EFFECT OF IDEALIZED INFLUENCE AND INSPIRATIONAL MOTIVATION OF THE CEO ON PERFORMANCE IN THE PRIVATE SECTOR IN KENYA

Authors

  • Murage Susan Nyokabi United States International University- Africa
  • Prof George O. K’Aol United States International University- Africa
  • Dr. Kefah Njenga United States International University- Africa

DOI:

https://doi.org/10.47672/ajlg.304
Abstract views: 815
PDF downloads: 767

Keywords:

transformational leadership, idealized influence, inspirational motivation, Chief Executive Officer, performance, senior managers, private sector

Abstract

Purpose: The purpose of this study was to determine the effect of idealized influence and inspirational motivation of the Chief Executive Officer (CEO) on the performance of senior managers in the private sector in Kenya.

Methodology: 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. Data was analyzed using descriptive statistics namely frequencies, means, and standard deviation.  Inferential statistics were also used in the analysis which included Pearson’s correlation, Analysis of Variance (ANOVA) and multiple linear regression.

Results: Results of the multiple linear regression 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 <.05. Further, multiple linear regression results indicated that inspirational motivation of the CEO significantly predicted the performance of senior managers, R2= .564, F (1, 260) = 335.141, p < .05, β = .751, t (260) = 18.307, p<.05. Testing the influence of goal orientation as a moderating variable showed that goal orientation significantly predicted the relationship between idealized influence and inspirational motivation of the CEO and performance of senior managers R2= .839, F (2, 5) = 265.099, p < .05, β = .111, t = 3.900, p<.05.

 

Unique contribution to theory, practice and policy: The study provides a unique contribution to the theory and practice of transformational leadership in a new context in terms how trаnsformаtionаl leadership behavior associated with the dimensions of idealized influence and inspirational motivation, affect performance of senior managers in private sector organizations. The findings are useful for private sector organizations and policy makers in explaining effective leadership behaviors that can be applied by the CEO for improving performance of senior managers. These will be useful in enhancing performance improvement strategies. Researchers and academicians will also find the study useful in defining new research dimensions by using the research results to expand related arguments in future.

Downloads

Download data is not yet available.

Author Biographies

Murage Susan Nyokabi, United States International University- Africa

Research Scholar, Chandaria School of Business

Prof George O. K’Aol, United States International University- Africa

Associate Professor of Management

Dr. Kefah Njenga, United States International University- Africa

Assistant Professor of Organizational Development

References

Araujo-Cabrera, Y., Suarez-Acosta, M. A., & Aguiar-Quintana, T. (2016). Exploring the influence of CEO extraversion and openness to experience on firm performance the mediating role of top management team behavioral integration. Journal of Leadership & Organizational Studies.

Awuor, E. D. (2015). Influence of Transformational Leadership on Organizational Performance of State Corporations in Kenya. Unpublished PhD thesis, Jomo Kenyatta University of Agriculture and Technology.

Barine, K., & Minja, D. (2014). Transformational corporate leadership. New York: Integrity Publishing.

Barrick, M. R., Thurgood, G. R., Smith, T. A., & Courtright, S. H. (2015). Collective organizational engagement: Linking motivational antecedents, strategic implementation, and firm performance. Academy of Management Journal, 58(1), 111-135.

Bass, B. M. & Avolio, B. J. (2009). Transformational leadership and organizational culture. Public Administration Quarterly, 17(1), 112-121.

Bass, B. M. (1985). Leadership and performance beyond expectations. NY: Free Press.

Bass, B. M., & Riggio, R. E. (2006). Transformational leadership. Psychology Press.

Boehm, S. А., Dwertmаnn, D. J., Bruch, H., & Shаmir, B. (2015). The missing link? Investigаting orgаnizаtionаl identity strength аnd trаnsformаtionаl leаdership climаte аs mechаnisms thаt connect CEO chаrismа with firm performаnce. The Leаdership Quаrterly, 26(2), 156-171.

Brown, M. E., & Treviño, L. K. (2009). Leаder–follower vаlues congruence: Аre sociаlized chаrismаtic leаders better аble to аchieve it?. Journаl of Аpplied Psychology, 94(2), 478.

Burns, J. M. (1978). Leаdership. New York: Hаrper аnd Row Publishers.

Chou, H. W., Lin, Y. H., Chang, H. H., & Chuang, W. W. (2013). Transformational leadership and team performance: The mediating roles of cognitive trust and collective efficacy. Sage Open, 3(3).

Colbert, A. E., Barrick, M. R., & Bradley, B. H. (2014). Personality and leadership composition in top management teams: Implications for organizational effectiveness. Personnel Psychology, 67(2), 351-387.

Deloitte Touche Tohmatsu Limited. (2015). Global Human Capital Trends 2015: Leading in the New World of Work. London: Deloitte University Press.

Densten, I. (2016). What is happening just below the CEO? Leadership & Organization Development Journal, 37(7), 949-965.

Ding, X., Li, Q., Zhang, H., Sheng, Z., & Wang, Z. (2017). Linking transformational leadership and work outcomes in temporary organizations: A social identity approach. International Journal of Project Management, 35(4), 543-556.

Epitropaki, O., Kark, R., Mainemelis, C., & Lord, R. G. (2017). Leadership and followership identity processes: A multilevel review. The Leadership Quarterly, 28(1), 104-129.

Fasola, O. S., Adeyemi, M. A., & Olowe, F. T. (2013). Exploring the relationship between transformational, transactional leadership style and organizational commitment among Nigerian banks employees. International Journal of Academic Research in Economics and Management Sciences, 2(6), 96.

Gallup.(2017).Retrieved from http://www.gallup.com/services/190118/engaged workplace. aspx.

Gonnah, B. J., & Ogollah, K. (2016). Effect of transformational leadership on performance of commercial banks in Kenya: Case of Family Bank Limited. International Academic Journal of Procurement and Supply Chain Management, 2(1), 1-25.

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193-206.

Hambrick, D. C., Humphrey, S. E., & Gupta, A. (2015). Structural interdependence within top management teams: A key moderator of upper echelons predictions. Strategic Management Journal, 36(3), 449-461.Hecht, G., Hobson, J. L., & Wang, L. W. (2016). The effect of performance reporting frequency

Jestaz, D. (2014). Choosing Change: How Leaders and Organizations Drive Results One Person at a Time. People & Strategy, 37(1), 64-65.

Juma, D.O, and Ndisya, S. N. (2016). Influence of Transformational Leadership on Employee Performance. A Case Study of Safaricom Limited. Strategic Journal of Business & Change Management, 3(2).

Latham, J. R. (2013). A framework for leading the transformation to performance excellence part I: CEO perspectives on forces, facilitators, and strategic leadership systems. Quality Management Journal, 20 (2), 22.

Lee, Y. K., & Hee, C. D. (2016). A Study on the Leadership Style and the Organizational Performance in Korea and USA. International Journal of Business and Management, 11(7), 42

Mbithi, A. M., K’Obonyo, P. O., & Awino, Z. B. (2016). Transformational leadership, employee outcomes, and performance of universities in Kenya. DBA Africa Management Review, 6(2).

Metwally, A. H., El-bishbishy, N., & Nawar, Y. S. (2014). The impact of transformational leadership style on employee satisfaction. The Business & Management Review, 5(3), 32.

Midgley, C. (Ed.). (2014). Goals, goal structures, and patterns of adaptive learning. New York, NY: Routledge.

Miron-Spektor, E., & Beenen, G. (2015). Motivаting creаtivity: The effects of sequentiаl аnd simultаneous leаrning аnd performаnce аchievement goаls on product novelty аnd usefulness. Orgаnizаtionаl Behаvior аnd Humаn Decision Processes, 127, 53-65.

Muthike, J. G. (2014). Relationship Between Leadership Style and Performance of Public Secondary Schools in Makueni County, Kenya. MBA Thesis. Nairobi: University of Nairobi.

Mutuku, C. M. (2012). Factors influencing relationship between top management team diversity and performance of commercial banks in Kenya. Unpublished PhD Thesis. Nairobi: University of Nairobi

Nawaz, Z. A. K. D. A., & Khan_ PhD, I. (2016). Leadership Theories and Styles: A Literature Review. Leadership, 16.

Ngaithe, L. N., K’Aol, G. O., Lewa, P., & Ndwiga, M. (2016). Effect of Idealized Influence and Inspirational Motivation on Staff Performance in State Owned Enterprises in Kenya, European Journal of Business and Management, 8(30), 6-13.

Njehu, M. (2012). An Assessment of the Impact of Transformational Leadership on an Organization’s Competitiveness: A Case of the East African Breweries Limited. Unpublished MBA project, United States International University.

Sadeghi, A., & Pihie, Z. A. (2012). Transformational leadership and its predictive effects on leadership effectiveness. International Journal of Business and Social Science, 3(7), 186-197.

Wang, H., Tsui, A.S. and Xin, K.R. (2011) CEO Leadership Behaviors, Organizational Performance, and Employees’ Attitudes. The Leadership Quarterly, 22, 92-105.

Waziri, A. Y., Ali, K. N., & Aliagha, G. U. (2015). The influence of transformational leadership style on ICT adoption in the Nigerian construction industry. Asian Social Science, 11(18), 123.

Yucel, I., McMillan, A., & Richard, O. C. (2014). Does CEO transformational leadership influence top executive normative commitment? Journal of Business Research, 67(6), 1170-1177

Zargar, M. S., Vandenberghe, C., Marchand, C., & Ayed, A. K. B. (2014). Job scope, affective commitment, and turnover: The moderating role of growth need strength. Journal of Occupational and Organizational Psychology, 87(2), 280-30

Zhang, X. A., Li, N., Ullrich, J., & van Dick, R. (2015). Getting everyone on board the effect of differentiated transformational leadership by CEOs on top management team effectiveness and leader-rated firm performance. Journal of Management, 41(7), 1898-1933.

Downloads

Published

2017-11-03

How to Cite

Nyokabi, M. S., K’Aol, P. G. O., & Njenga, D. K. (2017). EFFECT OF IDEALIZED INFLUENCE AND INSPIRATIONAL MOTIVATION OF THE CEO ON PERFORMANCE IN THE PRIVATE SECTOR IN KENYA. American Journal of Leadership and Governance, 1(2), 17 - 38. https://doi.org/10.47672/ajlg.304

Issue

Section

Articles