THE EFFECT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF PEARL COMMUNITY EMPOWERMENT FOUNDATION

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

According to Adair, (2002) Organizations worldwide strive to find the best type of leadership style quite simply because with good effective leadership, the leader(s) can drive their work group to achieve all the critical aspects of the company’s goals/objectives. Leadership is essential for effective management and a good leader is able to understand his sub-ordinates, their needs and source of satisfaction. The quality of leadership usually determines the fate of one organization. “In fact, Management activities such as planning, organizing and decision-making are like dormant cocoons until the leader triggers the power of motivation in the people and guides them towards the goals.

According to Northouse, (2001) Leadership can be defined in different ways that it is hard to come up with a single working definition. Leadership is not just a person or group of people in a high position. Leadership is a process in which leader is indulged in various activities to achieve any goal. Leadership refers to the behavior/ attitude of a leader to bring together and direct the individuals towards any goal. Leadership is a communication process of leader and individuals. So the effectiveness of an organization depends upon the effective leader and effective leader is that person who has an effective leadership style. Leadership is a very important factor for any organization or group.

Pearl Community Empowerment Foundation (PCEF), is a Ugandan national rural development and empowerment NGO, currently operating in rural communities of the Tororo and Butaleja districts in eastern Uganda. The organisation gives rural Ugandan girls and their families the tools they need to break the cycle of poverty and initiate sustainable change in their communities. PCEF is headed by an executive director who employs mainly autocratic leadership style where all decision-making powers are centralized in the leader. Leaders do not entertain any suggestions or initiatives from subordinates. This has created fear and isolation from the staff with devastating impact on the organisation. Therefore it’s against this background that the study is seeking to investigate the effect of leadership on organisational performance of Pearl Community Empowerment Foundation (PCEF).

1.2 STATEMENT OF THE PROBLEM

Successful organizations are the result of effective leadership and organizational culture (Brindusa, 2013). The founders of Pearl Community Empowerment Foundation had a well set vision when they started the organisation, however like many other organisations have weaknesses and in this case in particular it is leadership which is mainly authoritative where all powers are centred at the apex of the organisation, this has resulted in decreased motivation because staff are not consulted and do not feel valued coupled with poor team chemistry and poor commitment. All this have comprised the organisation’s performance prompting the researcher to undertake this study to establish the effect of leadership on organisational performance.

1.3 PURPOSE OF THE STUDY

The purpose of the study was to establish the effect of leadership on organisational performance of Pearl Community Empowerment Foundation (PCEF).

1.4 OBJECTIVES OF THE STUDY

1. To establish the types of leadership behaviour in Pearl Community Empowerment Foundation (PCEF)
2. To investigate the impact of leadership behavior on organizational performance at Pearl Community Empowerment Foundation (PCEF)

• To determine the relationship between leadership and organization performance at Pearl Community Empowerment Foundation (PCEF)

1.5 RESEARCH QUESTIONS

1. What are the types of leadership behaviour in Pearl Community Empowerment Foundation (PCEF)?
2. What is the impact of leadership behaviour on organizational performance at Pearl Community Empowerment Foundation (PCEF)?

• What is the relationship between leadership and organization performance at Pearl Community Empowerment Foundation (PCEF)

1.7 SCOPE OF THE STUDY

1.7.1. Content Scope

The study will seek to examine the effect of leadership on organisational performance with a case of Pearl Community Empowerment Foundation (PCEF) in Kisoko Sub County Tororo District. The study organisation was chosen because it has leadership challenges.

1.7.2. Geographical Scope

The study will be carried out at Pearl Community Empowerment Foundation (PCEF) in Kisoko Sub County Tororo District Uganda. The organisations operates in Tororo and Butaleja districts however the researcher chose Kisoko Sub County in Tororo District because of familiarity with the area and the local language which she understands which may ease data collection.

1.7.3.   Time Scope

The study will cover period from 2000 to 2015 on leadership and organisational performance which is expected to have enough literature on the topic of study.

1.6 SIGNIFICANCE OF THE STUDY

The study findings will highlight the weaknesses of the organisation (PCEF) and provide suggestions for the improvement of the organisation’s leadership.

Owing to the significant role that leadership plays in any organisation’s performance, the finding of this study might act as an eye opener to managers of other organisations thus enabling them to adopt the best leadership styles for educational efficiency.

The findings of the research might reveal to management and staff; the effect of leadership on organisation’s performance of PCEF.

The study might also help to draw attention to those leadership styles which are likely to contribute to poor working conditions and hence poor output.

The study will provide more information and resource on leadership and organisations’ performance to institutions including UICT and scholars or researchers among others.

CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

This chapter discusses the literature related to the subject of study; it reviews previous research, articles on leadership and organisational performance according to research objectives.

2.1 LEADERSHIP AND PERFORMANCE

2.1.1 Leadership

Leadership can be defined in different ways that it is hard to come up with a single working definition. Leadership is not just a person or group of people in a high position. Leadership is a process in which leader is indulged in various activities to achieve any goal. Leadership refers to the behavior/ attitude of a leader to collect and direct the individuals towards any goal. Leadership is a communication process of leader and individuals. So the effectiveness of an organization depends upon the effective leader and effective leader is that person who has an effective leadership style. Leadership is a very important factor for any organization or group (Chemers, 1997).

2.1.2 Performance

According to Chen, (2002), organizational performance means the “transformation of inputs into outputs for achieving certain outcomes. With regard to its content, performance informs about the relation between minimal and effective cost (economy), between effective cost and realized output (efficiency) and between output and achieved outcome (effectiveness)”. There are various ways to understand organization performance but in this study it has been judged upon the growth of the company and sales performance which lead towards the growth. Sales performance can be explained as all the activities or investment carried out in the firm in the given period of time. It can be measured by total amount of revenue collected for the goods sold. Growth revenue defines as total amount of money collected by the company for the goods they sold in a specific time and this amount is calculated before any expenses are subtracted.

2.1.3 Theories of leadership

Among  the  various  theories  of  leadership  and  motivation  relating  to  effective  organizational change management,  perhaps  the  most  prominent  is  the  transformational-transactional theory  of  leadership.  Burns, (1978) conceptualizes two factors to differentiate “ordinary” from “extraordinary” leadership: transactional and transformational leadership. Transactional leadership is based on conventional exchange relationship in which followers’ compliance (effort, productivity, and loyalty) is exchanged for expected rewards. In contrast, transformational (extraordinary) leaders raise followers’ consciousness levels about the importance and value of designated outcomes and ways of achieving them. They also motivate followers to transcend their own immediate self-interest for the sake of the mission and vision of the organization.

Such total engagement (emotional, intellectual and moral) encourages followers to develop and perform beyond expectations (Burns, 1978; Bass, 1985). Burns, (1978) observes that transformational leadership involves the process of influencing major changes in organizational attitudes in order to achieve the organisation’s objectives and strategies. Bass (1985) observed that transactional leaders work their organizational cultures following existing rules and procedures, while transformational leaders change their cultures based on a new vision and a revision of shared assumptions, values and norms. When an organization must adapt to changes in technology, its leadership is a critical factor in its successful change.

Bass, (1985) operationalized the work of Burns, (1978) by developing a model of transformational and transactional leadership, referred to in more recent publications as the “full range leadership model” (Bass and Avolio, 1997).

Transformational Leadership

The difference between transformational and transactional leadership lies in the way of motivating others. A transformational leader’s behaviour originates in the personal values and beliefs of the leader and motivates subordinates to do more than expected (Bass, 1985). Burns (1978), identified transformational leadership as a process where, “one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality”.

For transformational leadership style, the follower feels trust, admiration, loyalty and respect towards the leader, and is motivated to do more than what was originally expected to do (Bass, 1985; Katz & Kahn, 1978). The transformational leader motivates by making follower more aware of the importance of task outcomes, inducing them to transcend their own self-interest for the sake of the organization or team and activating their higher- order needs. He encourages followers to think critically and seek new ways to approach their jobs, resulting in intellectual stimulation (Bass et al., 1994). As a result, there is an increase in their level of performance, satisfaction, and commitment to the goals of their organization (Podsakoff et al, 1996).

Bass, (1990), proposed four behaviours or components of transformational leadership to include charisma, inspirational motivation, intellectual stimulation, and individual consideration.

Transactional Leadership

Transactional leadership involves an exchange process that results in follower compliance with leader request but not likely to generate enthusiasm and commitment to task objective. The leader focuses on having internal actors perform the tasks required for the organization to reach its desired goals (Boehnke et al, 2003). The objective of the transactional leader is to ensure that the path to goal attainment is clearly understood by the internal actors, to remove potential barrier within the system, and to motivate the actors to achieve the predetermined goals (House & Aditya, 1997).

Transactional leaders display both constructive and corrective behaviours.  Constructive behaviour entails contingent reward, and corrective dimension imbibes management by exception. Contingent reward involves the clarification of the work required to obtain rewards and the use of incentives and contingent reward to exert influence. It considers follower expectations and offers recognition when goals are achieved. The clarification of goals and objectives and providing of recognition once goals are achieved should result in individuals and groups achieving expected levels of performance (Bass, 1985). Active management by exception refers to the leader setting the standards for compliance as well as for what constitutes ineffective performance, and may include punishing followers for non-compliance with those standards. This style of leadership implies close monitoring for deviances, mistakes, and errors and then taking corrective action as quickly as possible when they occur.

2.1.4 Leadership qualities and abilities

According to Trevisani & Daniele, (2015), the foundation of any relationship, both personal and professional, is honesty. People want to work for a leader they can trust a leader that has morals, values, and integrity.  They want to work for a company that offers a great product or service they can believe in, and that has an honourable reputation. “Honest Abe,” or Abraham Lincoln, is said to have been one of the greatest Presidents to ever lead our country, and he didn’t achieve his success or earn that nickname by being dishonest. Your workers want to feel good about their jobs−it’s important to establish core values for both the business and yourself as a leader, and to then live and lead by those values as an example to your employees.

Without clear communication, your employees won’t understand your mission, goals, and vision. Employees want to work toward something they believe in, so it’s important they understand that they are working toward the same goals you are. Communication should also be consistent in establishing work expectations, giving constructive feedback, and in training new employees.  With great communication, your employees will know exactly what they are working for, will rely on you, and will give their best effort for you (Arvey, et al, 2006).

When things go wrong, employees look to you for the answers and judge the situation based upon your reaction. Even if the company is experiencing a major downturn, it’s important to always be confident, calm, and set a good example. If you aren’t confident with the organization in a situation, then be confident in your own leadership skills. Your job is to maintain the happy work environment, and continue leading the team in their daily work (Arvey, et al, 2006).

Whether you’re starting a new business, or you’re leading a team in a business that’s already been established, it’s important to get employees invested in the vision and future of the company. You must be inspired and invested in the company in order to inspire others, like Larry Page and Sergey Brin, the founders of Google. The product of their own inspiration has inspired millions of others across the world, and has significantly impacted the world we live in today. Though inspiration often looks forward to the future, it’s also important for the present; it gives employees a reason to work, to succeed, and to do their best in everything they do. Make them feel invested in the company through inspiration and they’ll be loyal, hard-working employees (Trevisani & Daniele, 2015).

Judge et al, (2002) notes that; regardless of the situation, always stay positive. Positivity is essential to productivity, employee happiness, and work environment. When mistakes are made- even if they are serious, it’s important to look at the bright side of things. You are setting the tone for the work day, and your attitude directly affects those under your leadership. Bringing snacks, giving compliments, and even showing an appropriate interest in an employee’s personal life can have a significant impact on their work day.

According to Foti & Hauenstein, (2007) if there is a highly-important project, it can be difficult to trust employees without micromanaging. Trusting them to do their best possible work is a sign of strength in your leadership, and will encourage them to live up to your expectations. When it comes to delegation, the idea is to decide what strengths each employee possesses, and to assign them tasks that best fit those strengths. The ability to delegate successfully will lead to higher quality work and productivity.

Nothing shows commitment and humility like getting your hands dirty with the rest of the workers. Showing your commitment sets the example for others to follow, and leads to greater loyalty and respect for you as a leader. Always be committed in whatever you do, whether it is a promise to have a holiday party, a day off, or a meeting time. You are in the spotlight as a leader, and you will be judged harder for your actions than others will be. Set the tone of commitment, and others will follow suit (Arvey et al, 2006).

Although not a requirement, a sense of humor goes a long way in leadership. It helps create a positive work environment and enhances the feeling of camaraderie. Warren Buffett, for example, once said, “I buy expensive suits. They just look cheap on me.” Your unique personality and sense of humor shows your employees that you are more than a leader, and that you aren’t a machine, which encourages them to feel comfortable around you (Trevisani & Daniele, 2015).

Some decisions have to be made quickly, and catch us by surprise. In times like these, it’s up to you to think outside the box to find a solution. Your team will be looking to you in these situations for guidance, so a quick decision must also be a good decision. Henry Ford faced a situation like this when demand for his vehicles was so high he couldn’t possibly keep up. Instead of making the obvious decision to hire more people, he thought with creativity and developed the assembly line. You may even brainstorm with your team to build upon some of your ideas. When your employees are involved in a decision or idea, they often feel more invested, respected, and important. When you are in a situation where creativity is necessary, your creativity level and experience can either gain your employees’ loyalty and respect, or damage it (Foti & Hauenstein, 2007).

Sometimes we are presented with situations that aren’t in the textbooks, and for which you might not be prepared as a leader. The first decision isn’t always the best one, and taking your time to come up with a unique solution can be in the best interest of your workers and organization. Sometimes, leaders have to draw upon their instincts, past experiences, and mentors for help in these complicated situations (Judge et al, 2002).

2.2 TYPES OF LEADERSHIP

Three leadership types are very common in organisations and these include; democratic, autocratic and laisez faire among others as discussed below;

2.1.1 Participative or Democratic Management Style

Democratic or participative leadership style is one of the more popular forms of leadership in most organisations today. Democratic leadership style employs a system within an organization that allows the flow of free thought and the sharing of ideas between employees and administrators. Democratic leaders typically want feedback from employees and clients. They want input from other administrators and the employees on various organizational policies and decisions.   Democratic leadership style puts everyone in an order of equal importance. Often, employees are given tasks that lead to the overall betterment of the company and if there is disarray, everyone from managers to employees feels the sense of burden and responsibility. Democratic leadership style also gives the managers a chance to listen and act on employee ideas (Armstrong, 2008).

Scott, (2007) stated that a democratic leader delegates authority to his or her staff, giving them responsibility to complete the task given to them, suggests that Staff will complete the tasks using their own work methods.  However, the task must be completed on time. However there is slow decision making because the staff needs to be consulted.  Also some employees may take advantage of the fact that their leader is democratic by not working to their full potential and allowing other group members to ‘carry’ them.

2.1.2 Autocratic Leadership Style

The premise of the autocratic leadership style is the belief that in most cases the worker cannot make a contribution to their own work, and that even if they could, they wouldn’t. McGregor (1960), called the belief system that leads to this mindset Theory X. Under Theory X workers have no interest in work in general, including the quality of their work.

Autocratic leaders attempt to control work to the maximum extent possible. A major threat to control is complexity; complex jobs are more difficult to learn and workers who master such jobs are scarce and possess a certain amount of control over how the job is done. Thus, autocratic leaders attempt to simplify work to gain maximum control. Planning of work, including quality planning, is centralized. This in agreement with the common sense view, that leaders are essential and have an impact on the performance of the organisation (James et al, 2010).

In contrast to the above an autocratic leader dictates orders to their staff and makes decisions without any consultation.  The leader likes to control the situation they are in. Decisions are quick because staffs are not consulted and work is usually completed on time.  However this type of leadership style can decrease motivation and increase staff turnover because staff are not consulted and do not feel valued. The concept of leadership held here is that leadership must change (Grant, 2009).

2.1.3 Laissez-Faire leadership style

Morgen, (2012) asserts that a laissez faire leader sets the tasks and gives staff complete freedom to complete the task as they see fit.  There is minimal involvement from the leader.  The leader however does not sit idle and watch them work! He or she is there to coach or answer questions, supply information if required.  There are benefits; staffs develop to take responsibility which may lead to improve motivation.  However with little direct guidance from the leader staff may begin to feel lost and not reach the goals originally set within the time frame.

Nsubuga, (2010) indicated that there is a very negative correlation between the laissez faire leadership style and the organisation performance.  He established that leader who used the laissez faire leadership style tend to fail to follow up those they have delegated tasks to and consequently performance decline.  They leave everything to the mercy of their subordinates, some of whom may lack the necessary skills and competence to execute the work. Others may simply not like to do the work unless they are supervised. Laissez faire style is not the best leadership style to use in organizations because complete delegation without follow-up mechanisms may create performance problems, which are likely to affect the organisations’ effectiveness.  This is in agreement with MacDonald, (2007) study of laissez-faire leadership shows that it is associated with the highest rates of truancy and delinquency and with the slowest modifications in performance which lead to unproductive attitudes and disempowerment of subordinates.

2.3 IMPACT OF LEADERSHIP BEHAVIOR ON ORGANIZATIONAL PERFORMANCE

Leadership is one of the key driving forces for improving firm performance. Leaders, as the key decision-makers, determine the acquisition, development, and deployment of organizational resources, the conversion of these resources into valuable products and services, and the delivery of value to organizational stakeholders. Thus, they are potent sources of managerial rents and hence sustained competitive advantage (Avolio, 1999).

An initial premise of this study is that, as with large corporations, the attitudes and behaviors of the leaders substantially shape the functioning of smaller firms (Bass, 1981). In fact, owner/CEOs of small businesses have a strong influence on firm functioning. The CEO of a small business, such as a restaurant, regional real estate agency, printing and publishing firm, or even a small local beauty salon, is often the operational manager as well as the leader of the firm. These CEOs are often involved with vendors and customers. They would be in charge of financial control and reporting systems and they tend to supervise operations and handle personnel decisions. At the same time, they continue to be the CEOs who frame the firm’s vision and effectuate it through strategic planning.

Hence, the leadership style of CEOs, which is indicative of their tendency in managerial behaviors and actions, is an essential ingredient in the mix of factors that influence a firm’s success (Bass, 1990). A related premise underlying this study is the likelihood of a strong correlation between leadership styles and firm characteristics. Specifically, it is posited that in order for a firm to succeed, the business strategies and management practices have to fit or match the owner/CEO’s leadership style. In other words, certain types of business strategies and management systems are more appropriate than others for particular types of leadership styles and success is more likely when there is such an internal consistency.

Transactional leadership helps organizations achieve their current objectives more efficiently by linking job performance to valued rewards and by ensuring employees have the resources needed to get the job done. The level of integration and interdependencies that are needed for the new work environment as well as global competition require leadership that goes beyond the more basic transactional styles, which involve contingent reinforcement and management-by-exception, to styles that are more intellectually stimulating, inspirational, and charismatic (Avolio 1999, Bass 1997 and Bass & Avolio 1993). Further, transformational leaders create a strategic vision, communicate that vision through framing and use of metaphor, model the vision by “walking the talk” and acting consistently, and build commitment towards the vision (Avolio, 1999).

This view suggests that transformational leadership will result in high levels of cohesion, commitment, trust, motivation, and performance in these new organizational environments. Previous empirical research and Meta analyses have indicated that transformational leadership has a positive effect on individual performance and organizational outcomes (Howell & Hall-Merenda 1999). Numerous studies have reported positive relationships between transformational leadership and outcomes at the individual level and firm levels (Avolio, 1999). Most recently, many empirical studies have reported that transformational leadership has a positive impact on follower performance and firm outcomes (Avolio, 2003). A number of comparative studies have also reported that transformational leadership behaviors are more positively related to subordinate effectiveness in a variety of organizational settings than are transactional behaviors.

Understanding the effects of leadership on performance is also important because leadership is viewed by some researchers as one of the key driving forces for improving a firm’s performance. Effective leadership is seen as a potent source of management development and sustained competitive advantage for organizational performance improvement (Avolio, 1999; Lado, Boyd and Wright, 1992; Rowe, 2001). For instance, transactional leadership helps organizations achieve their current objectives more efficiently by linking job performance to valued rewards and by ensuring that employees have the resources needed to get the job done (Zhu, Chew and Spengler, 2005). Visionary leaders create a strategic vision of some future state, communicate that vision through framing and use of metaphor, model the vision by acting consistently, and build commitment towards the vision (Avolio, 1999; McShane and Von Glinow, 2000). Some scholars like Zhu et al. (2005), suggest that visionary  leadership  will  result  in  high  levels  of  cohesion,  commitment,  trust,  motivation,  and  hence performance in the new organizational environments.

Mehra, Smith, Dixon and Robertson (2006) argue that when some organizations seek efficient ways to enable them outperform others, a longstanding approach is to focus on the effects of leadership. Team leaders are believed to play a pivotal role in shaping collective norms, helping teams cope with their environments, and coordinating collective action. This leader-centred perspective has provided valuable insights into the relationship between leadership and team performance (Guzzo and Dickson, 1996). Some studies have explored the strategic role of leadership to investigate how to employ leadership paradigms and use leadership behaviour to improve organizational performance (Judge, et al, 2002; Judge, 2004; Keller, 2006). This is because intangible assets such as leadership styles, culture, skill and competence, and motivation are seen increasingly as key sources of strength in those firms that can combine people and processes and organizational performance (Purcell et al., 2004).

Previous studies led the expectation that leadership paradigms will have direct effects on customer satisfaction, staff satisfaction, and financial performance. In general, however, the effects of leadership on organizational performance have not been well studied, according to House & Aditya, (1997), who criticised leadership studies for focusing excessively on superior-subordinate relationships to the exclusion of several other functions that leaders perform, and to the exclusion of organizational and environmental variables that are crucial to mediate the leadership-performance relationship. Another problem with existing studies on leadership is that the results depend on the level of analysis. House and Aditya (1997), distinguished between micro-level research that focuses on the leader in relation to the subordinates and immediate superiors, and macro-level research that focuses on the total organization and its environment. Other scholars have also suggested that leaders and their leadership style influence both their subordinates and organizational outcomes (Tarabishy, Solomon, Fernald, and Sashkin, 2005).

2.4 RELATIONSHIP BETWEEN LEADERSHIP AND ORGANISATIONAL PERFORMANCE

The   transformational  leader   wants   to   achieve results  beyond  what  is  normal  and  sets  higher corporate goals by inspiring a sense of importance of  the  team’s  mission,  stimulates  employees  to think innovatively about a  problem or  task,  and places the group goals over personal self-interest (James, 2005).

Transformational leaders’ behaviours are influential in motivating the employees, to make them more aware of the task outcomes; they stimulate their order needs and develop their self – interest for the organization’s performance.

In his study on the transformational leadership practices in Russian companies; Elenkow (2002) examined the former impact on organizational performance. Using a Multifactor Leadership Questionnaire, he analysed the leadership behaviour of 253 leaders. The analysis underlined a strong correlation between transformational leadership practices and organizational performance.

In their study on the connection between the transformational leadership style and organizational performance, Zhu et al, (2005) identified within 170 companies from Singapore, a positive relationship between the transformational leadership and the organizational performance. They also demonstrated that effective human resources management arbitrates the relationship between leadership and performance through increased commitment, higher motivation and intellectual motivation.

Moreover, a positive relation between the long-term income growth and transformational leadership was depicted in a study on 94 companies investigating the impact of transformational leadership practices on the financial performance of the organization in terms of profitability, increased sales or revenue and stock measures (Roi, 2006).

Moore, (2007) in his research within the United Way of America organization found out that there is a significant positive relationship between female transformational leaders and the revenue element of organizational effectiveness.

In another study on leadership styles and organizational performance, Kieu (2010) on 151 companies from IT industries underlined that transformational leadership relates positively and significantly to organizational performance. The study used a Multifactor Leadership Questionnaire (5X) and it revealed that transformational leadership is a stronger predictor for the performance, satisfaction and commitment within organizations by building commitment, empowerment and demanding a higher degree of respect and trust for the leader.

Intellectual stimulation and inspirational motivation were found to improve the organizational performance (Hancott, 2005). Taking into account that the organizations today have to be performant and to meet the competing expectations of the stakeholders in a manner which is transparent and ethical, it is necessary that leaders internalize transformational behaviours as the survival of the organizations may depend on it.

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION

This chapter presents the method that will be used in conducting the study. It describes research methodology, the area of study, the study population and sampling design, sources of data, data collection, data collection procedure and instruments, data analysis tools and limitations to the study.

3.1 STUDY DESIGN

This study adopted cross-sectional survey design in gathering of information on leadership and organisational performance. The study used qualitative and quantitative data. The combined analysis was helpful in that qualitative approach generates rich details and valid data which contribute to the depth understanding of the research problem. Quantitative approach generates reliable information based on gathering data using numerical figures. Both approaches will complement each other and helped reconcile the findings. Case study design was adopted in order to get personal opinions from respondents.

3.2 STUDY POPULATION

The study was conducted among employees and leaders of Pearl Community Empowerment Foundation (PCEF) Tororo. The categories were chosen are thought to be involved in the leadership management, decision making and forming for the organisation. The study population was 50 staff of PCEF.

3.3 SAMPLE SIZE

To avoid un-guided generalization, the researcher chose to sample as suggested Amin (2005), who suggested that sampling is important in selecting elements from a population in such a way that the sample elements selected represent the population. The researcher used a sample of 30 respondents drawn from the population of 50 staff of PCEF.  The determination of sample was made in consultation with Amin (2005) who (by help of Kregcie and Morgan (1970)), suggests the use of a sample table to determine which equivalent sample would ensure representation.

3.4 SAMPLING TECHNIQUE

Stratified sampling, Purposive sampling method was employed in investigating respondents among the management and staff, implying that specific target respondents well known for their services and responsibilities was selected.

3.5 DATA COLLECTION METHODS AND SOURCES

Data collection methods are an integral part of research design which involves selection of both qualitative and quantitative data (Amin, 2005). The study employed both primary and secondary data collection approaches.

3.5.1 Primary Data collection

According to Roston, (2001), primary data is that kind of data that has been gathered for the first time, it has never been reported anywhere. Short comings of secondary data sources such as out datedness and inadequacy in terms of coverage, necessitated the use of primary sources for first hand data. Self-administered questionnaire were used and this enabled the researcher to cover a large population quickly and at a reasonable cost.

3.5.2 Secondary data Collection

Secondary data collection explored methods supplementary to the primary method where data was obtained from PCEF records, dissertations,  text  books,  the  internet  and  other  materials(such  as  journals,  news papers, e.t.c) as found useful to the study.

3.6 DATA COLLECTION INSTRUMENT

3.6.1 Structured Questionnaire

The questionnaire was used on the basis that the variables under study cannot be observed for instance the views, opinions, perceptions and feelings of the respondents. The questionnaires was equally used because the information was collected from a large sample in a short period of time because most respondents can’t read and write (Sekaran, 2003). Personally administered questionnaires was used to draw information regarding compliance practice. They were administered to management and staff of Pearl Community Empowerment Foundation (PCEF) because they were convenient and efficient in the collection of quantitative data. The questionnaires were open and closed ended. The researcher chose the questionnaire as an instrument because the study is virtually descriptive and the tool is an easy method of data collection. Respondents respond honestly because of anonymity. It’s also time saving and cost effective.

3.6.2    Interview Guide

Open ended questions were used in interviewing respondents in the study.

3.7 RELIABILITY AND VALIDITY

A pilot test was carried out to establish the reliability of the study instrument using Cronbach’s coefficient alpha (Cronbach, 1946). The researcher used Cronbach’s reliability test to establish reliability of the questionnaire.

Validity of the instrument was obtained using the Content Validity Index (CVI).

3.8 DATA COLLECTION PROCEDURE

The researcher after designing and pre-testing data collection tools were obtain a letter from UICT introducing her to the organisation. She then approached the schools for permission to collect data from their schools after explaining the purpose of the study.  Upon being allowed she contacted some respondents to make appointments. Then she went back on an appointed date and administer questionnaires. Then questionnaires that are filled that day were collected, while those that are not complete were collected later as agreed with respondents. During the time of administering questionnaires, the researcher also used contact key informants, and make appointments with them for an interview. Then she went back on the agreed dates and conducted interviews, using the interview guide.

3.9 RESEARCH VARIABLES AND THEIR MEASUREMENTS

The variable of the study was measured on a five point Likert scale ranging from 1- strongly disagrees to 4-Strongly agree. The choice of this measurement was that each point on the scale carries a numerical score which was used to measure the opinions of respondents and it was the most frequently used summated scale in the study of business and social attitude.

3.10 DATA PROCESSING AND ANALYSIS

After receiving the filled questionnaires from the field, a data entry capture template was designed in Statistical Package for Social Scientists (SPSS), which was used for data entry and cleaning. For exploratory factor analysis, frequency distributions, percentages and cross tabulations were run to summarize the respondent’s views on the questions under study.

3.11 LIMITATIONS PROBLEMS AND LIMITATIONS

Some respondents were too busy with work related activities however the researcher persuaded the respondents to spare some time to answer questionnaires.

Most respondents were suspicious of spies on their jobs. But the researcher tried to explain that the research was for academic purposes.

Some respondents may gave false information to protect their images. However, the researcher assured them of the purpose of information to be collected as being only for academic.

CHAPTER FIVE

PRESENTATION, ANALYSIS, INTERPRETATION

OF FINDINGS

4.0        Introduction

1. This chapter presents the results in reference to objectives in chapter one. Gender of respondents, Age of respondents, education level of respondents, To establish the types of leadership behaviour in Pearl Community Empowerment Foundation (PCEF), To investigate the impact of leadership behavior on organizational performance at Pearl Community Empowerment Foundation (PCEF) and To determine the relationship between leadership and organization performance at Pearl Community Empowerment Foundation (PCEF)

4.1 FINDINGS ON GENERAL INFORMATION

Table 4.1: shows the findings on the gender of the respondents

Source: primary data

Table 4.1 above shows that 70% of respondents were male and 30% were female. That means that the biggest percentage of respondents and employees in the organization were male and apart from that it also shows that male gender dominate the work force of kawacom.

4.2 FINDINGS ON THE AGE OF RESPONDENTS.

Table 4.2: Shows findings on age of the respondents

Source: primary data

The table above shows that 30% of the respondents are in the ages of 18-29 while 36.67% of the respondents are in the ages of 30-39 while the remaining respondents are in the ages of above 40 years.

Bar graph showing the age of respondents

The graph above shows that majority of the respondents were in the ages of 30-39, this therefore shows that majority of the respondents are mature and therefore were able to give accurate information.

Table 4.3: shows findings on education level of respondents

Source: primary data

Table above shows that the majority of staff is degree holders and their percentage is 60%, masters 17%, while 20% of the respondents are diploma holders and the rest of the respondents have other qualification.

The line graph showing education level of respondents

The line graph above shows that majority of the respondents were degree holders, this showed that majority of the respondents were highly educated and therefore easily answered the questionnaires without difficulty, it further showed that seconds largest percentage of respondents have masters degree.

FINDINGS NUMBER OF YEARS OF WORKING

Table 4.4 showing the number of years respondents have worked at KAWACOM.

The table shows that majority of the respondents have worked for the time period of 6-10 years, and their percentage stands at 50% of, 20% of the respondents have worked for 3-5 years, while 16.67% of the respondents have worked for and respondents who have worked for above 10 years have percentage of 13.33%.

The above graph showing the number of years respondents have worked at kawacom.

The graph shows that marjority of the respondents have worked for a period of 6-10 years at kawacom this therefore shows that marjority of the respondents have good understanding of the operations of kawacom and  therefore gave right answers to the questions asked by the interviewer.

4.5 ATTRIBUTES TO ORGANIZATIONAL PERFORMANCE.

TABLE 4.5: SHOWS ATTRIBUTES TO ORGANIZATIONAL PERFORMANCE

.

From table above, 60% of the respondents strongly agreed that developing proper specification with suppliers is essential in achieving purchasing effectiveness while the remaining 40% agreed; this therefore shows that the majority of the respondents agreed that developing proper specification with suppliers is responsible for achieving purchasing effectiveness.

According to table above it indicates that, 73.33 % of the respondents strongly agreed that proper purchasing planning is essential; in achieving purchasing effectiveness, while 26.67% agreed, while non of the respondents, was neutral, disagreed, and strongly disagreed, this findings also shows that indeed developing proper purchasing planning is essential in achieving purchasing effectiveness.

Findings revealed in table above, shows that 50% of the respondents strongly agreed and the remaining percentage this therefore shows that 100% of the respondents agree with the fact that proper coordination between end user with procurement staff is essential in achieving purchasing effectiveness.

According to the table 56.67% of the respondents strongly agreed that developing proper purchasing policies is essential in achieving purchasing effectiveness while the remaining 33.33% of the respondents strongly agreed, while non of the respondents was neutral, disagreed or strongly disagreed, this therefore clearly shows that developing proper purchasing policies is essential in achieving purchasing effectiveness.

From table above, majority of the respondents strongly agreed that maintaining an effective communication with suppliers is essential in achieving purchasing effectiveness while 23.33% while non of the respondents were neutral, disagreed or strongly disagreed.

4.3   Different Factors that determine supplier development

Table 4.4:  Shows the different Factors that determine supplier development

Table above reveals that supplier development can be achieved by sharing technology this is supported by the strong percentage of 46.67% strongly agreeing, while 33.33% agreed and 10% disagreed while the remaining percentage of respondents strongly disagreed. This therefore shows that if an organization has to develop suppliers it has to share technology.

The table indicates that majority of the respondents strongly and agreed that supplier  can be developed by giving them financial help while non of the respondents was neutral, disagreed, and strongly disagreed this therefore shows that financial help helps in supplier development.

According to table above, 46.67% of the respondents strongly agreed that supplier development can be made by man power development, while 33.33% of the respondents agreed while 20% of the respondents where neutral.

According to researchers’ findings, 50% of the respondents strongly agreed that sharing ideas with suppliers is responsible for developing them. While the rest of respondents agreed this therefore shows great importance of suppliers can be developed by sharing with them ideas.

According to the table 66.7% of the respondents strongly agreed that suppliers can be developed by employee exchange at while 16.67 agreed and the remaining percentage disagreed this therefore shows that most organizations developed their suppliers by employee exchange.

4.4.        Relationship between supplier development and organizational performance

Table 4.5: shows Relationship between supplier development and organizational performance

From table above, 60% of the respondents strongly agreed that supplier development is an expensive exercise in an organization while the remaining 40% agreed; this therefore shows that the majority of the respondents agreed that financial costs of supplier development are high.

According to table above it indicates that, 73.33 % of the respondents strongly agreed that supplier development requires a lot of time  , while 26.67% agreed , while non of the respondents, was neutral, disagreed, and strongly disagreed, this findings also shows that supplier development is a time consuming exercise.

Findings revealed in table above, shows that 50% of the respondents strongly agreed and the remaining percentage this therefore shows that 100% of the respondents agree with the fact that supplier development creates dependency.

According to the table 56.67% of the respondents strongly agreed that supplier development prevents competition, while the remaining 33.33% of the respondents strongly agreed, while non of the respondents was neutral, disagreed or strongly disagreed, this therefore clearly shows that supplier development prevents competition in an organization.

From table above, majority of the respondents strongly agreed that supplier development  is labor Intensive while 23.33% agreed while non of the respondents were neutral, disagreed or strongly disagreed.

CHAPTER FIVE

DISCUSSION OF FINDINGS, SUMMARY OF FINDINGS, CONCLUSION, RECOMMENDATION AND AREAS OF FURTHER STUDY

5.0   INTRODUCTION

The study aimed at establishing the factors that determine supplier development, the attributes to organizational performance and the relationship between supplier development and organizational performance. The study was guided by research objectives and the researcher summarized the findings in consistence to the research objectives.

5.1        DISCUSSION OF FINDINGS

5.2.1    ATTRIBUTES TO ORGANIZATIONAL PERFORMANCE

The results indicates that developing proper specification with suppliers is essential in achieving purchasing effectiveness, this results is also in line with (Lysons et al, 2006) who states that Specifications have two basic functions i.e. communication and comparison, when prepared by the purchaser they inform the supplier what is required and when prepared by the supplier they provide a prospective purchaser with the description of the attributes of a product. Specifications also provide criteria against which the products and services supplied or available can be compared

The results in the study indicates that proper purchasing planning is essential; in achieving purchasing effectiveness, this findings is also shared by (Cole ,2004), who states that Planning can lead to improved efficiency and effectiveness in delivery of goods and services and planning is a deliberate attempt to design a future course of action with view to optimize the use of resources.

The study shows that proper coordination between end user with procurement staff is essential in achieving purchasing effectiveness this belief is also shared by (Basheka, 2006) who states that Public procurement is often plagued with corruption, unfair practices and price collusion in view of the huge amounts of money involved and there should coordination between different departments to encourage effectiveness in the system.

The results indicates that developing proper purchasing policies is essential in achieving purchasing effectiveness this findings is also shared by Erridge (2001) who states that Policies are only good if everyone understands them and can explain and defend them. Planning is deciding in advance what to do, how to do it, who will do it and when it will be done. If your employees don’t know why your business does what it does, where the business is going and how you will measure success, then it’s difficult to communicate your business value to your end users therefore good procurement policies need to be adopted and developed in order to achieve procurement effectiveness

Most of the respondents in the study assert that maintaining an effective communication with suppliers is essential in achieving purchasing effectiveness; this was in line with McIvor (2005), who concurs that in managing outsourcing relationships, communication with the vendor is of utmost importance during the life of the contract. Knowledgeable internal staff must be available to identify problems and work with the vendor to resolve them. Vendor selection should have provided a vendor whose business/functional culture aligns with that of the organization, so that communication is fostered and developed to support the effort should be documented and kept in order to resolve disputes or identify areas of strengths and weaknesses.

5.2.2    Different Factors that determine supplier development

The study indicates that supplier development can be achieved by sharing technology, this is also shared by Ford et al,( 2009), who asserts that  Global companies like Toyota, Honda, and Isuzu share their new technologies with their suppliers so as they supply up to date products needed by these companies this also helps in quality improvement in both companies. Most companies like Volkswagen, fiat and Toyota share their new technological ideas with their suppliers

Most of the respondents in the study assert that giving financial help helps in supplier development; this view is also shared by Monecza et al, (2006), companies give suppliers money in order to purchase new equipment perhaps which may be needed for the new product development or even improving the skills of workers by giving them education in required institutions of learning so that they are able to produce products which are needed by the buyer.

The study indicates that supplier development can be made by man power development; this is also in line with Novak, (2008) who asserts that Manpower development, this is when buyers train the workers of suppliers so as they adapt to new techniques or technologies that the buyer needs and upgrade to the current standards or even to the goals of the buying organization during this process buyer sends employees to the suppliers site to train suppliers employees so as they are able to adapt to the current trends as desired by the buying organization and in turn help the buying organization fulfill its objectives and goals  which may sometimes be in introduction of new products in the market.

The findings indicates that sharing ideas with suppliers is responsible for developing them this is also in line with (Farrington et al, 2006) who states that when buyers share knowledge with suppliers about the future product to be developed and this enables the supplier to adjust their production techniques accordingly, this knowledge is mainly in science and technology and how the future of the industry will be adjusted in relation to perhaps the market needs and competition in the global market.

The findings indicates that suppliers can be developed by employee exchange this view is shared by Clarke, (2007) who asserts that Multinational organizations exchange employees with their suppliers so that employees can learn from one another and ensure that they both sides can learn from one another’s culture and organizational ways of working. Sometimes Toyota exchanges employees with its suppliers of spare parts so that they both learn from one another.

5.2.3 Relationship between supplier development and organizational performance

Most of the respondents in the study assert that supplier development is an expensive exercise in an organization this is also in line with Golden et al (2003), who states that  cycle time the time between the ordering time and the time of receiving the item is greatly reduced when the buyer and the seller are in a collaboration, helps buyers to reduce on their ordering process and also saves time for the suppliers to get act upon the demands of their customers in a shorter time since the orders become obvious to suppliers.

Most of the respondents in the study assert that supplier development Supplier development promotes just in time, this view is also shared by Krause et al (2003) who states that Systematic Supplier development approaches generates the outcome such as up-gradation of just-in-time capabilities of suppliers this has helped organizations to minimize risks in storage and inventory most of the Japanese automobile have benefited from the just in time technique which helped the Japanese automobile car manufactures to out compete most of the western manufacturers .

The results in the study indicates that supplier development creates dependency this view is also shared by Wargner et al (2006) who states that Supplier development improves performance of suppliers along with in supply chain.  Supplier development surely accomplishes beneficial outcomes for buyer and supplier, a number of studies confirmed several benefits out of supplier development activities.

The results indicates that supplier development prevents competition this is also shared by (Mahapatra et al 2008) who states that with all its related benefits when one organization acts as the sole supplier of a certain need to the buying organization, if such scenario happens for long the other organizations (competitors) are denied the chance of competition and hence it may lead to a monopoly situation in a country, thereby preventing most of all the growth of new furniture in a country.

Findings show that supplier development is labor Intensive this view is also shared by (Milgrom 2010) who states that  teaching of suppliers about new products which is needed by the buyers, training them on the recent technologies, giving suppliers workers access to better education in other academic institutions in order to be well conversant with products needs of suppliers’ products.

5.2 Conclusion

The results indicates that attributes to organizational performance include; developing proper specification with suppliers , proper purchasing planning is essential,  proper coordination between end user with procurement staff is essential in achieving purchasing effectiveness , developing proper purchasing policies is essential in achieving purchasing effectiveness ,and maintaining an effective communication with suppliers is essential in achieving purchasing effectiveness.

The results further show that Different Factors that determine supplier development in an organization include; supplier development can be achieved by sharing technology, giving financial help helps in supplier development, supplier development can be made by man power development, sharing ideas with suppliers is responsible for developing them and also  suppliers can be developed by employee exchange .

The finding in the study indicates that Relationship between supplier development and organizational performance includes; supplier development is an expensive exercise in an organization, Supplier development promotes just in time, supplier development creates dependency , supplier development prevents competition and lastly  supplier development is labor Intensive.

5.3 Recommendations

The study made the following recommendations;

The study recommends that organizations should ensure that there is efficient specification development tin an organization so as the reduced risks in organization and increase in organization market base.

Most of the respondents in the study state that proper purchasing planning is essential and therefore organization should

The study further recommends that there should be proper coordination between end user with procurement staff so as an organization is able to achieve procurement effectiveness.

Lastly the study recommends that organization should ensure that there is efficiency in developing purchasing policies so as they are able to achieve efficiency in procurement.

5.4 Areas of further study

The study recommends the following areas of further study.

1. The techniques of supplier development in modern organizations
2. The influence of ICT on organizational performance

• The challenges of technological development on organizational performance.

REFERENCES

Adair, J. (2002).Effective strategic Leadership  London Macmillan publishers Limited

Armstrong, (2004). The management of Innovation. London: Tavistock.

Arvey, R. D.; Rotundo, M.; Johnson, W.; Zhang, Z.; McGue, M. (2006). “The determinants of leadership role occupancy: Genetic and personality factors”. The Leadership Quarterly 17: 1–20. doi:10.1016/j.leaqua.2005.10.009.

Avolio, B.J. (1999). Full Leadership Development: Building the Vital Forces in Organizations. Thousand Oaks: CA Sage.

Bass, B. M. (1990). Bass and Stogdill’s Handbook of Leadership: Theory, Research, and         Managerial Applications. (3rd ed.). New York: Free Press.

Bass, B. M., & Avolio, B. J. (1997). Full Range Leadership: Manual for the Multifactor Leadership Questionnaire. Palo Alto, CA: Mind Garden.

Burns, J. M. (1978). Leadership. New York: Harper & Row

Chemers M. (1997). An integrative theory of leadership. Lawrence Erlbaum Associates, Publishers. ISBN 978-0-8058-2679-1

Chen, Roger (2015). “Examining teamwork and leadership in the fields of public administration, leadership, and management”. Team Performance Management.

Elenkov, D. S. (2002). Effects of leadership on organizational performance in Russian companies. Journal of Business Research, 55, 467-480.

Foti & Hauenstein, (2007). The Entrepreneurial Leader’s Impact on the Organization’s Performance in Dynamic Markets. Journal of Private Equity, 8(4): 20-29.

Grant, (2009) ‘Strategies Making in Three Modes’, California Management Review,3 (16)

Guzzo, R. A. & Dickson, M. W. (1996). Teams in Organizations.   Annual Review   of Psychology, 47(1):307-338

Hancott, D.E. (2005), The relationship between transformational and organizational performance in the largest public companies in Canada. ProQuest Information and Learning Company, AnnArbor, MI.

House, R. J. & Aditya, R. N. (1997). The Social Scientific Study of Leadership: Quo Vadis? Journal of Management, (23)3: 409-473.  http://www.ijrcm.org/articles/cm3.ht.

James, K. M.(2005). A Meta‐Analysis of Transformational and Transactional Leadership Correlates of Effectiveness and Satisfaction. Retrieved from

Judge, T. A., Bono, J.E., Ilies, R. and Gerhardt, M.W. (2002). Personality & leadership: A Qualitative & Quantitative Review. Journal of Applied Psychology, 87(4): 765-780.

Judge, T. A.; Bono, J. E.; Ilies, R.; Gerhardt, M. W. (2002). “Personality and leadership: A qualitative and quantitative review”. Journal of Applied Psychology 87 (4): 765–780. doi:10.1037/0021-9010.87.4.765. PMID 12184579.

Katz, D., & St. Kahn, R. L. (1978). The social psychology of organization (2nd ed.). New York:Wiley.

Keller, R. T. (2006). Transformational Leadership, Initiating Structure & Substitutes for Leadership: A Longitudinal  Study  of  Research  &  Development  Project  Team  Performance.  Journal  of  Applied Psychology, 91(1): 202-210.

Macdonald, (2007). Transformational Leadership & Performance: A longitudinal Investigation. The Leadership Quarterly, 4(1): 81-102.

McGregor, (1960) ‘Which Management Style to Use’ London: The Pharmaceutical Journal 275 (9)

Mehra, A., Smith, B., Dixon, A., & Robertson, B. (2006). Distributed Leadership in Teams: The Network of Leadership Perceptions and Team Performance. Leadership Quarterly, 17: 232-245.

Moore, E. M. (2007). The impact of leadership style on organizational effectiveness: Leadership in action within United Way of America. Doctoral Dissertation, Capella University. NJ: Transaction.

Morgan, (2012). ‘The Role of Human Resources Management Practices in Predicting Organizational Commitment’, Group and Organizational Strides, 11.

Nsubuga, Y. (2009).  “Analysis of Leadership Styles and School Performance of Secondary Schools”.

Podsakoff, P. M., McKenzie, S. B., & Bommer, W. H. (1996). Transformational Leader Behavior and Substitutes for Leadership as Determinants of Employee Satisfaction, Commitment, Trust, and Organizational Citizenship Behaviors. Journal of Management, 22(2), 259-298.

Purcell, J., Kinnie, N.,  Hutchinson, S.,  Rayton, B.  &  Swart, J.  (2004). Understanding the  People & Performance Link: Unlocking the Black Box.  Research Report, Chartered Institute of Personnel and Development.

Roi, R. C. (2006). Leadership, corporate culture and financial performance. Doctoral Dissertation, University of San Francisco.http://www.leadershipchallenge.com/ Research-section-Others-Research- Detail/abstract-rc-roi-121012.aspx

Scot, (2007). The Living Company: Habits for survival in Turbulent Environment. Boston, Mass: Harvard Business school press.

Tarabishy, A., Solomon, G., Fernald Jr., L.W. & Sashkin, M. (2005). The Entrepreneurial Leader’s Impact on the Organization’s Performance in Dynamic Markets. Journal of Private Equity, 8(4): 20-29.

Trevisani, Daniele (2015), Semiotics for Leaders. The Exa-Leadership Model for Leadership and Human Potential Development. Medialab-Research Publishing. ISBN 9781329590076

Zhu, W., Chew, I. K. H., & Spangler, W. D. (2005). CEO transformational leadership and organizational outcomes:  The  mediating role of human-capital-enhancing human resource management. Leadership Quarterly, 16, 39-52.

APPENDIX I: QUESTIONNAIRE FOR STAFF OF PCEF

Dear respondent, this questionnaire is intended to facilitate the study on the effect of leadership on organisational performance of PCEF. The study is for academic purposes and is carried out as partial requirement of the award of Diploma in Human Resource Management of UICT.  Your input is highly appreciated and will be handled with utmost confidentiality.

SECTION A: BACKGROUND CHARACTERISTICS

                        Instructions: Please tick () the most applicable

A1. Gender   

A2. Age Group

A3. Marital Status

A4. Highest level of education

A5.  How long have you been working with this organisation?

A6. Are you familiar with the leadership types in this organisation?

A7. If you are familiar with the leadership types in your organisation kindly indicate.

SECTION: B

LEADERSHIP TYPES

Instructions: Please evaluate by ticking () on the scale 1-3 indicating the extent to which you agree with the following leadership type aspects. Please use the key below to answer the following questions by indicating: (1) if you disagree (D), (2) for not sure (NS) and (3) if you Agree (A).

THANK YOU