INFLUENCE OF DEMOCRATIC LEADERSHIP STYLE ON ORGANIZATIONAL PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA

Abstract

Purpose: The purpose of this study was to examine the influence of democratic leadership style on organizational performance of commercial state corporations in Kenya.

Methodology: The study adopted Cross sectional survey research design. The target respondents were 35729 middle level staff in the 20 commercial state corporations in Kenya. Stratified sampling was used to select 384 respondents for the study. This study used primary data which was collected through use of structured questionnaires. Data from the questionnaires were analysed using Statistical Packages for Social Sciences (SPSS) to derive descriptive results. Pilot study was conducted to measure the reliability and validity of the questionnaires. The reliability of the instrument was tested using the Cronbanch Alpha method.

Results: The results of study revealed that revealed that there was a positive and significant relationship between democratic leadership and organizational performance (r=0.352, p=0.000). This was supported by a calculated t-statistic of 10.563 which is larger than the critical t-statistic of 1.96 and a p value of less than the conventional 0.05.

Unique contribution to theory, practice and policy: Based on the findings, it was recommended that the management should involve a wide range of people in decision making or building a consensus. Through the democratic leadership style, the leader shares the problem with the relevant team members as a group. Together they generate and evaluate alternatives and attempt to reach agreement on the solution. Involvement in decision making helps the employees in effective implementation of the agreed issue.

Keywords: Democratic leadership, performance