CHAPTER ONE1.1 INTRODUCTIONGENERAL IDEA OF LEADERSHIPLeadership is a process in which a leader attempts to influence his or herfollowers to establish and accomplish a goal or goals.LEADERSHIPThe capacity to lead others: command, lead.An act or instance of guiding: direction, guidance, lead, management. Seeaffect/ineffectiveness.Leadership is the process through which an individual tries to influence anotherindividual or a group of individuals to accomplish a goal. Leadership is valuedin our culture, especially when it helps to achieve goals that are beneficial to thepopulation, such as the enactment of effective preventive health policies. Anindividual with leadership qualities can also improve an organization and theindividuals in it, whether it be a teacher who works to get better teachingmaterials and after school programs or an employee who develops new ideasand products and influences others to invest in them.Leadership can be exhibited in a variety of ways and circumstances. Mothersand fathers show leadership in raising their children with good values and2encouraging them to develop to their potential. Teachers show it in inspiringstudents to learn and to develop their intellectual capacity. Health care workerscan be leaders and develop services that meet the needs of the communities theyserve, or work in collaboration with other organizations to create costeffective, prevention oriented programs and services.Many studies have been done and many books and articles have been publishedon this subject. Through this work a consistent set of leadership attributes hasemerged. An effective leader does most, if not all, of the following:Challenge the Process—search out challenging opportunities, take risks, andlearn from mistakes.Inspire others to come together and agree on a future direction or goal— createa shared vision by thinking about the future, having a strong positive vision, andencouraging others to participate.Help others to act—help others to work together, to cooperate and collaborateby developing shared goals and building trust, and help to make others strongerby encouraging them to develop their skills and talents.Set an example—behave in ways that are consistent with professed values andhelp others to achieve small gains that keep them motivated, especially when agoal will not be achieved quickly.3Encourage others—recognize each individual’s contributions to the success of aproject.Another way of defining leadership is to acknowledge what people value inindividuals that are recognized as leaders. Most people can think of individualsthey consider being leaders. Research conducted in the 1980s by James Kouzesand Barry Posner found that a majority of people admire, and willingly follow,people who are honest, forward looking, inspiring, and competentAn individual who would like to develop leadership skills can profit from theknowledge that leadership is not just a set of exceptional skills and attributespossessed by only a few very special people. Rather, leadership is a process anda set of skills that can be learned.The word leadership can refer to: the process of leading. Those entities thatperform one or more acts of leading.Kouzes (2002) states that “Leadership is not a place, it‘s not a position,and it‘snot a secret code that can‘t be deciphered by ordinary people. Leadership is anobservable set of skills and abilities. Of course some people are better at it thanothers.”In general terms, leadership can be defined as the ability to influence thebehavior of others.This definition can be expanded when considering leadership in organizations toinclude the fact that the leader exerts influence within a working group in orderthat the group may achieve group tasks or objectives. (T .Lucy 1997) leadershipis an everyday art involving the skill of leading and dealing with people. Thesuccess in ruling new dominions is contingent upon both his ability to wieldpower effectively, and the existence of an opportunistic situation. Problems,which result within organizational members, disagree on both the natures of thegoals of which people disagree on both the natures of the goals of which peopleaspire, and the act of leadership. Leadership, as we use the term refers tobehaviour, undertaken within the context of an organisational members behave.It could be observed that leadership and management envisages deeply intowhat the organization can achieve if the quality of recognition is accorded tothem. Leadership has been propounded to include the sources of influence thatare built into a position in an organizational hierarchy.These include organizationally sanctioned rewards, and punishments, authority,as well as referent and expert power katz and kahn 1966, p.32. It could be seenhowever, that subordinates within the organization, through not all seem toenjoy the influence that exists all over and above the organization.Leadership is very essential organization and greatly influences the wholeorganization because achievements and results occur corollary to the traits beingprojected by the leader. Leadership includes the ultimate source of power buthas that positive ability in persuading other individuals and to be innovative indecision making. According to Bennis and Nanus, many organizations are overmanaged and under led. The difference is crucial, managed are people who dothings right, but leaders are people who do the right things always.Problems are bound to occur within every noted organisation and decisionmaking is bound to generate conflicts while initiating policies.People are expected to coordinate. Whatever they are doing to achieveorganizational goals. In this light, the notion of leadership act are those whichhelp a grouping meeting those stated objectives (Bavelas 1960:p491).in generalterms the acts of controlling other people consists uncertainty reduction ,whichentails making the kind of choice that permits the organization to proceedtowards its objective despite various kinds of internal and external variables.The effectiveness of leadership has some characteristics, which include forcefulthreats, a complete assertion of authority to the subordinates, and a derived, andsituational responsibility.Note that in the society today, not only the presence of rewards (positive andnegative), or the incentive appraisal could induce productivity but the feeling ofbelongingness.Improper leadership qualities within the organization have a negative impact onthe subordinates as well as the achievement of the organizational objective. Anorganization that has growth and forward looking has a good leadership and visa vis a bad or deteriorating organization has a bad leadership.Leadership is always related to the situation. There is a growing awareness thatis a continuous interaction between the factors presents in any given situation,including for example, the personal characteristics of the leader, the tasks, theenvironment, the technology, the attitudes, motivation and behavior of thefollowers and so on.1.2 BRIEF HISTORY OF SIAMOND BANK PLCDiamond Bank Plc began as a private limited liability company on March 21,1991 (the company was incorporated on December 20, 1990). Ten years later,in February 2001, it became a universal bank. In January 2005, following ahighly successful Private Placement share offer which substantially raised theBank’s equity base, Diamond Bank became a public limited company. In May2005, the Bank was listed on The Nigerian Stock Exchange. Moreover, inJanuary 2008, Diamond Bank’s Global Depositary Receipts (GDR) was listedon the Professional Securities Market of the London Stock Exchange. The firstbank in Africa to record that feat.Today, Diamond Bank is one of the leading banks in Nigeria respected for itsexcellent service delivery, driven by innovation and operating on the mostadvanced banking technology platform in the market. Diamond Bank has overthe years leveraged on its underlying resilience to grow its asset base and tosuccessfully retain its key business relationships. And like a diamond, ourstrength makes us even more valued and valuable. Diamond Bank has wonseveral awards including the prestigious “Most Improved Bank of the Year”-Thisday Newspapers, “Best Bank in Mergers & Acquisition”.We have retained excellent banking relationships with a number of well-knowninternational banks, allowing us to provide a bouquet of world class bankingservices to suit the business needs of our clients. These international bankingpartners include Citibank; HSBC Bank; ANZ Banking Group; ING BHF BankAG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank;Commerzbank; and Nordea Bank Plc.In 2008, and to ensure we grow with the needs of our customers, we streamlinedour operations into three distinct strategic business segments: Retail banking,Corporate Banking, and Public sector.Diamond Bank continues to develop and to build on its core competencies. Bycontinually cutting from the rough, we have improved our services and ourbanking facilities. Like cutting from a rough gem to create a diamond of thefinest quality, we are proud to have become a gem of a bank.1.3 STATEMENT OF THE PROBLEM AND SUB PROBLEMThe design of the investigation is to elicit the effect of the different leadershipstyles in finance oriented and services oriented organization in order todetermine its distinct impact on the organizational behavior of managementand employees in the case organization.SUB PROBLEM I: The purpose of the study is to evaluate the factors ofleadership (the traits: intelligence, initiative, imagination, communication, theskills, analytical, diagnostic, conceptual, the status, recognition and thesituation) culture in the case organisation with the view to calculate theircontribution in attaining organisational objective. (Contribution to efficiencyand growth in profit).SUB PROBLEM II: The object on the inquiry is to ascertain the mostfavourable leadership style amongst autocratic, democratic, paternalistic, andlaissez faire, used in the case organisation to determine its influence onmanagement and employees.SUB PROBLEM III: The intention of the investigation is to compare therelationship (positive or negative) between leadership and organisationalbehavior in the finance and service oriented organisation to identify the effecton work performance.SUB PROBLEM IV: The purpose of the study is to correlate the leadershipstyle to organisational behavior of management and employees in DIAMONDBANK to decide the trend and influence of leadership style on theorganisational behavior of management and employees.