Management Theory Assignment 1
Management Theory Assignment 1
POSTGRADUATE SCHOOL
FACULTY OF MANAGEMENT SCIENCE
QUESTION:
How does a manager’s leadership philosophy impact the development of organizational culture?
Discuss various leadership styles (transformational, transactional, servant leadership) and their
implications for shaping the culture of organisations. Use case studies to support your discussion.
BY
JANUARY, 2025
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INTRODUCTION
Leadership plays a fundamental role in shaping the culture of an organization, as the values,
beliefs, and actions of leaders directly influence the behaviours, norms, and practices within an
organization (Schein, 2010). The culture of an organization, which includes its shared values,
beliefs, and practices, is a crucial factor for its success and longevity. As organizations grow, the
leadership style adopted by its leaders becomes integral to establishing and nurturing this culture
(Northouse, 2019). Leaders set the tone for communication, decision-making, conflict resolution,
and employee engagement, all of which contribute to an organization's broader cultural identity.
Therefore, leadership is not just about setting strategic directions; it also involves creating an
One of the key elements in understanding leadership’s role in organizational culture is the
concept of leadership philosophy. Leadership philosophy refers to the underlying beliefs and
values that shape a leader’s actions, decisions, and approach to managing their teams (Ciulla,
2004). A leader's philosophy can manifest in different ways, from their approach to motivating
between a leader’s philosophy and the organization’s values is crucial, as it helps in establishing
consistency and trust, both internally and externally (Northouse, 2019). When leaders espouse a
clear and authentic leadership philosophy, it creates a sense of purpose and direction that
The purpose of this assignment is to explore how a manager’s leadership philosophy influences
—and assess their impact on organizational culture. By using case studies of Nigerian
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organizations such as Dangote Group, MTN Nigeria, and Guaranty Trust Bank, this assignment
Leadership philosophy refers to the guiding principles and core beliefs that shape a leader's
encompasses a leader’s values, attitudes, and behaviours, which influence how they interact with
their teams and how they make strategic decisions within the organization (Ciulla, 2004).
Leadership philosophy can be considered the foundation upon which a leader’s actions are based.
It reflects the way a leader perceives their role within the organization, their relationships with
followers, and how they approach challenges and opportunities (Northouse, 2019).
A leader’s beliefs, values, and practices play a crucial role in shaping the culture of an
organization. Beliefs reflect a leader’s fundamental assumptions about people, work, and the
organization’s purpose, while values are the principles they hold dear, such as integrity,
innovation, or collaboration. These beliefs and values guide the leader's decisions, actions, and
expectations of others (Schein, 2010). For instance, a leader who believes in empowerment and
trust will foster a culture of autonomy, respect, and innovation within the organization. Similarly,
leaders who value transparency and open communication will likely create a culture of trust and
Moreover, a leader's practices—their daily actions, communication style, and how they address
demonstrate behaviours aligned with their values, they set a powerful example for employees,
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reinforcing the culture they wish to cultivate (Kotter, 2012). For example, leaders who prioritise
ethical decision-making, fairness, and accountability will influence the organization to adopt
similar values, creating a culture that promotes ethical behaviour and accountability at all levels.
Aligning leadership philosophy with organizational values is critical for long-term success.
When a leader’s philosophy is in harmony with the core values of the organization, it helps build
trust and cohesiveness among employees, making them more likely to commit to the
organization’s mission and vision (Northouse, 2019). This alignment fosters a shared sense of
purpose, which drives employee engagement and productivity. Furthermore, a leader’s alignment
with organizational values helps to sustain a positive organizational culture, especially during
times of change or crisis (Schein, 2010). When employees perceive that leadership decisions
reflect the values they hold important, it strengthens their commitment and supports long-term
LEADERSHIP STYLES
Transformational Leadership
followers to achieve exceptional outcomes by aligning the organization’s goals with employees'
values and personal aspirations. Transformational leaders act as role models, stimulate
innovation, and encourage a culture of collaboration, which ultimately leads to both individual
and organizational growth (Bass & Riggio, 2006). These leaders are characterized by their ability
to create a shared vision and motivate followers to transcend their own self-interests for the
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creativity, empowerment, and personal development are encouraged, transformational leadership
Transformational leaders empower their teams to challenge the status quo and explore new ideas
(Bass, 1990). Furthermore, this leadership style is known for boosting employee motivation by
creating a sense of purpose and belonging. Employees who are motivated by a transformational
leader are more likely to engage with their work, leading to higher productivity and satisfaction
(Judge & Piccolo, 2004). Lastly, transformational leadership facilitates positive organizational
change by inspiring commitment to organizational goals and values, thereby enhancing the
the Dangote Group. Under Dangote’s visionary leadership, the company has seen rapid growth
and diversification, establishing itself as one of Africa’s largest conglomerates. Dangote’s ability
to inspire innovation, instil a culture of excellence, and align his organization’s goals with those
of his employees has created a dynamic organizational culture that drives continuous
Transactional Leadership
Transactional leadership is a leadership style that focuses on maintaining stability, order, and
leaders set clear goals and expectations, offering rewards for performance and enforcing
penalties for non-compliance (Bass, 1985). This leadership style is primarily focused on
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achieving short-term objectives and ensuring that employees adhere to established norms and
The role of transactional leadership in maintaining consistency and reinforcing the existing
organizational culture is significant. Transactional leaders ensure that employees meet specific
performance standards and follow procedures that align with organizational norms. By rewarding
good performance and addressing deviations, transactional leadership helps in reinforcing the
current organizational culture and achieving short-term goals (Bass, 1985). This style is
especially useful in industries where operational efficiency and strict adherence to rules are
MTN Nigeria provides a strong case of transactional leadership, where a focus on performance
management and meeting key performance indicators (KPIs) has been central to the company’s
success. MTN Nigeria’s leadership has been known for maintaining strict performance metrics
and offering rewards based on performance, which has contributed to the company’s growth and
its ability to meet targets consistently (Oyelaran-Oyeyinka & Mbakogu, 2017). This approach
has shaped a culture of high accountability and operational excellence within the organization,
Servant Leadership
Servant leadership is a leadership style that prioritizes the well-being of employees, encouraging
leaders to serve their teams rather than focus solely on their own power and success. This
leadership style emphasizes collaboration, empathy, and the development of employees, creating
a culture that values mutual respect, trust, and empowerment (Greenleaf, 1977). Servant leaders
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aim to support their followers, providing them with the resources, guidance, and opportunities
they need to succeed (Spears, 2004). This approach fosters a supportive and inclusive
organizational culture that leads to higher employee engagement, satisfaction, and retention.
significantly impacts organizational culture. Servant leaders are committed to the personal and
professional development of their employees, which helps create an environment where people
feel valued and motivated to contribute to the organization’s success (Liden et al., 2014). This
A prime example of servant leadership in Nigeria is the leadership of Segun Agbaje at Guaranty
Trust Bank (GTB). Agbaje’s leadership has focused on creating an inclusive and supportive
culture at GTB, where employees are empowered to take ownership of their roles and contribute
to the bank’s success. Under his leadership, GTB has maintained a strong focus on employee
satisfaction and professional development, which has led to high levels of employee engagement
and a culture of collaboration within the organization (Akinbo, 2018). This servant leadership
approach has played a crucial role in GTB’s continued success and reputation as one of Nigeria’s
influencing the behaviors, values, and norms within an organization. The unique socio-economic,
political, and cultural landscape of Nigeria creates both opportunities and challenges for leaders
to shape the culture of their organizations. Understanding how different leadership styles—
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transformational, transactional, and servant leadership—affect organizational culture is crucial
for Nigerian managers and leaders, as these styles help to drive employee engagement,
and change are needed to address the challenges posed by rapid economic growth and societal
1990). This leadership style influences organizational culture by promoting a shared vision that
aligns individual and organizational values. Leaders like Aliko Dangote of Dangote Group have
on innovation, strategic foresight, and social responsibility (Ogunyemi, 2020). This culture not
only helps organizations adapt to changes in the business environment but also boosts employee
motivation and commitment to organizational goals (Bass & Riggio, 2006). In Nigerian
empowerment, all of which are essential for fostering a dynamic and adaptable organizational
culture.
and this leadership style has significant implications for shaping organizational culture in
Nigeria, particularly in industries where stability and performance are essential. Transactional
leaders rely on rewards and punishments to enforce compliance with organizational rules and
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norms, which helps in reinforcing a culture of discipline and accountability (Bass, 1985). This
leadership style is particularly suitable for Nigerian organizations that operate in sectors where
MTN Nigeria’s transactional approach has helped maintain a consistent and efficient
organizational culture, where performance is measured through clear metrics and rewards are
tied to individual and team achievements. The transactional leadership style in such
Servant leadership, which emphasizes serving employees and fostering a supportive work
Servant leaders in Nigeria, such as Segun Agbaje of Guaranty Trust Bank (GTB), focus on
creating a culture of inclusivity, trust, and empowerment, where employees are viewed as
valuable stakeholders (Akinbo, 2018). Servant leadership leads to higher levels of employee
satisfaction and engagement because it fosters a sense of belonging and respect within the
workplace (Liden et al., 2014). This leadership style also encourages ethical behaviour and social
on the needs of employees and fostering collaboration, servant leaders help to build a culture that
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Challenges Faced by Nigerian Leaders in Aligning Leadership Philosophy with
Organizational Culture
While leadership styles can have a profound impact on organizational culture, Nigerian leaders
face several challenges when trying to align their leadership philosophy with the desired
organizational culture. One of the primary challenges is navigating the complex cultural and
socio-economic context of Nigeria, which includes issues such as ethnic diversity, economic
inequality, and political instability (Harrison, 2000). These factors can create divergent
expectations among employees, making it difficult for leaders to implement a unified cultural
Another challenge is the resistance to change that many Nigerian leaders encounter, particularly
in organizations with established cultures. Employees may be resistant to adopting new ways of
thinking or working, especially when those changes conflict with existing norms and practices
may face pushback from employees accustomed to a more hierarchical or transactional style of
leadership.
Furthermore, there is often a disconnect between the leadership philosophy at the top and the
day-to-day practices at the grassroots level. In many Nigerian organizations, the leadership style
may be dictated by external pressures, such as the need for financial performance or the desire to
comply with government regulations, rather than by a genuine alignment between leadership
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Lastly, the challenge of leadership continuity is also significant. In Nigeria, organizational
leadership is often subject to change due to political or business shifts, and this can disrupt the
development of a cohesive organizational culture (Mabogunje, 2015). A new leader may bring a
different leadership style that conflicts with the existing organizational culture, leading to
Aliko Dangote, the founder and chairman of Dangote Group, is widely recognised for his
transformational leadership style, which has played a pivotal role in shaping the company’s
excellence, and social responsibility, values that have become ingrained in the culture of the
Dangote Group. His leadership style has not only transformed the company but also influenced
the broader Nigerian business landscape, positioning Dangote Group as one of Africa’s largest
Under Dangote’s leadership, the company has developed a culture that encourages innovation
and long-term strategic planning. Dangote’s focus on expanding beyond the traditional sectors,
such as cement and sugar, into industries like petrochemicals and agriculture, highlights his
commitment to innovation and sustainable growth (Ogunyemi, 2020). His ability to inspire his
employees and align them with the organization’s mission of creating value for stakeholders has
also fostered an environment where employees are motivated to go beyond their duties and
contribute to the company’s long-term success. This has been particularly evident in the
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company’s focus on improving local production capacities, which aligns with Nigeria’s broader
profound. By providing employees with a sense of purpose and actively involving them in the
company’s mission of driving Africa’s industrialization, Dangote has created a highly engaged
workforce. The company’s growth, both in Nigeria and internationally, has been a direct result of
the positive organizational culture Dangote has cultivated, which prioritises excellence,
accountability, and social responsibility. This culture has not only contributed to the company’s
expansion but also positioned Dangote Group as a leader in corporate social responsibility, with
MTN Nigeria, part of the South African telecommunications giant MTN Group, is another
example of how a transactional leadership style has shaped organizational culture. Transactional
leadership focuses on maintaining order and efficiency through a system of rewards and
punishments based on performance (Bass, 1985). MTN Nigeria has employed this leadership
MTN Nigeria’s focus on transactional leadership has helped build a culture of efficiency and
discipline, where employees are expected to meet set targets and are rewarded based on their
performance. This approach has been instrumental in maintaining operational excellence within
clear performance indicators and offering incentives such as bonuses and promotions for meeting
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or exceeding targets, MTN Nigeria has been able to maintain high levels of productivity and
ensure that employees are aligned with the company's strategic goals (Oyelaran-Oyeyinka &
Mbakogu, 2017).
MTN Nigeria’s leadership style has played a significant role in its success within the Nigerian
telecom industry. As one of the market leaders, MTN’s commitment to operational efficiency and
customer satisfaction has allowed it to achieve consistent growth and remain competitive despite
the challenges of the Nigerian market. The company’s ability to hold employees accountable for
their performance, while rewarding those who contribute to its growth, has reinforced a culture
of discipline and high performance that has directly contributed to its expansion and success in
Guaranty Trust Bank (GTB) under Segun Agbaje’s leadership offers an exemplary case of how
servant leadership can foster a culture of collaboration, customer care, and employee well-being.
Servant leadership prioritises the needs of employees and focuses on empowering them to
perform at their best, creating an environment where collaboration and mutual respect are valued
(Greenleaf, 1977). Agbaje’s leadership style has significantly shaped GTB’s organizational
culture, making it one of the most respected and successful banks in Nigeria.
Agbaje has embraced the principles of servant leadership by focusing on the development of
employees and creating a work environment that promotes personal and professional growth.
This has led to high levels of employee satisfaction, as GTB’s culture emphasises trust, open
communication, and empowerment. Employees are encouraged to take ownership of their roles,
collaborate with colleagues across departments, and prioritise customer needs, which has directly
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influenced the bank's ability to maintain strong customer loyalty and satisfaction (Spears, 2004).
GTB’s emphasis on servant leadership is also reflected in the bank's focus on ethical practices,
social responsibility, and community development, which has further strengthened its
organizational culture.
The culture of collaboration and mutual respect fostered by servant leadership has translated into
high levels of customer loyalty. GTB has consistently ranked among the top banks in Nigeria in
terms of customer service, and its commitment to ethical banking practices has made it a trusted
institution for both retail and corporate customers. This emphasis on servant leadership has
allowed the bank to maintain its competitive edge in the Nigerian banking sector, even as the
industry faces increasing competition and regulatory challenges (Akinbo, 2018). The leadership
style has also contributed to a positive work environment, where employees feel valued and are
In the Nigerian business context, the leadership styles of Dangote Group, MTN Nigeria, and
Guaranty Trust Bank (GTB) demonstrate how different approaches to leadership can influence
organizational culture, employee performance, and overall business success. By comparing the
transformational leadership of Dangote Group, the transactional leadership of MTN Nigeria, and
the servant leadership at GTB, we can better understand how these styles are adapted to Nigeria's
inspire a shared vision and create a culture of innovation and excellence (Ogunyemi, 2020). This
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approach has enabled Dangote Group to expand rapidly, diversifying into industries such as
cement, sugar, and petrochemicals. The emphasis on long-term growth and value creation has
been critical in aligning the company’s goals with the broader economic development of Nigeria,
2017). MTN’s transactional leadership model, based on rewards and penalties, fosters a culture
of efficiency and accountability. This approach is especially important in the highly competitive
telecommunications industry, where meeting key performance indicators (KPIs) and maintaining
GTB, under Segun Agbaje’s leadership, embodies servant leadership principles, focusing on
employee well-being, collaboration, and ethical business practices (Spears, 2004). GTB’s
leadership style prioritises serving employees and customers, cultivating a culture of inclusivity
and mutual respect. This approach has contributed to high levels of employee satisfaction and
customer loyalty, making GTB one of the most trusted banks in Nigeria.
The effectiveness of each leadership style in the Nigerian context depends largely on the industry
and corporate social responsibility in Africa. The Nigerian economy, which is heavily reliant on
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sectors such as manufacturing and infrastructure, benefits from a leadership style that focuses on
For sectors where performance and operational efficiency are critical, such as
achieving KPIs and rewarding employees based on performance aligns with the demands of the
telecommunications industry, where market share, customer retention, and profitability are key.
In Nigeria’s competitive telecom market, where consistency and meeting performance targets are
paramount, a transactional leadership style helps maintain discipline, drive short-term results,
and reinforce the desired organisational culture (Oyelaran-Oyeyinka & Mbakogu, 2017).
Servant leadership, as exemplified by GTB, is highly effective in industries like banking, where
customer service, employee well-being, and ethical business practices are crucial for long-term
success. In the Nigerian banking sector, where trust and customer loyalty are key drivers of
success, GTB’s servant leadership has fostered a culture of collaboration, customer care, and
social responsibility. This approach has not only helped GTB build strong customer relationships
but also contributed to high employee engagement and satisfaction (Spears, 2004).
Nigerian Organizations
Transformational Leadership
Strengths:
Fosters a culture of innovation and strategic growth, which is essential for organizations
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Inspires high levels of employee engagement, as it aligns personal and organizational
goals, motivating employees to perform beyond expectations (Bass & Riggio, 2006).
Encourages creativity and risk-taking, which is essential for success in sectors such as
Weaknesses:
May take longer to see immediate results, as transformational leadership focuses on long-
Requires leaders with high emotional intelligence and visionary capabilities, which may
Transactional Leadership
Strengths:
Provides clear structure and expectations, which is essential in industries that require high
Mbakogu, 2017).
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Weaknesses:
May stifle creativity and innovation, as employees may focus solely on meeting set
Can lead to employee dissatisfaction if rewards are not perceived as fair or if the focus on
May not foster long-term loyalty or engagement, as employees might feel they are only
valued for their output rather than their overall contribution to the company’s vision.
Servant Leadership
Strengths:
Creates a strong sense of community and trust within the organization, enhancing
Promotes ethical behaviour and social responsibility, which are crucial in industries like
banking where corporate integrity is essential for reputation and long-term success
(Spears, 2004).
needs, which contributes to high retention rates and a positive workplace culture.
Weaknesses:
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Can be difficult to implement in organizations where a top-down approach to leadership
is the norm.
Conclusion
innovation, excellence, and long-term strategic growth, enabling the company to become a leader
performance-based rewards and accountability, has created a culture of efficiency and discipline,
which has been instrumental in its success in the highly competitive telecommunications sector.
In contrast, Guaranty Trust Bank (GTB), under Segun Agbaje’s servant leadership, has built a
culture of collaboration, ethical practices, and employee well-being, leading to high levels of
A leader’s beliefs, values, and actions are foundational in determining how employees engage
with their work, how organizational goals are pursued, and how the values of the company are
expressed in everyday practices. In the Nigerian context, where the business environment is
dynamic and challenging, it is crucial for leaders to understand the impact of their leadership
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leadership, the right leadership philosophy can empower employees, foster a positive work
For Nigerian managers, it is essential to choose and implement leadership styles that are aligned
with both organizational goals and the expectations of their employees. Transformational
leadership is highly effective in industries where long-term growth, innovation, and change are
key, while transactional leadership works well in environments that require high performance
and consistency. Servant leadership is particularly beneficial in sectors that rely on customer
service, ethical practices, and employee development. Nigerian managers should strive for
flexibility in their leadership approach, adapting to the needs of their organization and workforce.
By being mindful of their leadership philosophy, managers can cultivate a culture that promotes
engagement, loyalty, and sustainable growth, ultimately contributing to the success of their
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References
Akinbo, K. (2018). Leadership in the Nigerian banking sector: A case study of Guaranty Trust
Bank. Journal of Business Management, 12(2), 85-101.
Bass, B. M., & Riggio, R. E. (2006). Transformational leadership (2nd ed.). Lawrence Erlbaum.
Greenleaf, R. K. (1977). Servant leadership: A journey into the nature of legitimate power and
greatness. Paulist Press.
Judge, T. A., & Piccolo, R. F. (2004). Transformational and transactional leadership: A meta-
analytic test of their relative validity. Journal of Applied Psychology, 89(5), 755-768.
Liden, R. C., Panaccio, A., Meuser, J. D., Hu, J., & Wayne, S. J. (2014). Servant leadership:
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leadership and organizations (pp. 357-379). Oxford University Press.
Northouse, P. G. (2019). Leadership: Theory and practice (8th ed.). Sage Publications.
Ogunyemi, O. (2020). Corporate governance in Nigeria: A study of the Dangote Group. Journal
of African Business Studies, 14(1), 55-70.
Spears, L. C. (2004). Servant leadership: A journey into the nature of legitimate power and
greatness. Paulist Press.
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