Transformational Leadership And Organizational Performance Of State .

Africa International Journal of Multidisciplinary Research (AIJMR) ISSN: 2523-9430(Online Publication) ISSN: 2523-9422 (Print Publication), Vol. 2 (3) 1-11, May 2018www.oircjournals.orgorganization. Based on this knowledge claim and anunderstanding of the four constructs oftransformational leadership, a theoretical frameworkto understand how transformational rmulated. The framework proposes the use of fourindependent variables including: idealized influence,inspirational motivation, intellectual stimulation, andindividual consideration. Organizational performancewas measured using Balance Scorecard (BSC) ofKaplan and Norton, (1992) four perspectives,financial, customer satisfaction, business processes,learning and growth as dependent variable. The studyframework proposes that while transformationalleadership may result in the development of improvedorganizational performance, specific constructs oftransformational leadership play are more important orrole in the organization performance outcomes.3.2. The Relationship between Idealized Influenceand PerformanceIdealized influence is one of the four components oftransformational leadership identified as anindependent variable for this investigation. Scholarsexamining this process assert that idealized influencerefers to the idea that followers will trust and respectleaders to provide support and resources (Chu & Lai,2011). As a result of this belief, the workforce will bewilling to accept the directives provided by the leader,regardless of their complexity or difficulty (Chu &Lai, 2011). Although the role of idealized influenceand its implications for organizational performance isoften conceptualized as part of transformationalleadership, there is evidence indicating that idealizedinfluence may influence particular aspects oforganizational performance. In particular, idealizedinfluence may have implications for workersimproved performance Understanding the specificinfluence of idealized influence on organizationalperformance is thus imperative for expandingcomprehension of how transformational leadershipinfluences organizational nceThe relationship between transformational leadershipand organizational performance was examined in theintroduction of the study. In an effort to understand therole that transformational leadership plays in thegrowth of organizational performance, variousscholars have considered how this leadership theoryinfluence specific aspects of workforce andorganizational performance. Sasaka, (2016) explainsthe influence of transformational leadership onorganizational strategic human resources learning,suggesting that this approach can be used to improvethe ability of the organization to be creative andinnovative. This can prompt growth and expansionindicating successful organizational performance(Choudhary et al., 2013).Transformational leadership was also found by Datche(2015) to have a direct influence on organizationalperformance. Datche (2016) argues that throughtransformational leadership the environment of theorganization can be strengthened creating anenvironment in which workforce are motivated andenergized. This facilitates the achievement oforganizational goals and hence increased performance(Datche, 2015); Ngaithe et al (2015). Giroux andMcLarney (2014) also explained the influence ent noting that the outcome has systemicimplications for employees, customers, andshareholders. Motivated workforce working in asupportive environment provides more effectivecustomer satisfaction enhancing organizationalperformance and leading to financial gains forshareholders (Giroux & McLarney, 2014).3.3. The Relationship between InspirationalMotivation and Performance.Inspirational motivation is another component oftransformational leadership that is examined in thisstudy as an independent variable. Inspirationalmotivation is extensively reviewed by Ngaithe et al.,(2016) who argue that the process involvesencouraging followers to align personal goals with thegoals of the organization, hence this study put intoconsideration how internal business processes can bealigned to organizational goals for higherperformance. Through this process, Ngaithe et al(2016) argue that the objectives of the organization areconcurrently achieved, with the outcomes havingimplications for both the workers and theorganizations. A number of constructs such asidealized influence, inspirational motivation and theirinfluence on organizational performance has not beenwidely examined independently from the context oftransformational leadership. According to Lewa et al.,(2016) consider the role of inspirational motivation inbuilding trust and satisfaction for the workers who areinternal customers. According to these authors,inspirational motivation can serves as the foundationfor knowledge sharing through developing rightstructures of understanding the vision and mission ofthe institution being an important constituent offacilitating the accomplishments of the organizations.The paucity of insight regarding the degree to whichOgolla and Senaji (2018)www.oircjournals.org14

Africa International Journal of Multidisciplinary Research (AIJMR) ISSN: 2523-9430(Online Publication) ISSN: 2523-9422 (Print Publication), Vol. 2 (3) 1-11, May 2018www.oircjournals.orginspirational motivation influences outcomes fororganizational performance prompted the need forexamining this variable independently to realize itsinfluence on performance.3.4. The Relationship between IntellectualStimulation and PerformanceIntellectual stimulation represents an importantconstituent of transformational leadership and formsthe basis as one independent variable for this study. Aresearch review of this variable suggests wermentthroughcommunicationandencouragement to identify problems and offersolutions (Smothers et al, 2016). The role ofintellectual stimulation on organizational performancehas been evaluated more extensively in the literatureas an independent variable determining outcomes ofthe workers and the whole organization. In particular,Kaplan and Norton,(2015) assert that intellectualsimulation leads to the development of the workforcedecision making levels to solve problems, learning andgrowth for sustainable organizational performance.This, in turn, has implications for the ability of theorganization to achieve goals based on the learningand growth of its workforce.3.5. The Relationship betweenConsideration and PerformanceBy acting as a coach or mentor, transformationalleaders pay special attention to each follower’s needsfor achievement and growth. Individualizedconsideration occurs when new learning opportunitiesare created in conjunction with a supportive climate.In their demonstration of individual consideration, thetransformational leader is an effective listener, andrecognizes and is accepting of employee’s individualdifferences. Two-way communication is encouraged,and interactions with followers are personalized. Anindividually considerate leader will delegate tasks as ameans of developing followers. Delegated tasks aremonitored to determine whether the followers needadditional direction or support and to assess progress;however, the followers do not feel they are beingchecked on or monitored (Bass & Riggo, 2006). Thisvariable according to Sasaka (2016) is theconsideration that involves the willingness and abilityof the leader to provide nurturing support for eachfollower. In terms of the implication of individualconsideration for organizational performance. Thisprocess can positively influence team satisfaction,leading to higher levels of performance at individualand at organization performance level. When all thestaff experiences this outcome organizationalperformance should improve Datche (2015).IndividualTransformational LeadershipIdealized InfluenceORGANIZATIONPERFORMANCE (BSC)Financial PerspectiveCustomer satisfactionBusiness ProcessesLearning and onIndividualconsiderationFigure 1: The research Conceptual frameworktheoretical framework and put forth together as part ofthe theoretical model and are as follows:3.6. Hypothesis of the StudyThe following hypotheses of the study wereanticipated to test the objectives presented in theOgolla and Senaji (2018)www.oircjournals.org15

Africa International Journal of Multidisciplinary Research (AIJMR) ISSN: 2523-9430(Online Publication) ISSN: 2523-9422 (Print Publication), Vol. 2 (3) 1-11, May 2018www.oircjournals.orgH1: There is no significant relationship betweenTransformational Leadership and OrganizationalPerformance.H2: There is no significant relationship nce.H3: There is no significant relationship formance.H4: There is no significant relationship formance.H5: There is no significant relationship formanceproduces a confidence interval of 5 at the 95 percentfor a population of the study. The valid responseindicated the adequacy for testing the hypotheses ofthe study.4. Materials and Methods4.1. Data CollectionData collection for this investigation involved the useof a questionnaire to measure both the performance ofthe organization in terms of the four perspectives ofBalance Scorecard as well as dimensions oftransformational leadership constructs: idealizedinfluence, inspirational motivation, intellectualstimulation and individual consideration. Thequestionnaire dropped and picked to a stratifiedsampled 55 state corporations in Kenya. Each of thestate corporations had been contacted beforedelivering the surveys questionnaire to acquirepermission for the top management to participate inthe study. The top management who participated in thesurvey completed the study instruments and returnedtheir surveys anonymously. A total of 257 surveyswere distributed to the 55 state corporations. After twoweeks 235 of the surveys were collected and returnedto the researcher unfortunately only 215 were useable.This gave out an 84 percent response rate. The highrate of response reduced the threat of non-responsesbiases in analyzing the data. A review of the returnedsurveys indicated that 215 were complete and valid forinclusion in the current study. This sample size5. Results and Discussion5.1. Results of internal consistencyTable 1: Reliability AnalysisVariablesNumber of itemsIdealized Influence4Inspirational Motivation4Intellectual Stimulation4Individual Consideration4Organizational Performance94.2. InstrumentA descriptive, correlation, cross-sectional design wasused in the study where 215 top management leaderswere chosen from 55 state corporation by stratifiedrandom sampling method to fill related self-reportedscale including multifactor leadership questionnaire(MLQ). Data was analyzed according to the statisticalmethod of simple and multiple correlationcoefficients. The instrument used for this investigationincluded cross sectional survey designed specificallyfor use in this investigation. Questions regardingtransformational leadership were modified from theMultifactor Leadership Questionnaire. A total of25questions were included on the instrument asfollows: idealized influence (4 questions),inspirational motivation (4 questions), onsiderations (4 questions). The instrument alsoincluded nine (9 questions) regarding the performanceof the organizations.Top management who participated in the survey wereasked to provide their perception of performancebased on their knowledge and experiences with thesurvey instruments including a small introductiondefinition of each constructs under the study. All of thequestions on the survey were rated on a five-pointLikert scale ranging from 1 strongly disagree to 5 strongly agree. Higher scores on the scale wereindicative of an increased presence of the variablewithin the organization. Higher scores were alsoindicative of higher levels of perception regarding theperformance of the organization. Likert-scales arecommonly used to provide standardized measures ofparticipant opinions that allow for comparison acrossdiverse populations (Groves, Fowler, & Couper,2011).Cronbach’s Alpha value0.8240.7950.7170.8280.919commentsVery GoodVery GoodGoodVery GoodExcellentthrough the survey. Specifically, Cronbach’s alphawas utilized to measure the degree to which the set ofReliability analysis for this investigation wasperformed using each of the five items measuredOgolla and Senaji (2018)www.oircjournals.org16

Africa International Journal of Multidisciplinary Research (AIJMR) ISSN: 2523-9430(Online Publication) ISSN: 2523-9422 (Print Publication), Vol. 2 (3) 1-11, May 2018www.oircjournals.orgvariables measures evaluates a specific latentconstruct (Nunnally (1978; Andrew, Pedersen, &McEvoy, 2011). Cronbach’s alpha provides acorrelation between the survey item and the constructthat it intends to measure (Andrew et al., 2011).Cronbach’s alpha values range between 0 and 1 withhigher numbers indicating that correlations between arespective survey item and the construct it measuresare reliable (Andrew et al., 2011). Cronbach’s alphalevels above 0.7 are desirable indicating that themeasured results are indeed representative of theconstruct being measured (Andrew et al., 2011).Table 1 above indicated an overview of theCronbach’s alpha measures that were tabulated for thisstudy. The results indicate that all of the values wereabove the 0.70 threshold ranging between 0.919 fororganizational performance and 0.828 for individualconsideration. Based on the results, it is possible toargue that the instrument used for measuring each ofthis constructs provides reliable results, supporting theuse of the instrument to acquire insight into each of thevariables selected for investigation5.2. Demographic Profile of RespondentsTable 2: Demographic Characteristics of Respondents (N 215)AspectPercentageGenderMale47Female53Level of EducationMaster’s Degree20Undergraduate Degree70College Degree10PositionTop Management74.4Middle Level18.8DurationPositioninCurrentAge of RespondentOperational ManagerLess than 55-1011-15Over 1531-4041-5051-59Over 606.837.635.915.311.27.226.85016A summary of the demographic profile of respondentsfor the survey is provided below in Table 2. The resultsindicate that males (62.2 percent) represented themajority of respondents. Females comprised only 53percent of participants. Data also indicates that amajority of the respondents were between the ages of51-59 (50% percent) indicating that the decisionmakers in top management have accrued experiencebut also delicate for the organizations future growth asmost will be retiring in less than ten years. Thistherefore, advices the organizations to put moreresources on upcoming structures of young leaders tobe in a position for making decision which support theindependent variable of this study and as well learningand growth perspective of organization performance .The second largest age group to complete the surveyincluded those between the ages of 41-50 which isCumulative (%)100100100100100(26.8 percent) followed by those between the ages ofover 60 which was (16.0 percent) and those betweenthe ages of 31-40 were (7.2 percent). A majority ofthe respondents (70 percent) reporting havingundergraduate Bachelor’s degree.Those who reported with college diplomas were 10percent while those with Masters were 20 percentreporting the completion of postgraduate education.Demographic information collected also included theposition of the respondent in the organization. Table 2demonstrates that of those who responded to thequestionnaires was top management with 70 percent.18.8 percent were middle management managers,while 6.8 were operation managers.5.3. Hypothesis TestingOgolla and Senaji (2018)www.oircjournals.org17

Africa International Journal of Multidisciplinary Research (AIJMR) ISSN: 2523-9430(Online Publication) ISSN: 2523-9422 (Print Publication), Vol. 2 (3) 1-11, May 2018www.oircjournals.orgHypothesis testing was undertaken utilizing multipleregression analysis. Specifically, this data analysistool was utilized to evaluate the four dimensions oftransformational leadership: idealized influence,inspirational motivation, intellectual stimulation, andindividual consideration regressed on the dependentvariable of organizational performance. The level ofsignificance for each of the variables was measured atthe p 0.05 level. Standardized β coefficients werealso tabulated with positive numbers indicating thatthe result had a positive influence on the developmentof organizational performance. Table 3 belowprovides an overview of the results of the multipleregression analysis.Table 3: Results of Multiple Regression AnalysisModelStandardized Coefficient (β)Idealized influence.261Inspirational motivation.152Intellectual stimulation.093Individual consideration.457R2 .601; Adjusted R2 .559; F-value 373.070;Significance 0.00The results indicate that inspirational motivation,intellectual stimulation, and individual considerationhave a statistically significant (p 0.00) and positiveinfluence on organizational performance (βcoefficients). However, the results also indicate thatinspirational motivation does not have a significantinfluence over organizational performance (p 0.012). This outcome will have implications forunderstanding the influence of transformationalleadership on organizational performance, requiringefforts to better understand the role of inspirationalmotivation influence in transformational leadership inthe general work in the organizationsThe regression analysis also indicates that intellectualstimulation played the most significant outcomes n having the second most prominentinfluence. The R2 value of .601 further indicates thatthe statistically relevant variables account for 60.1percent of the total variance in organizationalperformance. The results therefore allow for acceptinghypotheses 4, 3, 1, and 2. However, it is important toconsider the results as they relate to the specific issueof inspirational motivation as this hypothesis (2) couldnot be supported from the data results.6. DiscussionAs noted the results provided in this study do notsupport hypothesis 2 but do support all of the otherhypotheses proposed for this analysis Table 4 includesa review of the hypotheses developed for this studywith a review of the results as they relate to the dataanalysis conducted for this research. Table 4:Summary of Results in Relation to ResearchHypotheses.Table 4: Results of study hypothesis AnalysisNo.H1:H2:H3:H4:HypothesisThere is no significant relationship between Idealized Influence andPerformance.There is no significant relat

transformational leadership has been preferred as effective because it drives changes in individual behaviors which leads to the achievement of organizational performance. Consequently, transformational leadership has the potential to have influence on the overall performance of the organization, 3. Theoretical Framework