Influence of Leader’s Relational Transparency on Employee Commitment in Agencies Implementing Public Financial Management Reforms in Kenya

Abstract

This paper addresses the influence of leader’s relational transparency on employee commitment in agencies implementing Public Financial Management Reforms (PFMRs) in Kenya. Methodically, the study was guided by the positivism research philosophy. The study applied descriptive correlational research design because it is the most appropriate as it reveals accurate information that allows for inferences through hypothesis testing. This approach was favored because it explains what is in existence and, in turn, assists in revealing new realities and meanings, thus broadening the scope of the phenomenon under study. The population of the study was 747 managers from the Kenyan PFMRs implementing agencies. This study adopted a simple random sampling technique to select 260 managers for the study. Primary data was collected using a structured questionnaire that was designed based on the research objectives. Both descriptive and inferential analysis were employed for analysis. The Binary logit regression model was significant with Chi-square χ² (1) = 112.350, p<.001, and the model summary result shows the Nagelkerke R square of .783. The study accepted the alternative hypothesis, which stated that leaders' relational transparency significantly influenced employee commitment among managers in agencies implementing PFMRs. From the empirical evidence and conclusion, the study recommends that organizations can establish a consistent policy for leaders to be transparent about the task and activities related to the firm. In addition, employees should be encouraged to provide honest feedback, but this can only occur if the leaders are ethical.