the effect of transformational leadership on employee performance of Nigerian National Petroleum Company Limited (NNPC), Kaduna.

what is absolutely right. CHAPTER ONE INTRODUCTION 1.1 Background to the Study Effective leaders and managers are vital to ensuring employees are fully engaged at work. Organizations believe that creating the opportunity for each individual to do his or her work every day will improve business performance and make working life enjoyable. The concept of leadership has received considerable public and institution’s attention both in developed and developing world. There is a fundamental assumption in today’s business environment that leadership is central to business. This idea is core to the way we structure and manage our organizations. It is of no great surprise that most companies are heavily engaged in a war for leadership talent and that leadership succession has become a major boardroom topic (House & Aditya 2007). The last few decades have witnessed organizations that have had relatively significant success with various kinds of transformational leadership models. A leading example is the Kouzes & Posner’s (2003) model which offered a leadership model with five distinct practices that outstanding leaders use to influence employees’ performance. This model consists of some of the key elements of the transformational leadership styles. The five practices of exemplary leadership are: (a) challenging the process: searching and seizing challenging opportunities to change, grow, innovate, and improve, with the willingness to take risks and learn from mistakes; (b) inspiring a shared vision: enlisting followers’ support in a shared vision by appealing to the followers’ values, interests, and aspirations; (c) enabling others to act: achieving common goals by building mutual trust, empowering followers, developing competence, assigning critical tasks, and providing continuous support; (d) modeling the way: being a role model and being consistent with shared values; and (e) encouraging the heart: providing recognition for success and celebrating accomplishments. In any organization, leaders are crucial in motivating and helping their employees to be competitive and committed to the achievement of the organizational goals and objectives by use of effective leadership styles. Transformational leadership is needed in today’s society as it addresses myriad challenges facing organizations of different missions. Transformational leadership is a process in which leaders and followers help each other to advance to a higher level of morale and motivation (Burns, 2018). Such leadership empowers followers to exude exceptionally high employee outcomes and as a result better organizational performance is achieved. Transformational leaders are concerned with how they interact with their followers to ensure improved performance. According to Mortazavi and Partovi (2019) organizational performance can be measured in terms of organizational effectiveness, quality and cost, financial performance in terms of; profit, return on assets, market share, human resource in terms of job performance and turnover rate. Raluca-Elena (2020) suggests that transformational leadership practices have a positive influence on organizational performance. Transformational leadership was developed by James MacGregor Burns in the year 1978 and it is characterized by optimistic, trustful and positive leaders who encourage teamwork, promote innovations and set high expectations (Raluca-Elena, 2021). Transformational leadership has an influence on the fundamental assumptions and attitudes of members in an organization developing a common mentality to achieve the goals and objectives of an organization (Mwangi&Kwasira, 2019). Various researchers around the world have looked at the influence of transformational leadership on Organizational Performance. Mortazavi and Partovi (2018) study found out that transformational leadership has a positive and significant influence on organizational commitment, employee motivation and job satisfaction in Iran. In Turkey, Erkutlu (2018) study established that transformational leadership stimulates organizational commitment, which in turn influences job satisfaction. Organizations should continue to be able to remain competitive and stable in adapting constantly to changing circumstances by proposing and introducing significant wide-scale changes in how they function (de Waal, 2018). As the environment around them is constantly changing, executives and organizations have indeed been urged to be more sensitive about employees and their organizations performance (El-Masri, Orozco, Tarhini, &Tarhini, 2019). Furthermore, Organizational Performance has now become a subject of interest of all organizations, financial gains as well as non- financial gains, and executives are interested in finding out which factors affect Organizational Performance so that to take reasonable measures to implement them (Alrowwad, Obeidat, Tarhini, & Aqqad, 2017). 1.2 Statement of the Problem Organizations are faced by challenges of poor performance outcomes, turbulent operating environments, competition, better-informed customers and more demanding stakeholders. Public such as NNPC are face a crisis of performance associated with poor leadership. Organization for Economic Co-operation and Development (OECD) (2021) reported that State corporations in Nigeria have been facing performance challenges. The dominant role of transformational leadership, particularly in the context of oil and gas sector in Nigeria is the result of the fact that many Chief Executive Officers have transformational ventures, which gives them visionary decision-making guidelines. Most companies nowadays are characterized by flat hierarchies which imply a large span of control. Additionally, most firms tend to be managed in an informal way (Mintzberg, 2019), which again opens up a large degree of discretion to decisions of top management. Ernst and Vitt, 2018; Hogg and Terry, 2017; and Nygaard and Dahlstrom, 2021 maintain that leadership issues can cause an exodus of talent, tardiness, absenteeism, lower productivity, reduced customer satisfaction, less innovation and, ultimately, reduced economic benefits. Therefore, it is vital that managers become transformational leaders because leader effectiveness determines the success levels of organizations. Whereas leadership and success has been widely researched by scholars in Nigeria such as Wambugu (2021) and Fourie (2017), they have been done based on the concept of transformational leadership and only on manufacturing industries in Nigeria. The above studies did not indicate a clear link between the impacts of transformational leadership on employee performance of Nigerian National Petroleum Company Limited (NNPC). As oil and gas sector in Nigeria struggle to convert their future leadership needs into tangible business results, there is minimal information that clearly identifies exactly how valuable leadership is a source of organizational success. Transforming Nigeria to oil and gas sector for the realization of the development blueprint requires transformational leadership, an area that is not explored by researchers. It is in this light that this study seeks to fill in this study gap by establishing the effect of transformational leadership on employee performance of Nigerian National Petroleum Company Limited (NNPC), Kaduna. 1.3 Objective of the Study The main objective of the study focuses on the effect of transformational leadership on employee performance in Nigerian National Petroleum Company Limited, Kaduna. Specific objectives are to: i. Assess the effect of visioning managers on employee performance in Nigerian National Petroleum Company Limited, Kaduna. ii. Determine the effect of inspiring managers on employee performance in Nigerian National Petroleum Company Limited, Kaduna. iii. Ascertain the effect of stimulating managers on employee performance in Nigerian National Petroleum Company Limited, Kaduna. iv. Examine the effect of coaching managers on employee performance in Nigerian National Petroleum Company Limited, Kaduna. 1.4 Research Questions The questions below were answered in this study. i. To what extent does visioning managers effect employee performance in Nigerian National Petroleum Company Limited, Kaduna? ii. How does inspiring managers effect employee performance in Nigerian National Petroleum Company Limited, Kaduna? iii. What is the effect of stimulating managers on employee performance in Nigerian National Petroleum Company Limited, Kaduna? iv. What is the extent of the impact of coaching managers on employee performance in Nigerian National Petroleum Company Limited, Kaduna? 1.5 Statement of Hypotheses The hypotheses stated below in null form were tested in this study H01: Visioning managers has no significant effect on employee performance in Nigerian National Petroleum Company Limited, Kaduna. H02: Inspiring managers has no significant effect on employee performance in Nigerian National Petroleum Company Limited, Kaduna. H03: Stimulating managers has no significant effect on employee performance in Nigerian National Petroleum Company Limited, Kaduna. H04: Coaching managers has no significant effect on employee performance in Nigerian National Petroleum Company Limited, Kaduna. 1.6 Significance of the Study Managing a business can be a great challenge and a strong team enhances the success of the business. The research may benefit scholars as literature review in areas of transformational leadership and management. With so much potential investment, effort and wealth generation at stake, the researcher could initiate a long overdue and highly pragmatic research project to enable organizations identify how critical transformational leadership is to sustain business performance. In doing so the study may enable organizations make well informed investment decisions about business success drivers and particularly transformational leadership selection and development. Similarly, the study could be of great help to managers, corporate leaders and organisations committees in mission conceptualization, formulations, implementation and recruitments of appropriate leaders for maximum business output. The researcher cannot forget the paramount importance of the study to key decision makers. The policy relevance of this study rests on its empirical basis for identifying policy options to enhance the growth of Oil and Gas Sector in Nigeria. It is therefore of value to those who seek to target Oil and Gas Sector in Nigeria who can benefit from a greater insight into their growth. Apart from academic credits, the researcher will benefit from the study having a broader and more holistic understanding in the field of transformational leadership. However, apart from filling the gap in the body of knowledge, the study will be a documented resource not only for scholars but also any other person who would be interested in broadening his knowledge base in transformational leadership, management and business success determinants. 1.7 Scope of the Study The scope of this study extends to the managers in Oil and Gas Sector in Nigeria. The study seeks to establish the effect of only four dimensions of transformational leadership styles such as visioning, inspiring, stimulating and coaching on the employee performance in NNPC. 1.8 Definition of Key Term The key terms below were used in this study. Employee: A person employed for wages or salary, especially at the non-executive level. Leader: The person who leads or commands a group, organization, or country. Leadership: Leadership is the ability of an individual or a group of individuals to influence and guide followers or other members of an organization. Managers: A person responsible for controlling or administering an organization or group of staff. Management: The process of dealing with or controlling things or people. Organization: An organized group of people with a particular purpose, such as a business or government department. Performance: Good performance means successful completion of a program required by the department, including education, work, or other programs.