Effect Of Transformational Leadership Style On Performance Of Senior Managers In The Private Sector In Kenya

The purpose of this study was to investigate the effect of transformational leadership style on the performance of senior managers in the private sector in Kenya. The following research questions guided the study: In what way does idealized influence of the Chief Executive Officer (CEO) affect performance of senior managers in the private sector in Kenya? How does inspirational motivation of the CEO affect performance of senior managers in the private sector in Kenya? How does intellectual stimulation of the CEO affect performance of senior managers in the private sector in Kenya? How does individualized consideration of the CEO affect performance of senior managers in the private sector in Kenya? Does goal orientation moderate the relationship between transformational leadership style of the CEO and performance of senior managers in the private sector in Kenya?

The study adopted the positivism research philosophy and descriptive correlational research design. The target population consisted of 984 senior managers reporting to the CEOs of 183 private sector companies under the umbrella of the Kenya Private Sector Alliance (KEPSA).  A sample size of 284 was drawn using stratified random sampling, and data was collected using structured questionnaires. A response rate of 92% was realized. The study used inferential statistical methods to analyze data. Data analysis methods included Pearson‘s correlation, Chi-square test, Analysis of Variance (ANOVA) and multiple linear regression.

The Statistical Package for Social Sciences (SPSS) version 20, was used to analyze the data.

Results of the first research question showed significant correlation between the CEO‘s idealized influence and performance of senior managers, r (261) = .711, p < .05. Chi square test showed a strong association between idealized influence and performance 2(6, N=261) =

157.954, p < .05. Multiple linear regression results showed that the CEO‘s idealized influence significantly predicted performance of senior managers R2= .505, F (1, 260) = 264.042, p < .05; β = .711, t (260) = 16.249, p