Analysis of the Effect of Leadership Styles on Staff Retention in Selected Private Hospitals in Kampala District, Uganda
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European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.8, No.9, 2016 Analysis of the Effect of Leadership Styles on Staff Retention in Selected Private Hospitals in Kampala District, Uganda DR. MARTIN ONSIRO RONALD Senior Lecturer, School of Business and Economics, Mount Kenya University NAMATOVU LUBEGA AISHA Assistant Lecturer, Kampala International University, Dar es Salaam Constituent College, Tanzania DR. MARTIN J. BABU Lecturer, Department of Business and management, Kampala International University, Dar es Salaam Constituent College, Tanzania ABSTRACT This study aimed to investigate the influence of leadership styles on retention of staff in the selected private hospitals. The objectives were: to investigate the leadership styles practiced in private hospitals in Kampala district, to establish the staff retention strategies in private hospitals in Kampala and to establish the relationship between leadership styles and staff retention. The study was based on trait theory and situational leadership theory. A descriptive correlation and cross-sectional designs were used for the study to achieve the objectives of the study. Hospitals were selected from the 5 divisions of Kampala. A non standardized structured questionnaire of content and purpose was the main instrument for data collection. A total of 215 respondents were involved in the study. The study found that turnover rate is attributed to non-uniformity of the leadership policies practiced in the hospitals where some of the staff is availed with services and others are not. It was revealed that there is a positive relationship between leadership styles and staff retention. In conclusion, there is need for uniform implementation and fairness of leadership styles and policies in order to maintain staff. Leaders in the private hospitals should fairly lead their staff in order to maintain and enhance staff retentions. KEYWORDS: Leadership styles; Staff retention; private hospitals 1.1 INTRODUCTION In today’s private health care climate, retention of staff is more desirable than ever before. The role of leaders in employee retention is critical since literature indicates that staffs leave leaders and not organization Beardwell (2007). Harvey et al (2007) further emphasized that People leave their bosses and not their jobs. According to Kaliprasad (2006), a company may try to bring all these factors into play to enhance employee retention, an employee can still choose to leave the workplace because of, bad leadership and management. The issue of leadership style and their relevance to management development has received considerable attention Bass (1990). Bass (1990) further identified over 7500 studies on leadership in the organizational psychology and management literature. The findings of these studies suggest that some balance is needed between "consideration" and “initiating structure" in order to satisfy both individual needs and organizational goals. Also, the majority of the 7500 studies concluded that "initiating structure" is normally associated with efficiency and effectiveness in task performance, while "consideration" is normally considered to be correlated with job satisfaction and retention. Alexander et al(1982) According to the 2006 World Health Organization (W.H.O) report, there is a serious human resource crisis in the health sector in developing countries, particularly in Africa. The total health workforce in Africa is estimated at 1,640,000, with an average of 2.3 health workers per 1,000 people. Of the total health workforce in Africa, 83% (1,360,000) are health service providers and 17% (280,000) are health management and support workers (World Health report 2006). In the USA, the current health staff shortage has evolved over the past 30 years. Staff shortages were present in 1990 with a USA vacancy rate of 11% and settled down in 1992 Abrahamson (2009). After 1992, adequate numbers of staff were present in the healthcare system for approximately 5 years. In 1997, the demand for staff started to outpace the supply in the workforce and by 2001; the US vacancy rate had reached 13% (Abrahamson, 2009). It steadily increased to the current global turnover rate reaching as high as 21% (Hayhurst et al, 2005). Buchan & Aiken (2008) asserts that the staff shortage both in the public and private healthcare sectors is a global phenomenon that needs to be in check for better health service provision. In South Africa, there is enough evidence to suggest that high levels of staff retention and consequent reduced staffing levels have an adverse effect on the performance and quality of care as well as patient satisfaction 141 European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.8, No.9, 2016 Needleman et al (2002). The loss of experienced staff results in decreased competence within the organization, lack of continuity and the loss of institutional memory, all of which impact on the effectiveness and efficiency of health service organizations. In Uganda therefore, staff retention, especially of clinical staff working in private hospitals, has remained persistently low. Available data indicate that over 46% of leavers in the financial year 2009/2010 joined government services (Ministry of Health 2010). Worker shortages are linked to three factors including decreasing student enrolment in health training institutions, delays or freezes in hiring of qualified professionals and high turnover among those already employed. The fact that the problem of low retention of health workers is costly affects continuity of care and raises the potential for turnover of remaining employees, who suffer from stress and burnout from taking on the additional work burden. 1.2 RESEARCH PROBLEM Private hospitals in Uganda are operating in a highly competitive environment which requires them to establish effective leadership styles that enhance staff retention in order to gain competitive advantage and reputation. There are some major issues facing these hospitals that are high numbers of patients with no significant increase in the number of staff. This creates disillusionment among the staff due to heavy workload and long working hours. This situation is compounded by poor remuneration therefore leading to hospitals loosing staff and raising capacity concerns. Majority of the staff that are sent for further training abroad find better services and do not return. In these hospitals, there is lack of adequate employment of leadership styles in the management in many private hospitals. This has left many staff especially doctors and nurses in total frustration resulting into lack of morale and job satisfaction. It is therefore for this reason that the researchers were intrigued to carry out the study to investigate if there is influence of leadership styles on retention of staff in selected private hospitals in Kampala district. 1.3 OBJECTIVES 1. To investigate the leadership styles practiced in private hospitals in Kampala district 2. To establish the staff retention strategies in private hospitals in Kampala district. 3. To assess the relationship between the leadership styles and staff retention in private hospitals in Kampala district? 1.4 HYPOTHESIS 1. There is a positive relationship and influence between laissez faire leadership style and staff retention 2. There is a positive relationship and influence between democratic leadership style and staff retention 3. There is a positive relationship and influence between transformational leadership style and staff retention. 4. There is a positive relationship and influence between leadership styles and staff retention in Kampala district. 1.5 METHODOLOGY The researcher used mixed approach that is qualitative and quantitative. Descriptive correlation research design and cross-sectional design were used. Descriptive research refers to studies that have as their main objective the accurate portrayal of the characteristics of people, situations, or groups, and the frequency with which certain phenomenon occur (Polit & Beck 2004). In this case a descriptive design was used because the study intended to describe the leadership styles and staff retention in private hospitals in Kampala district. The primary intent of correlation studies is to explain the nature of relationships in the real world, not to determine cause and effect (Houser 2008). A cross sectional design was used because the population was studied at the same time in the same place for a short period of time. Therefore, a descriptive correlation and cross sectional design was the best for the study. The study targeted the doctors and nurses working in the selected private hospitals of Kampala District which has 15 private hospitals. By random sampling the study covered four private hospitals in the district that is Kibuli Muslim Hospital, Case Medical Centre, Rubaga Hospital, and Kadic hospital with a total population of 215 doctors and nurses. This was taken as the sample size of the study. 142 European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.8, No.9, 2016 Table 1 Distribution of the total target population of respondents Position Total Hospital Doctors Nurses Kibuli 24 36 60 Case 24 21 45 Rubaga 21 39 60 Kadic 27 23 50 Total 96 119 215 Source: Administrators’ census counts (2013) A structured questionnaire as the major instrument was used for data collection. Two sets of questionnaires were used with similar