Do Leadership Structure and Team Trust Drive Organisational Performance? Empirical Approach

Abstract

Purpose: Over the years, manufacturing firms have struggled to achieve maximum productivity because such organizations lack good leadership, work-team, and persons with the team leading skills to lead work-teams. The problem of leadership structure of work-teams in most Nigerian firms was the motivating factor for this research. Thus, the aim of this paper is to assess the effect of team trust and leadership structure on performance of manufacturing firms in Niger Delta Region of Nigeria. Theoretical Framework: The theoretical framework is hinged on Self-Leadership Theory, which focused on participatory decision making, individual discretion and team work as important motivating factor and suggestions that will lead more committed employees who strive for greater efficiency and effectiveness. Design/Methods/Approach: Two specifics objectives are considered; the first being team trust and the other being leadership structure. Using a descriptive survey research design, 534 respondents in nine states in Nigeria were examined to obtain their perceptions. Findings: The results of the analysis indicated that the performance of manufacturing firms is dependent on team-work. In other words, acceptable and planned team-building had direct relationship with performance of firms. Research, Practical and Social Implication: The study shows that team trust and leadership structure are major drivers of organizational performance. Originality/Value: The value of the study is vital to manufacturing firms such that top management are advised to create teams whereby members should create increased trust among themselves by communicating openly and avoiding activities purely out of self-interest and reciprocating help from team mates for better results in manufacturing industries.