Influence of Transformational Leadership Style on Job Satisfaction among Employees in Commercial Banks in Kenya

Abstract

The purpose of this study was to examine the influence of transformational leadership style on job satisfaction among employees in commercial banks in Kenya. The study was guided by these research questions: To what extent does idealized influence affect job satisfaction among employees in commercial banks in Kenya? To what extent does individualized consideration influence job satisfaction among employees in commercial banks in Kenya? To what extent does inspirational motivation influence job satisfaction among employees in commercial banks in Kenya? To what extent does intellectual stimulation influence job satisfaction among employees in commercial banks in Kenya? To what extent does job security moderate the relationship between transformational leadership and job satisfaction among employees in commercial banks in Kenya? The study adopted a positivism research philosophy and a descriptive correlation research design. The target population consisted of 10,310 managerial employees in the commercial banks in Kenya. A sample size of 424 was obtained from the population using stratified random sampling technique and data was collected using structured questionnaires. A response rate of 82% was obtained. Data analysis was conducted using both descriptive statistics and inferential statistics. Descriptive statistics used were mean and standard deviation. The inferential statistical methods used to analyze the data were: Chi-square, Pearson’s correlation, ANOVA and multiple linear regression. The Statistical Package for Social Sciences (SPSS) was used as a tool to analyze data. In regard to the first research question, correlation analysis results revealed a positive and significant relationship between idealized influence and job satisfaction r (346) =.496, p<.05. Multiple linear regression results revealed that idealized influence significantly predicted job satisfaction (R2 = .246, F (1, 97.750) = 112.421, p < .05). Therefore, the null hypothesis that there is no significant influence of idealized influence on job satisfaction was rejected. Regarding the second research question, correlation analysis results revealed a positive and significant relationship between individualized consideration and job satisfaction r (347) =.595, p<.05. Multiple linear regression results revealed that individualized consideration significantly predicted job satisfaction (R2 = .354, F (1, 138.779) = 188.851, p < .05). Therefore, the null hypothesis that there is no significant influence of individualized consideration on job satisfaction was rejected. In regard to the third research question, correlation analysis results revealed a positive and significant relationship between inspirational motivation and job satisfaction r (347) =.587, p<.05. Multiple linear regression results revealed that inspirational motivation significantly predicted job satisfaction of the employees (R2 = .344, F (1, 126.302) = 180.980, p < .05). Therefore, the null hypothesis that there is no significant influence of inspirational motivation on job satisfaction was rejected. Regarding the fourth research question, correlation analysis revealed a positive and significant correlation between intellectual stimulation and job satisfaction r (347) =.541, p<.05. Chi-square test revealed a significant association between intellectual stimulation and job satisfaction X2 (144, N = 347) = 426.404, p<.05). Multiple linear regression results revealed that intellectual stimulation significantly predicted job satisfaction (R2 = .292, F (1, 106.274) = 142.533, p<.05). Therefore, the null hypothesis that there is no significant influence of intellectual stimulation on job satisfaction was rejected. In regard to the fifth research question, correlation analysis results revealed that there was a statistically significant correlation on the extent to which job security moderated the relationship between transformational leadership and job satisfaction r (347) =.697, p<.05. Multiple linear regression results revealed that job security significantly moderated the relationship between transformational leadership and job satisfaction (R2 = .446, F (5, 27.760) = 54.780, p < .05). Therefore, the null hypothesis that there is no significant moderating effect of job security between transformational leadership and job satisfaction was rejected. The study concluded that transformational leadership significantly influenced job satisfaction among employees in commercial banks in Kenya. The study recommends that transformational leadership style should be used to enhance job satisfaction among employees in commercial banks in Kenya. Individualized consideration through support, mentoring and delegation together with job security aspects play an important role in determining job satisfaction. The study recommends that further research should be carried out on the influence of transformational leadership and job satisfaction among employees in microfinance institutions in Kenya.