Transformational Leadership and Performance of Deposit-Taking Saccos in Nairobi City County: Kenyan Perspective

Abstract

Organizational leaders are crucial in motivating and helping their employees to be competitive and committed to the achievement of organizational goals and objectives by use of effective leadership styles. Transformational leadership influences the fundamental attitudes and assumptions of an organization’s members, creating a common mentality to attain the organization’s goals and this leadership style usually generates higher performance. The major objective of this study was to establish the relationship between transformational leadership and performance of Deposit taking SACCOs in Nairobi City County, Kenya. The theories chosen to anchor the variables in this study was transformational leadership theory. This study adopted descriptive cross-sectional research design. The population of the study was the (40) deposit taking savings and cooperative societies in Nairobi City County as at December 2016. The researcher collected data from the forty chief executive officers of the SACCOs and randomly selected ten employees from each SACCO. This gave four hundred and forty (440) respondents who are far much more than the recommended three hundred and eighty four (384) respondents. The data for the study was both primary and secondary quantitative data. Multiple regression models were used to test the significance of the influence of the independent variable on the dependent variable. T-test was used to test the direction of the relationship between the dependent and the independent variable. The results of the study findings were established and compared to various theories anchoring the study and conceptual, contextual and empirical evidence. The study found a relatively strong relationship between transformational leadership and financial performance as well as non-financial measures. It was also established that transformational leadership have a positive and statistically moderate relationship with employee commitment.

Keywords: Transformational leadership, SACCOs, Performance, Nairobi City County

DOI: 10.7176/EJBM/14-2-05

Publication date: January 31^st 2022