Transformational Leadership Strategy and Organizational Performance of Parastatals in Kenya: A Case of The Tourism Fund
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Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Daystar University, School of Business and Economics
Abstract
In recent years, there has been dismal organisational performance for most parastatals in Kenya. Whilst, there are extant literature on different types of leaderships, not much has been done to elucidate role of transformational leadership in parastatals and therefore, it was crucial to undertake this study to establish the nexus that exist between transformational leadership and organizational performance. The purpose of the study was to examine the effect of transformational leadership on organizational performance of parastatals in Kenya; a case of the Tourism Fund. The objectives of the study were to: establish the attributes of transformational leadership practiced in Tourism Fund, examine the organizational performance of Tourism Fund and evaluate the effect of transformational leadership on organizational performance in Tourism Fund. Bass Transformational leadership theory, Resource-Based View theory and Leader Member Exchange theories provided the theoretical anchorage for the study. The study adopted a causal research design. The population of the study composed of all 327 staff of Tourism Fund and the target population was made up of 262 management staff of Tourism Fund from which a sample size of 158 respondents was selected using the Yamane formula. Stratified sampling technique was used to generate samples from the top, middle and bottom levels of management. Primary data was collected using a structured questionnaire, which was pretested. Pre-testing of research instrument was done and the results for Cronbach’s alpha was 0.842 that was more than 0.700 and therefore it was concluded that the questionnaire had internal reliability. SPSS Version 29 was used in data analysis and the results were presented using tables. The results of the study revealed that all the four attributes of transformational leadership, that is, idealized influence, inspirational motivation, intellectual stimulation and individualized consideration were practiced in Tourism Fund. Correlation analysis results showed that idealized influence had strong positive correlation with organizational performance r (115) =.361, p<.05. Inspirational motivation had strong positive correlation with organizational performance r (115) =.377, p<.05. Intellectual stimulation had a strong positive correlation with organizational performance r (115) =.310, p<.05 and individualized consideration too had a strong positive correlation with organizational performance r (115) =.356, p<.05. The study concluded that strategic leadership strategy has positive effect of organizational performance. This implied that application of strategic leadership strategy can aid in achievement of sustainable development goals and Kenya’s Vision 2030 where robust organizational performance of parastatals would be realized. In terms of policy interventions, the study recommended that there is a need for the government to establish robust policies that can ensure that attributes of transformational leadership are in all government parastatals. If this is done, organizational performance of most state departments and parastatals will improve given that the study found that there is positive contribution of transformational leadership on organizational performance.
Description
MASTER OF BUSINESS ADMINISTRATION in Strategic Management
Keywords
Organisational performance, Types of leaderships, Transformational leadership in parastatals
Citation
Okello, C. A. (2024). Transformational Leadership Strategy and Organizational Performance of Parastatals in Kenya: A Case of The Tourism Fund. Daystar University, School of Business and Economics