RELATIONSHIP BETWEEN CEO ATTRIBUTES AND PERFORMANCE OF FIVE-STAR HOTELS IN KENYA
Abstract
Background: The hospitality industry plays a critical role in a country’s economic development. In Kenya, even though the sector is the second largest foreign exchange earner the industry faces a myriad of challenges. This study sought to determine the relationship between CEO attributes and performance of five-star hotels in Kenya.
Methodology: The study is anchored on the transformational leadership theory and employed a descriptive research design. The study targeted all the fifteen five-star hotels operating in Kenya, while the unit of observation was 198 head of departments, managers, and board members. The respondents were sought through a census. Structured questionnaires were the main tool to collect primary data.
Findings: The study found that CEO attributes had a positive and significant effect on performance of five star hotels. The study concluded that CEO attributes were significant in explaining performance of five star hotels in Kenya.
Recommendations: The study recommends that decision to hire CEOs should be basically based on executives’ characteristics such as education, tenure and experience rather than simply following family succession plans. Similarly, it is highly recommended to select executives with an education background rather than in operating related subjects when there is a need. Another important aspect to consider is that five-star hotels are encouraged to increase the tenure of executives by for example avoiding frequent CEOs replacements in order to improve their performance.
Keywords: CEO attributes, Performance, Five Star Hotels
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