Githui, John NgatiaRagui, Dr. MaryNyakundi, Dr. Augustus Onchari2024-08-082024-08-082024-02-072957-7284 (Online)https://repo.pacuniversity.ac.ke/handle/123456789/4432Purpose: This study entailed a diagnostic analysis of the relationship between idealized influence and performance contracts in road agencies in Kenya. The objective of this research was to investigate the relationship between idealized influence and performance contracts in road agencies in Kenya. Operationalization of variables included idealized influence as an independent variable and performance contracts as a dependent variable. Theories that guided the study included transformational leadership theory and public management theory. Materials and Methods: Descriptive research design was used for the study and pragmatism was adopted as the philosophical framework for the research. Convergent parallel mixed method approach was adopted where data was collected through questionnaires for quantative data and structured interviews for qualitative data. The target population for the research was all staff members at top management and other officers in job group 6 (six) and above for the three road agencies in Kenya. These road agencies included Kenya National Highway Authority (KeNHA), Kenya Urban Roads Authority (KURA) and Kenya Rural Roads Authority (KeRRA). Data collected was analyzed through descriptive statistics, inferential analysis and hypothesis testing. The collected data was presented through tables and figures. Findings from the above analysis indicated that the performance contracts process and its outcomes in road agencies in Kenya could be predicted by idealized influence. The null hypothesis was rejected as p value was less than p<0.05 threshold of significance level and the study concluded that idealized influence has a significant relationship with performance contracts in road agencies in Kenya. Findings: The study rejected the null hypothesis that there is no significant relationship between idealized influence and performance contracts in road agencies in Kenya. The foregoing was supported by both results and findings from descriptive statistics, hypothesis tested and structured interviews conducted in the three road agencies. Leaders who were interviewed in these road agencies indicated that they also practiced integrity and leadership behaviors that could be emulated by their followers. Implications to Theory, Practice and Policy: The study thus supported the transformational leadership theory that was adopted for the study. Further, the study has bridged and addressed gaps on motivation, training and lack of leadership as identified in the statement of problem. This study has recommended that policy makers in road agencies should include idealized influence in their leadership and also align it with their strategies as detailed in strategic plans, performance contracts and individual workplans to enhance motivation, training and capacity building among employees of the studied organizations. The study also contributed to the transformational leadership theory as the was supported by the findings that leaders in these organizations should be role models and practice integrity in the process of performance contracting in road agencies. The study further recommended that policy makers in road agencies should entrench appropriate leadership (transformational leadership) during the process of performance contracting in road agencies.enArticle