The aim of this study was to examine effect of Intellectual Stimulation and Individualized Consideration on performance of staff in State Owned Enterprises in Kenya. The study intended to answer the following research questions: does intellectual stimulation affect performance of staff in SOEs in Kenya?, and does individualized consideration affect performance of staff in SOEs in Kenya? Positivism research philosophy and descriptive research design were used in this study. Stratified random sampling technique was used to select a sample of 163 senior managers from the target population of 275 senior managers. A structured questionnaire was used to collect data from the selected members of top management team in SOEs. The study used factor analysis to reduce data, correlation analysis to establish the relationship between staff performance and intellectual stimulation and individualized consideration, chi square test, Analysis of Variance (ANOVA) and multiple linear regression model to test the hypotheses. The study found that intellectual stimulation was positively and significantly related with staff performance, r (139) = .73, p < .00 and significantly predicted staff performance, β = .78, t (145) = 3.38, p < .001. Individualized consideration was strongly correlated with staff performance r (138) = .75, p < .00 and significantly predicted staff performance, β = 1.07, t (145) = 4.57, p < .00.The study concluded that Intellectual Stimulation and Individualized Consideration positively and significantly increased performance of staff in SOEs in Kenya. The study recommended in order for the SOEs to achieve their objectives, top management should inspire and motivate their followers so as to increase performance.
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