Effects of Transformational Leadership Styles on Talent Management: A Case of Micro, Small and Medium Size Enterprises in Migori County, Kenya

Abstract

Organizational Development depends on the quality of leadership and effective management of talents. This is because employee’s talents are crucial for innovation and strategy development that guides the output or profitability of the organization. This study therefore sought to determine the causal relationship between participative leadership style and talent management in Micro, Small and Medium Size Enterprises in Migori County. Charismatic leadership theory and descriptive survey research design were used in this study. Key informants for this study included top, middle and lower cadre employees of Micro, Small and Medium Size Enterprises located in rural areas in Migori County. Stratified Simple Random Sampling was used to select 20 top management, 80 middle management staff and 120 lower cadre employees giving a total sample unit of 220 respondents. Structured questionnaires were used to collect data from the respondents. Out of the 220 structured questionnaires issued, 211 were returned for analysis giving questionnaire return rate of 95%. The study found out that Majority of the respondents Somehow Agreed that their leaders recognize their talents (32.2%). The research further found out that Majority of respondents Strongly Agreed that their organization promotes staff development (64.9%). The study also found a positive and significant relationship (r=0.447) exists between Leadership Style and Talent Management. The study recommends that Micro, Small and Medium Size Enterprises should embrace transformational leadership style in order to enhance talent management.

Keywords: Participative, Leadership Style and Talent Management.