International Journal of Advanced Research and Publications

ISSN: 2456-9992

Leadership Trust And Employee Loyalty In

Manufacturing Firms In Port Harcourt
OTUONYE NKASIOBI, DR. S. A. C. ANYANWU, C. A. NWUCHE (PhD)
UNIVERSITY OF PORT HARCOURT, DEPARTMENT OF MANAGEMENT, RIVERS STATE, NIGERIA
otuonye.nkasiobi@yahoo.com

DEPARTMENT OF MANAGEMENT, UNIVERSITY OF PORT HARCOURT, RIVERS STATE, NIGERIA

marizu1958@yahoo.com

DEPARTMENT OF MANAGEMENT, UNIVERSITY OF PORT HARCOURT,RIVERS STATE, NIGERIA

ABSTRACT: The study investigated the relationship between leadership trust and employee loyalty using Spearman‘s Rank Order
Correlation Coefficient with organizational culture as the moderating variable in manufacturing firms in Port Harcourt. The study utilized
cross-sectional research design and used questionnaire to collect the primary data. Preliminary analysis was performed to ensure no
violation of the assumptions of normality, linearity and equality of variance. The results of the analysis revealed that there were strong
correlation between the dimensions of leadership trust and the measures of employee loyalty. Consequently, the study recommends the
following: That manufacturing firms under study should benchmark, as there are organizations who have proven knowledgeable in the area
of leadership trust, manufacturing firms under study should get employees input in taking decisions as it concerns them. Create surveys and
give an incentive for the completion of the survey by each employee. Without incentive, most employees might not make effort to complete
something they will not realize could prove beneficial to their future.

Keywords: Employee Loyalty, Leadership Trust, Organizational Culture, Manufacturing Firms.

Introduction Air, Michael Arumemi-Ikhide. Under his leadership, Arik

The list of high priority issues confronting most leaders
today is by all accounts long and growing. Competition,
Return on Investment, Stakeholder Value, Revenue Growth,
Employee Engagement, Talent Management, Acquisitions
and on the list goes [66]. While all of these and more are
very real in most organizations, the common denominator
influencing a successful response may very well be trust,
Leadership trust to be specific. There are other factors at play
here but once trust is absent in leadership, the capacity to
turn these ―front burner‖ issues into opportunities may be
limited. Trust is the vital element that allows two or more
people who work together to know that they can rely on each
other implicitly. It is in no small way the driver of
collaboration and synergy at its deepest and most powerful
level. Today‘s changing landscape of work coupled with the
overall state of the economy has created both a need and an
opportunity for leaders to examine the power of trust and its
countless rewards. Employees are a vital resource for nearly
all organizations, especially since they represent a significant
investment in term of locating, recruiting, training, salaries,
healthcare, plans, bonuses etc. The management of many
organizations develop their training programmers, benefit
packages, performance appraisal and work system based on
their company policies [53]. These policies usually are aimed
at developing loyal employees because this leads to a more
lengthy tenure, the longer an employee works for a company,
the more valuable they become. According to [53], loyalty is
the kind of faithfulness and trueness which signifies a
person‘s devotion or sentiment of attachment to a particular
object, which may be another person or group of persons,
and ideal, a duty, or a cause. It expresses itself in both
thought and action and strives for the identification of the
interests of the loyal person with those of the object [21].
According to [87], in a survey of 13 outstanding Nigerian
CEOs, reviewed the leadership qualities of the CEO of Arik
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has grown to be West Africa and Central Africa largest
commercial airline. Since he became Arik CEO in 2009, the
airline has also become the national carrier of neigbouring
country, Sierra Leone and there has also been consideration
for it to be Nigerian national carrier. Also reviewed was
Africa‘s richest man, Alhaji Aliko Dangote, who is arguably
the most popular and successful CEO on the continent. He is
unarguably the king of Nigeria manufacturing industry, and
perhaps Africa. He started with a business loan from his
maternal uncle and has grown to be one of the continent‘s
leading diversified business empires with interests in cement,
sugar, flour, salt, pasta, beverages and real estate, and new
projects in the oil and Natural gas sector,
telecommunications, fertilizer and steel with annual earning
averaging $2 billion but today it is worth more than $11
billion. It plans to invest $16 billion in infrastructural
projects in the energy, agriculture and construction sectors in
what is likely to be the largest private investment ever in the
continent. The leaders discussed have demonstrated effective
management capabilities through hardwork, resilience,
research, and understanding of the Nigeria business climate,
as they moved their companies forward. Trust is a crucial
element of effective leadership that can impact followers in
ways ranging from the mundane to the heroic. For example,
trust has been found to explain why some employees
effectively complete their jobs as well as go above and
beyond the call of duty in their work without clear
recompense. Among the more heroic aspects, trust can help
explain why individuals have been willing to follow the
visions of leaders, in some cases placing their fate (and
sometimes lives) in the hands of leaders in contexts ranging
from modern organizations to ancient armies and expeditions
[38]. After three years of negative or low growth, the UK‘s
organizations are feeling the strain. With highly volatile
stock markets, economies across southern Europe in danger
of default, confidence in bankers, politicians and journalists
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near rock bottom and riots in our major cities, the issue of
trust is more important than ever. In a survey by the ILM and
Management Today‘s Index of Leadership Trust [29], on
level of trust in the UK‘s leaders and managers, it was found
that employees trust their CEOs and managers more than
they did last year, if only by a small margin. It is reassuring
to see that UK workers are more confident in the ability of
their bosses to get them through these difficult times. But at
a time of real pressure, is a slight increase enough? Trust
isn‘t a nice-to-have, it‘s an essential component of effective
leadership at all levels. Trust drives engagement and
motivation, and is therefore critical in enabling higher
organizational performance. So while any rise in trust levels
is good news, we can see there is still real room for
improvement for CEOs, and line managers in particular [29].
This study attempts to establish the relationship of leadership
trust on employee loyalty in selected food and beverage
companies in Port Harcourt, namely: Nigerian Bottling
Company Ltd (NBC), Nigeria Breweries Limited (NBL), 7-
UP Bottling Company (7-UP), and Pabod Breweries Ltd
(Pabod). In today‘s business environment, corporations
depend on their employees‘ more than at any other time in
the past. This is particularly true in hi-tech, biotech, finance,
and other market segments where employee contribution
does not directly depend on the nominal time spent at work.
Employee dedication and care of corporate interests are part
of employee loyalty. Building on Martin Luther King‘s
observation that ―the measure of a man is not where he
stands in moments of comfort, but what he stands at times of
challenge and controversy‖, from a follower‘s perspective,
trust in leaders may be particularly important in times of
challenge and adversity [38]. Companies with loyal
employees have a significant competitive advantage and a
higher rate of survival compared to companies with less
loyal employees; ―The long term success of any company
depends heavily upon the quality and loyalty of its people‖.
Chinua Achebe, in his book, The problem with Nigeria
(1983), blamed Nigeria‘s embarrassing stunted growth on
the failure of leadership. The failure of leadership in Nigeria
is replicated in all sectors of Nigerian public including
economic, social, political and religious institutions [2]; [5]
and the manufacturing sector is not left out due to the
moribund of many factories and industries meant for
production. Finance, operations & management, lack of
properly trained workers, infrastructural issues, distributions
& logistics, leadership trust are challenges facing
manufacturing firms in Nigeria. Loyal employees are assets
to a company, and their retention is key to its success; for
one, they bring in loyal customers and given their
importance, employers need to be able to identify and retain
loyal employees. We intend to examine the extent to which
trust in leaders‘ triggers the loyalty of employees‘ and
whether the food and beverages firms in Port Harcourt take
into consideration trust and loyalty in both the employer and
employee for onward achievement of organizational goals.
Research Hypotheses
The following hypotheses were crafted in a null form for
validation or nullification of the research propositions:
Ho1:There is no significant relationship between skills and
behavioural of selected food and beverage firms in Port
Harcourt.
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Ho2:There is no significant relationship between skills and
attitudinal of selected food and beverages firms in Port
Harcourt.
Ho3:There is no significant relationship between character
and behavioural of selected food and beverages firms in
Port Harcourt.
Ho4:There is no significant relationship between character
and attitudinal of selected food and beverages firms in
Port Harcourt.
Ho5:Organizational culture does not moderate the
relationship between leadership trust and employee
loyalty of food and beverage firms in Port Harcourt.
Cont
Leadersh
extua Employe
ip Trust
Fa
e
cto
Skill behavi
oural
Organi
Cul
Charact
er Attitudin
al
Figure 1: Operational Framework of Leadership Trust and
Employee Loyalty.
Source: Dimensions: leadership trust were Adapted from
[66]. Measures of employee loyalty were adopted from [71].
Significance of the Study
According to [41], this approach is of two perspectives: the
practical and theoretical significance. Since the success or
failure of organizations are in the skills, knowledge, abilities,
integrity and competences of its workforce, this study will
offer useful suggestions on how best to improve such talents,
skills, abilities, knowledge and total intellectual properties of
their employees to achieve their set objectives. Therefore,
the practical significance of this study is to spur employers
of labour, managers and other decision makers to exhibit the
best leadership qualities as trust to raise the loyalty levels of
their staff as a competitive strategy, especially the staffs of
the selected companies to be studied. The theoretical
significance is to give additional credence to the growing
body of literature on leadership trust and employee loyalty.
Our study will therefore generally broaden the understanding
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of employee loyalty of food and beverage firms through
leadership policy as regards trust and will be of immense
assistance to scholars, students and other researchers in this
area as a source of reference material.
LITERATURE REVIEW
Theoretical Framework
Trait Theory
Similar in some ways to great man theories, the trait theory
assumes that people inherit certain qualities or traits make
them better suited to leadership. Trait theories often identify
particular personality or behavioural characteristics that are
shared by leaders. Many have begun to ask of this theory,
however, if particular traits are key features of leaders and
leadership, how do we explain people who possess those
qualities but are not leaders? Inconsistencies in the
relationship between leadership traits and leadership
effectiveness eventually led scholars to shift paradigms in
search of new explanations for effective leadership [68].
Skills Theory
This theory states that learned knowledge and acquired
skills/abilities are significant factors in the practice of
effective leadership. Skills theory by no means refuses to
acknowledge the connection between inherited traits and the
capacity to lead effectively, but argues that learned skills, a
developed style, and acquired knowledge, are the real keys to
leadership performance. A strong belief in skills theory often
demands that considerable effort and resources be devoted to
leadership training and development [96].
Concept of Leadership Trust
In a Harvard Business Review article, Robert F. Hurley cited
a 2002 survey that he had conducted of 450 executives. His
findings showed that 69% of the respondents agreed with the
statement, ―I just don‘t know who to trust anymore‖ [52].
Recently on ―Face the Nation‖, Bob Schieffer stated, ―When
the United States takes a position in the world and then goes
back on its word, the world is left in a very dangerous place‖
[79]. When a leader speaks it is important to be able to have
confidence in the honesty, truthfulness, and sincerity of the
words. This is the essence of trust.
Skill & Capacity
Skill is the capacity to apply knowledge in a practical,
demonstrable way [26]. An individual‘s skill is a product of
his store of knowledge and his personal attributes. Change in
the environment has resulted in skills becoming obsolete, so
that competent employees do not forever remain competent
if they do not improve themselves through training [7]; [74].
Training is organizational effort aimed at fostering learning
among lower level employees that contributes to individual
and organizational goals and includes classroom instruction,
on-the-job training and apprenticeship scheme. Development
refers to the teaching of managers and professional
employees‘ broad skills necessary for their current and future
jobs. Education is the long term learning activity aimed at
preparing people for various roles in the society. Learning
activity is basically concerned with the acquisition of skills,
knowledge, understanding and attitudes. Both education,
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training and development all require different degrees of
learning activity [7].
Character & Integrity
Not surprisingly, the importance of the character of
leadership is making inroads in the business world, Johnson
& Johnson (J&J), the major manufacturer of health care
products in the United States, views character as a leadership
essential. Former Chairman Ralph Larsen believes that
people with character can give a company a significant
competitive advantage. The company actively seeks to
recruit and be represented by people of exceptional
character. Johnson & Johnson‘s stance is supported by
research which suggests that in leadership, good character
counts. According to Frances Hesselbein, the author and
chairman of the Drucker Foundation, leadership that
achieves results goes beyond how to be, and becomes how to
do; this type of leadership is all about character. So in other
words, in order to get things done personally and
organizationally, one first needs to get in touch with his or
her character [27].
Concept of Employee Loyalty
Recent data collected by The Empower Group for The
Manpower International Employee Loyalty Survey, 2002,
suggests that employee loyalty continues to rise around the
world. Human resource managers in eight countries (United
States, France, Germany, Italy, Japan, Mexico, the
Netherlands, and the United Kingdom) not only say that
employee loyalty has increased in the past three years but
also are optimistic about employee loyalty over the next
three years as well. 42% expect their employees‘ loyalty to
grow over the next three years while only 10% feel it will be
on the decline.
Behavioural
[54] observe 33 specific measures of behavioural loyalty,
sub-divided into five sub groups; (1) proportion of purchases
devoted to a given brand, (2) those concerned with the
sequence in which brands are purchased, (3) those that
reflect probability of purchase, (4) those that synthesise or
combine several behavioural criteria, and finally (5) a
number of miscellaneous measures. ―Proportion of
Purchases‖ is more commonly termed within a group of
measures known as ―Brand Performance Measures‖ (BPM‘s)
(see [42].
Attitudinal
Attitudinal loyalty is investigated in terms of attitudes,
preferences, commitment and intentions [85]. It is defined as
a consumer‘s desire to continue his relationship with the
company in spite of the lower prices of the competing
companies and to recommend the products or the services to
his friends [35]; [28]. The value of the attitudinal variables
mustn‘t be underestimated; the behavior reflects the current
situation or, more likely, a set of past events while attitudes
offer clues about the customers‘ future behavior [46].
Organization Culture as a Moderator
Many scholars have become interested in the role of
moderator variables [93]. Citing [88], [93] define moderators
as ―variables that affect the form (slope) or strength of a
relationship between an independent variable and a
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dependent variable‖. Organization culture, sometimes called

corporate culture has no consensus definition, among Sample Size Determination and Sampling Procedure
scholars. The concept is so rich, welcoming newcomers, The sampling procedure adopted include a homogeneous
alternative angels, and varied connotations, [16]. Culture is characteristic of employee respondents, drawn from the
an essential quality of excellent organizations and helps to accessible population. In line with [70] proposition, the
determine organization climate. It simply means the shared sample will be drawn proportionally from the population of
philosophers, values, beliefs, assumptions, expectations, 190 potential respondents identified from the field.
attitudes and norms that knit an organization together [1988]. Specifically, we determine the sample size mathematically,
using the [97] formular, as given in [17], thus:
METHODOLOGY
N
Research Design n
1  N ( e) 2
The quasi-experimental design, also called survey, was
adopted for this study because the various elements of the
design are descriptive and outside the researcher‘s control. Where n = sample size sought
There are basically two kinds of quasi-experimental designs: e = error margin
cross-sectional and longitudinal. The cross-sectional is n = population size
further divided into either field study or sample survey [17].
Specifically, the sample survey type will be adopted because Applying the above formular, with our known population of
all the entire population cannot be studied. Furthermore, this 190 respondents, level of significance of 95% (ie error
design is justified because our study settings are non- 190
margin = 0.05), the sample size, (n) = =
contrived and are correlational in nature. Finally, the method
1  190 (0.05) 2
is cost effective and has a more scientific way of sample
selection that will be an ideal representative of the 127 respondents.
population of the study. Again, this sample size of 127 respondents will be
proportionally and statistically distributed among the four
Population of the Study selected organizations, using [20] proportional allocation
The study was limited to the four functional firms under the formular, given as:
food and Beverage sub-sector of the Manufacturers
Association of Nigeria (MAN), Rivers/Bayelsa branch, that nh = nNh
are located in Port Harcourt viz: Nigerian Bottling Company N
(NBC), Nigerian Brewies Limited (NBL), 7-up Bottling Where nh = Number of units allocated to each
Company (7-up) and Pabod Brewies limited (Pabod). In the organization.
same vein, we will limit the population of this study to only n = Sample size
employees that have put in 5yrs and above in their Nh = The number of employees in each
employment with their organization. We intend to justify this organization.
option also because operational variables often exhibit heavy N = Population size
skewness (violating assumptions for normality) and therefore Substituting the formular above accordingly, the sample size
need to be normalized [49]. For example, the number of distribution among the four organizations as shown in table
casual employees and temporary staff are typically much 2.
more below 5 years of employment, thereby causing the
statistical distribution to be skewed towards Types of Data and Instrument for Data Collection
casual/temporary employees for respondents‘ category. The data for this study was collected from both the primary
Normalizing the variables will reduce the extent to which and secondary sources.
outliers with high values will impact the results [45]. Test of Validity of Instrument
Consistent with the above justifications; from the records To ensure validity, students‘ surrogate will be utilized, the
made available to the researchers by the instrument will be submitted to the supervisors for expert
Personnel/Administrative Departments of the four selected approval. The instrument will subsequently be validated in
organizations after repeated visits, the staff strength both content and construct.
(population) of employees that have put in 5-years and above Test of Reliability of Instrument
in their employment with their organization are as follows: Two steps was taken to ensure reliability; triangulation of the
data through multiple sources and internal reliability of the
Table 1: Population of the Study survey instrument assessed by means of Cronbach alpha
coefficients, using the popular statistical package for social
S/N Selected Organization Population sciences (SPSS). Only items that returned alpha values of 0.7
Nigerian Bottling Company and above will be considered [67], since the closer the alpha
1. 60
Ltd, (NBC) value is to 1 the higher the internal consistency (reliability).
Nigerian Breweries Ltd
2. 58
(NBL)
7-up Bottling Company (7-
3. 42
up)
4. Pabod Beweries (Pabod) 30
TOTAL 190
Source: Survey Data, 2016.

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ISSN: 2456-9992

Table 2: Optimum Sample Size Distribution and it is applicable where the two variables are ordinal,
interval or ratio scales [78]. The spearman‘s rank order
Organizatio Accessible (Rho) formular as given by [3], in [17], is:
S/NO Sample Size
n Population

6 d 2 6 d 2
128x 60 = 40
1. NBC 60
190
rs  1  or rs  1  Where
2. NBL 58
128x 58 = 39 N3  N N ( N 2  1)
d
190 2
= sum of the squared differences in the ranking of
128x 42 = 28
3. 7-up 42 the subject on the two variables.
190
4. Pabod 30
128x 30 = 20 N = number of subjects being ranked.
190
TOTAL 190 127
Results and Discussion
Source: Survey Data, 2016. This section is concerned with the tests for the assumed
bivariate null hypotheses using the Spearman‘s rank order
Data Analysis Technique correlation coefficient at a 95% confidence interval and at a
The spearman‘s rank order correlation (Rho) analysis 0.05 level of significance (2–tailed). A total of 5 hypothetical
technique, which is a non-parametric test was used to assumptions are postulated with 4 being bivariate in nature
analyze the variables. The variables operationally defined and thus tested herein. The decision rule for the adoption or
and measured in quantitative scale makes the data suitable rejection of the hypothetical statements is set at a P < 0.05
for the proposed correlation technique. The purpose of for the rejection of the null hypotheses and a P > 0.05 for the
spearman‘s rank order (Rho) test, is to measure the degree of acceptance of the null hypotheses.
relationship between two sets of ranked observations [17]

Table 3: Spearman’s correlation of Skill and measures of Employee Loyalty

CH BH AD

Correlation Coefficient 1.000 .462 .567

CH
Sig. (2-tailed) . .000 .000

N 80 80 80

Correlation Coefficient .462 1.000 .153

Spearman‘s rho BH
Sig. (2-tailed) .000 . .000
N 80 80 80

Correlation Coefficient .567 .153 1.000

AD
Sig. (2-tailed) .002 .000 .
N 80 80 80
Source: Data output, 2017

The data (table 3) reveals a significant relationship between
Skill (SK), which is a dimension of leadership trust and the
measures of employee loyalty. The result is interpreted as
follows:
Skill (SK) and Behavioural (BH): The results of the
analysis reveal that there is a significant relationship between
skills and behavioural which is a measure of employee
loyalty. This is as the rho value = .000 indicate a substantial
level of association between both variables; hence base on
the decision rule of P < 0.05 for the tests, the null hypothesis
is hereby rejected as the result shows a significant
relationship between skill and behavioural.
Skill (SK) and Attitudinal (AD): The results of the analysis
reveal that there is a significant relationship between skills
and attitudinal which is a measure of employee loyalty. This
is as the rho value = .000 indicate a substantial level of
association between both variables; hence base on the
decision rule of P < 0.05 for the tests, the null hypothesis is
hereby rejected as the result shows a significant relationship
between skill and attitudinal.

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ISSN: 2456-9992

Table 4: Spearman’s Correlation of Character (CH) and measures of Employee Loyalty

SK BH AD

Correlation Coefficient 1.000 .621 .780

SK
Sig. (2-tailed) . .000 .000

N 80 80 80

Correlation Coefficient .621 1.000 .153

Spearman's BH
rho Sig. (2-tailed) .000 . .000

N 80 80 80

Correlation Coefficient .780 .153 1.000

AD
Sig. (2-tailed) .000 .000 .

N 80 80 80

Source: Data output, 2017

The data (table 4) reveals a significant relationship between
character, which is a dimension of leadership trust and the
measures of employee loyalty. The result is interpreted as
follows:
Character (CH) and Behavioural (BH): The results of the
analysis reveal that there is a significant relationship between
character and behavioural which is a measure of employee
loyalty. This is as the rho value = .000 indicate a high level
of association between both variables; hence base on the
decision rule of P < 0.05 for the tests, the null hypothesis is
hereby rejected as the result shows a significant relationship
between character and behavioural.
Character (CH) and Attitudinal (AD): The results of the
analysis reveal that there is a significant relationship between
character and attitudinal which is a measure of employee
loyalty. This is as the rho value = .000 indicate a high level
of association between both variables; hence base on the
decision rule of P < 0.05 for the tests, the null hypothesis is
hereby rejected as the result shows a significant relationship
between character and attitudinal. The partial correlation is
adopted in testing for the moderating effect of organizational
culture on the relationship between leadership trust and
employee loyalty at a 95% confidence interval and at a 0.05
level of significance (2–tailed). The decision rule for the
acceptance of rejection of the hypothesis is based on the R1
> R2 coefficient at a 0.05 level of significance for rejection
of the null hypothesis and R1 < R2 coefficient at a 0.05 level
of significance for acceptance of the null hypothesis.

Table 5: Moderating effect of organizational culture

Correlations
Control Variables SK CH BH AD
Correlation 1.000 .613 .510 .723
SK Significance (2-tailed) . .000 .000 .000
Df 0 70 70 70
Correlation .613 1.000 .153 -.135
CH Significance (2-tailed) .000 . .000 .000
Df 70 0 70 70
OC
Correlation .510 .153 1.000 .307
BH Significance (2-tailed) .000 .000 . .000
Df 70 70 0 70
Correlation .723 -.135 .307 1.000
AD Significance (2-tailed) .000 .000 .000 .
Df 70 70 70 0
Source: Data output, 2017

The table (5) above illustrates the relationship between the culture as a moderator on the relationship; hence the results
leadership trust and employee loyalty with organizational reveal strong associations between all five variables.

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 International Journal of Advanced Research and Publications
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Discussion of Findings
This study using descriptive and inferential methods,
empirically examined the correlation between human capital
development and corporate performance within the context
of the organizational culture of food and beverages firms in
Port Harcourt. In this chapter, analysis assessed the
distribution of the variables and also tested the assumptions
of bivariate and multivariate relations between the study
variables. A total of five (5) hypotheses were tested herein
using the Spearman‘s rank order correlation and the Partial
correlation technique was applicable. The results of the
analysis revealed significant relations in all five (5) instances
and are discussed as follows:
Skill and Employee Loyalty: The result of the analysis
revealed that skill is significantly associated with employee
loyalty; this implies that skill is considerably important in
enhancing loyalty of an employee and expressions towards
work in the organization. This argument shares a view with
[8], who posit that training is very important because the
worker requires skills that are best developed through formal
instructions. For the staff to be effective on their
responsibilities, training is needed to ensure they get the
critical skills and knowledge in such area which, if
mishandled, could land one into legal tussles. Trainings are
also done in induction of new staff on essential Information
Technology Skills, Presentation, Problem Solving and
Communication Skills. [40], also states that for effectiveness
and efficiency in the organization, employees need to use
their skills, ability, experience and so forth to perform
assigned task. Furthermore, the result offer insights from [7],
who posit that career development is established to enable
employees match their needs for personal growth and
development with the needs of the organization to have
competent employees occupying its job positions.
Character and Employee loyalty: The analysis reveals that
there is a significant relationship between character and
employee loyalty; this implies that organizations that place
considerably more weight on consistency, predictability, and
quality of people‘s work and actions; confidence that they
are focused on achieving shared goals; and expectations
associated with a person‘s role in the organization are more
likely to be high performing. In addition to enjoying better
revenue growth, trust leaders are better at achieving many
other business goals than are their low-trust counterparts.
Strong levels of trust drive strong performance and more
consistent success [11]. When employees have a high level
of trust in management and the organization, the company as
a whole becomes significantly better at achieving business
goals. [67], posit that by increasing trust in organizations,
employers, mangers and leaders can drive improvements in
performance by motivating staff to commit additional
discretionary efforts and helps them to take and manage risks
safely and encourage innovativeness and creativity.
The moderating role of organizational culture on the
relationship between leadership trust and employee
loyalty: The analysis revealed that organizational culture is a
significant moderator of the relationship between leadership
trust and employee loyalty. This implies that organizational
culture through its embodiment of the values and beliefs of
the organization effectively transfers the effect or leadership
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trust to loyalty of employees. This follows that commitment
to the organization is achieved when individual‘s belief that
the activities of the organizational are its actual attributes and
comprises its unique identity; thus employees‘ commitment,
just as satisfaction, is closely tied to perceptions of
organizational trustworthiness, identity and belief about the
authenticity of the activities and actions of the organization.
In a similar vein [63] observe that employees are considered
effective or ineffective given their capacity to fit into the
context provided by the culture of the organization; a process
which further affects their levels of involvement and
commitment to their role expectations. [81] indicated: HC
has a positive and direct effect on Jordanian Pharmaceutical
Manufacturing organizations. Also [92] showed: HC
efficiency plays an indirect role in the relation between
intellectual capital and market value.
Conclusions
In conclusion, this study finds that leadership trust is
strongly and significantly associated with employee loyalty;
a relationship which is further enhanced by the moderating
effect of organizational culture. This assertion is based on
the outcomes of its analysis and the results of the tests of the
hypotheses; hence the study states conclusively as follows:
 That skill, which is a dimension of leadership trust, is
observed to influence and enhance employee loyalty
levels in the organization. This is as aspects of skill such
as having faith in teammate‘s abilities, getting sufficient
money & time for training and development, delivering
tasks on schedule, able to apply skills & knowledge
gained from training to practical use were observed to be
associated with instances of behavioural and attitudinal
loyalty of employees.
 That character, which is a dimension of leadership trust,
is identified to contribute to levels of employee loyalty
as expressed by employees. This is based on the
evidence as indicators of character relative to
communicating well, honouring their words, telling the
truth at all time, in times of uncertainty sticks to plan,
thus facilitating satisfaction and further contributing to
behavioural and attitudinal loyalty levels in the
organization.
 That organizational culture is a significant moderator of
the relationship between leadership trust and employee
loyalty wherewith culture is observed to serve as a
necessitating context and platform upon which the
practices associated with leadership trust such as skill
and character are effectively transferred to employee
situations and hence facilitate aspects of employee
loyalty. Furthermore, the study finds that manifestation
of cultural practices such as effective upward and
downward communication between works and their
leaders, adequate compensation and reward for efforts
and contributions, and also team activities geared
towards the accomplishment of organizational goals and
objectives; are all revealed to enhance employee
perceptions and experiences of the cultural system of the
organization and thus enhance employee loyalty.
Recommendations
The study, based on its results and conclusions, proffers the
following solutions:
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 International Journal of Advanced Research and Publications
ISSN: 2456-9992
 That manufacturing firms under study should
benchmark, as there are organizations who have proven
knowledgeable in the area of leadership trust
 Manufacturing firms under study should get employees
input in taking decisions as it concerns them. Create
surveys and give an incentive for the completion of the
survey by each employee. Without incentive, most
employees might not make effort to complete something
they will not realize could prove beneficial to their
future.
 Implement an ―Open Door‖ Policy. Leaders need to be
available to their subordinate always.
 Some managers believe that getting respect means being
‗Hitler‘. Not only do employees avoid managers like
this, they greatly dislike and disrespect them. Leaders
need to be a person, be approachable is key to earning
respect. Instead of having a ‗nose-in-the-air‘ attitude,
make eye contact and smile as much as possible.
 That those aspects of the organizational culture; which
emphasizes on attributes such as communication,
participation, and team work; be taken seriously given
its effect on organizational outcomes such as employee
loyalty.
Limitation and Suggestion for Further Studies
This study was confined by scope and design in its
examination of the relationship between the constructs:
leadership trust and employee loyalty; hence, evidence
herewith can only be generalized to the population which
shares the same parameters with the sample adopted.
Therefore it is imperative that further studies be carried out
with regards to identifying the relationship between the study
variables within other Nationalities and sub-sectors of the
manufacturing industrial context outside that of Nigeria.
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