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THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEE MOTIVATION (CASE STUDY: CADBURY PLC)

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THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEE MOTIVATION (CASE STUDY: CADBURY PLC)

Abstract
This study examines the impact of leadership styles on employee motivation, focusing on Cadbury Nigeria PLC as a case study within the Nigerian food and beverage sector. Transformational, transactional, autocratic, democratic, and laissez-faire leadership approaches are analyzed in relation to their effects on employee engagement, job satisfaction, and organizational performance. Using a mixed-methods design incorporating surveys, interviews, and secondary data analysis, the research explores how these styles operate in a corporate environment facing challenges such as economic volatility, cultural diversity, and technological advancements. The findings suggest that adaptive and inspirational leadership enhances motivation, thereby improving retention, innovation, and productivity. Additionally, the study identifies barriers like resistance to change and leadership-employee expectation gaps, proposing evidence-based strategies to optimize motivational frameworks. This research contributes to leadership and motivation theory while offering practical insights for human resource management in manufacturing sectors, particularly in emerging economies like Nigeria, where socio-economic factors influence workforce dynamics.

CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
Leadership style is a fundamental determinant of organizational success, as it directly influences how employees perceive their roles, engage with their work, and contribute to collective goals. In modern organizations, leaders employ diverse styles to navigate complex environments, with transformational leadership emphasizing inspiration, intellectual stimulation, and individualized consideration to cultivate a motivated workforce. Recent research underscores that transformational leadership positively correlates with heightened employee motivation by fostering a sense of empowerment and purpose, particularly in dynamic sectors (De Guzman et al., 2025). This style encourages employees to transcend their self-interests for the greater good of the organization, leading to enhanced creativity and commitment.

Conversely, transactional leadership relies on structured exchanges, such as rewards for performance and corrective actions for deviations, which can effectively maintain motivation in routine-oriented tasks but may fall short in inspiring long-term loyalty. Studies indicate that while transactional approaches provide clear expectations and immediate incentives, they often result in extrinsic motivation that wanes without continual reinforcement (Wickramasinghe & Weerasinghe, 2025). Laissez-faire leadership, characterized by minimal intervention, can demotivate employees by creating ambiguity and a lack of direction, especially in high-stakes industries where guidance is crucial.

In the Nigerian context, where economic instability, cultural heterogeneity, and competitive pressures prevail, leadership styles must be adaptable to sustain employee motivation. For instance, in manufacturing firms like Cadbury Nigeria PLC, a prominent player in the confectionery and beverage market as part of Mondelez International, effective leadership is vital for addressing workforce challenges such as skill gaps and high turnover. Scholarly investigations reveal that leadership styles significantly mediate employee motivation through factors like organizational culture and work environment, with positive styles enhancing productivity and job satisfaction (Athapaththu & Rebecca, 2025). Moreover, in multigenerational workforces, transformational leadership has been shown to boost motivation among younger employees by aligning with their values of autonomy and growth (Ibrahim et al., 2022; Xu et al., 2025).

1.2 Statement of the Problem
Organizations worldwide, including those in Nigeria’s manufacturing sector, face challenges related to declining employee motivation, which manifests in reduced productivity, elevated absenteeism, and increased attrition rates. At Cadbury Nigeria PLC, preliminary observations suggest that varying leadership styles may exacerbate these issues, with some approaches failing to align with employees’ intrinsic needs amid economic hardships and workplace stress. For example, laissez-faire leadership often leads to disengagement due to insufficient feedback and support, resulting in diminished organizational commitment (De Guzman et al., 2025). This issue is further aggravated in environments where employees contend with external pressures such as inflation and job insecurity, making motivational deficits a significant obstacle to performance.

Additionally, mismatched leadership styles can impede innovation and collaboration, particularly in team-based settings. Research indicates that autocratic leadership, while effective in crisis management, adversely affects long-term motivation by restricting employee participation and fostering resentment (Alrowwad et al., 2025). In Cadbury’s context, where product development and market adaptation depend on engaged teams, such leadership approaches may contribute to operational stagnation. Furthermore, the lack of motivational incentives linked to leadership practices contributes to burnout, particularly among frontline workers in production facilities.

The mediating role of work environment and culture in intensifying these challenges, where ineffective leadership undermines trust and morale (Athapaththu & Rebecca, 2025; Wickramasinghe & Weerasinghe, 2025). In Nigeria, cultural factors such as hierarchical traditions may conflict with contemporary motivational expectations, leading to employee dissatisfaction. Without targeted interventions, firms like Cadbury risk losing skilled personnel to competitors, thereby compromising their market competitiveness. This study seeks to address these gaps by examining the impact of leadership on motivation at Cadbury Nigeria PLC, with the goal of identifying underlying causes and proposing strategies to improve workforce engagement and organizational resilience.

1.3 Objectives of the Study

  1. Examine the leadership styles adopted at Cadbury Nigeria PLC.
  2. Assess the level of employee motivation at Cadbury Nigeria PLC.
  3. Determine the impact of leadership styles on employee motivation at Cadbury Nigeria PLC.

1.4 Research Questions

  1. What are the leadership styles adopted at Cadbury Nigeria PLC?
  2. What is the level of employee motivation at Cadbury Nigeria PLC?
  3. What is the impact of leadership styles on employee motivation at Cadbury Nigeria PLC?

1.5 Significance of the Study

This research offers multifaceted benefits to various stakeholders in the realms of academia, industry, and policy-making. For Cadbury Nigeria PLC’s management, it provides in-depth insights into refining leadership strategies to elevate employee motivation, potentially leading to measurable improvements in operational efficiency, reduced turnover costs, and heightened innovation in product lines like chocolates and beverages. By highlighting effective practices, the study equips HR professionals with tools to design tailored training programs that align leadership behaviors with motivational needs, fostering a more cohesive and productive workplace culture.

Academically, the study enriches the existing literature on leadership and motivation by offering a context-specific analysis in an emerging economy, bridging theoretical models with practical applications in the African manufacturing sector. It contributes to debates on cross-cultural leadership efficacy, encouraging further comparative studies across industries. For broader organizational leaders in Nigeria and similar markets, the findings underscore the strategic value of motivation as a driver of competitive edge, particularly in volatile economic climates.

Policymakers and industry associations, such as the Manufacturers Association of Nigeria, can utilize the results to advocate for leadership development initiatives at a national level, promoting policies that enhance workforce skills and well-being. Ultimately, by addressing motivation through leadership, the study supports sustainable development goals related to decent work and economic growth, benefiting society through more stable employment and ethical business practices.

1.6 Scope of the Study

The research is delimited to Cadbury Nigeria PLC, encompassing its primary operations in Lagos, Ondo, and other regional facilities within Nigeria. It focuses exclusively on the influence of leadership styles on employee motivation among permanent and contract staff in core departments, including manufacturing, marketing, human resources, and supply chain management. The temporal scope covers data from the past five years (2021-2026) to capture recent trends, with primary data collection occurring over an eight-month period in 2026. Theoretical frameworks are drawn from established models like Bass’s transformational leadership theory and Herzberg’s two-factor theory of motivation, applied specifically to the food and beverage context. External factors such as macroeconomic policies are acknowledged but not deeply explored, maintaining a focus on internal organizational dynamics.

1.7 Limitations of the Study

Several constraints may affect the study’s outcomes and generalizability. Firstly, the reliance on self-administered questionnaires and interviews introduces potential biases, such as social desirability responses where participants overstate motivation levels to align with perceived expectations. Secondly, access to comprehensive internal data at Cadbury Nigeria PLC could be limited due to confidentiality protocols, restricting the depth of case-specific insights and possibly skewing results toward publicly available or volunteered information.

1.8 Definition of Terms

  • Leadership Style: The behavioral pattern employed by leaders to influence, direct, and interact with subordinates, categorized into types such as transformational (inspirational and visionary), transactional (reward-based), autocratic (authoritative decision-making), democratic (participative), and laissez-faire (hands-off).
  • Employee Motivation: The psychological forces that energize, direct, and sustain employee behavior toward organizational objectives, encompassing intrinsic factors (e.g., achievement, growth) and extrinsic factors (e.g., salary, recognition).
  • Transformational Leadership: A proactive style that motivates followers by articulating a compelling vision, stimulating intellectual curiosity, and providing personalized support to encourage innovation and commitment.
  • Transactional Leadership: An exchange-oriented approach where leaders clarify roles, set expectations, and use rewards or punishments to achieve compliance and performance targets.
  • Laissez-Faire Leadership: A passive style characterized by delegation of authority and minimal involvement, allowing employees significant autonomy but potentially leading to unstructured environments.
  • Employee Engagement: The emotional and cognitive investment employees make in their work, reflected in enthusiasm, dedication, and alignment with organizational goals.
  • Cadbury Nigeria PLC: A subsidiary of Mondelez International, specializing in the production and distribution of confectionery products like Bournvita and TomTom, operating primarily in Nigeria’s consumer goods market.
  • Organizational Commitment: The degree to which employees identify with and remain loyal to the organization, influenced by leadership and motivational factors.

References

Alrowwad, A., Abufarah, M., & Al Momani, K. (2025). The impact of leadership styles on employee engagement: Transformational leadership as a mediator. International Journal of Financial, Management and Research, 3(7), 1-15. https://www.ijfmr.com/research-paper.php?id=51300

Athapaththu, D. A. M. R. C. J., & Rebecca, E. (2025). The impact of leadership style and work environment on employee performance: Work motivation and organizational citizenship behavior. International Journal of Research and Innovation in Social Science, 9(5), 895-910. https://rsisinternational.org/journals/ijriss/articles/the-impact-of-leadership-style-and-work-environment-on-employee-performance-work-motivation-and-organizational-citizenship-behavior

De Guzman, R. C., Ayban, J. A. R., Tan, K. E., & Agustin, N. (2025). Leadership styles and its influence on employee motivation and organizational commitment in academic institutions. International Journal of Research and Innovation in Social Science, 9(6), 5701-5732. https://rsisinternational.org/journals/ijriss/articles/leadership-styles-and-its-influence-on-employee-motivation-and-organizational-commitment-in-academic-institutions

Ibrahim, M., Karollah, B., Juned, V., & Yunus, M. (2022). The effect of transformational leadership, work motivation and culture on millennial generation employees performance of the manufacturing industry in the digital era. Frontiers in Psychology, 13, Article 908966. https://doi.org/10.3389/fpsyg.2022.908966

Shahzad, M. A., Iqbal, Z., & Gulzar, M. (2024). The impact of leadership styles on employee’s motivation and commitment: Case study. SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4714448

Wickramasinghe, V., & Weerasinghe, V. (2025). Impact of leadership style, employee motivation, and organisational culture on employee productivity. ResearchGate. https://www.researchgate.net/publication/396819433_Impact_of_leadership_style_employee_motivation_and_organisational_culture_on_employee_productivity

Xu, Y., Li, Y., & Wang, F. (2025). How do leadership styles influence employee engagement and performance? Evidence from Chinese enterprises. Humanities and Social Sciences Communications, 12(1), 1-12. https://www.nature.com/articles/s41599-025-05707-w

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