THE INFLUENCE OF PARTICIPATIVE LEADERSHIP ON ORGANIZATIONAL PERFORMANCE METRICS: A CASE OF RAI PLYWOODS (K) LTD, KENYA
Abstract
Purpose of Study: The study investigated the influence of participative leadership on organizational performance at Rai Plywoods (K) Ltd, Kenya.
Statement of Problem: Despite the recognized benefits of participative leadership in enhancing inclusivity and engagement, it may also result in delayed decisions and internal conflicts. In the Kenyan manufacturing sector, particularly at Rai Plywoods (K) Ltd, there is limited evidence on whether participative leadership enhances or hinders organizational performance.
Methodology: The study employed a descriptive research design with stratified random sampling of 300 respondents from 2,500 employees, using structured questionnaires for data collection. Analysis in SPSS v29 applied descriptive statistics, correlation, regression, and validity tests (KMO, Bartlett’s), with ethical standards observed.
Result: Findings showed that participative leadership and open communication had significant positive effects on organizational performance, while encouragement of growth and idea-sharing were not statistically significant. The regression model explained 57.2% of the variance in performance (R² = 0.572). Although organizational culture supported participative practices, it did not significantly mediate the leadership–performance relationship.
Conclusion: The study concludes that participative leadership, especially through open communication and employee involvement in decisions, is critical to organizational performance at Rai Plywoods (K) Ltd.
Recommendation: The study recommends institutionalizing participative platforms such as structured feedback sessions and brainstorming forums, strengthening customer-centric strategies to boost market performance, and enhancing leadership development programs on participative management and communication.
Keywords: Participative leadership, open communication, idea-sharing, organizational culture, organizational performance, Rai Plywoods (K) Ltd, Kenya.
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