Abstract:
Strategic leadership is a significant factor in organizational performance. It is the ability to influence others to voluntarily make day-to-day decisions that enhance the long-term viability of the organization, while at the same time maintaining its short-term financial stability. The study aimed at assessing the effectiveness of strategic leadership practices on organization performance. The specific objectives were to; establish the influence of strategic direction on performance of Tea Factories in Kisii County; determine the effect of developing human capital on performance of Tea Factories in Kisii County; and examine the role of ethical practices on performance of Tea Factories in Kisii County. The study was conducted in all tea factories in Kisii County, Kenya. Descriptive research design was employed in this study. The target population of this study was 795 permanent employees in all the tea factories in Kisii County. A sample size of 303 respondents consisting of 261 employees, 6 managers and 36 supervisors was used in the study. Census was used to select factory unit managers and supervisors from each factory. The other employees were selected by using the stratified random sampling method. This study used a semi-structured questionnaire which contained both open ended and close ended questions to collect primary data. Drop and pick method was used to administer the questionnaires. Validity and reliability of the study was measured by supervisors examining the questionnaire and gave their recommendations on the suitability of the item. The questionnaires were prepared in readiness for analysis using statistical package for social sciences (SPSS) to generate descriptive and inferential statistics using multiple regression analysis. From the study it is possible to conclude that the Kisii tea factories have not put in place strategic leadership practices. The study recommends that management of tea factories should embrace the Strategic Leadership Practices to enhance performance.