Effect of Transactional Leadership Style on Performance of Savings and Credit Cooperative Society: A Case of Imarisha in Kericho County, Kenya
- August 28, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VIII, August 2019 | ISSN 2454–6186
Rere Joyce Chepkoech
Department of Business Administration, School of Business, Kenyatta University, P.O. Box 43844-00100, Nairobi, Kenya
Abstract:-Leadership is known globally for the most productive performance. Performance of organisations is directly affected by leadership styles. In Kenya the use of leadership styles is a major challenge in the management of Savings and Credit Cooperative Societies thus affecting performance. The study aimed at assessing effect of Transactional leadership on performance of savings and credit cooperative society: a case of Imarisha savings and credit cooperative society in Kericho County, Kenya. The study used descriptive research design. The population comprised of all staff of Imarisha savings and credit cooperative society. Simple random sampling was used. A sample of 27 management staff and 36 support staff was drawn from the purposively selected savings and credit cooperative society and used in the study. The study used two sets of questionnaires one for management staff and another for support staff. Data was collected through administration of two sets of self-administered questionnaires to the selected respondents. The data was processed and analysed using descriptive statistics with the aid of Statistical Package for Social Sciences (SPSS) Version 20 and presented using frequency distribution tables and charts. An analysis of the major findings in study indicated that coefficient of determination (R2) is 0.790 therefore about 79.0% of the variation in effect of transactional leadership styles on performance. The study recommends that management staff should be trained on new methods of leadership so as to keep up with current leadership style.
Key Words: Transactional leadership style, Performance
I. INTRODUCTION
Transactional leadership is a leadership approach founded on a contractual agreement between a leader and his followers, where each side expects of the other a fulfillment of the agreed terms of transaction to ensure the survival of the relationship existing between them (Penn, 2015).Transactional leadership is based on punishments or rewards given to employees dependent on job performance (Munirat & Yusuf 2017). Extreme form of transactional leadership may be taken as an autocratic leadership style especially when the leader has lots of power over their followers with reference to making staff abide to management decisions.
