Transformational leadership,organizational characteristics, employee outcomes, leader-member relations and performance of universities in Kenya

Abstract

University education in Kenya has undergone major reforms in the last ten years which have come with challenges to employees and universities. This study was motivated by the need to understand how universities in Kenya responded to these reforms, focusing on their leadership which is critical in both managing the transformation and creating academic excellence. To realize these goals the universities need a proactive leadership and a motivated workforce which transformational leadership can provide as it has the ability to motivate and empower employees to better organizational performance. This study set out to answer three research questions. What are the factors that influence the relationship between transformational leadership and performance of these universities? Is the effect of transformational leadership and the performance of these universities direct or is it mediated by other factors? Are there factors that moderate the relationship between transformational leadership and employee outcomes of these universities? The study employed a positivist approach to research and used a descriptive survey research design. Data was collected in April 2014 from the top leadership of the 52 fully-fledged universities in Kenya using a questionnaire. A response rate of 73% was realized. Descriptive statistics were used to obtain a general understanding of the universities while different statistical techniques such as regression analysis, correlation analysis and multiple regression analysis were used to analyse the data and test the hypotheses. The study had eight hypotheses. The findings of the study support hypothesis one, showing a positive and statistically significant relationship between transformational leadership and the performance of universities. Hypotheses two and five are supported as all the indicators of organizational characteristics show a positive relationship with transformational leadership and with performance except for reactor strategy as expected. The results support hypotheses three and six on the relationship between transformational leadership and employee outcomes and employee outcomes and performance. The findings of this study do not support a moderating effect by leader-member relations on the relationship between transformational leadership and employee outcomes. The results of hypothesis seven show that employee outcomes fully mediate the relationship between transformational leadership and performance while organizational characteristics show mixed results. Hypothesis eight predicted that all the predictor variables would have a joint effect on performance that would be stronger than that of each of the predictor variables. The results, however, show a joint effect of employee outcomes, management systems and leader-member relations on performance that is stronger than that of each of these predictor variables. Transformational leadership, structure, strategy and technology did not contribute to the joint effect. In summary, it emerged, that transformational leadership behaviour of the top leadership of universities in Kenya led to high employee and organizational performance and that the top leadership of these universities is able to match their strategy with the correct structure, systems and technology to achieve organizational effectiveness. The results of the study have important implications for theory, policy and practice for the Kenyan universities. Specifically the findings suggest that universities need visionary leadership and sound policies that will strengthen their position as a fundamental sector in generating human capital for the county‟s developmental and economic needs as well as the development of training programmes in leadership skills and competences in transformational leadership for the leaders of these institutions