge, skills and abilities are more suited to that kind of profession than any other. 4.3 Hypotheses testing The hypotheses were tested using the SPSS (version 25.0). The Pearson product-moment correlation test was used to the test hypotheses one, and three. The linear regression test was used to the test hypotheses two (a, b, c). The 0.05 level of significance was adopted for the purpose of this study. Hypothesis one: Transformational leadership style will be the most dominate leadership style. Table 4.5: Mean and standard deviation of transformational and transactional leadership styles of leaders in the micro-finance industry. Variable Mean S.D. N Transformational Leadership 60.55 15.93 118 Transactional Leadership 37.16 13.05 Source: Field Data, 2019 Table 4.5 presented the mean and standard deviation for both transformational and transactional leadership styles. From the table, the results revealed that employees of the micro-finance firms sampled consider their leaders to possess and exhibit a relatively high level of transformational leadership (M=60.55, S.D.= 15.93) than transactional leadership (M=37.16, S.D.=13.05). As seen from the table, transformational leadership recorded a higher mean and standard deviation 44 University of Ghana http://ugspace.ug.edu.gh score, thus clearly showing that leaders and managers within the micro-finance industry in Ghana demonstrate more people-oriented (transformational) leadership styles than they exhibit task-oriented (transactional) leadership style. This supports hypothesis one, which stated that transformational leadership style will be the most dominate leadership style in Ghanaian micro- finance firms. The result is contrary to those conducted by other scholars (see Dartey-Baah & Ampofo, 2016; Namei, 2012; Pasad and Junni, 2016) who all found transactional leadership styles to be the most dominate leadership style in financial sector organisations. Carrasco-Saul et al. (2014), Dartey-Baah et al, (2011) and Northouse (2018) in their respective studies explained that transformational (people oriented) leaders, due to their ability to espouse particular dimensions of idealised influence, inspirational motivation, intellectual stimulation and individualised consideration, have a greater tendency to influence their employees’ attitudes positively, especially with respect to the vigour and dedication employees bring to their work. This is because transformational leaders are able to inspire and motivate subordinates to go beyond task requirements and exhibit optimal levels of positive work outcomes. Perhaps this is what accounted for the reason why employees in the micro-finance firms sampled believe that the transformational leadership is the most dominant leadership style exhibited by their team leaders and managers. Contextualizing this result around the transformational leadership, Osman and Nahar, (2015) postulate that a high-quality leadership is one that involves support, trust, respect and encouragement between the leaders and his/her subordinates which is similar to dimension of transformational leadership where trust is built based on motivation, inspiration, mentoring and 45 University of Ghana http://ugspace.ug.edu.gh coaching. People oriented leadership is explained as the kind of leadership that encourages employees to exhibit high levels of energy and mental resilience while working; the willingness to invest effort in their work whiles persisting even in the face of difficulties; they also exhibit a sense of significance, enthusiasm, inspiration, pride, and readiness for new challenges (Northhouse, 2018). For many other subordinates, the quality of the relationship they have with their leaders pushes them to be fully concentrated and happily engrossed in their work to the extent that they remain commited to both the manager and the organisation and have an eagerness to undertake tasks voluntarily and successfully (Berry, 2010). Hypothesis two (A): Transformational leadership style will have a significant positive effect on task performance. Table: 4.5 Summary of the linear regression showing the relationship between the transformational leadership style and task performance. Model Unstandardized Coefficients Standardized t p Coefficients B Std. Error Beta (Constant) 11.15 1.291 18.637 .000 Transformational .07 .014 .440** 5.225 .000 leadership Source: Field data, 2019 **Significance at 0.05 a. Dependent Variable (constant): Task performance b. Note: R2 = .193, F = 27.299 c. df = 1, 117 With respect to determining whether transformational leadership style has a significant positive impact on task performance. Table 4.7 presents the results for the simple linear regression. The results reveal that there is a significant positive correlation between transformational leadership style and task performance (β = .440, p = .000). Further statistical analysis revealed that when 46 University of Ghana http://ugspace.ug.edu.gh leaders exhibit transformational leadership style, it significantly impacts on the employee’s ability to deliver task or roles [F(1, 117) = 27.299, p = .000], with an R2 value of .193. Therefore, it can be concluded from the findings that 19.3% of the variation in task performance by employees in the micro-finance firms can be attributed to the adoption and demonstration of transformational leadership styles by managers and leaders. The results support hypothesis two (A). The finding is in line with those found by Kissi et al (2012); Davies et al., (2008); Cheng et al., (2005) inter alia. Kissi et al., (2012) for instance, maintained that if there exist a strong relationship between employees and their leaders in their organisation, then this will affect employees’ opinion, and vision of the environment in which they work, which in turn brings out their innovative skills and engender quality work output. In the same fashion loyal and encouraging managers who do not interfere enough and let the employees utilize their abilities and innovative skills, help in creating innovative environment. Such supervisors contribute a lot to develop and improve employee’s hidden skills and performance as well as the quality of employees’ final delivery. Muller and Turner (2007) averred that adaptive managers involve their subordinates in the performance of their duties to create innovative results for complicated challenges, and in the same sense train the subordinates to be able to take up managerial tasks. This finding indicates that leaders in the micro-finance firms sampled charge and encourage or motivate their followers with objective and interest as stated by (Schultz, Schultz & Duane, 2010). This is because this 47 University of Ghana http://ugspace.ug.edu.gh particular style of leadership is important for creativity executed by these firms to ensure quality and beat off competition. It is worth noting that the support that transformational leaders offer their subordinates in the form of motivation, mentoring and acknowledgment as well as the genuine show of concern can catalyse an exchange relationship that encourages subordinates to reciprocate by stimulating them to exhibit an orientation for quality output, thus it is not surprising that employees of the micro-finance firms sampled in this study were influenced by coaching and mentoring and guidance exhibited by their supervisors with regard to the quality that they bring to their work. Moreover, considering that majority of respondents were found to be youthful and presumable in the early and mid-way stages of their careers, it is very likely behaviours such as inspiration, coaching, and mentorship akin to transformational leadership style is having a significant influence on their work quality seeing that this style of leadership empowers individuals psychologically (Gardner et al., 2005; Clarke, 2013). Hypothesis Two (B): Transactional leadership style will have a significant positive effect on task performance. Table: 4.6 Summary of the linear regression showing the relationship between the transactional leadership style and task performance Model Unstandardized Coefficients Standardized t p Coefficients B Std. Error Beta (Constant) 5.653 .929 6.088 .000 Transactional .065 .010 .528** 6.631 .000 leadership style Source: Field data, 2019 **Significance at 0.05 Dependent Variable (constant): Task performance a. Note: R2 = .272, F = 43.965 48 University of Ghana http://ugspace.ug.edu.gh b. df = 1, 117 For the purpose of ascertaining whether transactional leadership style had a significant positive relationship with employees’ task performance, a linear regression was calculated by the researcher. Table 4.6 presents the results for the simple linear regression. The results reveal that there is a significant positive correlation between the transactional (task oriented) leadership style and task performance (β = .528, p = .000). Further statistical analysis revealed that when leaders exhibit transactional leadership style, it significantly impacts on the employee’s ability to perform assigned task [F 2(1, 117) = 43.965, p = .000], with an R value of .272. Therefore, it can be concluded from the findings that 27.2% of the variation in task performance by employees in the micro-finance industry can be attributed to the adoption and demonstration of transactional leadership styles by managers and leaders. The results support hypothesis two (B). This finding is corroborated by similar studies by Shalley and Gilson (2004) and Young et al., (2010) who both found in their separate studies that employees working in the micro-finance sector are quick to perform assigned task when they have an exchange relationship with their managers which involves the exchange of some kind of reward or benefit for completing task before or on schedule. This implies that when managers and supervisors exhibit transactional leadership behaviours, usually characterised by specified rewards in exchange for performance, employees are likely finish assigned task on schedule. Transactional leadership style on the other hand, is geared towards monitoring and rewarding performance of employees (Reid et al., 2008); based more on “exchanges” between the leader and follower, in which followers are rewarded for meeting specific goals or performance criteria 49 University of Ghana http://ugspace.ug.edu.gh (Bass et al., 2003; Trottier et al., 2008). Contingent reward, a dimension of transactional leadership style explains the exchange of extrinsic rewards by leaders for attainment of desired performance and tasks from followers (Dartey-Baah, 2015). Rüschoff (2008) and Graen et al. (2000) indicated in their respective studies that transactional (task oriented) leaders are likely to grant followers access to resources, maximum support and trust and more considerations for rewards. Consequently, these followers feel any obligation to achieve optimum and go the extra mile when engaging with their work in order to earn the rewards and resources that come with completing task on time. This summarizes the interactional effects between transactional leaders and their subordinates; and lends credence to the finding of this study. Hypothesis Three: There will be a significant difference between male and female managers leadership styles. Hypothesis three sought to investigate whether there is any noticeable gender difference in the leadership styles demonstrated by either female or male managers or leaders. With respect to this, the researcher used the independent t test to compare the means of the two independent groups (i.e. males and females) and the results are presented below on table 4.8 below. Table 4.7: Summary of independent t test for the gender difference in leadership styles Variable Mean s.d. n df t p Males 13.32 4.32 21 116 -0.711 .205 Females 13.80 3.71 65 Source: Field Data 2019 The result for the independent t test was presented in table 4.7. From the table, it is evident that there is no statistical difference in the mean scores of males (M = 13.32, SD = 4.32) and females (M = 13.80, SD = 3.71) of the micro-finance firms sampled in terms of the leadership styles 50 University of Ghana http://ugspace.ug.edu.gh demonstrated by their managers and team leaders (t (145) = -0.711, p > 0.205). This suggests that an employee’s gender does not influence the type of leadership style that he or she demonstrates. Therefore, the three hypotheses were rejected. . 51 University of Ghana http://ugspace.ug.edu.gh CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.0 Introduction This last section introduces a summary of the findings of the research, and further offers suggestions for training and research. It likewise examines the impediments of the research. 5.1 Summary of Findings Leadership is an efficient way of achieving success at work place or in the organization. It helps in boosting the productivity, effectiveness and efficiency of work as well as the performance of organizations as a whole. The study examined the impact of manager’s leadership styles and how they impact task performance. Data was collected from the target population with the aid of structured close- ended questionnaires. The data was analyzed to help answer the research questions formulated for the study. The data analysis revealed that a majority of employees in the micro-finance sector in Ghana are female. The study also revealed that the micro-finance industry in Ghana has relatively young employees that are at the peak of their professions. Also, the results indicated that majority of employees in the micro-finance industry have some basic education needed to career out their day-to-day activities of their profession. It was further revealed the workforce in the Ghanaian micro-finance industry are highly experienced and have worked with their respective organization for at least three (3) years. 52 University of Ghana http://ugspace.ug.edu.gh Furthermore, the data was analyzed to test the various hypotheses formulated for the purpose of achieving the aim(s) of the study. The findings indicated that the dominant style of leadership among the micro-finance firms sampled is transformational Leadership. Also, the results indicated that the transformational leadership style among leaders and managers has a significant positive impact on task performance in the micro-finance industry whiles transactional leadership style was found to impact in a positive way, task performance in the Ghanaian micro- finance industry. Finally, the study indicated no important gender variation in leadership style experience among employees of the three micro-finance firms sampled. 5.2 Conclusion and Recommendations 5.2.1 Conclusion A leadership style is important because it affects the performance and meeting of organisational goals. From the overall findings and relationship between the theories used in this research the study finds that the use of effective leadership styles can create impact on employee performance, and subsequently organisational performance. The result and the analysis revealed that the leadership style used the Microfinance Institutions does impact task performance. The findings of this study revealed that there is outstanding performance from leadership that indicate a drastic impact on the performance of the employees gain, this research is to enlighten those organizations that have discounted leadership style as a major tool of organizational performance to start valuing it as their number one tool, since it can have a positive impact on organizational performance. 53 University of Ghana http://ugspace.ug.edu.gh 5.2.2 Recommendations The following recommendations are offered: The study recommends first and foremost that, seeing that transformational leadership styles which is characterized by coaching, trust, mentoring and showed a positive impact on task performance, it is important that leaders are educated on the considerable influence that they can have on their subordinates’ work output levels if they exhibited more transformational leadership styles. Leaders should also be encouraged to do more coaching and mentoring as well as inspire subordinates because it will motivate them to go the extra mile in ensuring that the objectives are met. Furthermore, it is indicated in literature and confirmed in this study that transformational and transactional leadership have good complementarities when it comes to the management of employee behavior; therefore, firms in the micro-finance industry should consider rewarding employees through their supervisors and encourage its combination with motivation, coaching, mentoring and inspiration in order to bring the best out of their employees, especially when the behaviour of managers/supervisors could affect the orientation that employees have towards task performance benchmarks. Finally, it is recommended that future studies replicate this study for multinational and foreign micro-finance firms operating in Ghana as well as conduct a comparative study between indigenous and foreign micro-finance firms since all the firms sampled in this study were local firms in Ghana. This study could also be replicated in other sectors considering that the dynamics may differ from one sector to another. Also, future studies could employ a different strategy 54 University of Ghana http://ugspace.ug.edu.gh preferably, the mixed-method approach to bring out more nuances surrounding the concept of leadership and task performance. 55 University of Ghana http://ugspace.ug.edu.gh REFERENCES Attridge, Mark. "Measuring and managing employee work engagement: A review of the research and business literature." Journal of Workplace Behavioural Health 24, no. 4 (2009): 383- 398. Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). 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Research design: Qualitative, Quantitative and Mixed Methods Approaches, 3rd London: Sage Publication Dartey-Baah, K. (2014). Effective leadership and sustainable development in Africa: is there “really” a link?. Journal of Global Responsibility, 5(2), 203-218. 56 University of Ghana http://ugspace.ug.edu.gh Dartey-Baah, K. (2015). Resilient leadership: A transformational-transactional leadership mix. Journal of Global Responsibility, 6(1), 99-112. Dartey-Baah, K. (2016). Goal integration through transformational leadership: A panacea to Ghana’s public sector corruption menace. Journal of Global Responsibility, 7(1), 4-25. Fenwick, F. & Gayle, C., 2008. Missing links in understanding the relationship between leadership and organizational performance. Hellriegel, D., Jackson, S.E., & Slocum, J.W. (1999). Management (8th ed.). Cincinnati, Ohio: South-Western College. House, R. & Aditya, R., 1997. The social scientific study of leadership: Quo vadis? 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Psychological Bulletin, 47(1), 1-14. 57 University of Ghana http://ugspace.ug.edu.gh Terre Blanche, Durheim and Painter. (2006). Research Practice: Applied Methods for the Social Sciences. Cape Town: Juta. Trochim, W. (2009). Research Methods. 2nd Edition. New Dehli: Biztantra. Warren G. Bennis, (1989) "Managing the Dream: Leadership in the 21st Century", Journal of Organizational Change Management, Vol. 2 Issue: 1, pp.6-10. Wellman, Kruger and Mitchell. (2005). Research Methodology. 3rd Edition. Cape Town: Oxford University Press. Whisenand, P.M. and Ferguson, R.F. (1996). The Managing of Police Organizations. 4th Edition. United States of America: Prentice-Hall. Williams, K. (2006). Introducing Management: A Development Guide. 3rd Edition. United States of America: Butterworth-Heinemann. Zikmund, W. (2003). Business Research Methods. 5th Edition. India: South-Western 58 University of Ghana http://ugspace.ug.edu.gh APPENDIX QUESTIONNAIRE UNIVERSITY OF GHANA BUSINESS SCHOOL DEPARTMENT OF ORGANISATION AND HUMAN RESOURCE MANAGEMENT Dear Respondent, Thank you in advance for taking the time to complete this questionnaire and helping contribute to my research. You are highly assured of confidentiality since all information given on this questionnaire is used for research purposes only. PERSONAL INFORMATION Please tick [√] the appropriate box that best describes you a. Please indicate your gender: Male [ ] Female [ ] b. Please indicate your division: ……………………………………… c. Please indicate your rank in your division………………………………………. d. Age: (a) 20 – 29[ ]; (b) 30-39 [ ]; (c) 40-49 [ ]; (d) 50 – 59 [ ] ; 60 and over [ ] e. What is your highest level of education? [ ] PhD [ ] Master [ ] Bachelor degree [ ] Diploma/Certificate [ ] High School or (SHS) [ ] Junior High School or (JHS) f. Marital Status: Single [ ] Married [ ] Divorced [ ] widowed [ ] Cohabiting [ ] g. Please state how long you have been working here……………… SECTION A Please tick [√] the answer that reflects your views in the following statements from 1 to 5. My MANAGER: Not Once Someti Fair Frequen at all in a mes ly tly if not 1. Instills pride in me for being associated with him/her 1 wh2ile 3 nof4te alwa5ys 2. Goes beyond self-interest for the good of the group 1 2 3 4 5 3. Acts in ways that build my respect 1 2 3 4 5 4. Displays a sense of power and confidence 1 2 3 4 5 5. Talks about his/her most important values and beliefs 1 2 3 4 5 6. Specifies the importance of having a strong sense of decisions 1 2 3 4 5 7. Emphasizes the importance of having a collective sense of mission 1 2 3 4 5 8. Talks optimistically about the future 1 2 3 4 5 9. Talks enthusiastically about what needs to be accomplished 1 2 3 4 5 10. Expresses a compelling vision of the future 1 2 3 4 5 11. Expresses confidence that goals will be achieved 1 2 3 4 5 12. Re-examines critical assumptions to questions whether they are 1 2 3 4 5 appropriate My MANAGER: Once FairNot Frequen at all in a Someti ly while mes ofte tly if not n always 13. Seeks differing perspectives when solving problems 1 2 3 4 5 14. Gets me to look at problems from many different angles 1 2 3 4 5 59 University of Ghana http://ugspace.ug.edu.gh 15. Suggests new ways of looking at how to complete assignments 1 2 3 4 5 16. Spends time teaching and coaching 1 2 3 4 5 17. Treats me as individual rather than just a member of a team 1 2 3 4 5 18. Considers me as having different needs, abilities, and aspirations 1 2 3 4 5 from others 19. Helps me to develop strengths 1 2 3 4 5 20. Provides me with assistance in exchange for my efforts 1 2 3 4 5 21. Discusses in specific terms who is responsible for achieving 1 2 3 4 5 performance targets 22. Makes clear what i can expect to receive when performance goals are 1 2 3 4 5 achieved 23. Expresses satisfaction when I meet expectations 1 2 3 4 5 24 Focuses attention on irregularities, mistakes, exceptions and 1 2 3 4 5 deviations from standards 25. Concentrates his/her full attention on dealing with mistakes, 1 2 3 4 5 complaints, and failure 26. Keeps track of all mistakes 1 2 3 4 5 27. Directs my attention toward failures to meet standards 1 2 3 4 5 28. Fails to interfere until problems becomes serious 1 2 3 4 5 29. Waits for things to go wrong before taking action 1 2 3 4 5 30. Shows that he/she is a firm believer in “if it will not break, don’t fix 1 2 3 4 5 it” 31. Demonstrates that problems must become chronic before taking 1 2 3 4 5 action 32. Avoids getting involved when important issues arise 33. Is absent when needed 34. Delays responding to urgent questions 35. Avoids making decisions SECTION B INSTRUCTIONS: This questions below provides a description of what you did in the past three (3) months at work. Please tick (√) for the most appropriate responses in respect of the statements made which describes you. Using the scale below. 0— Seldom 1— Sometimes 2— Frequently 3— Often 4— Always Please tick (√) one response for each statement 1. I managed to plan my work so that it was done on 0 1 2 3 4 time 2. My planning was optimal 3. I kept in mind the results that I had to achieve in my work 4. I was able to separate main issues from side issues at work 5. I knew how to set the right priorities 6. I was able to perform my work well with minimal time and effort 7. Collaboration with others was very productive. 60 University of Ghana http://ugspace.ug.edu.gh 61