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Archives of Business Research – Vol. 9, No. 3
Publication Date: March, 03, 2021
DOI: 10.14738/abr.93.9808. Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital
Condition of Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
Evaluating the Relationship Between Leadership Development and
Human Capital Condition of Non-Metallic Product Manufacturing Firms
in South East, Nigeria
Orga, Christopher Chukwudi (Ph.D.)
Department of Business Administration, Faculty of Management Sciences
Enugu State University of Science and Technology, Enugu
E-mail: christopher.orga@esut.edu.ng
Odo, Cosmas Ogobuchi (Ph.D.)
Department of Marketing, Faculty of Management Sciences
Enugu State University of Science and Technology, Enugu
E-mail: cosmas.odo@esut.edu.ng
Okeke, Daniel Chukwudi
Department of Insurance & Risk Management, Faculty of Management Sciences
Enugu State University of Science and Technology, Enugu
E-mail: Daniel.okeke@esut.edu.ng
ABSTRACT
Failure of leadership and inefficient utilisation of human capital have continued to
agitate the minds of researchers and managers alike in Nigeria. Therefore, this paper
evaluated the relationship between leadership development and human capital
condition of non-metallic product manufacturing firms registered with Manufacturers
Association of Nigeria (MAN) in South East, Nigeria. A survey research design was used
for the study. A sample size of 310 was utilized and drawn from a population of 2862
personnel. Data collected were presented in tables and were further analysed using
mean scores and standard deviation, and the hypotheses were tested using the F- statistic. Three major findings were made, namely: that there was significant positive
relationship between leadership skills and employee output at work of non-metallic
product manufacturing firms in South East, Nigeria [ F(4,20 = 13.07771), p < 0.05];
there was significant positive relationship between managers’ level of education and
operational cost of non-metallic product manufacturing firms in South East, Nigeria [
F(4,20 = 19.89737), p < 0.05] and that there was a significant positive relationship
between leadership training and team building and or cohesion among staff of non- metallic product manufacturing firms in South East, Nigeria [ F(4,20 = 15.98143), p <
0.05,5]. Hence, it was concluded that there was positive relationship between
leadership development and human capital condition of non-metallic product
manufacturing firms in South-East, Nigeria. It was therefore recommended that
management of non-metallic manufacturing firms in South-East, Nigeria, should install
and implement regular staff training and retraining programmes, coupled with robust
staff welfare/reward packages, which motivate them for optimum productivity.
Key Words: Leadership, Development, Human Capital conditions, non-metallic firms,
manufacturing firms.
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Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
INTRODUCTION
Background of the Study
Leaders are required to develop future visions, and motivate the organisation members to
achieve organisational goals. Leadership is the potential to influence behaviour of others. It
is defined as the capacity to influence a group towards the realisation of a goal. Keith (n.d)
noted that, “Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it
towards goals”. Alexandra, (2020) notes that leadership in business is the capacity of a
company's management to set and achieve challenging goals, take fast and decisive action
when needed, outperform the competition, and inspire others to perform at the highest level
they can. Individuals with strong leadership skills in the business world often rise to
executive positions such as CEO (Chief Executive Officer), COO (Chief Operating
Officer), CFO (Chief Finance Officer), President, and Chairman. Leadership provides
direction for a company and its workers. Leadership is learned; a leader's skills and
knowledge can be influenced by his or her attributes or traits, such as beliefs, values, ethics,
and character. Knowledge and skills contribute directly to the process of leadership, while
the other attributes give the leader certain characteristics that make him or her unique.
Martin (2017) opines that leadership development leads to big business and an essential
part of many organizations’ human resources. Leadership development is the process of
creating an environment that places a priority on learning the skills and knowledge that
grows the organisation both physically and financially. Leadership development expands
the capacity of individuals to perform in leadership roles within organisations. Leadership
roles are those that facilitate execution of a company’s strategy through building alignment,
winning mindshare and growing the capabilities of others. They may be formal, with the
corresponding authority to make decisions and take responsibility, or they may be informal
roles with little official authority (Rommin, 2013). Visionary leadership is the ideal
management style used when a business leader needs to introduce a new concept or new
direction to current staff. Coaching leadership involves sharpening staff member’s
individual talent so that they can develop their experience and expertise within their
industry or field. Affiliative leadership is used to nurture workplace morale, helping staff
members reconnect with their organisation and their peers. The democratic leadership
style involves soliciting group opinion to help find the solution to a difficult problem. Alan
(n.d ) reiterates that leadership is less about your needs, and more about the needs of the
people and the organisation you are leading.
Asset condition is an indicator which shows how well an asset performs its function.
Asset condition is a key parameter in determining remaining and/or useful life, and can be
used to predict how long it will be before an asset needs to be repaired, renewed or
replaced. Jean (2020) defines an asset as anything of value or a resource of value that can be
converted into cash. Individuals, companies, and governments own assets. For a company,
an asset might generate revenue, or a company might benefit in some way from owning or
using the asset. An asset condition assessment is a report outlining on how an organisation
can manage fixed assets in order to improve its asset management operations (Will, 2020).
The relationship between leadership and asset condition is very important because there
is no development without leadership especially in the social, human and cultural
dimension. Increased global competition has led to increased uncertainty and growing
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Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
54
URL: http://dx.doi.org/10.14738/abr.93.9808.
demand for diverse products (Pejman, 2016). It therefore became important to evaluate
the relationship between leadership development and asset conditions of non-metallic
mineral product firms in South East, Nigeria.
Statement of the Problem
Leadership is an essential asset of every organization, since it points the direction of the
organization and points to its future. Several organizations are faced with performance
related issues and meeting its obligation owing to poor or ineffective leadership. Every
problem is a leadership problem. No one is immune to leadership let down. Problems
undermine leadership learning and development initiatives. Sustainability and adaptability
among others are the drivers of leadership in the global economy. Leadership activity has
become more focused on monetary worth than on social worth; this might lead to damage
to the societies and communities in which organizations operate and upon whom their
actions and decisions impact.
Leadership development programmes are rarely evaluated in a meaningful way. Therefore,
organisations need to rethink who they send for leadership development programmes.
Lack of adherence to leadership development plans might lead to low output, increased
operational cost, and lack of cohesion among organisation teams. It is therefore imperative
to evaluate the relationship between leadership development and human capital condition
of non-metallic product manufacturing firms in South East, Nigeria.
Objectives of the Study
The main objective of the study was to evaluate the relationship between leadership
development and human capital conditions of non-metallic manufacturing firms in South
East, Nigeria. The specific objectives were to:
i. Examine the extent of relationship between leadership skills and employee level of
output of non-metallic manufacturing firms in South East, Nigeria.
ii. Evaluate the degree of relationship between managers’ level of education and
operational cost of the non-metallic manufacturing firms in South East, Nigeria.
iii. Investigate the degree of relationship between leadership training and team
building of non-metallic manufacturing firms in south east, Nigeria.
Research Questions
The following research questions guided the study
i. What is the extent of relationship between leadership skills and employee level of
output of non-metallic manufacturing firms in South East, Nigeria?
ii. What is the degree of relationship between managers’ level of education and
operational cost of non-metallic manufacturing firms in South East, Nigeria?
iii. What is the degree of relationship between leadership training and team building of
non-metallic manufacturing firms in South East, Nigeria?
Statement of the Hypotheses
The following alternate hypotheses guided the study
i. There is significant relationship between leadership skills and employee level of
output of non-metallic manufacturing firms in South East, Nigeria.
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Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
ii. There is significant relationship between managers’ level of education and
operational cost of non-metallic manufacturing firms in South East, Nigeria.
iii. There is significant relationship between leadership training and team building of
non-metallic manufacturing firms in South East, Nigeria.
Significance of the Study
Since the study evaluated the relationship between leadership development and human
capital conditions of non-metallic manufacturing firms in South East, Nigeria, the study
would be beneficial to the following groups:
i. Leaders. The study would be of great importance to organizational leaders, captains
of industries and potential leaders by equipping them with requisite knowledge of
leadership in enhancing the performance of the organisations especially in non- metallic manufacturing firms.
ii. Business administrators. Business administrators would gain insight into leadership
quality in order to have the ability to adjust to situations and have self-control of
their leadership traits.
iii. The study would help to train effective leaders that can engage teams through sense
of purpose and recognition has actually been shown to make a more profitable
organization. Creating a stable profit is almost every organization’s goal, so this
further solidifies the importance of leadership development.
iv. It would help in educating human resource department of manufacturing firms on
how to focus on the importance of leadership development to create leadership that
could focus on both efficiency and human needs.
v. The study would also add to the body of knowledge available on the subject
examined and serve as a basis for further academic research and investigation for
stakeholders to rely on.
REVIEW OF THE RELATED LITERATURE
Conceptual Framework
Leadership Development
Leadership development is the process of creating an environment that places priority on
learning the skills and knowledge that grows the organisation both financially and
spiritually (Don, 2016). Leadership development begins with distinguishing leadership
skills from leadership traits. Leadership skills include being able to generate and
communicate a vision, converting that vision to tactics and initiatives, and identifying and
delegating tasks to talented individuals who can assist in reaching this vision. A proactive
organisation leader influences the employees to contribute efforts towards the
accomplishment of goals and objectives of the organisation (IBID). A good quality
demonstrated by leaders helps to develop skills that embrace every aspect of culture in
order to enhance the performance of the organisations (Ojokuku, 2015).
Improvement of Employee Output at Work
Improvement of productivity is a central issue in present day organisations. The best place
to start when you want to know how to improve employee performance is gaining an
understanding of the employee and the environment. Employee performance involves
factors such as quality, quantity and effectiveness of work as well as the behaviours
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Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
56
URL: http://dx.doi.org/10.14738/abr.93.9808.
employees show at workplace (Ashley, 2019). Improvement of employee chances at work
may refer to work effectiveness, quality and efficiency at the task level. It refers to the
effectiveness, quality, and efficiency of their output. Companies typically set performance
targets for individual employees and hopes that the business offers good value to
customers, minimises waste and operates efficiently. In order to utilise human resource
fully and ensure organisational success, effective employee performance management
system is imperative for a business organisation.
Businesses should monitor the quality of work, individual employee goals, effectiveness of
training and employee efficiency. An employee fulfils their job duties and execute their
required tasks more responsibly when armed with the authority to get the job done. That
means providing adequate resources to them and their team, as well as the latitude to
make decisions and execute their own ideas. For some employees, inadequate skills or lack
of experience may inhibit their ability to perform their job successfully.
Managers’ Level of Education
In order to develop a manager, effective techniques and tools needs to be combined with
intellectual skills and insight. Educational management refers to the administration of
the education system in which a group combines human and material resources to
supervise, plan, strategies, and implement structures to execute an education system,
“National institute of Education (NIE, 2018). It focuses on the process of imparting or
acquiring knowledge to develop the members of the executive or administration of an
organization or business when management gets more challenging. Flatter organizations
offer less formal authority. Rapidly changing technology means that experience does not
guarantee competence. Rising expectations for social and environmental performance have
brought in a wider range of stakeholders and variables to manage. All the while,
boundaries in the competitive environment have been blurring; new and unexpected
disruptions from firms in seemingly unrelated industries are becoming the norm.
Management matters to organizational performance. Better management practices are
correlated not only with more efficient utilization of resources but also supportive human
resources practices.
Business schools and businesses can provide truly transformative leadership for society,
profoundly impacting the future of business as well as management education (Dan, 2019).
A good manager starts with the end in mind, sets a clear definition of success, and then lets
the people find the best way to accomplish the work in the most efficient way possible.
Operational Efficiency of the Manufacturing Firms
Globalisation has considerably increased competition among enterprises. Organizations,
including manufacturing firms, have been seeking strategies and organizational
frameworks, which would allow for /facilitate the integration of differentiated
technologies, methods and organisational process. The evolution from physically
distributed to global manufacturing systems has been influenced by a variety of
circumstances. Better product performance, larger product variety, lower production cost,
flexibility and shorter product life cycles are some of the new challenges encountered by
manufacturing companies. Agility, the ability to rapidly react to market changes, has been
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Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
identified as one of paradigms capable of helping companies face these challenges. Geldart,
(2014) notes that manufacturing firms today need to be concerned about how to remain
competitive and maintain speedy production while simultaneously avoiding costs from
processing. In the turbulent conditions characterising the new century it is clear that
successful manufacturing firms will need to innovate. The aim is to develop a set of high- level objectives for all areas of the business. They need to highlight the priorities and
inform the plans that will ensure delivery of the company’s vision and mission (Jamie,
2015).
Training of Leaders
The big challenge to growing a business is developing leadership skills at all levels of the
organisation. There has been massive global disruption in most industries and fields of
work due to technology growing at a rapid pace (Minal, 2019). ‘Leaders developing
leaders’, is the key to a successful enterprise. The task of identifying leaders challenges
every company (Rashan, 2019). The ultimate test for a leader is not whether he or she
makes smart decisions and takes decisive action, but whether he or she teaches others to
be leaders and builds an organisation that can sustain success even when he or she is not
around. Business leaders who want to build the best possible leadership team can’t rely on
impressive résumés or past experience. To identify and develop your company’s most
promising leaders now and in the future, look for employees to who taking initiative is
crucial to leading. It isn’t easy at the top. For future leaders to fully realise their potentials,
they need to develop a thick skin and be able to take constructive criticism. There is almost
a universal agreement that leadership is a skill that can be learned. Like creativity,
leadership can be fostered with nurturing and support.
Team building and Social Relations of the Manufacturing Firm
Social relations derived from individual agency form the basis of social structure and the basic
object for analysis. Socialisation does not have to be limited to office hours but should encourage
interaction among workers outside of office hours. Mohamad, Nordin & Hasbullah, (2016) note
that manufacturing firms’ social well-being depicts the extent and degree to which society
members within and around manufacturing firms is functioning well within the industrial space.
Manufacturing affects all three dimensions of sustainability: economy, environment, and society.
Therefore, to contribute to the intelligibility and articulacy of the discourse by providing more
concise information on its meaning, evolution, associated key concepts, dimension, the
relationships among other dimensions. This could include schemes like volunteer programmes
and community service to give employees an opportunity to develop relationships outside of the
office, and at the same time promote the company's social responsibility values. It reflects the
roles of manufacturing firms' activities on community members' social lives. The social relations
of production directly influence the intensity of labour (one facet of labour productivity), which
in turn influences the rate of industrial accidents (one aspect of workers' safety).
Theoretical Framework
The study was guided by the Fielder’s Contingency theory (1976).
In the theory, Fielder postulates that, “group performance is a result of interaction of two
factors. These factors are leadership style and situational favourableness. In Fielder’s
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Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
58
URL: http://dx.doi.org/10.14738/abr.93.9808.
model, leadership effectiveness is the result of interaction between the style of the leader
and the characteristics of the environment in which the leader works.
The first major factor in this theory is the leadership style. This is the consistent system of
interaction that takes place between a leader and work group. In order to classify
leadership styles, Fielder developed an index called the least-preferred co-worker (LPC)
scale. The LPC scale requires a leader to think of all the persons with whom he/she ever
worked, and then to describe the one person with whom he/she worked least well. This
person can be someone from the past or someone he/she currently works with. From a
scale of 1 to 8, the leader is required to describe this person on a series of bipolar scales
such as those shown below:
Unfriendly 1 2 3 4 5 6 7 8 Friendly
Hostile 1 2 3 4 5 6 7 8 Supportive
Uncooperative 1 2 3 4 5 6 7 8 Cooperative
Unguarded 1 2 3 4 5 6 7 8 Guarded
The responses to the scales are summed and averaged. A high LPC score suggests that the
leader has a human relations orientation, while a low LPC score indicates the leader has a
task orientation. Fielder’s logic is that individuals who rate their least-preferred co-worker
in relatively favourable light on these scales derive satisfaction out of interpersonal
relationship. Those who rate the co-worker in a relatively unfavourable light get
satisfaction out of successful task performance. The second major factor in Fielder’s theory
is the situational favourableness or environment variables. This is basically defined as the
degree to which a situation enables a leader to exert influence over a group. Fielder then
extends his analysis by focusing on three key situational factors, which are; leader- member relationship, task structure and position power. Each of these factors is defined as
follows:
i. Leader-member relationship: this refers to the degree to which the employees
accept the leader. It implies the nature of interpersonal relationship between the
leader and the followers, expressed in terms of good or bad.
ii. Task structure: This refers to the degree to which the subordinates’ task described
as ‘structured’ or ‘unstructured’, associated with the amount of creative freedom
allowed the subordinates to accomplish task, and how the task is defined.
iii. Position power: this refers to the formal authority the leader possesses by
virtue of his/her position in the organisation. It is the degree to which the position
itself enables the leader to get group members to comply and accept his/her
direction and leadership.
According to this theory, if a leader has a good rapport with members and the task is
structured, and his position power is strong, he should use a directive (or task-oriented)
style because that style would work best under those conditions. Simply put, when things
are going your way, you can be task-oriented, but when there are not, people orientation is
necessary. One of Fielder’s conclusions was that the managers should attempt to change
their style to match with the situation.
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Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
Empirical Review
Omar, Erzan & Mahmoud (2013) conducted a study on the Impact of Leadership Behaviour
on Organisational Commitment in Plantation Companies in Malaysia. This research was
carried out with the intention of examining the impact on employees’ perceptions of their
immediate supervisors’ supportive and directive leadership behaviour and different types
of organisational commitment in plantation companies in Malaysia. The study used a
survey strategy “self-administered questionnaire”, to collect the primary data. The sample
of the targeted consists of 300 supervisors and employees from various plantation
companies in Malaysia by using the non-random sampling technique to participate in the
study. The statistical results showed that there was significant strong relationship between
the leadership behaviour and the organisational commitment. More importantly, there wee
significant impacts of the leadership behaviour on organisational commitment. In addition,
supportive and directive leadership behaviours do play important roles in determining the
levels of employee's commitment. They recommended that leaders should consider
matching both leadership behaviours based on the situation of their subordinate. Thus, the
paper contributed to the existing pool of knowledge on the empirical impact of leadership
behaviours on organisational commitment. Different aspects of these variables were tested,
so as to provide a wider and more comprehensive understanding of the factors that affect
organisations and employees in plantation company's societies in Malaysia.
Ruggieri (2013) examined variables such as fostering group cohesiveness and promoting
efficacy in goal attainment when determining a leader’s level of influence. Ruggieri
examined the transactional leadership model and the transformational leadership model to
determine which model would produce the higher group cohesiveness and promote the
greatest efficacy of goal attainment. Results showed self-sacrifice as significant to
leadership. The study determined that followers can relate to the leader’s self-sacrifice
which increased team identification between the leader and followers. It was also noted
that leader’s attitudes and behaviours wee essential to maximising their effectiveness.
Followership is only as effective as its composing relationships, positive mental models,
cohesion, and collective efficacy.
Mkheimer (2018) conducted a study on the Impact of Leadership Styles on Business
Success: A Case Study of SMEs in Amman. The study noted that leadership styles had an
essential, direct cause and effect relationship on business success and their development.
Leaders’ roles are revolved in forming values, visions, and employee’s motivation. Several
leadership styles were analysed in the study such as transformational, transactional and
charismatic. A review of the literature showed several empirical businesses successes. The
problem of the study was to cover the gap in the literature related to leadership styles in
achieving total business success. Data collected for the study using a leadership survey
included demographic, leadership styles and business success questions. one hundred
copies of the questionnaire were distributed and only 85 valid respondents completed
theirs and were appropriate for further analysis in the survey. Descriptive statistics,
exploratory factor analysis (EFA) and multiple regressions were used for deeper analysis.
The study assumed that transformational, transactional and charismatic leadership styles
were the most dominant leadership styles in business. The study found that most
companies had same styles of leadership. Based on the results, transactional leadership
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Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
60
URL: http://dx.doi.org/10.14738/abr.93.9808.
style had a significant positive impact on business success. Additionally, transformational
leadership style, however, showed a negative impact on business success. That meant that
success of business would not develop or increase when transformational style is found
Christopher (2018) examined Leadership Development Method: A literature review of
leadership development strategies and tactics; the study intended to provide young and
new coaches with a comprehensive overview of existing research of a leadership
development method for improving their leadership skills regardless of field. A broad
range of existing literature related to leadership was compiled, examined, analysed, and
disseminated. The examined research findings suggested that correlations between leaders
of different fields can be made and used as advice for emerging leaders. Furthermore,
existing research clearly supports a strong positive correlation between learning through
experience and the art of followership as well as benefits of a method by which to teach
these skills. A leadership development method serves as an excellent tool to further engage
coaches desiring to improve their leadership knowledge and skills. By developing an
understanding of the concepts identified and incorporating the practices prescribed within
the essay, coaches might establish strategies that effectively exposed them to the
appropriate mentors and mentorships.
Madubuko (2018) conducted a study on Leadership Styles as the Predictor of Corporate
Goals Attainment in Selected Manufacturing Organisations in Abia State, Nigeria. The study
dealt on leadership styles as the predictor of corporate goals attainments in selected
manufacturing organisations in Abia State, Nigeria with special focus on two manufacturing
organisations namely: Nigeria Breweries PLC, Aba and Star Paper Mill Ltd Aba. The study
sought to establish the relationship between the leadership style and attainment of
corporate goals, to identify the leadership style that was most appropriate to the
manufacturing firms, and to examine the extent to which the size of an organisation
affected leadership behaviour. The research adopted survey design. The total staff
population for the selected manufacturing organisations in Aba, Abia State was 165. These
manufacturing organisations were selected from the 14,564 organisations in Abia State
using purposive sampling technique. The sample size of 136 was determined using Taro
Yamane’s formula. The sources of data for the study were primary and secondary.
Cronbach Alpha was used in testing the validity and reliability of the test instrument and
0.88 was obtained showing a high degree of validity and reliability. The data generated
from the field survey were analysed using percentages. The four hypotheses formulated in
the study were tested using the following statistical tools; hypotheses 1, 2 and 4 were
tested using Z-test and hypothesis 3 was tested using factor Analysis. The results drawn
from the tested hypotheses revealed that leadership style had a significant impact on the
attainment of corporate goals. However, the staff in the manufacturing industry tended to
prefer participatory leadership to other forms of leadership approaches. It was therefore
recommended that leaders should stir the emotions and passion of their subordinates, set
clear goals, have high expectations, provide support and recognition and get them to look
beyond their self to reach for their personal and organisational goals.
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Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
Summary of Review of Related Literature
Over the course of the study, numerous literature have been reviewed focusing on the
relationship between leadership development and human capital conditions of the non- metallic manufacturing firms in South East, Nigeria. The study was guided by the Fielder’s
Contingency theory (1976). In the theory, Fielder postulates that, “group performance is a
result of interaction of two factors. These factors are leadership style and situational
favourableness. In Fielder’s model, leadership effectiveness is the result of interaction
between the style of the leader and the characteristics of the environment in which the
leader works.
Madubuko, 2018 found that leadership style had a significant impact on the attainment of
corporate goals. Christopher (2018) noted that leadership development method served as
an excellent tool to further engage coaches desiring to improve their leadership knowledge
and skills. Omar, Erzan & Mahmoud (2013) also noted that there were significant impacts
of leadership behaviour on organisational commitment. Furthermore, these empirical
works showed an existence of a positive relationship between leaders and human capital
conditions of non- metallic manufacturing firms.
Gap in Knowledge
From the already reviewed empirical literature, the gap that the study filled was the
evaluation of the relationship between leadership development and human capital
conditions of manufacturing firms. Over the review of various related literature, the gap
that was found was that none of the studies specifically evaluated leadership development
with particular relation to human capital condition manufacturing firms. Also, the study
was unique in that it also analysed the subject matter with regards to non- metallic
manufacturing firms in Enugu State, Nigeria Also, the study would also be the most recent
examination of the relationship between leadership development and human capital/asset
conditions.
METHODOLOGY
The topic of the study was the relationship between leadership development and human
capital/asset of non-metallic manufacturing firms in South East, Nigeria. The organisations
under study were Emenite Ltd, Fezel Nig. Ltd, Franklin Marble Ind. Ltd, Godrach Nig. Ltd,
Ibeto Inds. Ltd, Oduav & Sons Nig. Ltd, Ofali Rural Inds. Ltd and Safanaco Tech. Co. Nig. Ltd.
The study adopted the survey design approach. The design was justified because the
opinion of the large population was discernible from few members. Also the study variable
could not be manipulated. The primary sources were personal interview and the
administration of questionnaire. A population of 2,862 staff was used. The population of
the study was drawn from the groups under study using a stratified sampling method.
Adequate sample size of 341was determined using Freud and William's statistical formula.
A total of 310 staff returned the questionnaire accurately filled. That gave 91 percent
response rate. The validity of the instrument was tested using content analysis and the
result was good. The reliability was tested using the Pearson correlation coefficient (r). It
gave a reliability co-efficient of 0.84 which was also good. Data was presented and analysed
by mean and standard deviation using Sprint Likert Scale. The hypotheses were analysed
using one-way analysis of variance (ANOVA) and Fisher’s distribution.
Page 11 of 20
Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
62
URL: http://dx.doi.org/10.14738/abr.93.9808.
DATA PRESENTATION, ANALYSES AND DISCUSSION OF FINDINGS
Research Question One. What is the extent of Relationship between leadership skills
and Employee Output at work of Manufacturing firms in South East, Nigeria?
Table 4.1: Responses on the extent of relationship between leadership skills and employee
output at work of non-metallic product manufacturing firms in South East, Nigeria.
5
SA
4
A
3
N
2
DA
1
SD
∑FX -
X
SD Decisi
on
1 My manager knows the
way and directs
employees where to go
745
149
48.1
264
66
21.
3
45
15
4.
8
78
39
12.
6
41
41
13.2
1173
310
100
%
3.78 1.477 Agree
2 The management in my
organisation has the
ability to transform
vision into reality and
improves the staff
opportunities at work
650
130
41.9
332
83
26.
8
18
6
1.
9
86
43
13.
9
48
48
15.
5
1134
310
100
%
3.66 1.509 Agree
3 The supervisors in my
organisation unlocks the
employees potentials to
become successful
490
98
31.7
484
121
39.
0
18
6
1.
9
78
39
12.
6
46
46
14.
8
1116
310
100
%
3.60 1.422 Agree
4 The influence of our
leaders in the
organisation motivates
the employees at work.
935
187
60.3
116
29
9.4
18
6
1.
9
78
39
12.
6
49
49
15.
8
1196
310
100
%
3.86 1.593 Agree
5 There is responsiveness
to the groups needs in
the organisation.
380
76
24.5
624
156
50.
3
18
6
1.
9
78
39
12.
6
33
33
10.
7
1133
310
100
%
3.65 1.270 Agree
Total Grand mean and
standard deviation
3.7 1.45
Source: Field Survey, 2020
From the table 4.1, 215 respondents out of 310, representing 69.4 percent agreed that the
manager knows the way and directs employees where to go, with mean score of 3.78 and
standard deviation of 1.477. The management in the organisation had the ability to
transform vision into reality and improved the staff opportunities at work with 213
respondents representing 68.7 percent agreed with mean score of 3.66 and standard
deviation of 1.509. The supervisors in the organisation unlocked the employees potentials
to become successful with 219 respondents representing 70.6 percent agreed with mean
score of 3.60 and standard deviation of 1.422. The influence of leaders in the organisation
motivated the employees at work with 216 respondents representing 69.7 percent agreed
with mean score of 3.86 and 1.593. There was responsiveness to the groups needs in the
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Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
organisation with 232 respondents representing 74.8 percent agreed with a mean score of
3.65 and standard deviation of 1.270.
Research Question Two. What is the degree of relationship between managers’ level
of and operational cost of non-metallic manufacturing firms in South East, Nigeria?
Table 4.2: Responses on the degree of relationship between managers’ level of and
operational cost of non-metallic manufacturing firms in South East, Nigeria
5
SA
4
A
3
N
2
DA
1
SD
∑FX -
X
SD Decisio
n
1 The education in the
organisation has achieved
a desired results
410
82
26.5
500
125
40.3
33
11
3.5
128
64
20.6
28
28
9.0
1099
310
100%
3.55 1.318 Agree
2 The operational cost of
desired visions has been
attracted to knowledge of
administration by our
leaders
460
92
29.7
456
114
36.8
36
12
3.9
128
64
20.6
28
28
9.0
1108
310
100%
3.57 1.341 Agree
3 The fame of the
organisation was due to
educational qualification
of managers
455
91
29.4
464
116
37.4
18
6
1.9
128
64
20.6
33
33
10.6
1098
310
100%
3.54 1.376 Agree
4 The lasting impressions
on the organisation was
the educational level of of
the managers
260
52
16.8
660
165
53.2
21
7
2.3
96
48
15.5
38
38
12.3
1075
310
100%
3.47 1.279 Agree
5 The favourable outcome
of organisation was as a
result of effective
supervisors due to their
education
340
68
21.9
536
134
43.2
18
6
1.9
96
48
15.5
54
54
17.4
1044
310
100%
3.37 1.426 Agree
Total Grand mean and
standard deviation
3.5 1.35
Source: Field Survey, 2020
From table 4.2, 207 respondents out of 310 representing 66.8 percent agreed that the
education in the organisation has achieved a desired results with mean score of 3.55 and
standard deviation of 1.318. The operational cost of desired visions has been attracted to
knowledge of administration by our leaders with 206 respondents representing 66.5
percent agreed with mean score of 3.57 and standard deviation of 1.341. The fame of the
organisation was due to educational qualification of managers with 207 respondents
representing 66.8 percent agreed with mean score of 3.54 and standard deviation of 1.376.
The lasting impression on the organisation was the educational level of managers with 217
respondents representing 70 percent agreed with mean score of 3.47 and 1.279. The
favourable outcome of organisation was as a result of effective supervisors due to their
Page 13 of 20
Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
64
URL: http://dx.doi.org/10.14738/abr.93.9808.
education with 202 respondents representing 65.1 percent agreed with a mean score of
3.37 and standard deviation of 1.426.
Research Questions Three. What is the degree of Relationship between Training of
leaders and Team Building/Cohesion of non-metallic Product manufacturing firms in
South East, Nigeria?
Table4.3: Responses on the degree of relationship between training of leaders and team
building/cohesion of non-metallic product manufacturing firms in South East, Nigeria.
5
SA
4
A
3
N
2
DA
1
SD
∑FX -
X
SD Deci
sion
1 The training leaders in the
enhances social exchange
among individuals or staff.
740
148
47.7
256
64
20.6
18
6
1.9
110
55
17.7
37
37
11.
9
1161
310
100%
3.75 1.49
1
Agre
e
2 There is team building in
the organisation and
cooperation among the
employees
340
68
21.9
604
151
48.7
18
6
1.9
96
48
15.5
37
37
11.
9
1095
310
100%
3.53 1.31
1
Agre
e
3 Moving employee out of
the current role
encourages competition in
the organisation.
330
66
21.3
676
169
54.5
18
6
1.9
96
48
15.5
21
21
6.8
1141
310
100%
3.68 1.16
8
Agre
e
4 Following the guidance of
the leaders there is
reduced conflict in the
organisation.
750
150
48.4
328
82
26.5
33
11
3.5
96
48
15.5
19
19
6.1
1226
310
100%
3.95 1.30
1
Agre
e
5 Teams are encouraged to
achieve the organisational
goal.
895
179
57.7
252
63
20.3
33
11
3.5
86
43
13.9
86
14
4.5
1280
310
100%
4.13 1.25
0
Agre
e
Total Grand mean and
standard deviation
3.8 1.30
Source: Field Survey, 2020
From table 4.3, 212 respondents out of 310 representing 68.3 percent agreed that the
training leaders in the enhances social exchange among individuals or staff with mean
score of 3.53 and standard deviation of 1.311. There is team building in the organisation
and cooperation among the employees with 219 respondents representing 70.6 percent
agreed with mean score of 3.53 and standard deviation of 1.311. Moving employee out of
the current role encourages competition in the organisation with 235 respondents
representing 75.8 percent agreed with mean score of 3.68 and standard deviation of
1.168. Following the guidance of the leaders there is reduced conflict in the organisation
with 232 respondents representing 74.9 percent agreed with mean score of 3.95 and 1.301.
Page 14 of 20
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Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
Teams are encouraged to achieve the organisational goal with 242 respondents
representing 78 percent agreed with a mean score of 4.13 and standard deviation of 1.250.
Test of Hypotheses
Hypothesis One: There is positive relationship between leadership skills and employee
output at work of non-metallic product manufacturing firms in South East, Nigeria
Table 4.4 1 One-way ANOVA result on relationship between leadership skills and employee
output at work of non-metallic product manufacturing firms in south east, Nigeria.
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Column 1 5 3200640 47062.5
Column 2 5 1820364 38632
Column 3 5 523 104.6 37497.8
Column 4 5 398 79.6 12.8
Column 5 5 217 43.4 43.3
ANOVA
Source of VariationSS Df MS F P-value F crit
Between Groups 1289446 4 322361.513.077712.16E-052.866081
Within Groups 492993.620 24649.68
Total 1782439 24
Table 4.4.1 shows the F-test result on the relationship between leadership skills and
employee output at work of non-metallic product manufacturing firms showing the F- values. The F-ratio shows 13.07771. The computed F-ratio is greater than the table value of
F = 2.866081 with 4,20 degrees of freedom, for a one-factor ANOVA. This value implied that
there was a significant positive relationship between leadership skills and employee output
at work of non-metallic product manufacturing firms in South East, Nigeria
Decision Rule
The decision rule is to accept the null hypothesis if the computed F-value is less than the
tabulated F, otherwise the null hypothesis should be rejected.
Page 15 of 20
Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
66
URL: http://dx.doi.org/10.14738/abr.93.9808.
Decision
Since the computed F = 13.07771 is greater than the table value of 2.866081, we reject the
null hypothesis. Therefore, we conclude that there was significant relationship between
leadership skills and employee output at work of non-metallic product manufacturing
firms in South East, Nigeria F(4,20)=13.07771, p< .05.
Hypothesis two: There is significant relationship between managers’ level of education
and operational cost of the non-metallic product manufacturing firms in South East,
Nigeria.
Table 4.5: ANOVA Result for the relationship between managers’ level of education and
operational cost of the non-metallic product manufacturing firms in South East,
Nigeria.
SUMMARY
Groups Count Sum Average Variance
Column 1 5 1925 385 7200
Column 2 5 2022 404.4 36796.8
Column 3 5 126 25.2 74.7
Column 4 5 576 115.2 307.2
Column 5 5 165 33 25
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 706813.4 4 176703.3 19.89737 9.59E-07 2.866081
Within Groups 177614.8 20 8880.74
Total 884428.2 24
Table 4.5 shows a one-way ANOVA result on the relationship between managers’ level of
education and operational cost of the non-metallic product manufacturing firms in
South East, Nigeria. The F-ratio is 19.89737. The computed F-ratio is greater than the table
value of F = 2.866081 with 4,20 degrees of freedom, for a one-factor ANOVA. This value
implied that there was a significant positive relationship between managers’ level of
education and operational cost of the non-metallic product manufacturing firms in
South East, Nigeria.
Decision Rule
The decision rule is to accept the null hypothesis if the computed F-value is less than the
tabulated F, otherwise the null hypothesis should be rejected.
Page 16 of 20
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Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
Decision
Since the computed F = 19.89737 is greater than the table value of 2.866081, we reject the
null hypothesis. Therefore, we conclude that there was significant relationship between
managers’ level of education and operational cost of the non-metallic product
manufacturing firms in South East, Nigeria F(4,20)=19.89737, p< .05.
Hypothesis three: There is significant relationship between training of leaders and team
building/cohesion of non-metallic product manufacturing firms in South East,
Nigeria.
Table 4.6: ANOVA Result on relationship between training of leaders and team
building/cohesion of non-metallic product manufacturing firms in South East, Nigeria.
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Column 1 5 3055611 67255
Column 2 5 2116423.2 40731.2
Column 3 5 120 24 67.5
Column 4 5 484 96.8 73.2
Column 5 5 200 40 734
ANOVA
Source of VariationSS df MS F P-value F crit
Between Groups 1391802 4 347950.615.981435.09E-062.866081
Within Groups 435443.620 21772.18
Total 1827246 24
Table 4.6 shows a one-way ANOVA result on the relationship between training of leaders
and team building/cohesion of non-metallic product manufacturing firms in South
East, Nigeria. The F-ratio is 15.98143. The computed F-ratio is greater than the table value
of F = 2.866081 with 4,20 degrees of freedom, for a one-factor ANOVA. This value implied
that there was a significant positive relationship between training of leaders and team
building/cohesion of non-metallic product manufacturing firms in South East,
Nigeria.
Page 17 of 20
Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
68
URL: http://dx.doi.org/10.14738/abr.93.9808.
Decision Rule
The decision rule is to accept the null hypothesis if the computed F-value is less than the
tabulated F, otherwise the null hypothesis should be rejected.
Decision
Since the computed F = 15.98143 is greater than the table value of 2.866081, we reject the
null hypothesis. Therefore, we conclude that there was significant relationship between
training of leaders and team building/cohesion of non-metallic product
manufacturing firms in South East, Nigeria F(4,20)=15.98143, p< .05.
Discussion of Results (Not premised properly)
The result of Hypothesis one, showed that the calculated F- value of 13.07771 against the
critical F- value of 2.866081 one-way ANOVA test at 95% level of confidence) the null
hypothesis was rejected. Thus the alternate hypothesis was accepted which shows that
there is significant positive relationship between leadership skills and employee output at
work of non-metallic product manufacturing firms in South East, Nigeria. This aligned
with the study by Mkheimer (2018) who conducted a study on the Impact of Leadership
Styles on Business Success: A Case Study on SMEs in Amman noted that Leadership styles
have an essential, direct cause and effect relationship on business success and their
development. He noted that the transformational transactional and charismatic leadership
styles were the most dominant leadership styles in business. The study found that most
companies have same styles of leadership. Based on the results, transactional leadership p
style has a significant positive impact on business success.
A good manager starts with the end in mind, sets a clear definition of success, and then lets
the people find the best way to accomplish the work in the most efficient way possible. In
support of hypotheses two, Geldart (2014) noted that manufacturing firms today need to
be concerned about how to remain competitive, maintain speedy production while
simultaneously avoiding costs from processing.
From the result hypothesis two, comparing the calculated F- value of 19.89737 against the
critical F- value of 2.866081 (one-way ANOVA test at 95% level of confidence) the null
hypothesis was rejected. Thus the alternate hypothesis was accepted which shows that
there was significant positive relationship between managers’ level of education and
operational cost of non-metallic product manufacturing firms in South East, Nigeria.
Madubuko (2018) conducted a study on Leadership Styles as the Predictor of Corporate
Goals Attainment in Selected Manufacturing Organisations in Abia State, Nigeria: The study
noted that the staff in the manufacturing industry tended to prefer participatory leadership
to other forms of leadership approaches. The findings of the study is at variance with
Madubuko (2018). The study indicates that significant positive relationship existed
between leadership skills and employee output at work of non-metallic product
manufacturing firms in South East, Nigeria.
From the result of hypothesis three, comparing the calculated F- value of 15.98143 against
the critical F- value of 2.866081 (one-way ANOVA test at 95% level of confidence), the null
hypothesis was rejected. Thus the alternate hypothesis was accepted which indicated that
Page 18 of 20
69
Archives of Business Research (ABR) Vol 9, Issue 3, March-2021
there was significant relationship between between training of leaders and team
building/cohesion of non-metallic product manufacturing firms in South East,
Nigeria F(4,20)=15.98143, p< .05.
Management matters to organizational performance. Better management practices are
correlated not only with more efficient utilisation of resources but also supportive human
resource management practices which entail human capital formation, conditions and
retention.
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
Summary of Findings
The study had the following findings:
i. There was significant relationship between leadership skills and employee output
at work of non-metallic product manufacturing firms in South East, Nigeria
F(4,20)=13.07771, p< .05.
ii. There was significant relationship between managers’ level of education and
operational cost of the non-metallic product manufacturing firms in South East,
Nigeria F(4,20)=19.89737, p< .05.
There is significant relationship between between training of leaders and team building/cohesion of
non-metallic product manufacturing firms in South East, Nigeria F(4,20)=15.98143, p< .05.
Conclusion
The study showed that leadership was vital for effective organisational performance in
terms of output, efficiency in costs of operation and team building and cohesion. Leaders
create commitment and enthusiasm amongst followers to achieve goals. Leadership
development also expands the capacity of individuals to perform in leadership roles within
organisations. Leadership is achieved through interaction between leader, follower and
environment. Leadership had a strong positive effect on employee performance in which
employee felt power and confidence in doing their job and in making difficult and different
decisions. It was concluded that a non-metallic product firm with functional leadership
development agenda was more likely to improve on its human capital conditions and
performance.
Recommendations
The following recommendations were made:
i. Leaders should stir the emotions and passion of their subordinates, set clear goals,
have high expectations, provide support and recognition and get them to look
beyond self to reach for their personal and organisational goals.
ii. Leaders should be highly educated. This should be done by encouraging leaders to
embark on formal studies through subsidisation of cost of the programmes.
iii. Leadership training should be encouraged to empower employees by developing
teams and according some measure of power and authority to their employees. In
this way, employees would ignite their potentials, feel as part of an organisation and
perform maximally for the organisation.
Page 19 of 20
Orga, C. C., Odo, C. O., & Okeke, D. C. (2021). Evaluating the Relationship Between Leadership Development and Human Capital Condition of
Non-Metallic Product Manufacturing Firms in South East, Nigeria. Archives of Business Research, 9(3). 52-71.
70
URL: http://dx.doi.org/10.14738/abr.93.9808.
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