THE EFFECT OF LEADERSHIP ON ORGANISATIONAL PRODUCTIVITY OF COMMERCIAL BANKS IN TANZANIA

Abstract

The banking industry in Tanzania has witnessed tremendous changes brought about by globalisation, liberalisation, intense competition among rivals, changing regulatory guidelines, technology, and more demanding customers. These changes and dynamic business environment requires leadership that can enable both the people and the organisation to adapt and succeed. The main objective of the study was to investigate the effect of leadership on organisational productivity of commercial banks in Tanzania, with the main reference to Kenya Commercial Bank (KCB). The study was guided by these specific objectives; to examine the impact of leadership skills on organisational productivity, to determine the effect of leadership style on organisational productivity and to ascertain the leadership strategies on organisational productivity at Kenya Commercial Bank. The study used descriptive research design and adopted quantitative research approach in the collection and analysis of data. The study targeted population was 400 KCB staff where a sample of 50 employees was selected. Regression analysis indicated that leadership skills, leadership style and leadership strategies have a significant influence on the organisational productivity at KCB bank. The findings also indicate that majority of the respondents strongly agreed that strategic thinking practised by KCB leaders has contributed to organisational productivity. The study concluded that leadership skill is one of the significant determinants of organisational productivity at Kenya Commercial Bank. It is clear from the results of regression analysis that there is a positive correlation between leadership style and organisational productivity. It was also concluded that leadership strategies also is a key determinant of organisational productivity at KCB bank. Further, it was established that leadership strategies significantly influence organisational productivity. It was recommended that the bank could develop and enhance the quality of the employees by providing comprehensive training and development programmes to equip employees with the right skills such as problem solving, decision making, teamwork, and interpersonal relations to enhance their productivity and subsequently enhance organisational productivity. The study suggested that further research should be conducted to establish other influencers of organisational profitability not covered in this study