Transactional Leadership Style and Employee Satisfaction in Nigerian Banking Sector

Abstract

This study investigated the effect of transactional leadership style on employee satisfaction in selected banks in Rivers state of Nigeria. The sample for this study consisted of 160 employee from the 20 selected banks. The data for this research was collected using the questionnaire and interview methods. The Spearman Rank-order correlation coefficient was used to test the relationships between the variables under review while the multiple regression analysis was adopted to evaluate the moderating effects of corporate culture on the relationship between transactional leadership and employee satisfaction. Findings from the study revealed that there is a positive and significant relationship between all the dimensions of transactional leadership style and employee satisfaction except passive management by exemption. Based on the findings above it was concluded that transactional leadership enhances employee job satisfaction. More specifically, it was concluded that contingent reward and active management by exemption enhances employee satisfaction while passive management by exemption does not. Key Words: Employee, transactional leadership, Job Satisfaction, contingent reward, active management by exemption and passive management by exemption, corporate culture

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