THE INFLUENCE OF IDEALIZED INFLUENCE AND INDIVIDUALIZED CONSIDERATION ON ORGANIZATIONAL COMMITMENT IN COMMERCIAL BANKS IN KENYA

Abstract

Purpose: The purpose of this study was to establish the influence of idealized influence and individualized consideration on organizational commitment in commercial banks in Kenya.Methodology: The study adopted the positivist research philosophy and descriptive correlational design. A sample of 150 was drawn from a population of 240 senior managers of the 40 commercial banks of Kenya using stratified random sampling technique. The tool used to collect data was questionnaire. Out of 150 questionnaires that were administered, 139 responses were received from the senior managers, giving a 93% response rate.   Data was analyzed using inferential statistics such as Pearson correlations, Chi Square, ANOVA and multiple linear regression.Results: The results of the regression (R2=.695, F (1,139) =34.184, p<.05, (β = .448, t(139)= 5.847, p < .05), indicated that idealized influence significantly predicted organizational commitment and therefore the null hypothesis was rejected. In addition, Results of the regression (R2=.738, F (1,139) =5.377, p<.05, (β = .295, t(139) = 2.319, p < .05) indicated that individualized consideration significantly predicted organizational commitment. Based on the results the null hypothesis was rejected. Organizational culture showed a significant influence on the relationship between transformational leadership and organizational commitment as showed by the coefficients (β = .229, t = 2.211, p < .05). The moderating variable organizational culture was also strongly correlated to organizational commitment, r(138) = .718, p< .05.Unique contribution to theory, practice and policy: The study provides a unique contribution to the theory and practice of transformational leadership by extending its application in a new context in terms how idealized influence and individualized consideration affect organizational commitment in commercial banks in Kenya. The study also provides unique contribution in terms of recommendations for policy development initiatives aimed at improving employee commitment and performance in the banking industry in Kenya.