Impact of Transformational Leadership on Organizational Culture in Organizations. Case Study: Rwenzori Beverages Company Limited

Abstract

Transformational leadership has been posited to have a great impact on the work environment and the work outcome, but its relationship to organizational culture had not been established within the Rwenzori Beverages Company Limited. The research was therefore conducted with the aim of establishing the relationship between transformational leadership and organizational culture; and whether employee commitment moderates the relationship. The study population was 182 while the sample size of 123 was extracted from the population using Krejcie and Morgan (1970) simplified table.

A quantitative research employing correlation design was employed, and findings revealed that there is a strong positive relationship between transformational leadership and organizational culture. It was also found that, transformational leadership had a high level of agreement on employee commitment but the relationship was weak. The study therefore concluded that transformational leadership is significant for influencing the level at which employees adapt to the culture of the organization, and strength of the influence is greater in the presence of commitment to the organization by the employees. The study had limitations that included among others, the use of self-rating tools which could promote bias among respondents because of the desire to portray the good side only that may arise. The second limitation was that the study population was small and generalization of the research results would therefore be affected. The study recommends that management should put pressure on employees to do what the organization wants with less reliance on formal control mechanisms such as close supervision, hierarchies, rules and procedurestransformational leadership style should be employed by managers at various levels. The culture of an organization should be aligned with the current competitive business environment so as to ensure the survival and success of the organizations. Further research would therefore be required to examine the impact of transformational leadership on employee commitment. A study should also be conducted to examine the impact of adapting organizational culture on the employee performance.

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