THE IMPACT OF EFFECTIVE LEADERSHIP STYLE ON ORGANIZATIONAL PERFORMANCE: A STUDY OF SUMAL FOODS LIMITED, OLUYOLE, IBADAN, OYO STATE

Abstract

Leadership style has become one of the most important factors contributing to the success of an organization, especially in the manufacturing industry where productivity, innovation, efficiency, and employee commitment play a very important role in the survival of the organization. This study assessed the effect of good leadership style on the performance of the organization using Sumal Foods Limited, Oluyole, Ibadan, Oyo State as the case study. The main objective of this study was to ascertain the degree to which the leadership style affects the accomplishment of organizational objectives, efficiency of employees, and employee commitment. One Hundred copies of the questionnaire were distributed and successfully retrieved, representing a response rate of 100 percent. The collected data were analyzed using descriptive statistics, while the formulated hypotheses were tested using Analysis of Variance (ANOVA) at a 5 percent level of significance. The findings revealed that effective leadership style has a significant positive influence on organizational performance. Specifically, transformational and participative leadership styles were found to enhance employee productivity, strengthen employee commitment, improve communication, and facilitate the achievement of organizational objectives. The study concluded that leadership style remains a strategic determinant of organizational effectiveness and sustainable performance in manufacturing firms. It was therefore recommended that the management of Sumal Foods Limited should continue to encourage participative leadership, strengthen leadership development programmes, and establish effective communication channels capable of improving employee motivation and organizational productivity.