Corporate Governance, Organizational Politics and Leadership Effectiveness/ Ineffectiveness, in the Nigerian Banking Sector

Chief Peter Odion Omoijiade


The banking system remains a critical variable in the National development of countries. The ability of Nigerian banks to attain this objective remain elusive owing to the impact of organizational politics and corporate governance on leadership performance. 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 existing dictatorship in the Nigerian banking sector where the voting rights of employees at the Annual General Meetings is arrested and exercised on their behalf by the leadership of some banks, is exacerbating the sordid state of corporate governance. The capture of the regulatory Authority by some banks and the failure of employers to allow employees and their representative to exist and maintain their institutional identity and hold alternative views is not helping the growth of corporate governance. To arrest the present dictatorship and 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 role of employees and their representatives in the enhancement of good corporate governance should be given meaning through concentrated share ownership by employees. 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 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.

Keywords: Leadership, leadership Effectiveness/ Ineffectiveness, Corporate Governance, Organizational Politics, Power, Crime of Obedience.

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