The Impact of Effective Leadership Practice on Organizational Performance and Growth of state owned banks in Ghana: The Case of National Investment Bank, Ghana
study investigated the impact of effective leadership practices on an organizational
growth and development in Ghana with the search light on the operations of National
Investment Bank of Ghana (NIB). NIB recently had new management members with a new
board of directors in place. For the year 2015 the bank shocked the banking fraternity
when it was able to pay huge dividend to state coffers having experienced dividend
draught for a long period. It is not too clear whether the leadership practices
of the new executives have turned round the fortunes of the bank or the success
story is due to the general boom in the banking industry of Ghana.
sampling technique was adopted to select some branches of the bank and its headquarters
as the study population. Purposive sampling technique was then employed to directly
approach officials for their views. The questionnaire technique was the main research
instrument while Statistical Package for social science (SPSS) was employed to facilitate
the analysis of the data. Findings of the study indicated that the new management
team of NIB employed sound communication skills, very fair compensation packages
groomed employees to perform better are some of the strategies for shoring up financial
performance of the bank. The study therefore concluded by upholding the hypothesis
that the recent success story associated with the financial performance of NIB was
due to the leadership style of the new management team but not necessarily a direct
results from the simile booming performance in the banking industry of Ghana. As
a further study, the role ICT played in NIB’s success story deserve investigation.
Leadership, productivity, financial
performance, effective leadership, organizational performance.
B. & Adams, C. (2009), “Transformation”, Leadership Excellence, vol.
26, no. 2, pp. 14-15.
J. A. Arad, S., Rhoades, J. A. & Drasgow, F. (2000). The Empowering Leadership
Questionnaire; Assessing the Cost and Benefits of Organization. Dubling Ireland.
. 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.
. Avolio B. J. Sosik J. J. Jung D. I. & Berson Y. (2003). Leadership Models, Methods, and Applications. Handbook of Psychology: Industrial and Organizational Psychology, Vol. 12. (Pp. 277-307). Hoboken, NJ, US: John Wiley & Sons Inc.
. Azka G Tahir. M, Aslam. M & Syed. T (2011). Transformational Leadership, Employee Engagement and Performance: Mediating Effect of Psychological Ownership. African Journal of Business Management, 5(17), 7391-7403.
. Banister, P., Bunn, G., Burman, E., & Daniels,
J. (2011). Qualitative Methods in Psychology: A Research Guide. London:
D. J. (2006). Leadership Communication
(New York: McGraw-Hill, 2006). The Definition of and Model for Leadership Communication
are based on this book.
. Barrick, M. R., Mitchell, T. R., &
Stewart, G. L. (2003). Situational and
Motivational Influences on Trait– Behavior Relationships. In M. R.
. Bass, B. M. & Bass, R. (2008). The Bass Handbook of Leadership: Theory, Research,
and Managerial Applications
(4th ed.) New York: Free Press.
B. M. (2003). Leadership and Performance beyond Expectations. New York. Free press.
B. M. and Avolio, B. J. (2003). Transformational Leadership Development. Manual
for MLQ. Palo Alto; Consulting Psychologist Press.
B. M. and Avolio, B. J. (2004). Improving Organizational effectiveness through Transformational
leadership; Thousand Oaks; Sage publications Inc.
. Bennis W. (2007). The Challenge
of Leadership in the Modern World: Introduction to Special Issues. Am. Psychol.,
W. and Nanus, B. (2007). Leaders. The Strategy for Taking Charge. New York. Blakely.
. Booth, W.C.
et al. (2008). The Craft of Research
(3rd ed.). Chicago: U of Chicago P. Q180.55.M4B66
Q. & Van W.., (2004), Leadership and Exchange in Formal Organizations. Alexandria,
VA: Human Resources Research Organization.
A. (2002). Charisma and Leadership in Organizations, London, Sage.
. Bryman, A. (2012). Social Research Methods
(5th ed.). Oxford: Oxford University Press.
. Burgoyne, J. and James, K. (2001) Leadership Development: Best Practice
Guide for Organizations, Council for Excellence in Management and
. Burgoyne, J., Hirsh, W. and Williams, S. (2004)
The Development of Management and Leadership
Capability and its Contribution to Performance:
The evidence, the prospects and the research need. DfES Research Report
560. London: DfES.
J., McCloy, R., Oppler, S. and Sager, C. (2003). Theory of Performance. New York.
. Cha, S.
E., & Edmondson, A. C. (2006). When Values Backfire. Leadership, Attribution
and Disenchantment in Management. New York.
J (2001) Level 5 Leadership – The Triumph of Humility and Fierce Resolve, Harvard
Business Review; January, p.67.
J. W. (2013). Qualitative Inquiry and Research
Design: Choosing Among Five Approaches (3rd ed.). Los Angeles, CA: Sage.
L. L. and Schwab, D. P. (2003). Performance in organizations. Determinants and appraisal
. Daft L.
R. (2006) The New Era of Management” Thompson South – Western publishers).
. Derue, D. S., Nahrgang, J. D., Wellman,
N., & Humphrey, S. E. (2011). Trait and Behavioral Theories - Of Leadership:
An Integration and Meta‐Analytic Test of Their Relative Validity. Personnel Psychology, 4 (1), 7-52.
G and Picken, J (2000), Changing roles: Leadership in the 21st century, Organizational Dynamics; vol. 28, no 3,
K. T. & Ferrin, D. L. (2002). Trust in Leadership; Meta-analytic Findings and
Implications for Research. London.
M and Fairholm G. (2000), Leadership amid the Constraints of Trust, Leadership and Organisation Development Journal; 21/2, p.102–109.
G. T (2007) Discursive Leadership: In-conversation with Leadership Psychology. Thousand
Oaks, C.A Sage.
F. E (1974) Leadership and Effective Management, Glenview Scott Foresman.
F. E. and House R. J. (2008). Ristow et al. (2005). Leadership Theory and Research.
International Review of Industrial and Organizational Psychology, 19 (88): 73-79.
F. E. and House, R. J. (2004) Leadership Theory and Research.
. Flick, U. (2011). Introducing Research Methodology:
A Beginner's Guide to Doing A
Research Project. London: Sage.
. Fu-Jin .W, Shieh .C & Tang. M. (2011). Effect of Leadership Style on Organizational Performance As Viewed From Human Resources Management Strategy. African Journal of Business Management, 4(18), 3924-3936.
. Fulmer R and Wagner S (1999), Leadership: Lessons from The Best, Training and Development; v53, i3, p.28;
Gary Y. Gordon A. and Taber T. (2002) “A
Hierarchical Taxonomy of Leadership Behavior: Integrating a Half Century of Behavior
Research,” Journal of Leadership and organizational
Studies 9, no.1, 13-32.
. Hackman R. P, Wageman R (2007).
Asking the Right Questions about Leadership Discussion and Conclusion. Am. Psychol., 61(1), 1-41.
J. J. and Bass, B. M. (2005). Superiors’ Evaluation and Subordinates Perceptions
of Transformational and Transactional Leadership.
. Hoffman, B. J., Woehr, D. J., Maldagen-Youngjohn,
R., & Lyons, B. D. (2011). Great Man or Great Myth? A Quantitative Review of
the Relationship between Individual Differences and Leader Effectiveness. Journal
of Occupational and Organizational Psychology, 84(2), 347-381.
. Hogan, R. (1996). A Socio-Analytic Perspective
on the Five-Factor Model. In J. S. Wiggins (Ed.), the five-factor model of personality (pp. 163−179). New York: Guilford
. Horne, M. and Stedman Jones, D. (2001). Leadership the Challenge for All? The
Institute of Management.
. House, R. J., & Aditya, R. N. (1997).
The Social Scientific Study of Leadership: Quo-vadis? Journal of Management,
J. M, Avolio B. J. (2007). Transformational Leadership, Transactional Leadership,
Locus of Control and Support for Innovation: Key Predictors of Consolidated-Business
Unit Performance. J. Serv. Mark., 16, 487-502.
. Humphreys J. H. (2002). Transformational
Leader Behavior, Proximity and Successful Service Marketing. J. Serv. Mark., 16(6), 487-502.
Islam S. and Ali M. (2011) “Measuring Service
Quality of Banks: An Empirical Study,” Research Journal of Finance and Accounting,
Vol. 2, no. 4, pp. 74-85.
. Ismail A, Halim F. A, Munna
D. N, Abdullah A, Shminan A. S, Muda A. L. (2009). The Mediating Effect of Empowerment
in the Relationship between Transformational Leadership and Service Quality. J.
Bus. Manage. 4(4), 3-12.
.M, Melinde .C & Ciller V. (2012). Perceived Leadership Style and Employee Participation
in a Manufacturing Company in the Democratic Republic Of Congo, African Journal of Business Management, .6(15),
. Johnson A. M. Vernon, P. A. Harris J.
A. & Jang, K. L. (2004). A Behavioral Investigation of the Relationship between
Leadership and Personality. Twin Research, 7, 27−32.
. Judge, T. A., Piccolo, R. F. & Kosalka,
T. (2009). The Bright and Dark Sides of Leader Traits, a Review and Theoretical
Extension of the Leader Trait Paradigm. The Leadership Quarterly, 20(6),
Y. And Picclo, R. (2004). Transformational and Transactional leadership; A meta-
Analytic Test Of Their Relative Validity. Journal of Psychology, pg. 755-768.
. Kirkpatrick, S. A., & Locke, E. A.
(1996). Direct and Indirect Effects of Three Core Charismatic Leadership Components
on Performance and Attitudes. Journal of Applied Psychology, 81(1), 36-51.
H. and Nardvik H. (2004), Personality Traits in Leadership between the Scandiuwanim
Journal of Psychology, 45, Pp 49-54.
. Kothari, C. R. (2004). Research Methodology: Methods
and Techniques. New Delhi: New Age International.
. Kotter, J.P. (1990) A Force for Change: How Leadership Differs From Management. New York: Free Press.
. Lee, K.
Allen, N. J. (2002). Organizational Citizenship Behavior and Workplace Deviance.
The Role of Effective Management. Management Review, 13, 471-482.
. Locke, E. A. (1991). The essence of Leadership:
The Four Keys to Leading Successfully. New York: Lexington Books.
. May, T. (2011). Social Research: Issues, Methods and Research.
London: McGraw-Hill International.
. Merriam, S.
(2009). Qualitative Research: A Guide to
Design and Implementation. San Francisco, CA: Jossey - Bass. LB 1028.M396
. Michael. A. (2010). Leadership
Style and Organizational Impact. Retrieved from: http://www.ala-apa.org.
M., Zhang L., and Hao Li H., (2011) “When Bigger Isn’t Better: Bail Outs and Bank
Behaviors” Discussion Paper, Centre for
Economic Policy Research,
M.L. and Jolley, J.M. (2010). Research
Design Explained. Belmont, CA: Wadsworth. BF76.5.M57
. Monette, D.R., Sullivan, T. J., & DeJong,
C. R. (2005). Applied
Social Research: A Tool for the Human Services, (6th ed.),
London: Brooks Publishing.
. Morgeson F. P. & Ilies R. (2007).
Correlations between Leadership Traits and Leadership Styles. Unpublished Raw Data.
Michigan State University, East Lansing, MI.
L. (2005). Management and Organizational Behavior. London, Pitman publishing.
. Mumford, M. D., Zaccaro, S. J., Harding,
F. D., Jacobs, T. O., & Fleishman, E. A. (2000). Leadership skills for a Changing
World: Solving Complex Social Problems. The Leadership Quarterly, 11(1), 11-35.
J. (2005). The behavioral Science of Leadership. An Interdisciplinary Japanese program.
University of Michigan Press.
. Newman, I. (1998). Qualitative-Quantitative Research
Methodology: Exploring the Interactive Continuum. Carbondale: Southern
Illinois University Press.
H. C. (2011). Rare Total Leadership: Leading
With the Heart and Hands. Juta, Cape Town.
. Ngodo O.E (2008). Procedural
Justice and Trust: The Link in the Transformational Leadership-Organizational Outcomes
Relationship. Int. J. Lead. Stud.,
Northouse, P. G. (2001). Leadership: Theory
and practice, 2nd Edn. Thousand oak, C.A Sage.
. Obiwuru T. Okwu. A, Akpa. V
& Nwankere .I (2011). Effects of Leadership Style on Organizational Performance:
A Survey of Selected Small Scale Enterprises in Ikosi – Ketu Council Development
Area of Lagos State, Nigeria. Australian
Journal of Business and Management Research 1(7).
. Östlund, U. Kidd, L. Wengström, Y. & Rowa-Dewar,
N. (2011). Combining Qualitative and Quantitative Research within Mixed Method Research
Designs: A Methodological Review. International Journal of Nursing Studies,
48(3), pp. 369-383.
. Perren, L. and Burgoyne, J. (2001) Management and Leadership Abilities: An analysis
of texts, testimony and practice.
London: Council for Excellence in Management and Leadership.
. Podsakoff, P. M. MacKenzie, S. B. & Podsakoff,
N. P. (2012). Sources of Method Bias in Social Science Research and Recommendations
on How to Control it. Annual Review of Psychology, 63, pp.539-569.
. Raelin, J.A. (2003) Creating Leaderful Organizations:
How to Bring Out Leadership in Everyone. San Francisco: Berrett-Koehler.
R. S., Munz, D. C. and Bommer, W. H. (2005). Leading from within: The effects of
emotional recognition and personality on transformational leadership. Academy of
management journal, 335-345.
P. O. (2002). Management Dynamics towards Efficiency, Effectiveness, Competency
and Productivity, 1st Edn, Nairobi.
. Saunders, M. Lewis, P. & Thornhill, A. (2007).
for Business Students, (6th ed.) London: Pearson.
. Silverman, D. (2013). Doing Qualitative
Practical Handbook. London: Sage.
. Sun R.
Y. (2002). The Relationship among the Leadership
Style, Organizational Culture and Organizational Effectiveness Based On Competing
Value Framework: An Empirical Study for the Institute Of Technology in Taiwan.
Doctoral dissertation, National Taipei University, Taipei, Taiwan.
A. (2005). Leadership and Information Processing: Linking Perceptions and Performance,
Unwin Hyman, Boston, MA.
N. M. and Devanna, M. A. (2006). The Transformational Leader. New York.
. Vroom VH, & Jago A. G.
(2007). The Role of the Situation in Leadership. Am. Psychol, 62(1), 17-24.
. Wiles R. Crow G. & Pain, H. (2011). Innovation
in Qualitative Research Methods: A Narrative Review. Qualitative Research,
S.J and Johnson (2000) “The Pros and Cons of Data Analysis Software for Qualitative
Research” Journal of Nursing Scholarship 32, no.4 pp 393-397.
. Yin, R. K.
(2009). Case Study Research: Design and
Methods. Los Angeles, CA: Sage. H62.Y56.
. Yukl G
(2002). Leadership in Organizations
(5th ed.). Upper Saddle River, NJ: Prentice-Hall.
. Yukl G. (2006). Leadership in Organizations. Upper Saddle
River, NJ: Prentice-Hall.
. Zaccaro, S. J. (2001). The Nature of
Executive Leadership: A Conceptual and Empirical Analysis of Success. Washington,
DC, US: American Psychological Association.
W. G and Babin, B. J (2010) Exploring Marketing Research, 10 Ed South-Western Cengage
Learning Pp 188-186.