THE EFFECT OF TRANSFORMATIONAL LEADERSHIP ON ORGANIZATIONAL PERFORMANCE OF STEEL MANUFACTURING COMPANIES IN COAST REGION

Abstract

The general objective of the study was to assess the effect of transformational leadership on the organizational performance of steel manufacturing companies in coast region. The study was guided by the following objectives; to establish the effect of idealized influence, inspirational motivation, individualized consideration and intellectual stimulation on the organizational performance of steel manufacturing companies. This study adopted a descriptive study design. Target population primary data was collected using semi-structured questionnaire based on the objectives of the study. The target population for this study was therefore six fully automated and eleven semi-automated steel manufacturing companies. The unit of observation was the 59 senior level managers. Purposive sampling was used to arrive at this sample. The data was edited, coded for processing using the statistical package for social sciences (SPSS v.24) and presented in tables. Descriptive and inferential statistics was used to analyze information generated from respondents. First, in regard to idealized influence, the regression coefficients of the study showed that it had a significant influence on organizational performance of steel manufacturing companies in coast region. The results indicated that there was a positive relationship between idealized influence and organizational performance of steel manufacturing companies in coast region. In addition, the researcher found the relationship to be statistically significant at 5% level. Correlation and regression results indicated that individualized consideration had a significant effect on organizational performance of steel manufacturing companies. Finally Most of the statements showed that the respondents agreed with the statement that intellectual stimulation had an effect on organizational performance of steel manufacturing companies in coast region. Regression results also showed intellectual Stimulation had a significant effect on organizational performance of steel manufacturing companies in coast region. This study recommends the leaders in corporation to go for leadership seminars to fully understand the full effect leaders have on their subjects.