THE EFFECT OF MANAGERIAL LEADERSHIP ON FINANCIAL PERFORMANCE IN PUBLIC FINANCIAL INSTITUTIONS

Abstract

This study examined the influence of managerial practices on the financial performance of Tanzania Commercial Bank (TCB), Arusha Branch. The general objective was to assess how managerial practices affect the bank’s financial performance, while the specific objectives were to examine the influence of strategic planning, managerial accountability, and managerial communication on financial performance. The study employed a mixed research approach using a descriptive research design, where quantitative data were collected from 87 respondents through structured questionnaires, and qualitative data were obtained from 15 key informant interviews. Data were analyzed using descriptive statistics and thematic analysis. The findings revealed that effective strategic planning, characterized by clear goal-setting, efficient resource allocation, and adaptability, significantly improved operational efficiency and profitability. Managerial accountability, through transparent reporting, policy compliance, and responsibility for outcomes, strengthened ethical governance and institutional trust. Additionally, effective managerial communication enhanced coordination, responsiveness, and teamwork, leading to improved financial performance. The study concluded that these managerial practices collectively enhance institutional stability, profitability, and sustainable growth. It recommends that TCB and similar institutions strengthen strategic planning frameworks, foster accountability systems, and promote open communication channels to improve governance, operational efficiency, and financial outcomes in public commercial banks