Abstract
This article examines the influence of leadership style on organizational effectiveness. Research design used was explanatory and descriptive. The population of the study was project managers of 5547 NGOs registered in Kenya in the year 2016. The data collection tool was a questionnaire. The study sample size was 374 project managers from NGOs in Kenya. Data was analyzed using descriptive and inferential statistical methods. The descriptive statistics methods used included mean, standard deviation and variance, while the inferential statistics used in the study included analysis of variance (ANOVA), and standardized coefficients. Leadership style construct is in three parameters: Clear instructions, concern for employees, and employee consultation. The construct parameters of organizational effectiveness are organization goals attainment, stakeholder satisfaction, and process efficiency. The linear regression model results explain 15.1 percent of the variation in organizational effectiveness and the 84.9 percent from error term and variables not examined in this research. The F statistic was 49.875 at P value of 0.000, meaning that the leadership style has a significant influence on organizational effectiveness. Clear instructions significantly and positively influenced the attainment of organizational goals (p=0.001). Concern for employees was found to significantly and positively facilitate the attainment of organizational goals (p=0.009) and significantly and negatively influence stakeholder satisfaction (p=0.006). In addition, concern for employees significantly and negatively influenced organizational process efficiency (p=0.009). The study recommends that leaders in an organization should provide distinct instructions and be concerned about employees to achieve process efficiency and goal attainment.
Highlights
Organizations often aim to be successful by prioritizing strategy development and implementation as a critical task, given the turbulent business environments they operate in (Pearce & Robinson, 2013)
The regression coefficient shows that leadership style positively and significantly influences the achievement of organizational effectiveness
The researcher concludes that the research explains the nature of relationship between leadership style and organizational effectiveness
Summary
Organizations often aim to be successful by prioritizing strategy development and implementation as a critical task, given the turbulent business environments they operate in (Pearce & Robinson, 2013). An organization that meets its core business strategies, goals and objectives is effective (Yukl, 2008). Yukl (2008) asserts, an organization’s effectiveness is its capability to meet its set vision and mission given the resources in its possession. NGOs are defined as private, nonprofit-making organizations that aim to serve societal interests by focusing advocacy and or operational efforts on social, political and economic goals, including equity, education, health, environmental protection and human rights (Teegen, Doh, &Vachani, 2004). The current global environment for NGOs is defined by fundraising uncertainties, effects of climate change, increased economic inequalities, changing geopolitical dynamics, and greater interconnectivity using the internet and leading to the “one world approach” (Green, 2015). A study by Bagire, Aosa and Awino (2012) on the relations of three factors in NGOs in Uganda, NGO structure, leadership personal factors, and performance implications concluded that performance measurement in NGOs was a multidimensional construct often consisting of intangibility of services, differing internal practices, unknown outcomes, and different stakeholder interests
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