INFLUENCE OF INSPIRING MANAGERS ON ORGANIZATIONAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Abstract

The concept of leadership has received considerable public and institution’s attention both in developed and developing world. This study examines the crucial role of inspiring managers on organizational performance of commercial banks in Kenya. The study involved all the commercial banks currently in Kenya. The study thus reached a total of 384 employees, sampled on a stratified random sampling method, from the two strata: top and middle cadre employees. The questionnaires were administered through drop and pick method to the respondents targeted. They were coded and edited for completeness and consistency and entered into Statistical Package for Social Sciences (SPSS version 20). The response rate was 273 respondents which is 71% of the respondents. The study concluded that Inspiring managers help inspire employees to innovate. The study recommended a need for future researches to be done to establish other areas of employee engagement influenced by transformational leadership behaviors, as well as their contribution to organizational performance. Studies may also be done to establish why idealized influence of supervisor was found to be negatively related to both employee engagement and organizational performance as per this study finding. Since majority of empirical studies reveal that there is an enormous return on investment for organizations and even Governments when employees are fully engaged, there’s need to establish other factors that may influence employee engagement levels which will further boost organizational performance.