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Management Theory Assignment 1

The document discusses how a manager's leadership philosophy influences organizational culture, focusing on three leadership styles: transformational, transactional, and servant leadership. It uses case studies from Nigerian organizations like Dangote Group, MTN Nigeria, and Guaranty Trust Bank to illustrate the impact of these styles on culture and employee engagement. The challenges faced by Nigerian leaders in aligning their leadership philosophy with organizational culture are also highlighted.

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0% found this document useful (0 votes)
45 views21 pages

Management Theory Assignment 1

The document discusses how a manager's leadership philosophy influences organizational culture, focusing on three leadership styles: transformational, transactional, and servant leadership. It uses case studies from Nigerian organizations like Dangote Group, MTN Nigeria, and Guaranty Trust Bank to illustrate the impact of these styles on culture and employee engagement. The challenges faced by Nigerian leaders in aligning their leadership philosophy with organizational culture are also highlighted.

Uploaded by

paul.aleyomi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NIGERIAN DEFENCE ACADEMY

POSTGRADUATE SCHOOL
FACULTY OF MANAGEMENT SCIENCE

COURSE CODE: MPL 811


COURSE TITLE: MANAGEMENT THEORY

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

ASMAU ABUBAKAR SAAD


NDA/PGS/DLC/FMS/MPMGTSCI/138/24

LECTURER: PROFESSOR FARUQ

JANUARY, 2025

0
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

environment that fosters the desired cultural values (Kotter, 2012).

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

employees to their decision-making processes and communication strategies. The alignment

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

permeates the organizational culture (Schein, 2010).

The purpose of this assignment is to explore how a manager’s leadership philosophy influences

the development of organizational culture. Specifically, it will examine three prominent

leadership styles—transformational leadership, transactional leadership, and servant leadership

—and assess their impact on organizational culture. By using case studies of Nigerian

1
organizations such as Dangote Group, MTN Nigeria, and Guaranty Trust Bank, this assignment

will demonstrate how different leadership philosophies contribute to shaping organizational

culture and achieving organizational objectives.

CONCEPT OF LEADERSHIP PHILOSOPHY

Leadership philosophy refers to the guiding principles and core beliefs that shape a leader's

approach to managing people, making decisions, and achieving organizational goals. It

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

collaboration, where employees feel free to share ideas and concerns.

Moreover, a leader's practices—their daily actions, communication style, and how they address

challenges—directly influence the organizational environment. When leaders consistently

demonstrate behaviours aligned with their values, they set a powerful example for employees,

2
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

success by ensuring the organization’s culture remains intact.

LEADERSHIP STYLES

Transformational Leadership

Transformational leadership is a leadership style that focuses on inspiring and motivating

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

greater good of the organization (Northouse, 2019). By fostering an environment where

3
creativity, empowerment, and personal development are encouraged, transformational leadership

can lead to profound changes in organizational culture.

The impact of transformational leadership on organizational culture is far-reaching. First, it

fosters innovation by encouraging employees to think creatively and embrace change.

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

overall culture of the organization (Bass & Avolio, 1994).

A notable example of transformational leadership in Nigeria is the leadership of Aliko Dangote at

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

improvement and global competitiveness (Ogunyemi, 2020).

Transactional Leadership

Transactional leadership is a leadership style that focuses on maintaining stability, order, and

efficiency within an organization through a system of rewards and punishments. Transactional

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

4
achieving short-term objectives and ensuring that employees adhere to established norms and

procedures. It is effective in environments where routine tasks, consistency, and adherence to

standards are crucial (Northouse, 2019).

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

essential for success (Judge & Piccolo, 2004).

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,

where employees are motivated by clear rewards tied to measurable outcomes.

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.

The emphasis of servant leadership on serving employees and fostering collaboration

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

leadership style is associated with a culture of empowerment and shared decision-making, as

employees are encouraged to take initiative and contribute their ideas.

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

most customer-focused banks.

IMPLICATIONS FOR SHAPING ORGANIZATIONAL CULTURE

In the Nigerian context, leadership styles significantly impact organizational culture by

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,

innovation, and alignment with organizational goals.

Transformational Leadership and Organizational Culture in Nigeria

Transformational leadership is particularly effective in the Nigerian context, where innovation

and change are needed to address the challenges posed by rapid economic growth and societal

changes. Transformational leaders in Nigeria can foster a culture of innovation by encouraging

employees to think beyond traditional boundaries and contribute to problem-solving (Bass,

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

successfully implemented transformational leadership, creating a corporate culture that thrives

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

organizations, transformational leaders encourage open communication, participation, and

empowerment, all of which are essential for fostering a dynamic and adaptable organizational

culture.

Transactional Leadership and Organizational Culture in Nigeria

Transactional leadership focuses on maintaining consistency, order, and operational efficiency,

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

7
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

strict adherence to performance standards and procedures is required, such as

telecommunications and manufacturing (Oyelaran-Oyeyinka & Mbakogu, 2017). For instance,

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

organizations reinforces a culture of accountability, efficiency, and goal orientation, which is

critical for maintaining operational success in a competitive market.

Servant Leadership and Organizational Culture in Nigeria

Servant leadership, which emphasizes serving employees and fostering a supportive work

environment, is gaining traction in Nigerian organizations. This leadership style influences

organizational culture by prioritizing employee well-being, collaboration, and mutual respect.

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

responsibility, both of which contribute to creating a positive organizational culture. By focusing

on the needs of employees and fostering collaboration, servant leaders help to build a culture that

values teamwork, loyalty, and long-term growth.

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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

vision across the organization.

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

(Schein, 2010). Leaders attempting to introduce transformational or servant leadership 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

philosophy and organizational culture (Oyelaran-Oyeyinka & Mbakogu, 2017). This

misalignment can result in a lack of coherence in organizational behaviour, undermining efforts

to foster a positive culture.

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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

confusion and instability within the workforce.

CASE STUDIES OF NIGERIAN ORGANIZATIONS

Dangote Group and Transformational Leadership

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

success and organizational culture. Dangote’s approach to leadership emphasises innovation,

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

and most successful conglomerates (Ogunyemi, 2020).

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

economic development goals (Bass & Riggio, 2006).

The impact of Dangote’s transformational leadership on employee engagement has been

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

numerous initiatives in education, healthcare, and poverty alleviation (Ogunyemi, 2020).

MTN Nigeria and Transactional Leadership

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

style effectively, particularly through performance-based rewards and accountability mechanisms

that promote consistency and high performance across the company.

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

the organization, especially in a highly competitive sector like telecommunications. By setting

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

the region (Oyelaran-Oyeyinka & Mbakogu, 2017).

Guaranty Trust Bank (GTB) and Servant Leadership

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

motivated to contribute to the bank’s continued success.

COMPARISON OF LEADERSHIP STYLES IN THE NIGERIAN CONTEXT

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

unique economic, social, and cultural challenges.

Comparing Leadership Styles of Dangote Group, MTN Nigeria, and GTB

Aliko Dangote’s transformational leadership at Dangote Group is characterised by his ability to

inspire a shared vision and create a culture of innovation and excellence (Ogunyemi, 2020). This

13
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,

particularly in the industrial sector (Bass & Riggio, 2006).

In contrast, MTN Nigeria’s leadership is primarily transactional, with a strong focus on

performance management and achieving short-term targets (Oyelaran-Oyeyinka & Mbakogu,

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

operational excellence are crucial for success.

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.

Effectiveness of Leadership Styles in the Nigerian Context

The effectiveness of each leadership style in the Nigerian context depends largely on the industry

characteristics, organizational goals, and employee expectations. In Nigeria’s rapidly evolving

business environment, transformational leadership is highly effective in industries that require

innovation, long-term growth, and market diversification. Aliko Dangote’s transformational

leadership has been instrumental in positioning Dangote Group as a leader in industrialisation

and corporate social responsibility in Africa. The Nigerian economy, which is heavily reliant on

14
sectors such as manufacturing and infrastructure, benefits from a leadership style that focuses on

strategic vision, innovation, and sustainable growth (Ogunyemi, 2020).

For sectors where performance and operational efficiency are critical, such as

telecommunications, transactional leadership is particularly effective. MTN Nigeria’s focus on

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).

Strengths and Weaknesses of Transformational, Transactional, and Servant Leadership in

Nigerian Organizations

Transformational Leadership

Strengths:

 Fosters a culture of innovation and strategic growth, which is essential for organizations

in industries that require constant adaptation and long-term planning.

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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

manufacturing, infrastructure, and technology (Ogunyemi, 2020).

Weaknesses:

 Can be challenging to implement in organizations where employees are more accustomed

to a hierarchical or transactional approach.

 May take longer to see immediate results, as transformational leadership focuses on long-

term change and growth (Bass, 1990).

 Requires leaders with high emotional intelligence and visionary capabilities, which may

not always be present in all Nigerian organizations.

Transactional Leadership

Strengths:

 Provides clear structure and expectations, which is essential in industries that require high

levels of efficiency and discipline, such as telecommunications (Oyelaran-Oyeyinka &

Mbakogu, 2017).

 Ensures consistent performance by rewarding and penalising employees based on their

results, creating a clear system of accountability.

 Effective in achieving short-term goals, making it a suitable leadership style for

organizations facing tight deadlines or financial targets.

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Weaknesses:

 May stifle creativity and innovation, as employees may focus solely on meeting set

targets rather than thinking outside the box (Bass, 1985).

 Can lead to employee dissatisfaction if rewards are not perceived as fair or if the focus on

performance leads to burnout.

 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

collaboration, employee satisfaction, and customer loyalty (Liden et al., 2014).

 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).

 Improves employee well-being by focusing on their development and supporting their

needs, which contributes to high retention rates and a positive workplace culture.

Weaknesses:

 May be perceived as too idealistic or soft, especially in high-pressure environments

where quick decision-making and a results-oriented approach are needed.

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 Can be difficult to implement in organizations where a top-down approach to leadership

is the norm.

 Might be less effective in organizations that do not have a well-established culture of

collaboration or customer care.

Conclusion

In this discussion, we have explored how different leadership styles—transformational,

transactional, and servant leadership—shape the organizational culture of Nigerian companies.

Aliko Dangote’s transformational leadership at Dangote Group has fostered a culture of

innovation, excellence, and long-term strategic growth, enabling the company to become a leader

in industrialisation across Africa. MTN Nigeria’s transactional leadership, focusing on

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

customer loyalty and employee satisfaction in the Nigerian banking sector.

The importance of leadership philosophy in shaping organizational culture cannot be overstated.

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

style on organizational culture. Whether it is transformational, transactional, or servant

18
leadership, the right leadership philosophy can empower employees, foster a positive work

environment, and drive organizational success.

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

organization in an increasingly competitive market.

19
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