The purpose of this paper was to review existing literature on leadership theories and the desired competencies of the 21st Century Organization Leader, collect and summarize empirical evidence that fits within the context of this study. The modern organization is operating in a context of complex problems that are non-predictable, dynamic and do not have definite solutions. This is coupled with the global sustainability issues of pandemics, global terrorism and environmental pollution, among others. The 21st Century leader needs to have competencies that are sustainable for the present, the future and have capabilities for survival in this digital era. The world is not static and as it evolves, so has leadership evolved and leaders require competencies that will help run the 21st century organization successfully. There are constant changes in the speed of communication, expansive networks that are needed to run organizations and the upsurge in trade volumes. All these have altered the ways that a leader can achieve organizational efficiency and effectiveness. From the literature review findings, leaders need to be intelligent, manage change, lead teams, manage performance and communicate effectively. These competencies enable them to understand and adapt relevant leadership theories that have practical value and can help them to better understand, predict and control the highly dynamic contemporary organization.
Retention of the desired staff is a key determinant of success in microfinance institutions in the modern competitive world. Notably, these institutions experience poor staff retention due to inappropriate leadership. Investigations on the effect of transformational leadership on staff retention have largely considered transformational leadership as a unidimensional construct than its respective dimensions of idealized influence, inspirational motivation, intellectual stimulation and individualized consideration. This study therefore investigated the effect of transformational leadership on staff retention in microfinance institutions in Nairobi City County, Kenya, specifically the effect of idealized influence, inspirational motivation, intellectual stimulation and individual consideration on staff retention. The underpinning theories were Transformational Leadership Theory, Leader-Member Exchange Theory, Social Exchange Theory, and Resource-Based View Theory. The study was guided by the positivism philosophy and descriptive and explanatory research designs. A total of 298 respondents was obtained through census sampling from the 12 accessible microfinance institutions licenced by the Central Bank of Kenya in Nairobi City County. Primary data was collected from senior, middle and lower-level management staff in the headquarters of these institutions, using structured questionnaires. The data were analysed using descriptive and inferential statistics, while hypotheses were tested at 5% significance level using regression analysis. The study established that transformational leadership significantly predicts staff retention through idealized influence, intellectual stimulation and individualized consideration. The study recommends that the policy makers in the microfinance institutions should align transformational leadership practices with the staff retention strategies for the success of these institutions.
Retention of the desired staff in microfinance institutions has remained a major challenge as depicted from extant literature. It is often associated with inappropriate leadership deployed in these institutions among other antecedents. The current study, therefore, set out to establish the effect of transformational leadership on staff retention in microfinance institutions in Nairobi City County, Kenya, as well as the mediating effect psychological empowerment on the relationship between transformational leadership and staff retention in microfinance institutions in Nairobi City County, Kenya. The study was guided by Transformational Leadership Theory, Leader-Member Exchange Theory, Social Exchange Theory, and Resource-Based View Theory and founded on the positivism philosophy. Descriptive and explanatory research designs were adopted to guide the study. A sample of 298 respondents was obtained from 12 microfinance institutions in the Nairobi City County, Kenya, through census method for data collection. The unit of analysis was the head offices of the 12 microfinance institutions, while the unit of observation was the senior management level, middle management level and lower management level. Data was collected using structured questionnaires and analysed using descriptive and inferential statistics. The hypotheses were tested at the 5% significance level. The study established that transformational leadership was a significant predictor of staff retention, and that this relationship was partially mediated by the psychological empowerment. The study recommends that the microfinance institutions management should align transformational leadership practices with the strategic goals set for staff retention and emphasize on psychologically empowering strategies for their staff.
Retention of the desired staff is a key determinant of success in microfinance institutions in the modern competitive world. Notably, these institutions experience poor staff retention due to inappropriate leadership. Investigations on the effect of transformational leadership on staff retention have largely considered transformational leadership as a unidimensional construct than its respective dimensions of idealized influence, inspirational motivation, intellectual stimulation and individualized consideration. This study therefore investigated the effect of transformational leadership on staff retention in microfinance institutions in Nairobi City County, Kenya, specifically the effect of idealized influence, inspirational motivation, intellectual stimulation and individual consideration on staff retention. The underpinning theories were Transformational Leadership Theory, Leader-Member Exchange Theory, Social Exchange Theory, and Resource-Based View Theory. The study was guided by the positivism philosophy and descriptive and explanatory research designs. A total of 298 respondents was obtained through census sampling from the 12 accessible microfinance institutions licenced by the Central Bank of Kenya in Nairobi City County. Primary data was collected from senior, middle and lower-level management staff in the headquarters of these institutions, using structured questionnaires. The data were analysed using descriptive and inferential statistics, while hypotheses were tested at 5% significance level using regression analysis. The study established that transformational leadership significantly predicts staff retention through idealized influence, intellectual stimulation and individualized consideration. The study recommends that the policy makers in the microfinance institutions should align transformational leadership practices with the staff retention strategies for the success of these institutions.
Article HistoryReceived: 10 January Two questions guide this research on the influence of strategy implementation to the performance of the micro enterprises in the Ruiru Sub County, Kiambu County, Kenya. The first is whether micro enterprises in Ruiru Sub County carry out strategic planning including strategy implementation. The second is whether strategy implementation has any competitive influence on their performance. Most literature and research on strategic planning is on big firms (Pearce and Robinson, 2007). In Kenya strategic planning is relatively new and less common in small enterprises. Micro enterprises ranking at the bottom of the pyramid of businesses in Kenya are more likely to ignore it. Although they contribute heavily to service delivery and job creation many of them are handicapped in growth and expansion. Data was collected on a sample drawn from 737 micro enterprises from 3 different industries in Ruiru Sub County using descriptive research design. Stratified random sampling was used with a 20% sample size which was 147 elements. Data was collected from the micro enterprises" owner-managers by use of self-administered or interview administered questionnaires. Data was analyzed using descriptive and inferential statistics with computer software. The findings conclude that micro entrepreneurs in Ruiru Sub County make business strategies and implement them and strategy implementation significantly influences the performance of these micro enterprises. For the micro entrepreneurs who engaged in strategy implementation the average rate of success on the three performance variables of profits, business turnover and market positioning was 75% while those who did not implement strategy was 25% Contribution/ Originality: This study contributes to the importance of strategy implementation and its contribution to the performance of micro enterprises. The empirical evidence provided shows that where strategy implementation is carried out, there is a strong positive relationship between it and performance variables of profits, business turnover and market positioning.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.