The Impact of Corporate Governance and Organizational Politics on Leadership Effectiveness/Ineffectiveness in the Nigerian Banking Sector

Abstract

This study aims at examining the impact of organizational politics and corporate governance on leadership effectiveness/ineffectiveness in the Nigerian banking sector. This study culminates in the building of organizational politics, corporate governance and leadership effectiveness/ineffectiveness and good corporate performance/poor corporate performance model. While good corporate governance elements will enhance good corporate performance, poor corporate governance elements will impair leadership effectiveness and hence poor corporate performance. In this study, I found that as a result of crime of obedience, those who occupy sensitive positions who are products of distributed advantages/disadvantages only serve the interest of their principals. Thus, the objective of monitoring, independence and control instituted for the enhancement of corporate governance are subverted. Although the crime of obedience is within the rubrics of organizational politics, it is found in this study as a catalyst which triggers/acts on the elements in corporate governance. The enhancement of good corporate governance in the Nigerian banking sector cannot be dependent on self-equilibrating mechanism. To mitigate the harsh effect of organizational politics and enhance the elements of monitoring, independence and control in corporate governance, employees and their representatives must be allowed to exist to constrain the ability of the leadership to act arbitrarily. The attainment of this goal and a synergy between employees and their representatives and strong private sector empowerment regulation will enhance effective corporate governance in banks. This study reflects the stance of interpretivism. Interpretevists are more liable in using action research. The adoption of action research is predicated on this premise. Although interpretivism is weak on ground of subjectivity, the strongest argument of the interpretivist is the necessity to discover the details of the situation and understand the reality working behind them. This research will create the needed understanding of the extent to which organizational politics is a determinant of corporate governance configuration and hence leadership effectiveness/ ineffectiveness in the Nigerian banking sector.