Transactional leadership and employee intention
Kabiru, and Bula, (2020) investigated the influence of transactional leadership styles on
employee performance in selected commercial banks in Nairobi City County, Kenya. The
theories that guided the study were descriptive survey research design was used to conduct the
study. The total population was 242 respondents comprising of managers and support staff from
the selected commercial banks. The study used proportionate stratified sampling method from
Kenya commercial Bank, Cooperative Bank, Equity Bank and Family Bank. The respondents
were selected using simple random sampling method. The sample size was 151 respondents.
Primary data was collected using questionnaires. Quantitative data was analyzed with the use of
descriptive statistics such as mean and standard deviations and presented using tables, graphs,
charts, and figures. In addition, the study conducted a multiple regression analysis. The study
established a positive significance influence between transactional leadership style on employee
performance. The study concluded that through transactional leadership employees are
motivated to become more productive and efficient team members. The study recommended
that bank managers should invite staff to engage in an objective setting to discuss what the bank
wanted their staff to accomplish and offer them a chance to share their thoughts.
Kalsoom, Khan and Zubair (2018) study examined the impact of transactional leadership and
transformational leadership on employee performance: A Case of FMCG Industry of Pakistan,
Data was collected from 318 employees and the conclusion was that though both leadership
styles had positive relationhips with employee performance, transactional leadership style had a
strongly positive correlation with the performance of the employees. Along with Pearson
correlation, Linear Regression Analysis had also been used to predict the predictor’s
contribution towards employees’ performance. Shah and Hamid (2015) carried out an empirical
investigation on the influence of transactional leadership on job performance. The survey
method was used to collect data from the middle level managers of six large banks of Pakistan.
Proportionate random sampling was used and a total of 500 questionnaires were mailed to the
bank branches with self-addressed returned envelops out of which 297 useable questionnaires
were received. The findings of the study revealed that transactional leadership had a significant
relationship with job performance. However, the study used convenience sampling method
which was highly vulnerable to selection bias.
16
A study carried out by Asiimwe and Sikalieh (2016) explored the relationship between transactional
leadership style and SMEs Growth in the Top 100 SMEs in Kenya. This was a mixed method study
targeting the KPMG top 100 SMEs of 2013. A causal research design was employed. Stratified
proportionate random sampling and purposive sampling techniques were used. Data was collected
using a closed ended questionnaire and a structured interview guide. Pearson’s correlation, multiple
regression and Pearson’s chi-square techniques were used to analyze the data. The analysis indicated
that transactional leadership style and SMEs growth had a strong positive and significant correlation
(r= 0.702, p =0.007), and a positive and significant relationship. However, the study used purposive
sampling which is subject to sample biasness.
A study by Ene (2020) examined the relationship between transactional leadership and employee
intention to stay in insurance companies in Port Harcourt. The study adopted a cross-sectional
survey in its investigation of the variables. Primary data was generated through structured, self-
administered questionnaire. The population was 156 employees of the ten insurance companies
in Port Harcourt. The study sample was 112 was calculated using the Taro Yamane’s formula for
sample size determination. Empirical findings revealed that there was a positive and significant
relationship between transactional leadership and employee intention to stay in insurance
companies in Port Harcourt. The study concluded that transactional leadership significantly
influences employee intention to stay in insurance companies in Port Harcourt. The study
recommended that management of insurance companies should motivate and influencing
subordinates by exchanging reward with a particular performance. A subordinate promised to be
given rewards when he/she could complete their duties in accordance with agreements that they
would put in more effort and were encouraged to work.
Wairimu, and Simba (2016) examined the effects of leadership styles on employee performance
in Export Processing Zones in Kenya. This was guided by the following specific objectives,
determining the effect of transactional leadership style on employee performance. The study
adopted a descriptive research design on a population of 676 which was further sampled to 43
through stratified sampling. The study findings indicated that transactional and transformational
leadership style, in which employees are allowed to have sense of belonging, carry out higher
responsibility with little supervision, and followers are helped to achieve their visions and needs
enhance organizational efficiency. It is concluded that transactional and transformational
leadership styles are the best for the management of Export Processing Zones in Kenya to be
adopted for them to wax stronger in a global competitive environment.
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