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

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, β = .751, t (260) = 18.307, < .05, β = .111, t = 3.900,