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.

Modeling team performance from the perspective of politics and ethical leadership

“…Politics and ethical leadership represent critical political and ethical exertion of power that can deviate or improve the development of team performance (e.g. Dickson et al, 2001;Drory, 1993;Gronn and Rawlings-Sanaei, 2003;Kacmar et al, 2011;Omoijiade, 2014). Indeed, as leaders are by nature in a position of social power, ethical leadership reveals how they use such power for the team's decisions they make, the team's activities they engage in and the ways they inspire others on the team (Resick et al, 2006).…”

The Management of Political Actors in Institutions

“…When such a political actor's claim is urgent, the leadership has a clear and immediate mandate to attend to such a claim. For example, in 2012, the principal managers and Senior managers in Union Bank of Nigeria Plc who were dependent political actors became active members of the Association of Senior Staff of Banks, Insurance and Financial Institutions in order to acquire power with a view to becoming definitive political actors (Omoijiade, 2015). We can also observe an example of political actor's salience dynamism in street fighters, maneuvers and enemies (Area 1: Power).…”

Outflankers or outflanked? Investigating the concept of organizational outflanking through power, its forms, levels and practise

“…It is argued that organizational outflanking, therefore, explains why obedience amongst the masses occurs, or why compliance dominates over revolt (Clegg, 1989), as they are bounded by powerful organizations or as people who have advantages or resources can eliminate resistance from those who have few resources. Power relations balanced in favour of the outflankers, as opposed to the outflanked (Omoijiade, 2014;Omoijiade and N'Egoro, 2014). Such a conception of organizational outflanking appears to indicate that the direction of outflanking occurs from the managers to the subordinates or from the higher ranking within an organization to those below.…”

“…Powerlessness from outflanking can therefore result from a lack of knowledge of the outflanked, but it may also result from individuals who have knowledge not being able to free themselves from outflanking, or from conscious submission to organizational outflanking (Omoijiade, 2014). Whilst some people may have the knowledge, for example, they may be prevented from using it and be aware that they are being outflanked because of the price of resistance to outflanking, and thus the 'costs' (Douglas, 2016;Stör, 2017).…”