The Impact of Leadership Styles on Employee Productivity in Nigerian Oil & Gas Industry a Case Study of Nigeria LNG Limited

96 Pages Posted: 6 Mar 2020

See all articles by Samuel Ajayi

Samuel Ajayi

Shell Nigeria LNG, Bonny Island.

Date Written: February 5, 2020

Abstract

This study examines the impact of leadership styles on employee performance and productivity in the oil and gas industry in Nigeria. Specifically, it seeks to investigate and describe the different types of leadership styles practiced in the Nigerian gas industry and the extent to which these impact on employee performance and productivity. The styles of leadership employed in managing employees have an effect on the morale and productivity of workers.

This study obtained and analyzed the perspectives and opinions of Nigeria LNG employees on impact of Leadership styles on employee performance. To do this, Data were collected via a structured questionnaire from a randomly selected 450 (Four Hundred & Fifty) respondents who have worked more than 5 years in the company and regression analysis was conducted to analyze the data using SPSS 21.

The results of the correlation analysis showed that there is positive and significant relationship between autocratic leadership style and employee work quality (r=0.772; p<0.05)., Also, a positive and significant relationship exists between democratic leadership style and employee efficiency (r=.896; p<0.05)., Furthermore, a positive and significant relationship exists between Laissez-faire leadership style and employee effectiveness (r=.896; p<0.05). Lastly, a positive and significant relationship exists between Bureaucratic leadership style and employee motivation (r=0.772; p<0.05).

The results were found to be consistent with empirical findings of past studies in literature.
It is therefore concluded that leadership style has a significant effect on employees’ productivity in Nigeria LNG Limited.

The study found that there is a correlation between management leadership styles and organizational commitment by employees. As such, leadership styles directly influence the extent to which employees commit to their employer organization. The study also found that management at NLNG Ltd. apply the democratic and transformational leadership styles. The findings raise important insights as to which leadership style(s) management need to demonstrate and how management can optimize their leadership styles to benefit their organization. Such an understanding should be applied to enhance job satisfaction and increase productivity. Based on the findings, directions for future research were proposed.

Keywords: Leadership, Leadership styles, Employee Productivity, Organizational Performance

Suggested Citation

Ajayi, Samuel, The Impact of Leadership Styles on Employee Productivity in Nigerian Oil & Gas Industry a Case Study of Nigeria LNG Limited (February 5, 2020). Available at SSRN: https://ssrn.com/abstract=3532749 or http://dx.doi.org/10.2139/ssrn.3532749

Samuel Ajayi (Contact Author)

Shell Nigeria LNG, Bonny Island. ( email )

NLNG Ltd.
Bonny Island
Bonny, Rivers PC 503
Nigeria
+2348132933533 (Phone)

HOME PAGE: http://nlng.com

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