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International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IX, September 2020 | ISSN 2454–6186

Influence of Transactional Leadership Style on Employee Performance at Selected Commercial Banks in Nairobi City County, Kenya

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George Kay Kabiru1, Hannah Bula (PhD)2
1,2Department of Business Administration, School of Business, Kenyatta University, Kenya

Abstract: Effective leadership in an organization is very important for continued existence of commercial banks. The banking industry in Kenya has witnessed tremendous changes brought about by globalization, liberalization, intense competition among rivals, changing regulatory guidelines, technology, and more demanding customers. These changes and dynamic business environment requires leadership that can enable both the people and the organization to adapt and be successful. This study aimed at investigating 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 analysed 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 recommends that bank managers should invite staff to engage in objective setting to discuss what the bank wants their staff to accomplish and offer them an chance to share their thoughts.

Keywords: Transactional Leadership Style, Employee Performance


Leadership is an important area in management that occupies central position in our everyday life. In this regard, Mwita (2012) state that performance of employee is a major multi-dimensional construct aimed at achieving results and has a strong link to strategic goals of an organization. Gkorezis, Hatzithomas and Petridou (2015) observe that since every organization cannot progress by depending on one or two individuals’ effort, there is therefore the need for a manager (leader) to enhance the collective effort of each and every subordinate to adopt organizational goals as their own personal goals.