Effects of Transformational Leadership on Organizational Performance in Non-Governmental Organizations; Case Study of Compassion International Tanzania

Understanding the connection between leadership and the organizational performance is an important factor for the development of effective non-governmental organizations. Leadership is associated with organizational and staff performance. It is believed that one of the crucial leadership challenges in non-governmental organizations today is maintaining organizational performance. Different scholars have positively concluded that transformational leadership is the best style in improving organizational performance. This study aimed at examining the effects of transformational leadership on organizational performance in non-governmental organizations in Tanzania. The target population comprised of Compassion International staff who included directors, managers, supervisors and normal staff from which a sample of 30 participants was picked. The primary data collection instrument was a self-developed semi-structured questionnaire comprising of both closed and open-ended questions. Data analysis involved use of both descriptive and inferential statistics. Out of the 30 respondents covered, 51.6 % of the respondents were male while 48.4 % were female. Majority of them had first degree (54.8 %). It also emerged that most of the Compassion International staff members were aged between 30 and 49 years (74.2 %) and had served in the organization for 5 years and above (61.1 %). The study revealed a strong positive relationship between idealized influence and performance (r (29) =.74, p =.00), inspirational motivation and performance (r (29) =.82, p =.00), individualized consideration and performance (r (29) =.68, p =.00), and intellectual stimulation and performance (r (29) =.65, p =.00). All the four variables of transformational leadership covered had a significant positive relationship with the performance of CIT. The study recommends that CIT management must continue to promote transformative leadership to sustain the exemplary performance in the organization.