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Leadership styles shape institutional strategies towards realization of organizational objectives. Through different leadership styles, organization management influences the way employees execute tasks. This study sought to establish the different leadership styles used and their effect on operational efficiency among domestic tour and travel firms in Kenya. The study used a descriptive research design and targeted 141 travel agencies. The study collected primary data using a structured close-ended questionnaire which was input into Statistical Package for Social Sciences (SPSS) version 22.0 software where percentages, means, standard deviation and frequencies of the responses were obtained. The study established that manager involves them in decision making, were more concerned with the performance of tasks, always shares with them the vision for the company, motivates them to come up with new ways of doing work, managers recognizes achievement through remuneration, makes unilateral decision on key functions in the company and leadership style adopted in the organization had an impact on timely delivery of services, the level of customer satisfaction, level of accuracy in production and cost efficiency. The study concludes that managers were helping their staff develop themselves, guides their staff on how to do their work in order to be rewarded, managers being satisfied with their staff if they meet the agreed upon targets, staff receive recognition and rewards for performance and that good leadership styles and right adoptions are necessary for provision of teamwork and ensuring everyone understands their roles. Staff who were properly motivate and guided by the management to work to achieve the desired results leads to increased efficiency, reduction of costs and improved performance. The study concludes that managers were helping their staff develop themselves, guides their staff on how to do their work in order to be rewarded, managers being satisfied with their staff if they meet the agreed upon targets, staff receive recognition and rewards for performance, setting the standards of working to their staff members and managers not asking for more information than what is essentially required. The study also concludes that good leadership styles and right adoptions are necessary for provision of teamwork and ensuring everyone understands their roles. Managers should help others develop themselves, be satisfied when others meet agreed-upon standards, provide recognition or rewards, communicate with clarity on the vision, mission and objectives of an organization so that their subordinates can focus their energies towards realizing them. The study also recommends that managers strife to motivate their subordinates by drafting and implementing appropriate policies for