Democratic Leadership Style and Its Impact on Organizational Decision Making and Growth

CHAPTER ONE

INTRODUCTION

Background Of The Study

The kind of leadership employed in an organization determines the extent to which it is effective or ineffective. According to Anees (2013), leadership is critical in every institution or organization because of its far-reaching implications for goal achievement and organizational progress. The effectiveness of social systems is seen to be primarily contingent on the quality of leadership. According to Azka, Tahir, Aslam, and Syed (2011), depending on the leadership style used in the firm, subordinates are either favorably or negatively influenced in terms of achieving corporate objectives. As a result, leadership style is a critical factor in an organization’s success or failure. According to Fiedler (1969), a leadership style is a type of connection in which someone utilizes their ways and tactics to convince a large group of people to work together on a shared task. Furthermore, a leadership style is the embodiment of a leader’s main pattern of behavior (Okurumeh, 2001). Notably, there are several leadership styles, such as autocratic leadership styles, authoritative leadership styles, transformational leadership styles, transitional leadership styles, democratic leadership styles, and so on. To a considerable extent, these approaches impact how leaders persuade subordinates to get the most out of their skills. In light of this, Anwar and Haider (2015) proposed that a democratic style of leadership is one that allows employees to participate in some corporate decision-making process. Democratic leadership is also known as participatory leadership since it invites one or more workers to participate in decision making (deciding what to do and how to do it) (Kalu 2018). Furthermore, in this style of leadership strategy, the leader collaborates with a group of subordinates to reach a conclusion based on consensus. The leader, however, retains final decision-making authority (Longe, 2014). It is typically employed when the leader knows part of the knowledge and the subordinates have part of the information, as being a leader does not imply knowing everything. This has a practical impact on organizational growth and development since the opinions of all employees are considered when determining what is appropriate in the company.

According to Polston-Murdoch (2013), democratic leaders achieve higher levels of staff performance than those who do not. According to Hassan (2016), democratic leadership is helpful for obtaining excellent employee and organizational performance because the leader interacts with subordinates in creating, clarifying, and accomplishing goals. In light of the foregoing, the purpose of this research is to investigate the influence of democratic leadership styles on organizational decision-making and growth.

Statement  Of The Problem

Leadership is at the center of any company, and its importance cannot be overstated. According to Michael, a leadership style is the way that senior officials use when in positions of leadership (2010). It is defined as a specific behavior used by a company’s leader to empower employees to achieve the organization’s set of goals. According to Xenikou (2017), leadership style is the way a director or supervisor interacts with his or her personnel and how they perform their leadership function. Leadership style, like leadership itself, is extremely important in an organization. This is due to the fact that the leadership style in use impacts the success rate of corporate organizations. Among the various types of leadership styles, Nwokocha (2015) said that a democratic style of leadership is one that allows employees to participate in some organizational decision-making process. Because it allows one or more workers to be a part of the decision-making process (determining what to do and how to accomplish it), democratic leadership is also known as participatory leadership (Kalu 2018).

According to the adage “no man is an island of knowledge,” leaders should allow employees (subordinates) to express their ideas, thoughts, and contributions on various corporate decision-making processes, because the common goal is to determine how best to achieve the organizational goals.However, in most Nigerian firms, decisions are taken by senior management without the input of ordinary employees. This technique has a detrimental impact on employees since they do not feel competent and their sense of belonging in the business evaporates, consequently affecting their job happiness (Nwokocha, 2015). On the other hand, the consequences of incorrect and ineffective judgments in those companies affect not just the organization’s image but also the employees who were not part of the decision-making process (Anwar, 2015). According to Igbaekemen and Odirvwri (2015), in order to obtain excellent decisions in any company, leaders must embrace a democratic leadership style in order to gather input from all kinds of workers. Previous studies in non-governmental organizations have demonstrated that democratic leadership has a positive influence on organizational decision-making (Yukl, 1994; Bass, 1990; Sashkin, 1996; Sergiovanni,1987). In light of this, the purpose of this research is to investigate the influence of democratic leadership styles on organizational decision-making and growth.

 Objective Of The Study

The general aim of this study is to critically examine the impact of a democratic leadership style on organizational decision-making and growth. Specifically, the study is set to:

1.        Ascertain if a democratic leadership style can be used to elicit information from employees.

2.        Determine if a democratic leadership style grants employees freedom of expression.

3.        Determine if a democratic leadership style has any significant effect on decision-making in an organization.

4.        Ascertain if democratic leadership contributes positively to organizational growth and development.

 Research Question

The study will be guided by the following the questions;

1.        Can democratic leadership style be used to elicit information from employees?

2.        Does democratic leadership style grant employees freedom of expression in the organization?

3.        Does democratic leadership style have any significant effect on decision making in an organization?

4.        Does democratic leadership contribute positively to organizational growth and development?

Significance Of The Study

This research on democratic leadership styles and their effects on organizational decision-making and growth will be extremely beneficial to management, employees, and all other actors in organizations as a whole.This study will enable managers to know the types of leadership style to adopt in their effort to achieve organizational set goals as well us how the style will better decision making, and growth in the organization.

Also, this study is important/essential because it will enable the organizations to know the style of leadership preferred by their employee. It will help the leaders to have a better understanding of their employees and know the best leadership style to adopt in order to effectively influence or motivate their subordinates.

Additionally, subsequent researchers will use it as a literature review. This means that, other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regards to the impact of leadership style on organizational decision making and growth.

Scope Of The Study

The study focuses on the impact of a democratic leadership style on organizational decision-making and growth. The study will also ascertain whether a democratic leadership style can be used to elicit information from employees. The study will further determine if a democratic leadership style grants employees freedom of expression, if a democratic leadership style has any significant effect on decision making in an organization, and whether democratic leadership contributes positively to organizational growth and development. The study will be limited to Promasidor Nigeria Limited, Lagos State.

Limitation Of The Study

Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.

Definition Of The Study

Leader: A person who influence and direct the affairs of others.

Leadership Style: A leadership style refers to a leader’s characteristic behaviors when directing, motivating, guiding, and managing groups of people

Employee: An employee is simply refers to someone employed by an employer in an organization to work under another person known as the manager or the supervisor officer.