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INFLUENCE OF TRANSFORMATIONAL LEADERSHIP STYLE ON JOB SATISFACTION AMONG EMPLOYEES IN COMMERCIAL BANKS IN KENYA BY NJIINU ANDREW NJIRAINI UNITED STATES INTERNATIONAL UNIVERISTY - AFRICA FALL 2017

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Page 1: influence of transformational leadership style on job satisfaction among employees in commercial

INFLUENCE OF TRANSFORMATIONAL LEADERSHIP

STYLE ON JOB SATISFACTION AMONG EMPLOYEES IN

COMMERCIAL BANKS IN KENYA

BY

NJIINU ANDREW NJIRAINI

UNITED STATES INTERNATIONAL UNIVERISTY -

AFRICA

FALL 2017

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INFLUENCE OF TRANSFORMATIONAL LEADERSHIP

STYLE ON JOB SATISFACTION AMONG EMPLOYEES IN

COMMERCIAL BANKS IN KENYA

BY

NJIINU ANDREW NJIRAINI

A Dissertation Report Submitted to the Chandaria School of

Business in Partial Fulfillment of the Requirement for the

Degree of Doctor of Business Administration (DBA)

UNITED STATES INTERNATIONAL UNIVERSITY –

AFRICA

FALL 2017

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STUDENT’S DECLARATION

I, the undersigned, declare that this is my original work and has not been submitted to any

other institution, or university other than the United States International University –

Africa in Nairobi for academic credit.

Signed_______________________________ Date___________________

Njiinu Andrew Njiraini (ID 615143)

This dissertation has been presented for examination with our approval as the appointed

supervisors.

Signed____________________________________ Date___________________

Prof. George O. K’Aol

Signed____________________________________ Date___________________

Prof. Teresia K. Linge

Signed____________________________________ Date___________________

Dean, Chandaria School of Business

Signed____________________________________ Date___________________

Deputy Vice Chancellor, Academic & Student Affairs

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COPYRIGHT

All rights reserved. No part of this dissertation report may be photocopied, recorded or

otherwise reproduced, stored in retrieval system or transmitted in any electronic or

mechanical means without prior permission of USIU-A or the author.

Njiinu Andrew Njiraini © 2017

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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.

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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.

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ACKNOWLEDGMENT

First, I wish to thank God for enabling me to dream big and providing me with an

opportunity to actualize this dream; To God be the Glory.

Secondly, I wish to acknowledge with sincere gratitude the support and guidance I got

from my supervisors Prof. George O. K’Aol and Prof. Teresia K. Linge. I appreciate your

invaluable time, patience and guidance through the process.

Thirdly, a special appreciation to all those who took part in my doctoral journey; my

fellow doctoral students, the respondents who took part in the research and Paul who

provided me with the support I required.

Lastly, I wish to acknowledge my family who cheered me on; thank you for your

unwavering support and dedication to see that I completed this course successfully.

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DEDICATION

I dedicate this dissertation to all leaders; both existing and aspiring with a special

dedication to all commercial bank employees who seek to become effective leaders. May

this research project demystify your role as a leader and help you build organizations

where employees will experience job satisfaction, become engaged and transition to

inspired employees.

I also dedicate this dissertation to my family: Mr. & Mrs. Njiinu Gachanja, Shiro,

Gachanja & Wairimu, Kuria & Wangare, and Grace. Thank you for the investment you

made in me, both financial and moral, the discipline has gotten me this far. You have all

constantly been a source of wisdom, encouragement and support. Your support and

prayers have been my greatest source of strength. Please accept my sincere gratitude for

the significant roles that you have all played in my life and doctoral journey.

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TABLE OF CONTENTS

STUDENT’S DECLARATION ........................................................................................ ii

COPYRIGHT ....................................................................................................................iii

ABSTRACT ....................................................................................................................... iv

ACKNOWLEDGMENT .................................................................................................. vi

DEDICATION.................................................................................................................. vii

LIST OF TABLES ............................................................................................................ xi

LIST OF FIGURES ........................................................................................................ xvi

ABBREVIATIONS ........................................................................................................ xvii

CHAPTER ONE ................................................................................................................ 1

1.0 INTRODUCTION........................................................................................................ 1

1.1 Background of the Study ............................................................................................... 1

1.2 Statement of the Problem ............................................................................................... 8

1.3 The Purpose of the Study ............................................................................................... 8

1.4 Research Questions ........................................................................................................ 9

1.5 Hypotheses ................................................................................................................... 10

1.6 Justification of the Study ............................................................................................. 10

1.7 Scope of the Study ....................................................................................................... 11

1.8 Definitions of Terms .................................................................................................... 11

1.9 Chapter Summary ........................................................................................................ 13

CHAPTER TWO ............................................................................................................... 1

2.0 LITERATURE REVIEW ......................................................................................... 14

2.1 Introduction .................................................................................................................. 14

2.2 Theoretical Review ...................................................................................................... 14

2.3 Conceptual Framework ................................................................................................ 19

2.4 Empirical Review......................................................................................................... 20

2.5 Chapter Summary ........................................................................................................ 78

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CHAPTER THREE ......................................................................................................... 79

3.0 RESEARCH METHODOLOGY ............................................................................. 79

3.1 Introduction .................................................................................................................. 79

3.2 Research Philosophy .................................................................................................... 79

3.3 Research Design........................................................................................................... 80

3.4 Target Population ......................................................................................................... 82

3.5 Sample Design ............................................................................................................. 82

3.6 Data Collection Methods ............................................................................................. 85

3.7 Research Procedures .................................................................................................... 86

3.8 Data Analysis Methods ................................................................................................ 90

3.9 Chapter Summary ........................................................................................................ 97

CHAPTER FOUR ............................................................................................................ 98

4.0 RESULTS AND FINDINGS ..................................................................................... 98

4.1 Introduction .................................................................................................................. 98

4.2 General Information ..................................................................................................... 98

4.3 Influence of Idealized Influence on Job Satisfaction ................................................. 101

4.4 Influence of Individualized Consideration on Job Satisfaction ................................. 115

4.5 Influence of Inspirational Motivation on Job Satisfaction ......................................... 129

4.6 Influence of Intellectual Stimulation on Job Satisfaction .......................................... 143

4.7 Moderating Effect of Job Security on the Influence of Transformational Leadership

on Job Satisfaction ........................................................................................................... 157

4.8 Chapter Summary ...................................................................................................... 172

CHAPTER FIVE ........................................................................................................... 175

5.0 SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

.......................................................................................................................................... 175

5.1 Introduction ................................................................................................................ 175

5.2 Summary of the Study ............................................................................................... 175

5.3 Discussion of Results ................................................................................................. 176

5.4 Conclusions ................................................................................................................ 191

5.5 Recommendations ...................................................................................................... 193

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REFERENCES ............................................................................................................... 195

APPENDICES ................................................................................................................ 224

Appendix I: Cover Letter .............................................................................................. 224

Appendix II: Questionnaire .......................................................................................... 225

Appendix III: USIU Research Introduction Letter .................................................... 231

Appendix IV: NACOSTI Research Permit ................................................................. 232

Appendix V: Classification of Banks in tiers ............................................................... 233

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LIST OF TABLES

Table 2.1: Operationalization of Variables and Hypothesis Testing ................................. 20

Table 3.1: Employment of Managerial Staff in the Banking Sector .................................. 82

Table 3.2: Sample Size Distribution Based on Tiers of the Banks .................................... 85

Table 3.3: Cronbach’s Alpha ............................................................................................. 87

Table 3.4: Hypothesis Testing ........................................................................................... 97

Table 4.1a: KMO and Bartlett's Test on Idealized Influence .......................................... 101

Table 4.1b: Total Variance Explained for Idealized Influence ........................................ 102

Table 4.1c: Component Matrix on Idealized Influence ................................................... 103

Table 4.2a: KMO and Bartlett’s Test on Idealized Influence on Job Satisfaction .......... 103

Table 4.2b: Total Variance Explained on Idealized Influence ........................................ 104

Table 4.2c: Component Matrix of Idealized Influence on Job Satisfaction .................... 105

Table 4.3: Mean and Standard Deviation of Idealized Influence .................................... 106

Table 4.4: Chi-square Test of Idealized Influence and Job Satisfaction .......................... 106

Table 4.5a: Correlation Analysis between Idealized Influence Variables and Job

Satisfaction ……………………………………………………………………………107

Table 4.5b: Correlation Analysis between Idealized Influence and Job Satisfaction ...... 107

Table 4.6a: One-way ANOVA on Idealized Influence .................................................... 108

Table 4.6b: One-way ANOVA on Idealized Influence on Job Satisfaction .................... 109

Table 4.7a: One-Sample Kolmogorov-Smirnov Test on Idealized Influence ................. 110

Table 4.7b: Linearity Test on Idealized Influence ........................................................... 111

Table 4.7c: Multicollinearity Test on Idealized Influence ............................................... 112

Table 4.7d: Homoscedasticity Test on Idealized Influence ............................................. 112

Table 4.8: Model Summary of Idealized Influence and Job Satisfaction ........................ 113

Table 4.9: Regression ANOVA of Idealized Influence on Job Satisfaction .................... 113

Table 4.10: Coefficients of Idealized Influence on Job Satisfaction ............................... 114

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Table 4.11a: KMO and Bartlett's Test on Individualized Consideration. ........................ 116

Table 4.11b: Total Variance Explained for Individualized Consideration ...................... 116

Table 4.11c: Component Matrix on Individualized Consideration ................................. 117

Table 4.12a: KMO and Bartlett's Test ............................................................................. 118

Table 4.12b: Total Variance Explained for Individualized Consideration ...................... 118

Table 4.12c: Component Matrix of Individualized Consideration on Job Satisfaction ... 119

Table 4.13: Mean and Standard Deviation of Individualized Consideration................... 120

Table 4.14: Chi-square Test on Individualized Consideration and Job Satisfaction ....... 120

Table 4.15a: Correlation Analysis between Individualized Consideration Variables and

Job Satisfaction ................................................................................................................ 121

Table 4.15b: Correlation Analysis between Individualized Consideration and Job

Satisfaction ……………………………………………………………………………121

Table 4.16a: One-way ANOVA on Individualized Consideration .................................. 122

Table 4.16b: One-way ANOVA of Individualized Consideration on Job Satisfaction ... 123

Table 4.17a: One-Sample Kolmogorov-Smirnov Test on Individualized Consideration 124

Table 4.17b: Linearity Test on Individualized Concentration ......................................... 125

Table 4.17c: Multicollinearity Test on Individualized Consideration ............................. 126

Table 4.17d. Homoscedasticity Test on Individualized Consideration ........................... 126

Table 4.18: Model Summary of Individualized Consideration on Job Satisfaction ........ 127

Table 4.19: Regression ANOVA of Individualized Consideration on Job Satisfaction .. 127

Table 4.20: Coefficients of Individualized Consideration on Job Satisfaction ............... 128

Table 4.21a: KMO and Bartlett's Test on Inspirational Motivation ................................ 130

Table 4.21b: Total Variance Explained for Inspirational Motivation.............................. 130

Table 4.21c: Component Matrix on Inspirational Motivation ......................................... 131

Table 4.22a: KMO and Bartlett's Test Inspirational Motivation and Job Satisfaction .... 132

Table 4.22b: Total Variance Explained for Inspirational motivation on Job Satisfaction

………………………………………………………………………………132

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Table 4.22c: Component Matrix on Inspirational Motivation and Job Satisfaction ........ 133

Table 4.23: Mean and Standard Deviation of Inspirational Motivation .......................... 134

Table 4.24: Chi-square Test on Inspirational Motivation and Job Satisfaction ............... 134

Table 4.25a: Correlation Analysis between Inspirational Motivation Variables and Job

Satisfaction ....................................................................................................................... 135

Table 4.25b: Correlation Analysis between Inspirational Motivation and Job Satisfaction

……………………………………………………………………………135

Table 4.26a: One-way ANOVA on Inspirational Motivation ......................................... 136

Table 4.26b: One-way ANOVA of Inspirational Motivation on Job Satisfaction .......... 137

Table 4.27a: One-Sample Kolmogorov-Smirnov Test on Inspirational Motivation ....... 138

Table 4.27b: Linearity Test on Inspirational Motivation ................................................. 139

Table 4.27c: Multicollinearity Test on Inspirational Motivation ..................................... 140

Table 4.27d: Homoscedasticity Test on Inspirational Motivation ................................... 140

Table 4.28: Model Summary on Inspirational Motivation and Job Satisfaction ............. 141

Table 4.29: ANOVA for Inspirational Motivation and Job Satisfaction ......................... 141

Table 4.30: Coefficients of Inspirational Motivation on Job Satisfaction ....................... 142

Table 4.31a: KMO and Bartlett's Test on Intellectual Stimulation .................................. 143

Table 4.31b: Total Variance Explained for Intellectual Stimulation ............................... 144

Table 4.31c: Component Matrix on Intellectual Stimulation .......................................... 144

Table 4.32a: KMO and Bartlett's Test on Intellectual Stimulation on Job Satisfaction .. 145

Table 4.32b: Total Variance Explained for Intellectual Stimulation ............................... 145

Table 4.32c: Component Matrix on Intellectual Stimulation and Job Satisfaction ......... 147

Table 4.33: Mean and Standard Deviation of Intellectual Stimulations .......................... 148

Table 4.34: Chi-square Test on Intellectual Stimulation and Job Satisfaction ................ 148

Table 4.35a: Correlation Analysis between Intellectual Stimulation Variables and Job

Satisfaction ....................................................................................................................... 149

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Table 4.35b: Correlation Analysis between Intellectual Stimulation and Job Satisfaction

………………………………………………………………………………149

Table 4.36a: One-way ANOVA on Intellectual stimulation ........................................... 150

Table 4.36b: One-way ANOVA on Intellectual stimulation on Job Satisfaction ............ 151

Table 4.37a: One-Sample Kolmogorov-Smirnov Test on Intellectual Stimulation ........ 152

Table 4.37b: Linearity Test on Intellectual Stimulation .................................................. 153

Table 4.37c: Multicollinearity Test on Intellectual Stimulation. ..................................... 154

Table 4.37d: Homoscedasticity Test on Intellectual Stimulation .................................... 154

Table 4.38: Model Summary on Intellectual Stimulation on Job Satisfaction ................ 155

Table 4.39: ANOVA of Intellectual Stimulation on job satisfaction ............................... 155

Table 4.40: Coefficients of Intellectual Stimulation on job satisfaction ......................... 156

Table 4.41a: KMO and Bartlett's Test ............................................................................. 158

Table 4.41b: Total Variance Explained for Job Security as Moderating Variable .......... 158

Table 4.41c: Component Matrix on Job Security as Moderating Effect ......................... 159

Table 4.42a: KMO and Bartlett's Test ............................................................................. 159

Table 4.42b: Total Variance Explained for Job Security as Moderating Variable .......... 160

Table 4.42c: Component Matrix on Job Security as Moderating Variable on Job

Satisfaction ……………………………………………………………………………161

Table 4.43: Distribution of Job Security as Moderating Variable ................................... 162

Table 4.44: Chi-square Test of Job Security and Job Satisfaction .................................. 162

Table 4.45a: Correlation Analysis between Job Security Variables and Job Satisfaction

………………………………………………………………………………163

Table 4.45b: Correlation Analysis between Job Security and Job Satisfaction ............... 163

Table 4.46a: One-way ANOVA on Job Security............................................................. 164

Table 4.46b: One-way ANOVA on Job Security on Job Satisfaction ............................. 165

Table 4.47a: One-Sample Kolmogorov-Smirnov Test .................................................... 166

Table 4.47b: Linearity Test on Job Security .................................................................... 167

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Table 4.47c: Multicollinearity Test on Job Security ........................................................ 167

Table 4.47d: Homoscedasticity Test on Job Security ...................................................... 168

Table 4.48: Model Summary of the Moderating Effect of Job Security between

Transformational Leadership and Job Satisfaction .......................................................... 169

Table 4.49: ANOVA Transformational Leadership and Moderating Variable on Job

Satisfaction ……………………………………………………………………………170

Table 4.50: Coefficients of Independent Variables and Moderating Effect on Job

Satisfaction ……………………………………………………………………………171

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LIST OF FIGURES

Figure 2.1: Transformational Leadership Theory Model .................................................. 15

Figure 2.2: Conceptual framework .................................................................................... 20

Figure 4.1: Gender of Respondents ................................................................................... 98

Figure 4.2: Age of Respondents......................................................................................... 99

Figure 4.3: Education Qualification ................................................................................... 99

Figure 4.4: Duration of Working ..................................................................................... 100

Figure 4.5: Tier of the Banks ........................................................................................... 100

Figure 4.6. Scree Plot for Idealized Influence ................................................................. 102

Figure 4.7: Scree Plot for the Individualized Consideration............................................ 117

Figure 4.8: Scree Plot for the Inspirational Motivation ................................................... 131

Figure 4.9: Scree Plot for the Intellectual Stimulation .................................................... 146

Figure 4.10: Scree Plot for the Job Security .................................................................... 160

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ABBREVIATIONS

CBK Central Bank of Kenya

CEO Chief Executive Officer

CFA Confirmatory Factor Analysis

CSR Corporate Social Responsibility

FMCG Fast-moving consumer goods

GLC Government Link Company

IMF International Monetary Fund

IT Information Technology

MLQ Multifactor Leadership Questionnaire

MSQ Minnesota Satisfaction Questionnaire

NACOSTI National Commission for Science, Technology & Innovation

SEM Structural Equation Modelling

SHRM Society for Human Resource Management

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CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

An organization’s success largely depends on the leadership style provided by the leaders.

They have the mandate of overseeing the internal context, business context and external

context, which may include but not limited to the human resource and financial contexts.

Leadership actions have a direct impact on cost, social and sustainable financial

performance. Consequently, these actions may yield long term sustainable firm

performance. Organizational success is characterized by performance, employee job

satisfaction and employee affective commitment (Abouraia & Othman, 2017). This is

achieved through effective leadership and a clear understanding of the organization’s

vision and purpose of existence. To enhance job satisfaction, scholars have argued that

leadership must provide motivation, inspiration, analytical skills and good remuneration

to employees; all of these have a combined effect of low attrition rates and decreased

absenteeism (Hurduzeu, 2015).

The transformational leadership style helps to create follower job satisfaction and

commitment to the organization both of which lead to superior customer service and

improved organizational performance (Patiar & Wang, 2016). Transformational

leadership style yields inspiration which enables transformational leaders to build

motivation within the followers. This enables the followers to go beyond their personal

interests and focus on the collective gain of the organization. To achieve all these,

transformational leaders offer intellectual challenges while paying regard to the followers

needs (Belias & Koustelios, 2014).

The transformational leadership style is characterized by high interaction of the leaders

with the followers and it has a significant positive effect on job satisfaction of the

followers. Additionally, the transformational leadership style has a positive relationship

with job satisfaction based on the impact the leader has on the followers (Muterera,

Hemsworth, Baregheh & Garcia-Rivera, 2015). By demonstrating a high concern for

followers, their needs, comfort, autonomy, empowerment, encouragement, reward and

recognition, transformational leadership style has a positive impact on job satisfaction

(Alonderiene & Majauskaite, 2016).

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Job satisfaction is a pleasurable state that produces positive emotions when one evaluates

his job or job experiences (Belias & Koustelios, 2014). Job satisfaction parameters can be

broadly divided into two: extrinsic and intrinsic factors. Intrinsic factors are growth and

advancement opportunities, recognition, responsibility, the work itself and achievement.

Extrinsic factors are supervision, pay, policies, working conditions and relationships at

the workplace. They help to prevent job dissatisfaction among the followers (Alonderiene

& Majauskaite, 2016). Job satisfaction has also been described as happy feelings that

result from how one perceives a job in light of meeting important personal values

(Mahmoud & Reisel, 2014).

Job satisfaction is considered to be a sentimental response of an employee towards the job

which emanates from their experience on the job. It can be seen when a job is perceived

to fulfill a person’s needs and when a job possesses important job values. Additionally,

job satisfaction is an acceptable measure of well being in the workplace which contributes

to the psychological well being of the employees (Mencl, Wefald & Ittersum, 2016). Job

satisfaction is also viewed as accepting the organization’s goals, the willingness to work

hard and the intent to stay on in an organization (Jain, Sharma & Jain, 2012). Job

satisfaction is also considered to be the amount of belief and emotional connection the

followers have towards their respective organizations (Emmanuel & Hassan, 2015). It is

also the attitude that people have regarding their jobs which emanates from their

perception of the job and the fit between the individual and the organization. As put by

George and Zakkariya (2015), job satisfaction is very important for the service industry

employees because it is only satisfied employees who can offer good service that yields

customer satisfaction. Thus, it is not only customers who should be satisfied but also the

employees of the organization.

According to the full range leadership model, transformational leadership style is one of

the leadership styles that make a difference in the outcomes of the leader’s associates. In

this regard, when a leader pays attention to the needs of his associates, challenges them,

influences them as a role model and inspires them, the associates’ needs are significantly

addressed thereby yielding a level of satisfaction with their jobs (Tesfaw, 2014). This

goes on to validate the fact that coupled with other factors like the organizational culture,

which is also largely driven by the leadership of the organization, a style of leadership is

an important antecedent of job satisfaction (Munir, Rahman, Malik & Ma’amor, 2012).

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Therefore, job satisfaction or dissatisfaction is a function of the perceived relationship

between the expectations from a job, what one receives from the job and the value

attributed to it (George & Zakkariya, 2015; Ahmad, Adi, Noor, Rahman, & Yushuang,

2013). Job satisfaction plays a big role in reducing employee turnover and increasing the

performance levels; but all these depend on the kind of leadership that is provided by the

top management (Sattar & Ali, 2014). Effective leadership goes beyond the traditional

managerial authority to relying on influence through social interactions between the

leaders and the employees. Transformational leadership is a form of leadership where

leaders are not only connected to their followers but also engaged with them (Mencl et

al., 2016). Emmanuel and Hassan (2015) argued that amongst the many aspects of

employee satisfaction, the most important is the leadership style.

Dissatisfied employees are less committed to their work and will more often look for

other opportunities in order for them to leave an organization. When opportunities are not

available, they are emotionally and mentally withdrawn from the organization.

Dissatisfied employees cannot produce the same quality of work with employees who are

highly satisfied with their jobs (George & Zakkariya, 2015). This makes job satisfaction a

key factor that determines the employee’s intentions of leaving an organization. To

improve the level of job satisfaction among employees, it calls for appropriate leadership

styles which enhance job satisfaction levels. Job satisfaction is important because it helps

to retain talent and ensures that employees perform their jobs as expected. Satisfied

employees not only become faithful but also become deeply committed to the

organization. They come up with ways of improving the business and endeavor to

contribute positively to the organization. Therefore, job satisfaction becomes one of the

most fundamental sources of motivation for employees surpassing pay and benefits. Job

satisfaction creates a work environment where employees strive to effectively serve

customers and ensure follow through of the customer value proposition (Mallikarjuna,

2014).

A leadership style is therefore an antecedent of job satisfaction and is considered to be a

predictor of job satisfaction (Munir et al., 2012; Long, Yusof, Kowang & Heng, 2014).

Attaining employee job satisfaction is important as it enables retention of productive and

efficient employees. Productivity coupled with performance of an organization is largely

based on the satisfaction the employees derive from their jobs. Additionally, employee

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commitment to the organization also affects their output (Bushra, Usman & Naveed,

2011). The transformational leadership style enhances the performance, effectiveness,

confidence and motivation of followers as a result of the effect it has on the employee’s

attitude, motivation and sense of well-being. It enhances job satisfaction since it is

anchored on idealized influence, inspirational motivation, intellectual stimulation and

individualized consideration (Hetland et al., 2015).

Yang and Islam (2012) stated that when a leader fails in fostering the employees’ job

satisfaction, it then becomes difficult to achieve the organization’s objectives.

Transformational leadership helps a leader to inspire employees to achieve the

organizational goals by yielding to a commitment that transcends personal achievement.

It begins with the development of a vision which is aimed at exciting the employees and

converting them into followers. Job satisfaction has a significant and direct impact on

employee input, and it has an influence on both staff and organizational performance

(Alonderiene & Majauskaite, 2016).

Transformational leadership interventions affect both small organizations with minimal

turnover as well as big organizations where there is higher employee turnover (Arthur &

Hardy, 2014). Transformational leadership employs four elements to create

transformation and influence employees to perform beyond expectations. First, is

idealized influence which refers to influencing by serving as a role model through

charisma, demonstration of high performance and moral standards. Leaders earn credence

and trust because of their consistency in influencing employees. Second, is inspirational

motivation which refers to the ability to come up with a vision and communicating it in a

convincing and attractive manner to ultimately create excitement and buy-in from the

employees (Lussier & Achua, 2013).

Third, is intellectual stimulation which refers to inclusion through participation;

questioning assumptions, re-evaluating problematic and challenging situations to engage

their minds and create an opportunity to be heard. As a result, this encourages both

creativity and innovation. Fourth, is individualized consideration which refers to leaders

acting as coaches or mentors and taking into consideration the needs of their employees.

Leaders in this context recognize people’s varying needs and embrace their differences in

the various spectrums of personal attributes. Thus, followers are not reduced to their

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functions and tasks but are considered as unique individuals (Yang & Islam, 2012).

Employees possess higher levels of job satisfaction when a leader uses the

transformational leadership style for example as compared to use of the transactional

leadership style. This is because transformational leadership not only considers but also

addresses the employees’ needs whereas transactional leadership looks at a model of

exchange (Ramos, 2014).

Alonderiene and Majauskaite (2016) found that in the developed countries like the United

States and Germany, jobs have been characterized with insecurity, high work intensity,

increased stress levels and long working hours which help to explain the declining levels

of job satisfaction. Some low paying jobs report higher job satisfaction levels thus

validating the fact that increasing pay levels helps to improve the employees’ well-being

but does not influence job satisfaction. Employees may register increased job satisfaction

based on increased pay, but this is only to a certain threshold beyond which pay ceases to

yield satisfaction but rather helps to reduce dissatisfaction. One of the direct

consequences of low job satisfaction is absenteeism and turnover of employees from the

organization. Factors like working environment, performance measurement policies and

employee relations together with the grievance handling mechanisms were found to affect

job satisfaction levels of employees in Canara Bank. Additionally, not having effective

training and development of employees, nature of work, salaries and incentives are a

great cause of dissatisfaction (Shrivastava & Purang, 2009).

In Bangladesh, according to Hossain (2014), the economic development in the world has

resulted in a rapid evolution of the banking industry. This development has resulted in

managerial problems in banks, mainly around the low level of employee job satisfaction,

which has resulted in mediocre service quality. Among the problems cited by the

employees are long working hours, pressure from the job itself, poor treatment, non-

conducive working environment, minimal promotion opportunities and unfairness. The

job satisfaction levels affect the quality of service and ultimately satisfaction of

customers. In Pakistan job satisfaction challenges in the banking sector are also evident as

a result of new rules, values and working conditions as seen to be resulting from policy

changes and effects of globalization (Sattar & Ali, 2014).

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Banks play a critical role in economies and are crucial in ensuring economic stability and

growth. They act as the lifeline of modern trade and commerce by providing finance and

payments infrastructure (Akotch & Munyoki, 2016). They are essential in the financial

sector of any economy because they perform critical activities like lending and providing

liquidity. Banks also facilitate payments and settlements which are aimed at supporting

trade which then enables the transfer of goods and services. In economic development,

they also support development of new businesses hence creating the employment

opportunities whilst catalyzing economic growth (Arif & Anees, 2012). In Kenya, the

sector is changing at a very fast pace which calls for a lot of dynamism not only in areas

of profitability but also in policies regarding the employees’ welfare and job satisfaction

because they are the greatest assets the banks have (Njuguna & Owuor, 2016).

Hagendorff, Collins and Keasey (2007) stated that in the recent past the banking sector

has undergone a lot of changes owing to deregulation, globalization and technology.

These have led to restructuring, mergers, acquisitions and consolidation, resulting in

excess work demands thereby affecting job satisfaction of employees. This has been seen

predominantly in the United States of America, Italy and Germany as a result of

deregulation of the industry as seen with the abolition of the geographic restrictions and

demolition of demarcation lines in various financial services. These consolidations are

seen to come with benefits of costs, liquidity and risk diversification. During the world

financial crisis, many financial institutions were exposed and there were demands from

stakeholders to improve performance by adopting new management practices to

strengthen their capital, reduce non-performing loans, reduce costs, improve corporate

governance and come up with customer focused products (Munir, Baird & Perera, 2013).

This has resulted in new rules, regulations and guidelines from the various regulators and

the world financial systems all of which affect the employees’ attitudes, behaviors and

ultimately job satisfaction levels (Sattar & Ali, 2014).

In Nigeria, Osibanjo, Kehinde and Abiodun (2012) stated that the banking sector has

faced shocks and stresses in the past resulting from the economic meltdown in the world.

This has resulted in restructuring of the banking system which has had a noteworthy

influence on employee job satisfaction. For example, there has been anxiety regarding job

security with reduction of the number of banks. The pressure has brought a lot of job

demands on employees and resulted in the need for training and retraining on one hand,

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and lack of job security on the other hand, thereby affecting job satisfaction of employees

to a great extent. With the constant changes, human resource policies need to be in

tandem with the changes to ensure that employees are constantly satisfied with their jobs.

In Kenya, Mukururi and Ngari (2014) noted there has been an endearing shift from a

twelve-hour economy to a twenty four-hour economy. This has resulted in work intensity

as banks move to more working hours. This has led not only to greater workload where

shifts are not managed properly but also to higher stress levels from the long working

hours. Additionally, the banks lacked policies to adequately support the well being of

their employees hence lack of work life balance. Every employee has a personal and

professional life and employers need to ensure the employee can attend to both parts

adequately otherwise lack of balance results in lack of satisfaction. Banks have been

awash with scandals which have led to loss of trust from customers, employees, the

public, governments and other stakeholders. Banks must complement the pursuit for

profitability with social good (ProtusKiprop, Kemboi & Mutai, 2015).

According to the Central Bank of Kenya (CBK), which is the regulator of financial

institutions in Kenya, there are 44 banks in Kenya made up of 43 commercial banks and

one mortgage financial institution. Out of these, 31 were locally owned and 13 foreign

owned. The government has a stake in 3 banks namely National Bank of Kenya,

Consolidated Bank and Development Bank of Kenya. Whereas performance for some

banks has grown tremendously, performance for others has declined in equal measure. In

the recent past, three of the commercial banks were placed under statutory receivership by

the regulator owing to compliance issues (CBK, 2017).

The Kenyan banking sector has recently undergone a lot of turmoil with three banks

being closed and placed under receivership: Dubai Bank Kenya Limited, Imperial Bank

Limited and recently Chase Bank Kenya Limited. Chase Bank Kenya Limited has been

re-opened and is operating under a receiver manager (CBK, 2017). Additionally, with

new regulation capping interest rates, the profitability of commercial banks’ has fallen

significantly. This has led to investment in technology to save on costs as well as

capitalize on efficiencies. As a result, majority of the banks have closed branches in

rightsizing exercises, offering retirement packages and declaring redundancies. These

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changes have resulted in a lot of anxiety and fear of job losses, thereby inevitably

affecting job satisfaction significantly among the bank employees (IMF, 2017).

1.2 Statement of the Problem

Leadership plays a significant role when dealing with people. Specific variables like job

satisfaction have gained prominence in the contemporary era and have become areas of

focus for organizations (Malik, Javed & Hassan, 2017). Banks are very important

institutions in any economy because of the significant role they play by offering financial

services. Many economies have gone through financial crisis which has resulted in far

reaching effects on many banks globally. These effects have significantly affected the

employees’ levels of job satisfaction. As a result, organizations are in need of leadership

that will strive to create job satisfaction because such periods of crisis result into negative

defensive behaviors and attitudes which result from uncertainty, all of which affect job

satisfaction (Belias & Koustelious, 2014). Hanaysha et al. (2012) found that

transformational leadership had a significant influence on job satisfaction among nurses

in Malaysia and proposed further research in other sectors.

Globalization and recent developments in the banking sector have led to sporadic changes

resulting in heightened competition among the banking institutions (IMF, 2017). These

changes have brought to light leadership practice gaps and the resultant effects. One of

the significant effects is on job satisfaction which has resulted from long working hours

and increased work load (Mwangi & Omondi, 2016). Additionally, other effects have

been revealed on employee motivation, performance and productivity (Bushra et al.,

2011). Bader, Hashim and Zaharim (2013) carried out a study on job satisfaction among

bank employees in Eastern Libya and found that gender and age affected job satisfaction.

They recommended further studies to determine other factors that affect job satisfaction.

Globally, further research has been proposed in the area of transformational leadership

and job satisfaction. In Malaysia, a study conducted by Omar and Hussin (2013) revealed

a significant relationship between transformational leadership and employee job

satisfaction in the academic sector. They proposed further research in other sectors like

banking. E.O Darko and T.O Darko (2015) in Ghana noted that as a result of high

competition in the banking industry, employees are now expected to work harder

notwithstanding the dependence of performance on job satisfaction. The study proposed

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further studies on the effect of leadership styles on employee job satisfaction in other

regions. Tetteh and Brenyah (2016) found out that transformational leadership enhanced

employee job satisfaction among employees in the telecommunication sector in Ghana.

They recommended that further studies should be carried out in other sectors like

banking. Walumbwa, Orwa, Wang and Lawler (2005) found a positive correlation

between transformational leadership in Kenyan and American banks in a comparative

study and recommended further research where each individual element of

transformational leadership is assessed against job satisfaction.

The studies presented here indicate that there is need for further research in the area of

transformational leadership and job satisfaction. Therefore, the motivation of this study

was to establish the influence of transformational leadership on job satisfaction among

employees in commercial banks in Kenya.

1.3 The Purpose of the Study

The purpose of this study was to examine the influence of the transformational leadership

style on job satisfaction among employees in commercial banks in Kenya.

1.4 Research Questions

This study was guided by the following research questions:

1.4.1 To what extent does idealized influence affect job satisfaction among employees in

commercial banks in Kenya?

1.4.2 To what extent does individualized consideration influence job satisfaction among

employees in commercial banks in Kenya?

1.4.3 To what extent does inspirational motivation influence job satisfaction among

employees in commercial banks in Kenya?

1.4.4 To what extent does intellectual stimulation influence job satisfaction among

employees in commercial banks in Kenya?

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1.4.5 To what extent does job security moderate the relationship between

transformational leadership and job satisfaction among employees in commercial banks in

Kenya?

1.5 Hypotheses

This study was guided by the following null hypotheses:

H01: There is no significant influence of idealized influence on job satisfaction among

employees in commercial banks in Kenya.

H02: There is no significant influence of individualized consideration on job satisfaction

among employees in commercial banks in Kenya.

H03: There is no significant influence of inspirational motivation on job satisfaction

among employees in commercial banks in Kenya.

H04: There is no significant influence of intellectual stimulation on job satisfaction among

the employees in commercial banks in Kenya.

H05: There is no significant moderating effect of job security between transformational

leadership and job satisfaction among employees in commercial banks in Kenya.

1.6 Justification of the Study

1.6.1 The Banking Sector

The findings of this study will provide new knowledge in the banking sector on the

influence of transformational leadership on job satisfaction. This will therefore, enlighten

senior management of banks and other financial institutions on how enhance employee

job satisfaction; this will help to retain employees in the organizations. Additionally, it

will demonstrate how the various components of transformational leadership can be used

to harness employee performance by enhancing employee job satisfaction. This will

ultimately boost achievement of the set objectives and goals.

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1.6.2 Policies and Policy Makers

For policy and policy makers, the findings of this study will inform policies in financial

institutions and other organizations on how to enhance employee job satisfaction. Thus,

organizations will be able to come up with more effective policies around job satisfaction

in the financial services sector. This is very crucial given the sensitivity of this sector and

the important role it plays in the economy. This study will therefore contribute immensely

by informing policies around job satisfaction.

1.6.3 Researchers and Academicians

The findings of this research will add value to the existing knowledge base on

transformational leadership and job satisfaction of employees. The findings of this study

will also provide knowledge on transformational leadership and job satisfaction of

employees in commercial banks in Kenya. This will therefore add to the existing body of

knowledge in the area of transformational leadership and job satisfaction.

1.7 Scope of the Study

This study examined the extent to which transformational leadership style influences job

satisfaction of employees in commercial banks in Kenya. The study focused on the

transformational leadership theory and the four dimensions commonly referred to as the

4Is. The target population was 10,301 employees who fall under the management

category as per the Banking Supervision Report of 2015 (CBK, 2017). The study focused

on all the 43 commercial banks in Kenya and adopted stratified random sampling

technique. The Central Bank of Kenya has classified commercial banks in three tiers; tier

one comprising of big banks, tier two comprising of medium sized banks and tier three

comprising of small banks. The study focused on all the three tiers of commercial banks

in Kenya. The research was carried out in September 2017.

1.8 Definitions of Terms

1.8.1 Transformational Leadership

Transformational leadership is a leadership style where the leader aims to articulate a

compelling vision and offers clear goals whilst providing support and stimulating

followers to work (Chan & Mak, 2014). Transformational leadership style has the

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capability to motivate and also to inspire followers to identify with the leader and the

organization thereby enabling employees to perform beyond expectation. It comprises of

four dimensions: idealized influence, individualized consideration, inspirational

motivation and intellectual stimulation (Bass & Avolio, 1997).

1.8.2 Idealized Influence

Idealized influence is also termed as charisma which is a behavior which brings out

positive emotions from the followers and leads them to emulate the leader who in this

case acts as a role model. A leader seeks to be a personal example and also maintains high

ethical standards to ensure he is a role model. Idealized influence behavior constructs are

charisma, trust and ethics (Bass & Avolio, 1994).

1.8.3 Individualized Consideration

Individualized consideration involves the leaders displaying attention to the

developmental needs of the followers. They offer support through coaching and

mentorship programs and also provide feedback on the performance of tasks. This is

displayed when the leaders delegate tasks which in turn present the followers with growth

opportunities. Individualized consideration behavior constructs are delegation, mentoring

and support (Bass & Avolio, 1997).

1.8.4 Inspirational Motivation

Inspirational motivation involves the development and communication of an appealing

vision which results in helping to focus the efforts of the followers to the organization’s

vision and mission. Basically, the leader creates and communicates the vision with

passion, enthusiasm and optimism to the followers. Inspirational motivation behavior

constructs are communication, teamwork and motivation (Bass, 1985).

1.8.5 Intellectual Stimulation

This behavior seeks to grow the awareness of problems and leads followers to a different

perception of the problems. They are influenced to creativity with a view of challenging

the existing beliefs and values. Intellectual stimulation also helps leaders to challenge

their follower’s ideas, values and problem-solving capabilities. It encourages followers to

challenge and question status quo. Intellectual stimulation behavior constructs are

knowledge sharing, creativity and risk taking (Bass & Avolio, 1994).

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1.8.6 Job Satisfaction

Job satisfaction refers to how content a person is with his or her job, or how a person feels

about their job or the various aspects of their job (Pravin & Kabir, 2011). It is how an

employee perceives their job and the resultant emotions. Job satisfaction was measured

by the level of commitment an employee has to the organization, absenteeism and

employee’s intentions to leave the job (Emmanuel & Hassan, 2015; Ramos, 2014).

1.8.7 Job Security

Job security can be defined as the perceived stability and continuation of a job together

with its features in future. Accordingly, it can be attributed to Maslow’s second hierarchy

of needs which is security and safety. Job security constructs are anxiety, fairness and

stress (Mahmoud & Reisel, 2014; Akpan, 2013).

1.9 Chapter Summary

This chapter presented an overview of the background of the study, the problem

statement, research questions, hypotheses, scope of the study and definition of terms.

Chapter two presents the theoretical framework, conceptual framework and the empirical

review. Chapter three presents the research methodology. Chapter four presents the

results and findings of the study. Chapter five presents the summary, discussion,

conclusions and recommendations of the study.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter presents the theoretical review and the conceptual framework of

transformational leadership. The chapter also presents an empirical review of existing

literature on transformational leadership and job satisfaction based on the research

questions.

2.2 Theoretical Review

A theoretical review refers to a study of theories that have been formulated to explain,

predict and understand various phenomena. A theory is an organized and systematic set of

interrelated statements which specify the nature of relationships between variables

(Green, 2014). This study was underpinned by the transformational leadership theory

which was developed by James MacGregor Burns in 1978. The transformational

leadership theory consists of four constructs namely idealized influence, individualized

consideration, inspirational motivation and intellectual stimulation which lead to

performance beyond expectations (Burns, 1978).

2.2.1 Transformational Leadership Theory

Transformational leadership theory was first articulated by Burns in the year 1978 (Burns,

1978). It was then advanced by Bernard Bass almost ten years after Burns had brought up

the theory of leadership. According to Bass (1985) transformational leadership theory

consists of four dimensions which are idealized influence, individual consideration,

inspirational motivation and intellectual simulation which lead to performance beyond

expectation as shown in Figure 2 which represents the transformational leadership theory

model. Empirical studies have documented significant influence of transformational

leadership on job satisfaction. Therefore, leaders should strive to integrate these attributes

in their day to day leadership so as to simulate employees to work hard and perform

beyond their expectations (Liao & Chuang, 2007; Liang, Chang & Chih-Wei Lin, 2017).

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Transformational Leadership Theory Model

Figure 2.1: Transformational Leadership Theory Model

Source: (Bass & Avolio, 1985).

The leader is able to attain a high level of output from the followers because they do not

work for self-gain. The leader provides the followers with an inspiring mission which

enables them to pursue organizational objectives beyond their self-interests (Bass &

Avolio, 1997). Through transformational leadership, a leader is able to drive change both

in people and organizations. These four elements provide a compelling vision and

leadership, encourage the followers by considering their needs, encourage followers to be

innovative and to challenge the status quo, and finally provide a source of motivation.

Consequently, they also help to ensure that the employees feel valued and remain inspired

to perform beyond expectations (Bass, 1985; Northouse, 2013; Ramos, 2014).

Transformational leadership is grounded on the idea of transformational leaders

motivating their followers to commit to the organizational objectives and to perform

beyond expectations. According to Bass (1985), four leadership processes are involved in

achieving these outcomes. First, leaders raise the followers’ consciousness levels about

what is important and the value attached to the desired outcomes and the means within

which the outcomes will be achieved. Secondly, leaders induce followers to go above and

outside their self-interests for the sake of the organization by demonstrating care for their

individual needs and treating them with a human touch. Thirdly, leaders foster the need to

achieve higher level needs by stimulating the followers’ intellect by presenting challenges

and giving them the opportunity to solve problems, offer solutions and challenge status

quo. Fourthly, leaders seek to motivate and inspire the followers so that they can keep

their eyes on the goal which is the organizational objectives and the means within which

to attain the desired outcomes and results. When all these are fulfilled, followers perform

beyond expectations, realizing the desired results and surpassing set expectations.

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Performance beyond expectations is in relation to the collaborative, collective will and

action yielded by transformational leadership which results in empowering the followers

who participate in the process (Pamela, 2010).

2.2.1.1 Idealized Influence

Idealized influence is the capability to exert influence by serving as a role model through

demonstration of high performance and moral standards. By this, the leaders persuade the

followers to share in the organizations vision and objectives. The leaders possess a strong

personal appeal and a power to influence the followers by providing direction, sense of

purpose and fostering perseverance in pursuit of the goals (Muenjohn, 2010). The leaders

earn legitimacy based on personal integrity and competence. From this, the followers

admire and respect the leaders and further desire to emulate them (Liang, Chang & Chih-

Wei Lin, 2017). Some attributes of idealized influence are vision, trust, respect, integrity

and modeling. Idealized influence enables a leader to become a role model for high

ethical behavior and to gain respect from the followers (Stone, Russel & Patterson, 2004).

Through charisma, a leader is able to instill pride, attract faith and respect from the

followers and to make them see the bigger picture thereby communicating a sense of

mission. This produces energy for achieving high work objectives (Brandt, Laitinen &

Laitinen, 2016). The leaders display conviction, place emphasis on important personal

values and connect those values with the organizational objectives. Transformational

leaders rely on their charismatic attributes; charisma here being a form of personal power.

Thus, they focus on their charismatic and enthusiastic attributes to gain influence over

their followers and to motivate the followers.

2.2.1.2 Individualized Consideration

Individualized consideration refers to the degree to which leaders attend to the needs of

the followers and act as coaches and mentors. They are able to recognize the employees’

unique needs for achievement, growth and desires by keenly listening to their needs and

concerns. This takes care of the varying needs of autonomy, encouragement,

responsibility, structure and instructions which fosters individual attention of followers as

unique persons and doesn’t reduce them to their function and roles (Brandt et al., 2016).

Individual consideration enables a leader to pay attention to the followers’ developmental

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needs and therefore delegates work projects in a way that stimulates the learning

experiences of the followers. A transformational leader allows the followers more

discretion and opportunities in their work which satisfies their developmental needs

resulting in enhanced commitment to the organization and the work. This stimulates them

to achieve high levels of creativity (Cheung & Wong, 2011).

Bass and Avolio (1997) stated that leaders should share in the concerns of their followers

together with their developmental needs and this paves way for each person’s individual

consideration. Encouragement from the leaders allows the followers to express

themselves freely and also to implement their ideas (Muenjohn, 2010). Leaders provide a

supportive environment and carefully consider the needs of their followers. They also

advice, teach, coach with an intent of helping their followers to develop themselves.

Some attributes to individualized consideration are personal attention, mentoring,

listening and empowerment. Individualized consideration enables a leader to keep

communication open and also the celebration of individual employees and their

contribution to the team. They provide the followers with sources of motivation within

their jobs and through other avenues.

2.2.1.3 Inspirational Motivation

Inspirational motivation is the ability of a leader to behave in a way that motivates

followers, generates enthusiasm and challenges people (Stewart, 2006). Leaders do this

when they develop and communicate a convincing attractive future vision and also when

they clearly communicate the expectations. It enables leaders to display optimism, power

and encouragement to their followers (Felfe & Schyns, 2004). A leader is able to

articulate an appealing vision of the future and challenge the followers’ expectations

hence providing encouragement, optimism and a collective sense of purpose. Further, it

allows a leader the opportunity to use symbols and emotional appeal to unite group efforts

on a central purpose. This then encourages followers to achieve more than they would

achieve in pursuit of their own self-interests (Cheung & Wong, 2011).

Leaders are able to motivate the followers through a compelling vision for the future and

by expressing confidence in the followers which in turn nudges the followers to willingly

increase their efforts to attaining the vision. It could also be a function of leaders

expressing high expectations of the followers to achieve extra ordinary achievements and

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at the same time displaying confidence in their potential. Inspirational motivation could

easily overlap with charisma. However, it is worth noting that inspirational motivation

could occur without a need for identifying with the leader which is the case for

charismatic leaders (Muenjohn, 2010). A leader is able to achieve this by constantly

encouraging the team and verbalizing confidence in their abilities, reviewing

achievements progressively and also giving recognizing the follower’s efforts to achieve

the set vision (Antonakis, 2006).

2.2.1.4 Intellectual Stimulation

Intellectual stimulation refers to the leader’s actions which persuade the followers to use

their sense of logic and analyze situations using their creative thinking in a bid to find

solutions. This tenet of transformational leadership goes on to challenge followers to

come up with new ways of doing things and not to accept status quo if there is an option

(Antonakis, Avolio & Sivasubramaniam, 2003). Therefore, intellectual stimulation also

refers to the degree to which the leader challenges assumptions, status quo, takes risks

and seeks for contributions of ideas from the followers. Transformational leaders are able

to influence the followers’ creativity by ensuring the followers feel challenged and

energized to seek new and novel approaches in their jobs which will translate into

effectiveness (Cheung & Wong, 2011). A leader is able to arouse the followers to think in

new creative ways which focus on problem solving and use of reason in judgment.

Creative and innovative solutions are required and encouraged to stimulate followers

(Felfe & Schyns, 2004).

Intellectual stimulation allows a leader to encourage and back up the followers to

challenge the status quo, question existing or old assumptions, redefine problems, explore

their intellectual curiosity and also use imagination. Leaders cheer their followers to think

differently and in creative ways in order to address existing and future challenges. A few

accompanying attributes are rationality and problem solving (Stone et al., 2004). This

yields new ideas for the organizations on product lines or processes which have the

possibility of yielding better returns or helping in the achievement of the organization’s

objectives. To sustainably stimulate the followers, leaders avoid correcting the followers

in public or criticizing the followers so that they are not limited in their creativity

(Stewart, 2006).

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2.2.1.5 Performance beyond Expectation

According to Bass (1985), when leaders practice transformational leadership, they are

able to act as exemplary role models, motivate their employees to commit to the

organizational vision, encourage innovation and creativity, and act as coaches and

advisors to the employees; these actions result in performance that exceeds organizational

expectations. Cheung and Wong (2011) note that intensive research has been carried out

and findings indicate that transformational leadership is effective in enabling followers to

perform beyond expectations and also transforming their personal values into higher level

needs and aspirations. Additionally, they note that transformational leadership is linked to

creativity of followers, performance, organizational commitment, absenteeism and

satisfaction. All the above enhance innovation and a competitive advantage for the

organization.

The attribute of idealized influence and inspirational motivation which enable a leader to

instill pride in the followers also contributes towards inducing the follower’s interests

beyond personal interests for the good of the organization. The attributes do this by

reassuring the followers that together they will overcome the obstacles ahead and also by

building confidence in the achievement of the set goals. Additionally, the leader’s

optimistic talk about the future also helps to build hope in the followers because the

leader provides an exciting image of organizational change (Guay, 2013). By constantly

aligning the values of the followers to the organizational values, followers put in more

effort which leads to performance beyond expectations since they can chose to operate

below their thresholds. By supporting teams, transformational leadership builds a

psychological attachment of the followers to the organization hence leading to a

collective identity which motivates the followers (Rao & Abdul, 2015; Bass, 1985).

2.3 Conceptual Framework

A conceptual framework is a diagrammatic representation of variables or constructs that

is used to map and guide the research process (Green, 2014). The conceptual framework

was derived from the transformational leadership theory and consists of the four

dimensions of transformational leadership which include idealized influence,

individualized consideration, inspirational motivation and intellectual stimulation (Burns,

1978). Figure 2.2 presents the conceptual framework.

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Independent Variables Dependent Variable

Figure 2.2: Conceptual Framework

Source: Author (2017)

2.3.1 Independent Variables

A variable is a characteristic or attribute that can be tested or observed and may vary from

context to context depending on subject of study. Independent variables are variables that

cause, influence or affect outcomes and can also be referred to as treatment or predictor

variables (Creswell, 2014). The independent variables for this study included idealized

influence, individualized consideration, inspirational motivation and intellectual

stimulation.

Idealized Influence

Charisma

Trust

Ethics

Trust

Ethics

Job Security

Anxiety

Fairness

Stress

Individualized Consideration

Delegation

Mentoring

Support

Inspirational Motivation

Communication

Team Work

Motivation

Intellectual Stimulation

Knowledge Sharing

Creativity

Risk Taking

Job Satisfaction

Organizational

Commitment

Absenteeism

Employee Turnover

Intentions

H01

H02

H03

H04 H05

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2.3.1.1 Idealized Influence (X1)

Idealized influence is the first tenet of transformational leadership that determines the

effectiveness of transformational leadership. Leaders use idealized influence to wield

influence through charisma, trust and ethics. Leaders earn credence and trust because of

their consistency in behavior. It is a characteristic that enables the leader to create a

perception of power, charisma, confidence and trust among the followers which results in

admiration and a desire to imitate, respect and a need to be associated with the leader

(Omar & Hussin, 2013). Idealized influence results from the leader’s behavior, beliefs,

moral standards and conformity of values (Avolio & Bass, 2002; Ibraheem, Hussein &

Ayat, 2011). Idealized influence is an emotional component of leadership. It describes the

leaders who act as good role models and in turn arouses a desire in the followers to

emulate them. Their behavior is comprised of high ethical and moral standards and this

earns them a deep level of trust from their followers. Charisma tends to make people

special and also make others to want to follow the vision they offer (Voon, Lo, Ngui, &

Ayob, 2011).

Idealized influence helps the followers to acknowledge the unique capabilities of the

leader, such as the leader’s persistence and desire to take risks in a bid to achieve the set

objectives. It can also be explained as setting of knowledge creation as a means of

influencing over ideals (Ngaithe, K’Aol, Lewa & Ndwiga, 2016). Idealized influence also

helps the leader to provide a vision for the followers which doubles up as a driver to

achieving the set objectives. It creates a sense of pride in the followers from the aspect of

association with a leader who is viewed as a role model because of their boldness,

dynamic capabilities, ethical nature, consistency and zeal to offer solutions. All these

aspects yield motivation for the followers and result in achievement of the objectives and

also performance beyond expectation (Ahmad, Abbas, Latif & Rasheed, 2014). Leaders

demonstrate their willingness to sacrifice personal gain for the good of the team (Ogola,

Sikalieh & Linge, 2017).

Ngaithe et al. (2016) refer to idealized influence as a way in which leaders behave that

makes them role models for their followers. As a result, the leader is not only admired but

also respected. This also results in trust and a desire by the followers to emulate the

leader. The followers notice and give credence to the extra ordinary capabilities possessed

by the leader which result in admiration. Followers have a sense of trust and respect for

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leaders who possess idealized influence. As a result, they are readily willing to take on

instructions from the leader notwithstanding the complexity of the tasks that may be

involved. Idealized influence is similar to the highest level of moral reasoning; meaning

such leaders are willing to forgo their interests for the benefit of their group or

organization. Such leaders set high behavior standards and are role models because they

walk the talk (Ogola et al., 2017).

Huang and Lin (2014) defined the most important characteristics of a charismatic leader

as knowledgeable, friendliness, approachable, patient and enthusiastic. Max Weber

referred to charisma as a quality of a person that sets them apart from ordinary people

(Nikoloski, 2015). Charisma is also viewed as an attribute based on the followers’

perception of their leader’s behavior which goes on to suggest that charisma exists in the

eyes of the beholder. Another definition is that charisma refers to attributes of personal

characteristics that enable an individual to influence other people thereby impacting their

feelings, opinions and behavior. Research conducted in organizations has shown that

charisma is positively related to individual, group and firm level outcomes. This is

because leaders are able to inspire followers to higher levels of performance and to impart

in them behavioral attributes of commitment. As a result, there is a very positive

perception of leaders possessing charisma because they are perceived as effective by their

subordinates in comparison with less charismatic leaders. However, there are emerging

theoretical advances challenging the correlation between charisma and leader

effectiveness (Vergauwe, Wille, Hofmans, Kaiser & De Fruyt, 2017).

Bell (2013) referred to charisma as an untraditional form of influence where the leader

has exceptional qualities which are perceived by his followers. It is a trait one perceives

and is hard to describe without making reference to some known characteristics or

behaviors. In his research, Bell examined behaviors like communication skills, visionary

attributes, integrity, humor and expertise which were attributed to the charisma of Ronald

Reagan. According to Nikoloski (2015), the ethics of charismatic leaders refers to how

they use their power and in what. Charismatic leaders who are ethical have better

workplace environments with less interpersonal and workplace deviance. These leaders

act as role models and their behavior more often than not cascades through the

organization. Human resource has become a source of competitive advantage especially

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for the leaders with charisma because they have ability to inspire followers to own the

vision and achieve the set objectives.

Ethics is an important element of an organization because it plays a big role in

determining the performance of employees in the organization. The term was derived

from Greek and it means moral character, custom and habit (Athar, Shahzad, Ahmad &

Ijaz, 2016). Business ethics can be referred to as a criteria that is used to determine

between wrong and right, good or bad. Ethical forces across the world are making

businesses and business leaders to transcend their personal interests to ensure ethical

issues are addressed effectively. An ethical climate refers to individual beliefs about the

organizational practices, procedures, standards and ethical values. An ethical climate in

organizations has been associated with enhanced levels of satisfaction (Ahmed, Shad,

Mumtaz & Tanveer, 2012). Organizational ethics goes beyond the climate and involves

top executive support for the ethical behavior and the association of ethical behavior with

career success which are all associated with job satisfaction. Additionally, research states

that organizational outcomes can be influenced by the leaders’ support and reward of

ethical behavior (Awasthi, 2015).

Interpersonal trust has been described as a social lubricant which helps to facilitate

collective efforts and perceptions within an organization. It is a psychological state which

involves the willingness to accept helplessness based on positive expectations on the

intent of another person (Kelly, Lercel & Patankar, 2015). Organizational trust is a

general organizing principle; thus, the foundation of a general governing system of the

contractual relations which can be invoked to control opportunism, costs and monitor

problems in organizations. It has been argued that organizational trust enhances job

satisfaction (Mincu, 2015). It was also found that the length of service in an organization

influenced job satisfaction in some instances (Sarker, Crossman & Chinmeteepituck,

2003).

Research indicates that trust leads to participation in organizations and collaboration

between people, groups and other organizations. Employees look for trust between them

and their managers which affects their level of confidence in the organization leading to

motivation and greater effectiveness. Mistrust leads to rumors, conflict and politics in the

organization which are not desired. However, mutual trust can be a source of success for

all (Pourkeiani & Tanabandeh, 2016). Organizations with higher levels of mutual trust

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existing between management and employees could more ably maintain and sustain

human talent which is a great source of competitiveness in the corporate world.

Additionally, trust has been associated with employee job satisfaction and perceived

organizational effectiveness. It is important but has sometimes been taken for granted by

organizational leaders yet it remains a critical element in achieving the organizational

objectives (Usikalu, Ogunleye & Effiong, 2015).

2.3.1.2 Individualized Consideration (X2)

Individualized consideration is the second tenet of transformational leadership where

leaders show concern for their employees. Some behavioral attributes of individualized

consideration consist of delegation, mentoring and support. Leaders build their people by

delegating tasks to them, mentoring them and supporting them as they pursue the set

objectives. Leaders in this context recognize people’s needs for achievement, growth,

desires and demonstrate personal interest in helping them to satisfy their needs (Avolio &

Bass, 2002). They also embrace people’s differences in the various spectrums of personal

attributes; thus, followers are not reduced to their function and tasks but are considered as

unique individuals (Felfe & Schyns, 2004). Leaders also use this to help them develop the

abilities of their followers and empower them to accomplish higher tasks which can be

achieved through delegation, support, training, guidance and effective supervision. To

achieve this, a leader acts as both a referee and as a coach (Ibraheem et al., 2011).

Leaders achieve this by giving personal attention to the followers and recognizing their

uniqueness thus being able to help them through specific structured directions

(Northouse, 2013).

This quality in the leaders helps them to pay more attention to the followers’ individual

needs which yields happiness and comfort in the followers since they feel their needs are

addressed from a personal and not a group point of view. The leaders train the followers

on how to achieve the set goals and objectives and upon accomplishment, this leads to

aspects of recognition which is a key driver of job satisfaction (Ahmad et al., 2014). The

leader’s ability to create a supportive environment by listening, coaching and mentoring

the followers speaks volumes to the followers because the leaders consider their needs by

ensuring that as the organization grows, the employees also grow in their areas of interest.

The leaders also help the employees to get through their personal challenges because they

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are concerned not only about the work but also their followers personal matters

(Alkahtani, 2016).

Delegation is one of the fundamental roles that leaders perform and it is widely credited

as a result of effective management. Delegation involves giving subordinates the

responsibility for decisions which are usually handled by the leader thereby enhancing

their latitude and discretion (Drescher, 2017). Delegation is also referred to as the process

of assigning responsibilities to subordinates by the leaders and it involves transferring

authority from the leader to the employee. It results in empowering the employees to

make commitments on behalf of the leader to use the resources available and also to make

decisions relating to the roles assigned. Delegation stems from the fact that one individual

cannot discharge all the responsibilities in an organization successfully. It can only work

effectively if the person to whom responsibility is delegated is given commensurate

authority to discharge the responsibilities. When it is implemented well it becomes a

source of motivation and satisfaction for the employees (Agada, 2014).

Research in the area of delegation indicates that delegation positively affects the

employee’s performance and satisfaction. Research goes further to differentiate the

relative degrees of delegation because it is not a dichotomous element but it depends on

how much authority is delegated. Delegation is similar to other forms of empowerment

like consultation and participative leadership because decision making is shared and only

the amount of involvement of the other parties differ (Drescher, 2017). Delegation is an

inescapable practice in organizations and it helps to legitimize lower level managers by

way of boosting their esteem and positive perception by the subordinates. In the modern

world, where a lot is expected from the leaders, failure to delegate is almost a guarantee

to failure on the job. However, it is important to note that as much as leaders should

delegate authority and responsibility, they still remain accountable. Leaders should boost

the confidence levels of their juniors to ensure they are confident enough to take on the

tasks that are delegated to them (Badder, Salem & Hakami, 2016).

Mentoring has benefits that accrue to both the mentee and the mentor. Some of the

outputs of mentoring include job performance, motivation and attitudinal benefits

regarding the work (Xu & Payne, 2014). It is a subject that is attracting more and more

attention because of the benefits associated with it which also include job satisfaction,

organization commitment, reduced turnover intentions, career development and better

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remuneration. It is also a key factor in the learning process in organizations and it plays a

big role when it comes to work identity, improvement of outcomes and boosting the self

esteem of the employees. It serves as a bridge which facilitates information exchange and

knowledge acquisition in the organization (Cetin, Kizil & Zengin, 2013; Salami, 2010).

Research suggests that organizations should formally support mentoring by incorporating

mentoring tasks in senior employee’s development plans and performance requirements

(Hartman, Rutherford, Friend & Hamwi, 2016).

Research has shown that mentoring is one of the successful ways of facilitating

organizational learning and has demonstrated positive results coupled with enhanced job

satisfaction. It has also shown that protégés who received mentoring support performed

better in their jobs and had reduced intentions to leave the organization (Lo, Ramayah &

Kui, 2013). Additionally, organizations that have effective mentoring programs in place

are able to attract professional job seekers and retain good employees. Another positive

result of mentoring is strengthening the relationships between the supervisors and the

subordinates through the mentoring interactions (Lo et al., 2013). Mentoring is an

important practice for organizations which helps to boost interpersonal relationships,

learning, development and job satisfaction. It should be established with clear objectives

to enable measurement of the impact and evaluation vis-à-vis the desired outcomes and

objectives (Horner, 2017).

Perceived organizational support reflects employee’s perception that their supervisor

values their contribution and cares for their well-being (Nicklin & McNall, 2013). It also

refers to the extent in which the organization is perceived to value employees, contributes

and cares for their wellness. An organization that supports its employees is committed to

its workers and their needs. Research has shown that perceived organizational support is

positively correlated with work attitude and effective work performance. Employees go to

the extent of determining their action or inaction based on the nature of support they

perceive the organization accords them through their leaders. Similarly, when there is a

positive perception of organization support, then employees become more committed and

work harder in their jobs. Perceived organizational support determines the organizational

citizen behavior, performance, commitment, satisfaction and turnover intentions among

the employees (Miao & Kim, 2010). Research has found that age had an influence on the

effect of job satisfaction due to the different expectations employees have at different

stages of their lives (Olorunsola, 2012).

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2.3.1.3 Inspirational Motivation (X3)

Inspirational motivation is the third tenet of transformational leadership. It consists of

attributes such as communication, teamwork and motivation. This is where leaders

communicate and express themselves, encourage their followers to embrace team work

and motivate them in the quest to achieve the set objectives (Lussier & Achua, 2013). It

helps to express clearly and coherently the expectations of the employees through a

shared vision which ultimately motivates the employees (Ngaithe et al., 2016). The leader

convincingly emphasizes the need to perform and meet the set objectives to the followers

which gives them a drive to achieve. Leaders who practice this possess the ability to

influence their follower’s attitudes towards them and the objectives at hand. Such leaders

also possess great communication skills which help them to communicate effectively to

the followers (Bass & Avolio, 1994). The leader continues to express enthusiasm in the

objectives, eagerness to achieve them and the confidence to deliver what is required of

him and his followers (Trmal, Bustamam & Mohamed, 2015).

Inspirational motivation also enables leaders to communicate high expectations to the

teams and inspire them to own and become part of the organization’s vision. The leaders

rely on emotional appeals to focus group member’s efforts to achieve more as a group, as

opposed to pursuing self-interests. It advocates for teamwork and the encouragement is

achieved by ensuring everyone knows the critical role they play in the organization

through their work (Tetteh & Brenyah, 2016). Additionally, inspirational motivation

enables the leader to effectively communicate to the followers about the future goals of

the organization and helps them to find ways of fitting into the organizational objectives

by clearly identifying their roles and responsibilities. In line with this, leaders also

encourage their followers to communicate and voice their ideas which create a feeling of

satisfaction since their opinions are heard and valued (Ahmad et al., 2014).

Ngaithe et al. (2016) from their study noted that communication is one of the key

elements of inspirational motivation. Inspirational motivation stems from the use of

effective and communicative influence styles. The leaders effectively communicate the

expectations from the employees and this inspires and motivates them. This also helps the

leader to come up with a vision that the employees easily own. Managers who inspire

employees align the individual objectives to the organizational objectives which makes

the achievement of the organizational objectives an attractive way of achieving the

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personal objectives. Inspirational motivation helps the leader to confidently and positively

communicate the vision and stir energy and enthusiasm in the followers. Research

indicates that communication between co-workers and between employees and

supervisors can have a significant influence on the employee’s psychological outcomes

including and not limited to job satisfaction. Additionally, employee perception of top

management openness in communication and inclusivity in the decision-making process

influences the overall job satisfaction of the employees (Winska, 2010).

Effective communication is one of the key attributes a leader should have because

communication is critical for achievement of the organizational objectives; it is also a key

success factor. It has been referred to as the social glue that holds the organization

together. Research indicates that better communication skills lead to enhanced job

satisfaction and job commitment (Paksoy, Soyer & Calik, 2017). An effective

organization communication culture encourages feedback which raises the esteem of the

employees. Consequently, effective communication yields increased job satisfaction,

safety, productivity and performance of the organization. Additionally, communication is

very important for the functioning of the organization because it reduces grievances and

turnover intentions. Poor communication leads to poor performance because there is

ineffective flow of important information upwards especially where employees do not

trust their managers. Communication provides a platform for the provision of intrinsic

needs such as recognition, appreciation and feedback which are a source of motivation for

the employees (Shonubi, Abdullah, Hashim & Hamid, 2016).

Motivation refers to the psychological processes that determine the onset, direct and

maintain voluntary actions towards organizational goals. It can also be referred to as a set

of energetic forces that emanate from both inside and outside of the individual which

helps to determine the form, direction, intensity and duration of behavior. It is a critical

factor in organizations because it significantly influences job satisfaction and job

performance (Rajan, 2015). Motivation plays a pivotal role in ensuring that employees

achieve the set objectives because it enhances cooperation, morale, commitment and

enthusiasm of employees. It is a psychological process which gives the employees

behavior purpose and direction. Motivation can stem from fairness and equity, effective

communication and providing performance-based rewards and incentives. Research has

concluded that motivation is a set of both internal and external factors which stimulate the

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desire and energy in people to achieve, be committed to a job and pull their weight in

achieving the set objectives (Bwire, Ssekakubo, Lwanga & Ndiwalana, 2014).

One of the factors that really helps employees in achieving the set organizational goals is

motivation and its absence results in lethargy and increased turnover intentions.

Motivation is important as it determines the kind of excitement one pursues the set goals

with. Motivation enables employees to do their work efficiently and effectively and with

enjoyment. Research points to a strong positive correlation between motivation and job

satisfaction (Singh & Tiwari, 2011). A motivated employee feels satisfied with their job

and is empowered to strive for excellence and growth. Motivation boosts commitment

and satisfaction with the job and yields greater productivity. Research notes that there is a

significant difference between the productivity of motivated employees and non-

motivated employees (Osakwe, 2014).

A team refers to a unit of two or more people who come together, interact and coordinate

themselves in pursuit of a common goal. For there to be teamwork, the people need to

interact, share a common goal and remain committed in pursuit of the goal. In a team,

people are able to use their individual skills, have mutual accountability and complement

each other. In order to create effective teamwork, there must be clear goals, relevant

skills, mutual trust, employee commitment, effective communication, negotiation skills,

good leadership coupled with both internal and external support. Teamwork has a positive

impact on team performance (Musriha, 2013). Teamwork has a positive impact on

achievement of job efficiency and enhancing productivity in organizations. Additionally,

research has revealed that teamwork reduces human errors due to complimentary skills,

enhanced performance and enhances job satisfaction of employees (Benrazavi & Silong,

2013).

A few factors like the willingness to work in team which refers to the attitude of an

employee to cooperate and collaborate with others determine the effectiveness of

teamwork (Benrazavi & Silong, 2013). Motivation in a team helps to overcome

challenges and to create energy for achieving the objectives of the team and is therefore a

catalyst for team performance (Irfan & Lodhi, 2015). Teamwork has become the standard

unit of working in organizations. Through teamwork, employees are able to achieve more

through collaboration which also helps them to enhance their knowledge and skills.

Organizations seeking to boost productivity and satisfaction should support a teamwork

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culture because not only does it increase results but also gives employees opportunities to

participate in challenges that provide learning and feelings of accomplishment. Research

goes on to indicate that organizations that encourage teamwork are more likely to attract

and retain good talent (Manzoor, Ullah, Hussain & Ahmad, 2011).

2.3.1.4 Intellectual Stimulation (X4)

The fourth tenet of transformational leadership is intellectual stimulation. Examples of

attributes associated with intellectual stimulation are knowledge sharing, creativity and

risk taking. It refers to a leader’s ability to stimulate the followers by allowing them to be

creative and innovative; thus, encouraging and allowing them to question assumptions,

re-evaluate problematic and challenging situations thereby engaging their minds. The

leader not only encourages but also supports creativity and innovation. Intellectual

stimulation helps the leader to keep the followers constantly engaged in the tasks at hand

by allowing them the free will to ask questions and provide any solutions they may have.

Followers are involved in tackling setbacks and discovering new solutions (Long et al.,

2014).

It allows followers to propose new ideas and also offer solutions based on their personal

understanding of issues. Through this, leaders do not criticize their followers in public but

encourage the followers to use the best suited approaches and to provide solutions (Omar

& Hussin, 2013). Intellectual stimulation encourages the followers to challenge their own

beliefs, the existing organizational beliefs and even those of the leaders. This component

supports new approaches of doing things and encourages the followers to come up with

new innovative ways of doing things or solving problems (Voon et al., 2011).

By encouraging followers to be creative, critical and logical, leaders help to create a

feeling of satisfaction among the followers. Leaders encourage the followers to think

creatively and offer new problem-solving skills. These same aspects lead to new

innovations which in turn lead to recognition and career advancement thus driving job

satisfaction (Ahmad, 2014). Leaders support followers because they do not necessarily

see problems as a bad thing because the problems lead to creativity, critical thinking and

innovation all of which could yield new profitable business ventures; for example, new

products or services, efficient processes or procedures which contribute to the

organization goals and objectives (Alkahtani, 2016). This quality of leaders values the

ingenuity of followers and also leads to incorporation of the followers in decision making

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and problem resolution forums so that they can give their ideas which help in

sustainability and growth of the organization (Trmal et al., 2015).

Creativity is defined as the ability to bring something into being; it is differentiated by

novelty and originality and is inventive in nature. In the ancient times, it was seen as a

human gift to those born with creative talents. The ability to produce novel ideas and

express oneself fluently are traits associated with creativity (Raju, 2017). Creativity is

very important as a measure of contributing to an organization’s innovation. It has also

been defined as the generation of new ideas whereas innovation is the implementation of

those ideas. Organizations need to provide a supportive process and environment for

employees to be creative. Additionally, the organization should provide challenges,

involvement of staff and trust because these motivate employees to make contributions.

An environment that allows creativity is catalyzed by some room for ambiguity, freedom

and some room for risk taking (Chen, Hou & Fan, 2009).

Today, organizations have placed emphasis on productivity which involves maximum

output at minimum cost. Companies are now competing on the basis of new products or

business ideas which have proven to be significant sources of competitive advantage.

Therefore, organizations need to encourage their employees to bring forth their novel

ideas and solutions to problems be it in products, services, processes and systems all of

which will allow them to be creative (Carine, Oduor & Shukla, 2015). An ethical

organizational climate has been cited as an enabler of creativity for employees in

organizations. Additionally, employees are more associated with organizations which

encourage creativity and provide a platform with freedom of expression (Iqbal, Bhatti &

Zaheer, 2013). Research has revealed that there is a positive and significant relationship

between creativity and job satisfaction (Raju, 2017).

Innovation is basically the introduction of new processes or practices by creating new

goods or services or for example by adopting new patterns. It is considered a strategic

means through which organizations can advance their performance, growth and

efficiency. In some organizations, innovation conflicts the existing status quo which is

something leadership should encourage if they want to move ahead (Park, Tseng & Kim,

2016). Organizations are today considering innovation as a key source of competitive

advantage especially in entrepreneurship. Organizational leadership needs to provide

employees with a conducive and supportive environment to enable them to be creative

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and innovative while also allowing room for implementation of their innovations.

Research indicates that organizations that encourage innovation and provide a supportive

climate are likely to experience growth and retention of talent (Farrukh, Iqbal & Khan,

2014).

It is impossible for organizations to escape innovation; whether new or existing,

organizations need to be innovative in order to survive. Market leaders in the various

segments emerge from the innovations they provide to the market. Innovation is a process

that leaders can influence directly and positively with the aim of improving products,

processes and profitability. For organizations to achieve innovation there needs to be

coordination of the various efforts from different employees and integration across the

specialist functions (Ghoochkanloo & Eshlaghi, 2016). Transformational leadership aims

to create a good environment which is conducive for both innovation and creativity

(Khalili, 2016). Such an environment encourages employees to be involved in problem

resolution because all the different opinions are considered (Thamrin, 2012). Research

indicates that creativity and innovation have a positive impact on job satisfaction (Park et

al., 2016). Consequently, research also indicates that job satisfaction reflects on several

variables like innovation and risk taking in the job (Al-Mahayreh & Abdel-Qader, 2015).

2.3.2 Dependent Variable (Y)

Dependent variables are outcomes of the independent variables and could also be termed

as the response variables (Creswell, 2014). This study focused on job satisfaction as the

dependent variable. Job satisfaction was studied through three elements; employee

turnover intentions, employee commitment and absenteeism. The three elements were the

key measures of job satisfaction in this study.

Job satisfaction according to Spector (1985) is defined as the attitudes of employees,

compensation, promotion, rewards, fringe benefits, operating procedures, coworkers,

nature of work and communication. Job satisfaction can be considered in terms of

intrinsic and extrinsic factors with intrinsic factors being opportunities for advancement,

growth, recognition, responsibility and achievement (Alonderiene & Majauskaite, 2016).

Job satisfaction can be viewed from the perspective of employees’ cognitive, affective

and evaluative reactions towards their jobs. Thus, it is the general attitude towards one’s

job or the difference between the amount of rewards received and the amount the

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employees believe they should receive (Akpan, 2013). It plays a big role in understanding

employees’ behavior (Islam & Zaman2, 2013).

Job satisfaction results in higher employee retention rates and higher productivity from

the employees (Emmanuel & Hassan, 2015). Job satisfaction cannot be overemphasized

in the contemporary world especially because of the high dynamic and complex business

environments that people are operating in. It is also fundamental in the creation of a well-

developed leadership style (Ramos, 2014). Additionally, human resource is regarded as

the organization’s most valued asset and a major source of competitive advantage. This

emanates from the fact that organizations depend on people to achieve their objectives

and when there is no job satisfaction then the employees are faced with choices of

whether to quit or to continue staying. This negatively affects the organizational

effectiveness (Tetteh & Brenyah, 2016).

Job satisfaction is mainly driven by intrinsic factors among them the work itself,

recognition, autonomy, advancement and ability utilization. Work itself refers to the

employees’ likes or dislikes with their job and goes on to determine whether the

employee’s job is enjoyable or not. A study done on employees of various types of

organizations in Pakistan indicates that there is a significant correlation between work

itself with work motivation and satisfaction (Danish, 2010). Consideration of this topic in

the past was by Gilbreth and Taylor in 1911 whose focus was more on specialization and

simplification of tasks in order to maximize the efficiency of the workers. However, with

time, this could not hold as it resulted in decreased employee satisfaction, turnover,

absenteeism and difficulties in managing employees in simplified jobs (Humphrey,

Nahrgang & Morgeson, 2007).

In this study, job satisfaction was measured through three constructs namely

organizational commitment, absenteeism and turnover intentions which are discussed in

the next section. The study formulates questions related to all the constructs intended to

measure organizational commitment, absenteeism and turnover intentions.

2.3.2.1 Organizational Commitment

Organizational commitment can be defined as a bond or a link of the employee to the

organization. Additionally, it can be referred to as the strength of an employee’s

identification and involvement in and with the organization and can be characterized by; a

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strong belief and acceptance of the objectives of the organization, the willingness to go

out of your way on behalf of the organization and a relatively strong need to continue

being a member of the organization (Suma & Lesha, 2013). There has been an increased

focus on organizational commitment because committed employees are known to be

engaged in more organizational citizenship behaviors and go out of their way to perform

as required and even above expectations. Organizational commitment could vary in

relation to the emotional attachment to an organization, the costs associated with leaving

the organization and feelings of obligation to remain in the organization (Park, Christie &

Sype, 2014).

According to Islam and Rahman (2016), the banking industry has been curbed with

problems like extended working hours, pressure, non-conducive working environments,

lack of fairness, reducing career growth opportunities and poor treatment all which have a

significant impact on the level of organizational commitment and job satisfaction. Noting

the level of commitment can greatly influence the quality of service rendered to

customers, then organizational leaders need to ensure that they promote job satisfaction

and commitment yielding policies and activities. Employee commitment is beyond being

passively loyal to being actively involved, ready to transcend beyond personal gain for

the organizational gain (Yucel & Bektas, 2012).

2.3.2.2 Absenteeism

Absenteeism refers to a habitual pattern of absence from duty or an obligation. This has in

the past been viewed as an indicator of poor performance which could result from

managerial problems. High rates of absenteeism could be as a result of poor or low

morale or the work environment. Additionally, people who are dissatisfied with their

jobs, and more so the work itself, have a higher frequency of absence compared to people

who have job satisfaction (Thirulogasundaram & Sahu, 2014). Job satisfaction is an

important area for organizations to address especially due to its impact on employee

absenteeism, turnover intentions and behavior. This is because a satisfied person is more

often present at work making positive contributions whereas a dissatisfied person will be

absent more often and is likely to experience stress and ultimately leave the organization.

Studies in this area reveal that satisfied employees are usually present at work and

consequently indicate that dissatisfied employees are likely to leave the organization

(Islam, Mohajan & Datta, 2012).

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According to Ram (2013), absenteeism is costly to the organization because human

resources are the engine in most organizations. It has been attributed to employees

avoiding a painful or a dissatisfying work environment which could also result from lack

of motivation. Therefore, management and the organization leaders must be able to

understand the relationship between job satisfaction and other factors with employee

absenteeism, so that they can be able to provide the right work environment and other

factors to obviate absenteeism. Understanding the factors resulting in absenteeism will

help the leaders to come up with policies to address the problem. For example, motivation

and communication are considered to affect how often an employee is absent (Gangai,

Agrawal & Gupta, 2015).

2.3.2.3 Employee Turnover Intentions

Employee turnover refers to the number of employees moving in and leaving an

organization; it is usually presented as employee turnover ratio or simply referred to as

the number of employees leaving an organization. Employee turnover is a ratio that

compares the number of employees leaving an organization to the average number of

total employees in a given time period. It is a big concern for organizations because it is a

costly expense with a direct impact on the organizations performance (Shukla & Sinha,

2013). Turnover depends on an employee’s level of satisfaction (Awasthi, 2015). Total

turnover is the total number of employees leaving the organization during a given period

divided by average number of employees during that period. Turnover could be as a result

of many factors like right sizing, hiring freezes, layoffs, lack of career growth, leadership

among others, which ultimately affect the level of satisfaction an employee derives from

the job (Shukla & Sinha, 2013).

Studies have revealed that the lack of satisfaction has consequences among them turnover

intentions which consequently affect the quality of service rendered, productivity and

ultimately the overall organizational success. Knowledge of this and a vision of the bigger

picture of the consequences of turnover and job satisfaction should spur leaders into

providing the best environments to prevent this (Joarder & Ashraf, 2012). Employee

turnover may be voluntary or involuntary; the involuntary turnover is initiated by the

organization while voluntary turnover is initiated by employees. Job satisfaction is the

attitudes and feelings people have about their work. Positive and favorable attitudes

towards the job indicate job satisfaction while negative and unfavorable attitudes towards

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the job indicate job dissatisfaction (Armstrong, Riemenschneider, Allen & Reid, 2006).

Employee job satisfaction is the fulfillment, gratification, and enjoyment that come from

work. It is not the money or the fringe benefits, but the feelings employees receive from

the work itself (Asegid, Belachew & Yimam, 2014). Job satisfaction has been found to be

a consistent predictor of turnover intentions in many organizations.

Kanwal and Majid (2013) investigated the factors which are the major contributors

towards employee’s job satisfaction. It was found that low pay, long working hours,

bonuses, rewards and effective communication were the contributors towards job

satisfaction or dissatisfaction and have impact to the employee’s intention to leave or stay

in the organization. Nyamekye (2012) argued that non-monetary benefits had a direct

bearing on employees’ job satisfaction. The employees were dissatisfied with supervision

and non-participation in the decision-making process which may influence their intention

to leave the job. Lee and Jimenez (2011) stated that performance-based rewards and

supervision support reduce the possibility that employees will opt to leave their current

jobs, and that job satisfaction is the most important predictor of turnover intention. In a

recent study, it was observed that it is bad working conditions, lack of career growth,

unfair compensation, negative supervisory support, the lack of employee development

and job stress that caused the employees to leave organizations (Sattar & Ahmed, 2014).

2.3.3 Moderating Variable (Z)

Moderating variables are variables that affect the direction or strength of a relationship

between independent variables and dependent variables (Creswell, 2014). This study had

job security as the moderating variable between transformational leadership and

employee job satisfaction. The elements considered under job security were anxiety,

fairness and stress.

Job security refers to one’s expectations regarding the continuity in a job situation. Job

security goes over and above the loss or retention of a job to the continuation or loss of

certain desirable job features such as promotion opportunities, favorable working

conditions and long-term growth opportunities with the organization (Akpan, 2013). The

importance of job security comes from its influence on work related outcomes for

example employee health, turnover and job satisfaction (Yousef, 1998). This has become

a key variable in management with growing emphasis on understanding employee

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reactions to changes in the organizations, for example mergers and downsizing which

result in uncertainty and major concerns on job security (Davy, Kinicki & Scheck, 1997).

Job security is a key factor that influences the employee’s perception of job satisfaction

and employers should therefore strive to constantly provide it so as to ensure that

employees have a positive perception of satisfaction, which in turn yields greater

organizational commitment (Alonderiene & Majauskaite, 2016). Job security provides

employees with job satisfaction and has an impact on their motivational levels. It has an

important role in maintaining peace and contributing to the productivity of the

organizations (Islam & Zaman2, 2013). Job security is also the feeling of having a proper

job with the assurance of its continuation in the foreseeable future and also the absence of

factors that could threaten the continuation of that job. Industrial psychologists refereed to

job security as one of the key elements that yield job satisfaction and the lack of it

reduces job satisfaction levels of the employees (Jandaghi, Mokhles & Bahrami, 2011).

Job security transcends from the aspect of job loss to the aspect of availability of other

jobs in case the loss does happen. It has been inferred that job insecurity threatens

employees given the risk of loss of material, social or psychological benefits associated

with the job. Research reveals that job insecurity yields negative employee attitudes,

health and behavior as well as having direct consequences on satisfaction and

performance. One common source of insecurity is competition among institutions which

yields pressure on profitability and results in cost-cutting initiatives which come by way

of lay-offs, redundancies and reduced benefits (Reisel, Chia, Maloles & Slocum, 2007).

The Kenyan banking sector is currently going through a lot of changes causing the banks

to downsize and is currently characterized with offers of voluntary early retirement,

redundancies and lay-offs in a bid to cut on costs. Job insecurity results in anxiety, anger

and stress resulting in distraction from the organization (Reisel, Probst, Chia, Maloles &

Konig, 2010).

2.3.4 Operationalization of Variables and Hypothesis Testing

Operationalization of variables refers to the translation of the variables into parameters

that can be measured quantitatively (Saunders, Lewis & Thornhill, 2016). Based on the

conceptual framework, the study had four independent variables, one moderating variable

and one dependent variable. They were all measured using three parameters. The

independent variables were idealized influence, individualized consideration,

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inspirational motivation and intellectual stimulation. Idealized influence was measured

using charisma, trust and ethics. Individualized consideration was measured using

delegation, mentoring and support. Inspirational motivation was measured using

communication, teamwork and motivation. Intellectual stimulation was measured using

knowledge sharing, creativity and risk taking. The moderating variable was job security

which was measured using anxiety, fairness and stress. The dependent variable job

satisfaction was measured using organizational commitment, absenteeism and employee

turnover intentions. Table 2.1 indicates the operalization of the variables and hypothesis

testing.

Table 2.1: Operationalization of Variables and Hypothesis Testing

Variables and Measurement Hypothesis Test

Independent

Variables

Parameters

Idealized

Influence (X1) Charisma

Trust

Ethics

H01: There is no significant

influence of idealized influence on

job satisfaction among employees in

commercial banks in Kenya

Multiple Linear

Regression, p ≤

.05

Individualized

Consideration

(X2)

Delegation

Mentoring

Support

H02: There is no significant

influence of individualized

consideration on job satisfaction

among employees in commercial

banks in Kenya

Multiple Linear

Regression, p ≤

.05

Inspirational

Motivation

(X3)

Communication

Teamwork

Motivation

H03: There is no significant

influence of inspirational motivation

on job satisfaction among

employees in commercial banks in

Kenya

Multiple Linear

Regression, p ≤

.05

Intellectual

Stimulation

(X4)

Knowledge

Sharing

Creativity

Risk Taking

H04: There is no significant

influence of intellectual stimulation

on job satisfaction among the

employees in commercial banks in

Kenya

Multiple Linear

Regression, p ≤

.05

Moderating Variable (Z)

Job Security Anxiety

Fairness

Stress

H05: There is no significant

moderating effect of job security

between transformational leadership

and job satisfaction among

employees in commercial banks in

Kenya

Multiple Linear

Regression, p ≤

.05

Dependent Variable (Y)

Job

Satisfaction Organizational Commitment

Absenteeism

Employee Turnover Intentions

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2.4 Empirical Review

Empirical review is an analysis of studies that have been done by other scholars in the

area under study. Empirical review for this study focused on studies done in the area of

transformational leadership and job satisfaction. An empirical review is important

because the review of past studies helps to bring out the methodologies used and findings

of other authors. It sheds more insight on how to conduct the research and helps to inform

the research methodology, data collection, analysis and presentation. The empirical

review for the study is based on the research questions.

2.4.1 Influence of Idealized influence on Job Satisfaction

This section discusses the influence of idealized influence on job satisfaction. Idealized

influence is broken down into three constructs which are charisma, trust and ethics.

2.4.1.1 Charisma

Ansar, Aziz, Majeed and Rassol (2016) define charisma as a certain quality of a person

which sets him apart from ordinary people allowing him to be treated in a unique way

since he is perceived to have supernatural powers. Such an individual enjoys loyalty and

authority by virtue of a unique mission which he appears to carry. Research has shown

that charismatic leaders are masters of social skills who are mindful of the social

environment around them. They are able to attract a following based on the things they

say which appeal to the follower’s innermost desires. They have a unique ability to put

across a message in a convincing way which also charms the followers. Followers are

able to identify with charismatic leaders because the leaders portray conformity of needs,

desires and aspirations. A leader who possesses charisma is able to influence his

followers because they already identify with him; this in turn boosts the employee’s

satisfaction (Khuong & Hoang, 2015).

Charisma is an important element of transformational leadership style which has a big

influence on team outcomes and leaders who adopt it become an inspiration to others

through their dedication (Yang & Islam, 2012). Charisma enables a leader to inspire the

followers as a result of their self confidence, boldness and communication skills (Avolio

& Bass, 2002). A research study sought to examine the extent leadership, charisma and

vision could be discriminated by followers and how they influenced follower

commitment and performance across three countries; Singapore, New Zealand and India.

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The results of the study revealed that charisma was positively related to the follower’s

commitment to the performing unit. There was consistency across the three countries

studied. Additionally, there was also a correlation between commitment and performance

which are a function of satisfaction (Hwang, Khatri & Srinivas, 2005).

Bacha (2010) conducted a study on the relationships among organizational performance,

environmental uncertainty and employee’s perceptions of CEO charisma, and found that

CEOs who are found to be increasingly energetic have an impact on organizational

performance, as opposed to model CEOs who have no significant impact on

organizational performance. According to Khuong and Hoang (2015), as much as

compensation and fringe benefits matter, the leader’s personality and characteristics are

more important as they affect the motivational work environment for the staff which in

turn yields positive job attitudes. Huang, Cheng and Chou (2005) in their study dubbed

fitting in organizational values sought to investigate whether CEO charismatic leadership

had a positive effect on the following employee outcomes: extra effort to work,

satisfaction with the CEO and organizational commitment. Their findings demonstrated

that charisma did indeed have significant effects on employee outcomes of extra effort,

satisfaction with the CEO and organizational commitment.

According to Belias and Koustelios (2014), idealized influence or charisma produces

positive emotions from followers which lead to emulation of the leader making them a

role model. This leads to loyalty and high moral standards among the employees.

Leadership is a process where a person influences another to perform certain tasks in a

certain way for the achievement of an objective. It is anchored mainly on behavior which

is aimed at obtaining respect, being trusted and gaining confidence which leads to a

strong buy-in of the vision. Transformational leaders are viewed as role models who

provide the guidance that followers require by letting them know of their values by what

they exemplify in their daily behavior (Rowold & Vogel, 2014; Beerel 2009). By virtue

of their positions in the organizations, leaders are perceived as the representatives of the

organization and from this, followers who perceive their leaders as transformational role

models are more probable to trust the organizations top management.

Yang and Islam (2012) conducted a study that sought to demonstrate the influence of

transformational leadership on job satisfaction using the balanced scorecard perspective.

The study was done on the sales employees of the top four insurance firms in Taiwan that

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had the greatest market share. The findings showed that charisma played a role in

fostering job satisfaction among the employees and was a significant predictor of job

satisfaction. Hanaysha et al. (2012) conducted a study in Malaysia among administrative

and clerical staff involved in graduate and postgraduate affairs in three universities. They

sought to establish if there was a positive relationship between charisma and job

satisfaction. The research was conducted among 320 employees through an 18-item scale

questionnaire from the MLQ and a response rate of 31.5% was obtained. The findings

revealed that there was a positive relationship between charisma and job satisfaction

which was statistically insignificant. This finding necessitates more research in the area

since majority of the studies showed a positive correlation between charisma and job

satisfaction with statistical significance.

Charisma has been studied widely and according to a study in Vietnam it was found to

catalyze motivation. The research was conducted in the auditing field and it sought to

establish the effect of leadership styles on employee motivation. A sample size of 320

respondents was chosen in a city in Vietnam. The researcher sought to establish if

charismatic leadership positively affects the employee motivation. A structured

questionnaire that employed the Likert scale was used to collect data. The findings of the

study revealed a positive correlation between charisma and employee motivation; thus,

charisma positively affects motivation (Khuong & Hoang, 2015).

Emmanuel and Hassan (2015) carried out a study to establish the effect of

transformational leadership on job satisfaction in four and five-star hotels in Kuala

Lumpur. They sought to examine through one of their research objective the effect

charisma has on employee job satisfaction. A total of 130 questionnaires were distributed

and 123 questionnaires were returned. The findings of the study revealed that charisma

had a positive and significant relationship with job satisfaction. Arzi and Farahbud (2014)

who studied the impact of leadership style on job satisfaction in Iranian Hotels and found

that a vision is very critical in sustaining and growing employee job satisfaction. Their

study found that the leadership style significantly impacts job satisfaction.

Ngaithe et al. (2016) examined the influence of idealized influence on staff performance

in state owned enterprises performance in the Kenyan perspective. The study mainly

sought to examine the influence of idealized influence and inspirational motivation on

employees’ performance. The study was anchored on the positivism research philosophy

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and stratified random sampling technique was used to obtain the sample size of 163

respondents. Primary data was analyzed using both exploratory factor analysis and

regression analysis. Findings of the study revealed a positive relationship between

idealized influence and performance. The choice of positivism research philosophy and

stratified sampling technique but the choice of descriptive research design was contrasted

by analysis of data using regression analysis it would have been appropriate to adopt

descriptive-correlation research design. Moreover, since the data was in ordinal scale

structural equation modeling (SEM) would have been the most appropriate.

Gitoho, Muchara and Ngugi (2016) examined the influence of idealized influence on

employee satisfaction amongst listed companies in Nairobi securities exchange. Stratified

sampling technique was used to draw 400 employees working in heterogeneous

managerial positions within the listed companies. Data was analyzed using exploratory

factor analysis. Further, regression analysis was used to examine the nature of the

relationship between idealized influence and employee satisfaction. The findings revealed

a positive and significant relationship between idealized influence and employee job

satisfaction. From the study it was deduced that management have a great role in

determining employee motivation.

Metwally, Eli-bishsishy and Nawar (2014) examined the link between transformational

leadership and employee job satisfaction in multinational FMCG firms in Egypt. Simple

random sampling was used to draw 200 respondents who were stratified according to

three departments within the company. Primary data was collected using MLQ developed

by Bass in 1978 to measure leadership and job satisfaction was measured using

Minnesota Satisfaction Questionnaire (MSQ), the duo adopted a 5-point Likert scale.

Data was analyzed using regression and correlation analysis whose results revealed a

positive and significant relationship between idealized influence, individualized

consideration, inspirational motivation, intellectual simulation and job satisfaction. The

study recommended that organizations ought to adopt transformational leadership to

motivate their employees and consequently achieve superior performance.

Emu and Umeh (2014) empirically examined the relationship between leadership style

and job satisfaction among customer relationship officers in Nigerian banks using a

quantitative correlation research design. Simple random sampling was used to draw 85

customer relationship officers. The study adopted MLQ nine attributes as the main tool of

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primary data collection. A correlation analysis revealed a positive and significant

relationship between idealized influence and employee job satisfaction. The study

findings acted as a benchmark which Nigerian banks can adopt to manage their

employees effectively. From the study transformational leadership was perceived to be an

ideal leadership style to drive job satisfaction.

Bayram and Dincs (2015) examined the role of transformational leadership on employee

satisfaction in private universities in Bosnia. Simple random sampling was used to draw

150 respondents from the private universities. Data was analyzed using exploratory factor

analysis, mean, standard deviation, correlation and regression analysis. The results of the

study revealed a positive and significant relationship between idealized influence and

employee job satisfaction. Although, the results revealed that employees were highly

satisfied with the nature of work they were not satisfied with work assignment and

operating conditions which needed further examination to boost the employee’s morale.

Thus, private universities needed to check on the issues triggering employee motivation

which should drive their primary goal of promoting firm performance.

Ahmad et al. (2014) examined the impact of transformational leadership on employee

motivation in the telecommunication sector in Punjab. Simple random sampling

technique was used to draw a sample of 400 respondents. Data was collected using

questionnaires which were anchored on the MLQ. Descriptive analysis, correlation

analysis and regression analysis were used to analyze the data. The results of the study

revealed a positive and significant relationship between transformational leadership and

employee motivation. A close scrutiny of transformational leadership attributes revealed

that they had a positive and significant relationship with each other. The study concluded

that transformational leadership had a significant influence on employee motivation.

Long et al. (2014) examined the impact of transformational leadership on job satisfaction

in Malaysia. Under a descriptive research design, stratified sampling was used to draw a

sample of 378 respondents from 6 departments of Government Link Company (GLC) in

Malaysia. Data was collected using questionnaires anchored on the MLQ and MSQ

questionnaire. Correlation and regression analysis tests revealed a positive but non-

significant relationship between idealized influence and job satisfaction, though there was

a positive and significant relationship between individualized consideration and job

satisfaction. The study concluded that there is need for leadership to be effective, to

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continuously replenish their knowledge and offer positive attributes which will trigger

superior employee performance within their organization.

2.4.1.2 Trust

Trust occurs in a framework of interaction which is influenced by both the personality

systems and the social systems. Personal trust involves a bond between individuals, one

that is preserved by the emotional pain one is bound to experience in case of betrayal.

Trust is a very important component in the organization’s long term stability and well

being of the employees and is described as a social lubricant to relationships.

Additionally, the higher the organizational trust, the more satisfied and productive

employees tend to be (Salleh, Zahari, Ahmad, Aziz & Majid, 2015). It has further been

described as a psychological state comprising the intention to accept vulnerability based

on positive expectations of the intentions or behavior of another (Kelly et al., 2015).

Fard and Karimi (2015) conducted a study with the aim of establishing the relationship

between organizational trust and job satisfaction. The study was conducted among

employees of a university. The study employed a descriptive correlation research design

and out of 340 employees, 180 were selected using simple random method and sampling

table for the research which employed research questionnaires. A Pearson correlation

coefficient test and structural equations modeling were used to analyze the data. The

results of the study revealed a positive and significant relationship between trust and job

satisfaction. Additionally, trust binds people together and enables the people to focus on

long-term results which are necessary for organizational success.

Meral, Yashoglu and Semercioz (2016) carried out a study that sought to establish the

effects of trust on job satisfaction and the mediatory role of new identification between

trust and job satisfaction in mergers. They studied 143 employees of a newly merged

bank called TEB and Fortis banks which consisted of 335 branches and 5646 employees

before the merger and 603 branches 9945 employees after the merger. A correlation

analysis was conducted to measure the strength of the relationship between trust and job

satisfaction. The results of the study revealed a positive and statistically significant

correlation between trust and job satisfaction. Trust enables coordination and effective

performance of work, yields less anxiety amongst employees and fosters an acceptance of

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changes that occur in the bank. The study concluded that trust to management

significantly affects the employee’s job satisfaction.

Srivastava (2013) conducted a study titled job satisfaction and organizational

commitment relationship with the effect of personality variables, and had trust and locus

of control as the moderating variables. The research instruments were administered to 247

middle level managers in the private sector. Data was analyzed and the findings revealed

that job satisfaction was positively related to organizational commitment, and trust

moderated the job satisfaction and organizational commitment relationship. These

findings were consistent with findings of a study dubbed the relationship between

organizational trust and job satisfaction, whose context was the Federal organization of

US which found that trust in an organization led to employee job satisfaction and that the

two variables had a direct correlation (Callaway, 2007).

Kelly et al. (2015) studied the influence of trust and job satisfaction on safety climate

among managers in a large U.S. air carrier. They developed a conceptual model to

establish the influence of trust and job satisfaction on the safety climate. The study used

questionnaires as the research instruments and the responses were ranked using a five-

point Likert scale. The questionnaires were administered to 1299 management employees

and a total of 729 usable questionnaires were returned indicating a response rate of

57.7%. Data was analyzed and the findings revealed that coworker trust and supervisor

trust were significantly and directly associated with both job satisfaction and safety

climate. However, the results cannot be generalized to entire organization or to other air

carriers or other types of organizations because the research did not include other

employees.

In the age of globalization and technological advancement, trust enables effective

communication in organizations which is a key determinant of job satisfaction. Research

revealed that trust lubricates organizational processes by fostering increased cooperation,

acceptance and buy-in of objectives, boosting discretional performance, job and team

satisfaction, organizational citizenship behavior, enhanced loyalty and reducing

employee’s intentions to leave the organization (Nair & Salleh, 2015). Research indicates

that people who are in high trust environments live longer, enjoy greater wellness and job

satisfaction. In contrast, a low trust environment sucks energy, results into stress and

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reduced wellness which has the possibility of destroying performance. Lack of trust also

suppresses expressions which may lead to a lot of dysfunctions in the organization hence

the need to cultivate a trust culture which is a precursor to job satisfaction and

performance (Jameson, 2010).

Sharkie (2009) in the study titled trust in leadership is vital for employee performance

discusses the importance of trust in boosting performance. The study states that trust is a

very important component in the leader-employee relationship because it is one of the

characteristics that motivate employees to perform beyond expectations. Trust is referred

to as the key to cooperation in organizations and it derives discretional input from the

employees. In other words, trust influences employee’s attitudes, cooperation and

performance. The findings of the study revealed that employee reciprocity which comes

in the form of commitment to the organization, the personal will to engage in extra roles

depends strongly on the employee’s assessment of the level of support management

accords them. Such assessment is based on the beliefs, integrity and trustworthiness of

management. Hence it is critical for management to build trust in order to earn

discretionary support from the employees since it plays a major role in the leader-

employee psychological contract (Abdullah, Hamzah, Arshad & Isa, 2011). A study on

the impact of CSR on casino employees’ organizational trust, job satisfaction and

customer orientation found that CSR has a positive effect on organization trust and

additionally, organization trust positively influences job satisfaction (Lee, Song & Lee,

2013).

2.4.1.3 Ethics

According to Yates (2014), ethics in leadership refers to a leader’s ability to demonstrate

appropriate conduct through their actions and relationships with others. Additionally,

ethics influences the impact of a leader, his relationship with the followers and also

determines the organizational values (Northouse, 2013). In a study among United

Kingdom companies and some continental Europe companies, it emerged that the key

issues around ethics are bribery, corruption, facilitation of payments, whistle blowing,

discrimination and harassment. Globally, organizations are facing many problems

resulting from unethical practices. Ethical behaviors basically involve principles like

honesty, integrity, fairness and concern for people. Unethical leadership leads to

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increased costs that arise with employee turnover, the need for increased supervision,

decreased employee job satisfaction and productivity (Bello, 2012).

According to Anaza, Rutherford, Rollins and Nickell (2015), job satisfaction can be

triggered by an employee’s perception of the organization’s ethical climate. A good

ethical environment has the potential to boost employee’s job satisfaction levels while the

consequences of ethical misgivings are detrimental to the organization. Globalization has

resulted in a myriad of interactions within and outside the country borders and this has

resulted in conflicting expectations and ethical dilemmas which need a good ethical

background to enable the employees handle them appropriately. Their study confirms that

ethical climate influences job satisfaction and helps to develop affective commitment

from organizational buyers.

Ren and Chadee (2017) conducted a study titled ethical leadership, self-efficacy and job

satisfaction in China with the moderating role of guanxi. The purpose was to find out how

employee perceptions of the ethical conduct of the leaders affect their job satisfaction.

They developed a model to conduct the research and had a sample size of 388

professional employees. The findings revealed a positive correlation between ethical

leadership and job satisfaction which is negative if moderated by guanxi. Guanxi is a

complex relational phenomenon in Chinese tradition which may act as a substitute for

ethical leadership in the Chinese workplace. The research instrument was a questionnaire

that utilized the Likert scale. This research revealed the fact that different

conceptualizations of ethical leadership cannot be applicable across all cultural contexts

because for example in China guanxi played a substituting role and reduced the impact of

ethical leadership on job satisfaction.

Ahmed et al. (2012) carried out a study that sought to establish the relationship between

organizational ethics and job satisfaction among bank employees in Pakistan. The study

collected data from 230 employees from a convenience sample. The study used a

questionnaire to collect data from the employees and also used a 20-item job satisfaction

scale and the responses were ranked in a Likert scale. A Cronbach’s alpha test was carried

out for reliability and other tests, tests for correlation and structural model were run in the

data analysis. Results revealed that three ethical climates existed; thus, egoistic ethical

climate, benevolent ethical climate and principled ethical climate. Egoistic ethical climate

focused on organizational self-interest, benevolent ethical climate focused on employee’s

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interests and principled ethical climate focused on obedience due to cultural differences.

Egoistic ethical climate was negatively related to job satisfaction, principled ethical

climate had no relationship with job satisfaction while benevolent ethical climate and top

management support for ethical behavior were positively related to job satisfaction.

Koh and Boo (2004) in their study on organizational ethics and employee satisfaction and

commitment sought to establish the relationship between organizational ethics and

organizational outcomes. They note that ethical values influence not only employee

attitudes but also employee behavior. They interviewed 237 managers in Singapore and

their results revealed a positive and significant relationship between ethics and job

satisfaction. The ethics herein referred to top management support for ethical behavior

and the association of ethical behavior with career success. They concluded that high

ethical levels were associated with higher job satisfaction levels and that favorable

organizational ethics produced favorable organizational outcomes like satisfaction.

According to Kim and Brymer (2011), their study on the effects of ethical leadership on

manager job satisfaction, commitment, behavioral outcomes and firm performance found

that executive’s ethical leadership was positively related to the organizational manager’s

job satisfaction and also to the organizational commitment.

Dinc and Aydemir (2014) conducted a study titled the effects of ethical climate and

ethical leadership on employee attitudes in Bosnia. They studied employees from private

universities in Bosnia and Herzegovina (BIH) and used a sample size of 213 employees.

The sample size for the study was 260 but only 220 respondents undertook the survey

with only 213 being usable. The questionnaire used a five-point Likert scale as the points

of measure. Tests for correlation and regression analysis were conducted on the data that

had been collected. The findings of their study revealed a positive correlation between an

ethical climate and job satisfaction. A further analysis showed that there was a positive

correlation between the employee’s perception of ethics in the organization and job

satisfaction, which results in reduced turnover intentions from the employees (C.

Pettijohn, L. Pettijohn & Taylor, 2008).

Yates (2014) conducted a study to establish whether ethical leadership contributed to job

satisfaction, organizational commitment and organizational citizenship behavior. The

results of the study revealed that indeed followers led by highly ethical leaders reported

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higher levels of job satisfaction and organizational commitment than did followers who

perceived their leaders as less ethical. In a study conducted by Tsai and Huang (2008),

they found that employees who worked in professional environments which had concern

for others derived greater satisfaction from their jobs. The study was conducted among

352 nurses who worked in Taiwan and their study sought to establish the relationship

among ethical climate types, facets of job satisfaction and components of organizational

commitment. Their study sought to establish the relationship between variables using

factor analysis, reliability, descriptive statistics, correlation and regression. Research also

indicates that good ethics is good business which points to a correlation between ethical

values and performance.

In the study of ethics and job satisfaction, there is an opinion that job satisfaction leads to

integrity. Research was conducted among police officers and one of the hypotheses being

tested was whether job satisfaction led to integrity among the officers. Results revealed

that there was indeed a positive and significant relationship between job satisfaction and

the integrity of the police officers. Additionally, a code of ethics was also found to have a

positive and significant relationship with integrity among the officers (Othman, 2014).

Further research in the area of team virtues and performance was conducted with one of

the dependent variables being satisfaction with the leader. Results revealed that there is a

relationship between the leader’s behavioral integrity and follower satisfaction with the

leader which is a facet of job satisfaction (Palanski & Yammarino, 2011).

2.4.2 Influence of Individualized Consideration on Job Satisfaction

This section discusses the influence of individualized consideration on job satisfaction.

Individualized consideration is broken down into three constructs which are delegation,

support and mentoring.

2.4.2.1 Delegation

Delegation refers to a conceptualized process that involves assigning crucial tasks to

subordinates and giving them the responsibility for decisions which are usually made by

the manager. It leads to an enhanced amount of discretion being given to the followers

which is anchored on the authority to make decisions without the prior consent from the

manager. It is basically where the leader allows the followers to make decisions without

necessarily running their ideas with the manager before deciding. It also comes with the

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aspects of authority, responsibility and accountability for the decisions (Musenze,

Thomas & Lubega, 2014). Additionally, the concept of delegation is highly anchored on

trust between the leader and the follower. Thus, leaders usually assign authority and

power to followers whom they trust will not misuse the power and authority given to

them. Delegation helps to overcome obstacles of corporate decision making and results in

perceived empowerment and yields job satisfaction (Noblet, Rodwell & Allisey, 2009).

Delegation has been found to have a positive relationship with job satisfaction, task

performance and organization commitment. It provides an avenue for leaders to empower

their followers by affording them new opportunities to gain new experience (Banford,

Buckley & Roberts, 2014). Joiner and Leveson (2015) carried out a study on effective

delegation among Hon Kong Chinese male managers with the mediating effects of Leader

Member Exchange (LMX). They found a direct association between delegation and job

satisfaction. In their research, they interviewed 186 Chinese subordinate managers in a

transport company. Data was analyzed and the results revealed that employees who are

entrusted with decision making and receive support from their supervisors and colleagues

are more satisfied with their jobs.

Musenze et al. (2014) conducted a research on delegation and job satisfaction and

evaluated the relationship within Uganda’s primary education sector. They sought to

establish the effect of delegation on primary school teachers’ job satisfaction. They

employed a cross sectional research design and a total of 247 survey questionnaires were

distributed. Data was analyzed using Structural Equation Modelling (SEM) and the

results indicated that save for decision making, the other dimensions of delegation like

autonomy, authority and responsibility predicted job satisfaction. Riisgaard, Nexoe, Le,

Sondergaard and Ledderer (2016) did a review paper with the aim of establishing the

relationship between task delegation and job satisfaction in general practice. The review

found that a few nurses had negative attitudes and experiences towards task delegation

especially due to an increased workload. However, majority were generally satisfied with

their jobs and the various tasks they performed which were delegated to them by the

general physicians. Additionally, they attributed this satisfaction to the autonomy which

they enjoyed.

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Ukil (2016) studied the impact of employee empowerment on employee satisfaction and

service quality in financial enterprises. They noted that one of the ways in which

delegation occurred was through empowerment. The sample for this study was 240

employees drawn from 20 different financial institutions in Bangladesh. Questionnaires

were used to collect data. Results of data analysis revealed that employee satisfaction and

service quality largely depended on employee empowerment. Additionally, satisfied

employees were found to offer better quality service. The study concluded that by

empowering employees, organizations can increase the level of satisfaction their

employees have with their jobs which consequently raises the quality of service they

provide to their stakeholders.

Ameer, Bhatti and Baig (2014) carried out a study on the impact of employee

empowerment on job satisfaction. The study adopted a descriptive research design and

conducted a survey among the respondents. Data was collected using questionnaires with

nineteen closed ended questions and the responses were ranked using the five-point Likert

scale. The data was analyzed using correlation and regression analysis. The results

revealed that empowerment was based on the notion of giving employees skills,

resources, authority, opportunity, motivation, responsibility and accountability for their

actions which not only contributed to job satisfaction but also their competence levels.

Kombo, Obonyo and Oloko (2014) also found that delegation had a strong relationship

with satisfaction and performance thorough raised enthusiasm among the employees.

Additionally, delegation is not only rewarding for the employees but it also raises the

employee’s sense of accomplishments and self-esteem.

Drescher (2017) conducted a study to examine the relationships between delegation,

employees’ perception of leader performance and likeability, and the followers’ job

satisfaction. A convenience sample of 304 participants was selected from social networks

and invited to participate in an online survey. The results of regression analysis revealed

that delegation leads to a positive evaluation of the leader and the mediation analysis of

likeability influences the relationship between delegation and employee’s job satisfaction.

Delegation affected how employees rated the leader’s performance related and affective

qualities which in turn influenced the level of satisfaction.

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Farmer (2011) sought to establish the effects of empowerment on supervisory relations,

burnout, and job satisfaction in two American prisons. The study was a comparative case

study and one of the objectives sought to assess the effect of an empowered staff

management model on staff perceptions of delegation of authority on job satisfaction. The

research process obtained 149 responses and data was analyzed using factor analysis and

a bivariate analysis. Results revealed that contrary to most of the studies in this thematic

area, the effect of delegation of authority and responsibility was not significant on job

satisfaction but there were significant effects of empowerment on job satisfaction.

2.4.2.2 Mentoring

Mentoring is a reciprocal relationship bound with an emotional commitment between an

apprentice worker and an experienced worker. It refers to the teaching and learning

process of knowledge and competence, which involves sharing of advice and role

development with both formal and informal support from the experienced worker to the

apprentice. Mentoring provides people with opportunities for professional growth and job

satisfaction and lack of satisfaction results in turnover (Mariani, 2012). Mentoring helps

to facilitate continuous interactions between a more experienced person and a less

experienced person. This results in the less experienced person becoming more skilled.

Among the advantages associated with mentoring are the outcomes of positive attitudes

and behavior among the less skilled workers, rejuvenation, enhanced job performance,

job satisfaction, satisfaction with colleagues and the organization (Hartman et al., 2016).

Lo and Ramayah (2011) studied the thematic area of mentoring and job satisfaction in

Malaysian SMEs. They sought to establish the impact of mentoring on employee job

satisfaction. They conducted a survey among employees from small and medium

enterprises in Malaysia. They sent out a total of 200 questionnaires and 158 Malaysian

executives participated in the survey. Data was analyzed and the results revealed that

there was a positive relationship between career mentoring and all dimensions of job

satisfaction; for example, co-workers, the job itself, promotion opportunities and

supervisors. Conversely, no significant relationship was found between psychosocial

mentoring and three aspects of employee job satisfaction which were co-workers, job

itself and promotion. Other scholars agree that managers should improve their career

development plans and the mentoring process in order to increase job satisfaction and

organizational commitment (Weng, Huang, Tsai, Chang, & Lin, 2010).

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Cetin et al. (2013) sought to investigate the impact of mentoring on job satisfaction and

organizational commitment among accounting-finance academics employed in Turkey.

The researchers conducted a survey among the scholars and considered mentoring to

cover aspects of career development, role modeling and social support. Questionnaires

were distributed to the faculty and a response of 90 questionnaires was obtained and

analyzed using SPSS version 13. Other tests like factor analysis and regression analysis

were also conducted. The results of data analysis revealed that social support and

professional commitment were positively related to job satisfaction and that they were

both aspects of mentoring. However, career development and role modeling were found

not to have a relationship with job satisfaction. This was attributed to the fact that career

development and role modeling were a factor of age and had an impact on affective

commitment.

Shujaat, Sana, Aftab and Ahmed (2013) in the study on the impact of career development

on employee satisfaction in the private banking sector in India sought to determine the

impact of aspects of career development on job satisfaction. A survey was conducted

using structured questionnaires that were administered through both soft copy and hard

copies to 500 respondents in India. The sampling procedure used was the convenience

sampling method. There were 395 responses received and data was analyzed using SPSS

and analytical tests like the Chi-square were conducted. The findings of the study

revealed that mentoring and counseling programs have a positive impact on employee job

satisfaction and that this was one important driver of job satisfaction among the

employees in the private banking sector in India.

Kim (2011) sought to establish the effect of mentoring in the public sector in Georgia and

Illinois. Data from 1220 public and non-profit sector managers was collected and a few

tests like regression were conducted in the analysis of the data. The results of the study

found a significant and positive relationship between intrinsic motivation and job

satisfaction. Whereas trust was positively related to job satisfaction, economic benefits

were not. Mentoring was found to have a significant mediating effect on the effect of

intrinsic and extrinsic motivation factors on job satisfaction. Thus, mentoring was not

only found to help employees develop their careers and to build better coworker

relationships but also to have a significant effect on job motivation and job satisfaction.

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Gosh and Reio (2013) conducted a research on the career benefits associated with

mentoring for mentors. Mentoring is an extensively studied area and is linked with

mentee career development and growth; additionally, mentors can also draw significant

benefits from mentoring. An analysis was conducted on the provision of career,

psychosocial and role modeling mentoring support and how it was linked with outcomes

like job satisfaction, commitment, turnover intentions, performance and success on the

job. Results of the study revealed that mentors vis-à-vis mentees were more satisfied with

their jobs and committed to the organization. These results are in support of the

mentoring theory where mentoring is a reciprocal and collaborative agenda and not only

beneficial to the mentees but also to the mentors who are noted to experience increased

job satisfaction.

Horner (2017) carried out a study to establish if mentoring based on Watson’s caring

model positively influences nurses’ job satisfaction. The study used a mixed methods

design and data was collected using an online survey which was composed of closed and

open-ended questions. There was a response rate of 54% which represented 37 of 69

respondents. All the participants reported that mentor experience or relationship

positively influenced job satisfaction. Additionally, job satisfaction was associated with

reduced turnover of staff and improved patient retention. Salami (2010) studied the

relationships of mentoring and satisfaction with mentoring and work attitudes. The study

was conducted among nurses in Nigeria and data was collected using questionnaires from

a sample size of 470 nurses. One of the findings of the study was that employee

satisfaction with the mentoring experience significantly predicted the work attitudes

which in turn determined job satisfaction, organizational commitment and job

involvement.

Lo et al. (2013) conducted a study on mentoring and job satisfaction in Malaysia in small

medium enterprises. One of the aims of the study was to test whether mentoring

positively influences employees’ job satisfaction. The study was conducted among 21

small and medium enterprises with 200 questionnaires being sent out to middle and lower

level management. The study used a 7-point Likert scale to gauge each of the key

variables in the study. In measuring job satisfaction, the variables that were used were

promotion, supervisor and co-worker relationship and the dimensions of the job itself.

The study found that career mentoring had a significant and a positive relationship with

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the job satisfaction dimensions of the job itself, co-workers, supervisors and promotions.

Additionally, employees who are mentored learn better than those who are not mentored

in their jobs. Xu and Payne (2014) contribute to the field of mentoring and job

satisfaction stating that the value of mentors, mentorship quality and satisfaction with

mentoring all predict job satisfaction, affective commitment and turnover intentions.

2.4.2.3 Support

Support refers to a leader’s sensitivity to the needs of the followers needs which may be

organizational or personal. Sensitivity to the needs of the employees has a direct influence

on the employees’ commitment and performance. A leader demonstrates individualized

consideration when providing a wide support for the efforts of the followers (Anderson &

Sun, 2015). They went on to note that the improvement of individualized consideration

around supportive and developmental leadership is likely to have a transformational

impact (Long et al., 2014). Social support also predicts job involvement and job

satisfaction because it acts as a buffer to stressors that arise from the work or interaction

with colleagues (Salami, 2010).

Belias and Koustelios (2014) stated that individualized consideration fosters the provision

of support, encouragement, coaching, feedback mechanisms and delegation, which play a

big role in the follower’s personal development. It is viewed as personal attention of the

leaders to the needs of the followers which makes the followers all feel valued. It also

helps to ensure equitable treatment to the followers avoiding favoritism and enhancing

individuality as opposed to a group treatment. Miao and Kim (2010) investigated the

influence of perceived organizational support and job satisfaction as positive correlations

of employee performance in China among 130 employees and their 34 immediate

supervisors. The study determined four dimensions of organizational citizenship

behavior. Data was analyzed and the results revealed that organizational citizenship

behavior increases with more favorable perception of organizational support and job

satisfaction.

Long et al. (2014) conducted a study on the impact of transformational leadership style on

job satisfaction and found that only the aspect of individualized consideration and more

so the support a leader offers to his employees had a significant impact on job

satisfaction. A sample size of 378 employees was obtained for the study. The research

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adopted a descriptive research design and there was a response rate of about 67%. The

research instrument used the Multifactor Leadership Questionnaire (MLQ) to measure the

transformational leadership style. The results of the study found that leaders should coach

followers, pay attention to their follower’s needs and provide a supportive environment

for the followers to develop their talents and this will boost their job satisfaction.

Cheung and Wong (2011) carried out a study on transformational leadership, leader

support and employee creativity seeking to examine the moderating role played by

leaders’ tasks and relations support in the relationship between transformational

leadership and followers level of creativity. They conducted their research among 182

supervisor-subordinate dyads. Their findings revealed that leader relations support had a

direct impact on an employee’s creativity. Thus, continuous concern for employees’

socio-emotional needs catalyze the generation of more creative ideas which impact

performance and satisfaction. A supportive management style which is evidenced by open

communication, respect and recognition enhances employees’ job satisfaction. The study

also revealed that job satisfaction has a direct correlation with management support

among other factors like recognition and job security (Mosadeghrad & Ferdosi, 2013).

Emmanuel and Hassan (2015) carried out a study to establish the effect of

transformational leadership on job satisfaction in four and five-star hotels in Kuala

Lumpur. They sought to examine through one of their research objective; how

individualized consideration affects employee job satisfaction. A total of 130

questionnaires were distributed and a response rate of 95% being 123 questionnaires was

obtained. The results of the study revealed a positive correlation between individualized

consideration, support and job satisfaction backed by statistical significance of the

relationship. Arzi and Farahbod (2014) in their study on the impact of leadership on job

satisfaction in Iranian hotels found that supportive leadership had a significant impact on

job satisfaction but recognition did not affect job satisfaction which is contrary to the

findings of many studies.

Kula and Guler (2014) sought to establish the influence of supervisor support on job

satisfaction levels in the Turkish National Police Officers. The theory underpinning the

study was Herzberg’s Two-Factor theory. The respondents were 216 employees of the

police service. Data was analyzed using descriptive statistics, confirmatory factor analysis

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(CFA) and structural equation modeling (SEM). The results of the study revealed that

supervisor support had a statistically significant effect on job satisfaction; the more the

employees perceived their supervisors as supportive, the higher their job satisfaction

levels were. This study underscores the fact that job satisfaction emanates from what the

employee receives from the job and discredits remarks linking demographic factors to job

satisfaction.

Baloyi, Waveren and Chan (2014) carried out a study on the role of supervisor support in

predicting employee job satisfaction from their perception of the performance

management system. One of the hypotheses of the study was supervisor support increases

employee’s job satisfaction. The study stated that the support from supervisors may be

important in helping employees to understand the performance management system and

that support could mediate the relationship between the performance management system

and job satisfaction. The study revealed that when employees perceive a good

performance management system, they attribute the good experience to the support from

the supervisor and this leads them to feeling satisfied with their jobs. In support,

supervisors not only give feedback about performance of their employees but also provide

encouragement, more information about the expectations and how to achieve what is

required. In the process, they also recognize, praise and celebrate successes.

Hwang et al. (2005) carried out a study that sought to find out the extent to which

leadership charisma and vision could be discriminated by followers and how they

influenced follower commitment and performance across three countries Singapore, New

Zealand and India. They discovered a relationship across the three countries of their study

that revealed the need for sensitivity to followers needs in influencing their commitment,

satisfaction and performance. According to Mustafa and Lines (2014), supportive

leadership has a positive impact on job satisfaction which reaffirms that a leader’s

characteristics and behaviors play an important role in boosting job satisfaction which

ultimately leads to positive outcomes in the workplace.

2.4.3 Influence of Inspirational Motivation on Job Satisfaction

This section discusses the influence of inspirational motivation on job satisfaction.

Inspirational motivation is broken down into three constructs which are communication,

team work and motivation.

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2.4.3.1 Communication

Communication refers to the transfer of information from one person to another. In an

organization, this refers to the signs, signals, and interactions between the employees.

Many organizations spend considerable resources in the deployment of an effective

communication system because it is a must have for the organization to achieve its

objectives (Farahbod, Salimi & Dorostkar, 2013). However, important as it is,

communication is an elusive organizational characteristic despite its importance in the

organization. A good communication climate means that communication must be

effective both from management to employees and from employees to management, and

there must be an element of trustworthiness for it to be effective. Studies have linked a

good communication climate to organizational identification, commitment and job

satisfaction; thus, an employee’s perception of the supervisor’s communication style,

credibility and the overall organizational communication climate influences the amount of

satisfaction the employee receives from the job (Paksoy et al., 2017).

D. Ilozor, B. Ilozor and Carr (2011) carried out a study in the field of telecommuting

which sought to examine the relationship between several management communication

strategies and the job satisfaction of telecommuters. A sample of 43 telecommuters

mostly from IBM Australia was surveyed. Results were analyzed using Pearson’s

correlation. A number of aspects of the strategies were found to have a significant

influence on the job satisfaction of the telecommuters. Examples of the strategies were

communicating on job responsibilities, goals, deadlines and expectations, communicating

freely and regularly, providing appropriate equipment, training, review of work and

salary. The results revealed that there is need for effective communication as

communication ultimately affects job satisfaction. Another study revealed that

communication whether horizontal or vertical, formal or informal is an important factor

that influences the organization’s success. The study concluded that job satisfaction is

strongly impacted by communication (Epure, Ionescu & Nancu, 2013).

According to SHRM (2012), in their study on job satisfaction and engagement, 57% of

the employees ranked communication as one of the top five contributors of job

satisfaction. Communication between both employees and management is therefore very

important. Among the older employees of between 11 to15 years, communication was the

most important contributor to job satisfaction and engagement. It is very important that

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senior management and managers communicate effectively on the organizations goals,

policies and the vision. Effective communication helps to engage employees, provide

direction and foster trust and respect. In effect, communication should be encouraged

both from senior management to employees and vise versa. This factor was considered

very important by employees in middle management and non-management employees

than did the professional non-management employees. Ramos (2014) underscores the

importance of communication and notes that it is one of the greatest factors influencing

satisfaction.

A. Monga, Verma and O. Monga (2015) conducted a study on job satisfaction among

employees of ICICI bank in India. The primary focus of the study was to examine the

level of job satisfaction of the employees. The research was conducted in six branches of

the bank using questionnaires that had responses rated using the five-point Likert scale.

The results obtained revealed the importance of communication as one of the key factors

determining job satisfaction at the branches of ICICI bank that were studied. This study

focused on the hygiene factors of the Herzberg Two Factor theory and had many aspects

like pay that also contributed to the job satisfaction of employees at ICICI bank branches

that were studies.

Kakakhel, Khan, Gul and Jehangir (2015) carried out a study on the impact of

organizational communication on organizational commitment and job satisfaction in

Pakistan. Data was collected from a sample of 300 employees working in different

organizations using a questionnaire that had closed ended questions. Data was analyzed

and the findings of the study revealed that organizational communication had a positive

effect on job satisfaction. The study goes on to state that job satisfaction increases when

employees receive proper communication about their roles, responsibilities and

performance expectations. Thus, the supervisor’s role of communication cannot be

overemphasized because of the significant impact it has on job satisfaction.

Darijani, Soltani and Pourroostaei (2014) carried out a study on the impact of the

effectiveness of organizational communication on job satisfaction of employees of a

telecommunication company. Simple random sampling technique was used to select a

sample of 248 respondents and data collection was done using questionnaires. After data

analysis, the results revealed that the effectiveness of organizational communication had a

significant impact on job satisfaction. The study recommended that the directors of the

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company should focus more on communication in order to improve on job satisfaction of

the workers. Paksoy et al. (2017) found that the impact of managerial communication

skills on job satisfaction was significant thereby raising the need for management to

communicate effectively since this is one of the factors that affect job satisfaction levels.

The study stated that effective communication is important and any gaps should be

addressed through training and re-training of the managerial staff in order to build and

sustain communication competence.

Shonubi et al. (2016) conducted a study to establish the psychological influence of

organizational communication on employee job satisfaction. The study found that

communication plays a vital role in organizations and contributes to creating a

motivational organizational climate. Winska (2010) found that job satisfaction was to a

significant extent predicted and moderated by the communication of the superior. The

study went on to note that aspects like appreciation from the boss, feedback from the

supervisors and downward communication were elements that predicted and moderated

job satisfaction. The key elements they stated as predictors of job satisfaction were

supervisor skills and behavior, leader’s oral communication, perception of the supervisory

communication competence, leader effectiveness and the communication climate.

A. Akpinar, Torun, Okur and O. Akpinar (2013) in their study found that job satisfaction

is a result of organizational commitment and not organizational communication. They

conducted a study to establish the effect of organizational communication and job

satisfaction on organizational commitment in small businesses. The study was conducted

among 118 small businesses in Turkey and data was analyzed using Pearson correlation

and multiple regression analysis. The results revealed a positive relationship between

employee’s perception of organizational communication and organizational commitment.

However, unlike many studies, the results indicate that communication to a greater extent

predicts organizational commitment and not job satisfaction. Effective communication

leads to increased trust levels and attachment to the organization. The study was however

limited to only small businesses and thus the results cannot be generalized which

necessitates a more comprehensive study.

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2.4.3.2 Teamwork

A team comprises of two or more people who interact and coordinate their work to

achieve a common goal. It then follows that work teams are people who come together to

work on a common goal and leverage on their positive synergies and complementary

skills. A team is one of the most ideal approaches of ensuring information sharing,

effective coordination and exchange of material necessary for successful task

accomplishment. It has been found that good team work results in good attitudes for

example self-management skills, increased commitment, responsibility and turns the

work environment into a fun place (Musriha, 2013). Teams have become the primary unit

in organizations in the contemporary business world because they are more effective.

Monga et al. (2015) who studied job satisfaction of employees of ICICI bank found that

among other factors like communication, attitudes of supervisors and job security, team

work had a significant role in determining employee job satisfaction.

Halepota and Shah (2010) carried out an empirical investigation of organizational

antecedents on employee job satisfaction in a developing country. They sought to

establish in one of their hypothesis whether team work affects job satisfaction. The study

adopted a positivist research philosophy and research was qualitative. The sample

comprised of 200 full time medical practitioners who were randomly selected. The

findings of the study revealed that team spirit among employees had a positive and

significant impact on employee’s job satisfaction. Polychroniou (2009) carried out a

research to establish the relationship between emotional intelligence and transformational

leadership of supervisors in Greek organizations. They interviewed 267 managers

working at various units and in different levels. Data was analyzed and the results

revealed that organizations which adopt their prescriptions are likely to empower

teamwork and boost employee satisfaction which will ultimately lead to superior

performance.

Hanaysha and Tahir (2015) examined among other factors the effect of team work on job

satisfaction in Malaysia public universities. They collected data from 22 employees and

the data was then analyzed using structural equation modeling. The findings revealed that

teamwork had a positive and significant effect on job satisfaction. Rizwan et al. (2012)

carried out an empirical study on employee job satisfaction aimed at establishing the

crucial problems faced by employees and finding ways to enhance employee loyalty. A

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survey was conducted among 200 employees located in Punjab Pakistan. A model

incorporating theoretical considerations and employee job satisfaction constructs was

used for the study. Findings revealed that there was a strong and positive relationship

between team work and job satisfaction.

Shujaat, Manzoor and Syed (2014) conducted a research to establish the impact of team

work on employee job satisfaction. Their study was informed by the importance of team

work in achieving organizational goals. They conducted a survey among 384 employees

from various organizations using questionnaires and applied regression analysis to

establish the significance of the linear relationship between team work and job

satisfaction. Results of the study revealed that team work had a significant impact on job

satisfaction. This shows that it is important for organizational leaders to build a team

work culture, build team skills and hold it in high regard because of its significant effect

on job satisfaction and achievement of organizational goals.

Rana (2015) sought to determine the job satisfaction factors affecting employees in the

Bangladesh banking sector. A point of focus was to determine the impact of the human

resource management practices like team work, job autonomy and leadership behavior on

job satisfaction. A sample size of 450 employees working in different bank branches in

Bangladesh were selected for the study and data was collected through questionnaires

which employed the 5-point Likert scale. There was a response of 65% was received

representing 295 questionnaires which were processed and data analyzed through SPSS.

The results of the study revealed that there was a significant and positive relationship

between human resource management practices like team work, job autonomy and

leadership behavior on job satisfaction; however, team work was the most important

factor affecting job satisfaction.

Irfan and Lodhi (2015) conducted a study on the impact of teamwork on employee

motivation in the banking sector of Pakistan. Among the hypotheses tested was whether

teamwork at the banking sector had an impact on job security and job satisfaction of the

employees. The findings of correlation analysis tests revealed that there was a positive

correlation between teamwork and motivation. Additionally, the individuals working in a

team were more satisfied with their jobs and considered themselves as an asset to the

organization. Teamwork is an important attribute through which people are able to

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achieve more and is an important tool for organizational success especially in today’s

competitive world.

2.4.3.3 Motivation

The word motivation refers to the force that constantly induces someone to move or to

perform in a certain desired way. It is a psychological process that yields stimulation,

direction and persistence in behavior towards a desired cause. A number of factors could

be considered as motivational but this varies depending on how they are perceived by the

employees. A good example is rewards, incentives and recognition which could have

varying effects on the receiver. Research states that in some instances, employees’ job

satisfaction is influenced by the rewards or motivation they receive from their job.

Workers who are motivated tend to give their best efforts and work hard at their job

because they feel fulfilled (Jehanzeb, M. Rasheed, A. Rasheed & Aamir, 2012).

Additionally, there are the intrinsic motivators and extrinsic motivators and it was found

that there is a significant and positive correlation between intrinsic motivators and job

satisfaction in banks in India (Chatterjee & Chattopadhyay, 2015).

Panagiotakopoulos (2014) conducted a study which explored the motivational techniques

used by 30 CEOs in the context of an advancing economy and evaluated the impact of the

motivational tools on staff performance. The study collected data from 113 workers and

30 CEOs. The study revealed that 87% of the CEOs argued that employee motivation

needs to be around the threat of punishment; thus, they direct behavior with threats of

punishment and replacement. Four leaders opined that involvement in decision making,

recognition of employee contribution, team work and learning were appropriate tools to

boost motivation. It was evident that the benefits that accrue to the organization from use

of inspirational motivation were outnumbered by benefits of using fear motivation. The

four leaders emphasized that most employees work with enthusiasm, had job satisfaction

and increased productivity. The employees confirmed that their relations with the firm

were harmonious, their jobs were interesting and that trust existed. This raised their

morale, job satisfaction and led to a decline in mistakes.

Wambui, Maru and Cheruiyot (2017) examined the link between leadership personality

traits and job satisfaction among employees in the media industry in Kenya through

exploratory research. Regression analysis revealed that there was a positive and

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significant relationship between leader extraversion, leader agreeableness, leader

conscientiousness, leader openness, leader emotional stability and employee job

satisfaction. The findings are timely since organizational survival in the current dynamic

environment calls for leadership qualities which will enhance employee motivation.

Hanaysha et al. (2012) conducted a study in Malaysia among administrative and clerical

staff involved in graduate and postgraduate affairs in three universities. They sought to

establish if there was a positive relationship between individualized consideration and job

satisfaction. The research was conducted among 320 employees through an 18-item scale

questionnaire from the MLQ and a response rate of 31.5% was obtained. The findings

revealed that individualized consideration was negatively related to job satisfaction which

goes against most research findings and thus necessitates further research to validate the

findings. It is however attributed to the fact that perhaps employees could not meet their

leaders due to their busy schedules. However, the study found that intellectual stimulation

was positively correlated to job satisfaction because leaders foster inspiration and which

in turn creates excitement and yields renewed efforts from the employees in pursuit of the

organizational goals.

According to Bass (1985), transformational leaders motivate the followers and raise their

performance to higher levels through inspiration. This is done by use of an appealing

vision, symbols and images aimed at enhancing appropriate behaviors among the

followers (Belias & Koustelios, 2014). It is also achieved when a leader communicates

the vision with confidence which in turn raises optimism. Transformational leadership

goes beyond transactions and aims to improve the follower’s achievements through an

influence of their needs and values which yield higher levels of performance, effort and

satisfaction. Transformational leadership can thus be viewed as an extension of

transactional behavior because transformational leaders motivate their followers to

achieve more than they ought to achieve by addressing and modifying their values and

self-esteem. This yields an inspiration to go beyond the basic call of duty to voluntarily

and willingly doing more (Felfe & Schyns, 2004). According to Groves (2006), a leader’s

ability to articulate a powerful and a compelling vision is very important because it acts

as a source of motivation to the followers which ultimately leads to satisfaction in some

employees.

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Transformational leadership is a leadership style that employers can use to motivate

employees by stirring their interests in the organization thus enabling them to look

beyond their personal interests and placing focus on the organizations interest (Stone et

al., 2004). Additionally, according to Lussier and Achua (2013), transformational

leadership helps in a shift from personal to collective interests and through inspiration and

motivation, the followers are able to follow the leader as a result of enhanced trust and

confidence. According to Indermun and Bayat (2013), rewards and benefits are extrinsic

needs to the employee and they are important in job satisfaction. Good rewards are

intended to attract and retain suitable employees in the organization. The promise of

rewards and benefits encourages and motivates employees to perform in order to ensure

they reap the rewards and the benefits; hence they are a source of motivation. In modern

society, there is a shift to performance related pay which unfortunately assumes that pay

alone satisfies the workers yet this notion has been discredited. This is because a worker

with a good pay but no intrinsic rewards will probably not be satisfied and will look for

satisfaction even if it means leaving the organization.

The SHRM (2012) survey among 600 employees in the US on job satisfaction and

engagement revealed that 6 out of every 10 employees ranked compensation as the first

factor affecting their job satisfaction. Compensation has remained on the list of the top

five job satisfaction factors consistently for many years. It is an important strategy for

attracting and retaining talent in the organizations. However, age affects the perception

because it was ranked as the most important by employees of three to five years working

tenure and showing that as one grows in age, other factors affecting job satisfaction come

into play. Benefits also ranked highly and came in as the sixth factor affecting job

satisfaction. It was found to be a critical factor in large organizations. Benefits and pay

are to some people very important and greatest source of their motivation and job

satisfaction.

2.4.4 Influence of Intellectual Stimulation on Job Satisfaction

This section discusses the influence of intellectual stimulation on job satisfaction.

Intellectual stimulation is broken down into three constructs which are knowledge

sharing, creativity and risk taking.

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2.4.4.1 Knowledge Sharing

Knowledge sharing falls under the umbrella of knowledge management in an

organization. Knowledge management consists of processes such as knowledge creation,

sharing and transfer together with the processes and capabilities which help to support the

advancement of knowledge. Knowledge sharing is fundamental for managing tacit

knowledge hence organizations should encourage regular communication and the creation

of shared learning experiences by encouraging a knowledge sharing culture (Kianto,

Vanhala & Heilmann, 2016). A knowledge sharing culture paves way for communication

and information exchange, problem resolution, team work and decision making

(Trivellas, Akrivouli, Tsifora & Tsoutsa, 2015).

Raisi and Forutan (2017) conducted a study of the relationship between a knowledge

sharing culture and job satisfaction in the context of Bank Sepah Branches in shriraz,

Iran. They interviewed 392 employees from 53 Bank Sepah branches in Shiraz. The study

obtained a response rate of 159 employees and the data was collected using

questionnaires based on a job satisfaction. Ratings were based on a 5-point Likert scale.

Data was analyzed using SPSS and the critical test conducted was the Pearson Correlation

coefficient. The results revealed that there was a positive and significant relationship

between a knowledge sharing culture and components of job satisfaction.

Kianto et al. (2016) sought to establish whether knowledge management could be used to

nurture job satisfaction. They also examined how knowledge management could be used

to increase individual employee job satisfaction. One of the hypotheses of the study was

knowledge sharing will be positively associated with job satisfaction. Research data was

sought from 824 respondents who worked in a municipal organization in Finland. Data

was analyzed using Structural Equation Modeling and the results revealed that knowledge

sharing was a key component of the knowledge management process which was found to

have a correlation with job satisfaction. The overall study concluded that having

knowledge management processes in place was linked to high job satisfaction.

Trivellas et al. (2015) noted that globalization, competition and financial crisis have

brought about the need to have a knowledge driven economy. In a study on the impact of

knowledge sharing on job satisfaction in accounting firms, the researchers sought to

establish if knowledge sharing exerted a significant positive impact on individual job

satisfaction. In the research, 84 accounting officers were interviewed using questionnaires

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and data was analyzed using principal component analysis and regression analysis. The

results revealed that there was a positive and significant relationship between a

knowledge sharing and job satisfaction. Tong, Tak and Wong (2014) sought to establish

the impact of knowledge sharing on the relationship between organizational culture and

job satisfaction among ICT practitioners in Hong Kong. They found that knowledge

sharing had a significant mediating effect between organization culture and job

satisfaction.

Masa’deh (2016) carried out a study to establish the role of knowledge management

infrastructure in enhancing job satisfaction in five-star hotels in Jordan. A total of 216

respondents were sampled for this study and data was collected using questionnaires. The

hypotheses were tested using regression analysis. The results revealed that there was a

positive and significant impact of the knowledge management infrastructure on job

satisfaction. Saleh and Khoualdi (2015) in a similar study in Saudi public universities also

found that there was a positive and significant relationship between the knowledge

management structures and job satisfaction.

Malik and Kanwal (2018) sought to establish the impact of organizational knowledge

sharing practices on employee job satisfaction. The study had learning commitment and

adaptability as the mediating roles. The study was conducted among the service sector

organizations in Pakistan. The sample size consisted of 435 employees from banks,

insurance and telecommunications companies. The findings of regression analysis

revealed that the organization’s support for knowledge sharing promotes learning,

commitment and adaptability which ground job satisfaction. Mogotsi, Boon and Fletcher

(2011) modeled the relationships between knowledge sharing, organizational citizenship

behaviour, job satisfaction and organizational commitment among school teachers in

Botswana. However, the results revealed that both job satisfaction and organizational

commitment were not related to knowledge sharing.

Jadidi, Ehsanifar and Moshtaghi (2013) carried out a study which sought to establish the

effect of knowledge management on job satisfaction in the Iranian texture industry. The

study used questionnaires to collect data from 230 employees. Data was analyzed using

structural equation modeling to test the hypotheses. The results of the study revealed that

organizational learning and organizational improvement positively influenced job

satisfaction of the Iranian texture workers.

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2.4.4.2 Creativity

Cheung and Wong (2011) refer to creativity as the generation of new and novel ideas or

new useful ideas in the lines of products, services, processes or procedures. It enables

employees to utilize their diverse skills, abilities, knowledge and experience to come up

with the new ideas that aid decision making, problem solving and effective task

management (Mohammadi & Azizmalayeri, 2016). It can be a task in a job or it may

happen outside the scope of work. In their study on transformational leadership, leader

support and employee creativity, the study sought to examine the moderating role played

by leader’s tasks and relations support in the relationship between transformational

leadership and follower’s level of creativity. They sampled 182 supervisor-subordinate

relations from a hotel, restaurant, bookstore and a bank. Their findings of the study

revealed that there was a positive relationship between transformational leadership and

the follower’s creativity and it is stronger when there is a high degree of leader’s tasks

and relations support (Cheung & Wong, 2011).

Mittal and Dhar (2015) in their study on transformational leadership and employee

creativity sought to establish the effect of transformational leadership on employee

creativity. The study was conducted among 348 manager-employee dyads from the Indian

IT small medium enterprises professionals. The findings revealed that transformational

leadership has a positive significant effect on employee creativity and went on to suggest

that transformational leadership does indeed foster employee creativity which leads to a

creative work environment. Creativity is the key to competitive advantage in the growing

area of IT. It leads, provokes and allows employees to think and front new ideas or

solutions thereby making them feel valued and ultimately yielding job satisfaction.

Carine et al. (2015) carried out a study on the determinants of employee creativity and

project performance in Rwanda. Data was collected from a sample of 90 project members

and analyzed. The findings of the study revealed that creativity was a fundamental source

of competitive advantage and should be a focus for organizations that wish to

differentiate themselves. Additionally, job satisfaction positively and significantly

influenced the creativity of employees.

Cheung and Wong (2011) examined the link between transformational leadership and

employee creativity in Hong Kong. Primary data was collected using questionnaires

among respondents who were drawn from strata that included; restaurants, banks, hotel,

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retail store and travel agents. Data was analyzed using regression analyses. The results of

the study revealed a positive and significant relationship between transformational

leadership and employee creativity which in turn boosts employee job satisfaction.

Although the study contributed to the empirical link between transformational leadership

and employee creativity, a sample size of 182 was too small considering it was stratified

amongst the different groups. However, there was need for leadership to create an

environment for creativity amongst employees.

Yee, Pink and Sern (2014) conducted a study on the effect of a psychological climate for

creativity on job satisfaction and work performance. They did a cross sectional study and

sampled 118 electrical engineers working in Malaysia. Data was collected using

questionnaires which were distributed by means of the snowball technique via electronic

mail. The results of the study revealed that a good working environment is a key factor in

creating job satisfaction. Additionally, a creative climate is a key predictor of job

satisfaction and work performance among electrical engineers. It is an antecedent for

innovation and change which also affects the outcomes of the employees. In this regard,

leaders need to create a culture and an environment that promotes creativity in their

organizations and eliminate organizational factors that bar creativity since it is a predictor

of job satisfaction in organizations.

Abraiz, Tabassum, Raja and Jawad (2012) carried out a study on the empowerment

effects and employee job satisfaction in Pakistan. The dimensions of empowerment in the

study were autonomy, responsibility, information and creativity. The context of the study

was the service sector which involved hotels, hospitals and the education sector with 600

respondents. Data was analyzed and the results revealed a positive relationship between

creativity and job satisfaction. The study stated that there was a strong relationship

between creativity and job satisfaction than the other dimensions. Valentine, Godkin,

Fleischman & Kidwell (2011) conducted a study to establish the degree to which

perceived corporate values work with group creativity to influence job satisfaction and

turnover intention. Information was collected from 781 healthcare and administrative

employees and 127 sales and marketing employees. The results revealed that group

creativity and ethical values were positively related and that both were associated with

increased job satisfaction.

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Raju (2017) conducted a study on the relationship between teacher creativity and job

satisfaction among degree holders in India. One of the objectives of the study was to

establish the impact of creativity on job satisfaction. Data was collected from 146

lecturers using questionnaires as the data collection instruments. The hypotheses of the

study were tested and the results revealed a positive and significant relationship between

the teacher’s creativity and teacher job satisfaction. Dallal, Ahmadi and Barzegar (2013)

conducted a study on the relationship between creativity and job satisfaction in Shiraz

hand craft employees. A sample size of 89 employees was selected for the study and

questionnaires used to collect data. Results of the study revealed that the higher the

creativity and innovation rates, the higher the job satisfaction was. Therefore, the study

concluded that creativity significantly predicted job satisfaction.

2.4.4.3 Risk Taking

Hosseini and Shahmandi (2014) examined the effects of creativity and innovation, self-

control and risk taking on job satisfaction of staff in a social security organization in Iran

through a descriptive research. They stated that risk tolerance in the organization was

important as opposed to stressing rules with no risk taking. The sample size was

comprised of 150 respondents. The findings of the research revealed that the three

elements of creativity and innovation, self-control and risk taking were related to job

satisfaction. Specific to risk tolerance, there was a strong and significant relationship with

a correlation coefficient of 53 percent to job satisfaction.

Habib, Aslam, Hussain, Yasmeen and Ibrahim (2014) carried out a study dubbed the

impact of organizational culture on job satisfaction, employee commitment and turnover

intention. They broke down organization culture into a few constructs one among them

innovation and risk taking. The study was carried out among 235 bank employees in

Pakistan and data was collected through questionnaires. Data was analyzed and the results

revealed that organization culture, specifically, innovation and risk taking highly

influenced employee commitment, job satisfaction and retention.

Abbaspour and Noghreh (2015) examined the relationship between organizational culture

and job satisfaction of Tourism bank employees in Iran. Among the components of

organizational culture was risk taking and its relationship with job satisfaction was

measured. The study had a sample size of 196 employees which was arrived at through

stratified random sampling technique. Data was collected using questionnaires. The

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results revealed that there was a relationship between organizational culture factors like

risk taking and job satisfaction. Specifically, there was a relationship between risk-taking

which was not significant statistically in the level of job satisfaction.

Shah, Memon and Laghari (2011) studied risk as a variable of organizational culture in

their study on the impact of organizational culture on employee job satisfaction among

faculty of public universities of Pakistan. The research obtained a response rate of 72%

from a sample size of 300 respondents. The Pearson correlation coefficient was used to

analyze the data. The results of the study could not find a relationship of innovation and

risk taking with employee job satisfaction; thus, the increase or decrease of innovation or

risk taking was deemed not to affect the level of employee job satisfaction among the

faculty of public universities of Pakistan.

Lee (2016) in a study titled comparison of job satisfaction between nonprofit and public

employees had risk perception as one of the hypotheses. The results of the study found

that perception of top management’s risk taking is negatively associated with public

manager’s job satisfaction. However, it also did not explain nonprofit manager’s

likelihood of higher job satisfaction. Thus, for public employees, the perception of

organizational stability through minimal risks positively influenced their job satisfaction.

Qazi and Kaur (2017) conducted a study on the impact of culture on job satisfaction

among university faculty members. They sought to understand the correlation between

organizational culture and job satisfaction and come up with ways of improving the

culture and ultimately job satisfaction. The study was conducted among 368 faculty

members from both private and public universities. The results of the study revealed that

organizational culture was positively and significantly correlated with job satisfaction

with culture components like openness and risk-taking leading among the components

that yielded job satisfaction among the university faculty members.

2.4.5 Moderating Effect of Job Security on the Influence of Transformational

Leadership on Job Satisfaction

This section discusses the moderating effect of job security on the influence of

transformational leadership on job satisfaction. Job security is broken down into three

constructs which are anxiety, fairness and stress.

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2.4.5.1 Anxiety

The fear of the unknown or unpredictability of things in the work place causes anxiety

which is a factor that influences job satisfaction. It leads to uncertainty of the future and

this makes employees anxious and when in this situation they are unable to react to issues

appropriately. Research notes that anxiety is accompanied with negative attitudes in the

work place such as feelings of dissatisfaction, strained coworker relationships, reduced

organization commitment and heightened turnover intentions as the employees seek a

safer haven (Silla, Gracia, Manas & Peiro, 2010). Anxiety manifests itself through future

concerns and the inability to predict the future employment and career concerns, all which

have the possibility of affecting the employee’s judgments, perceptions, satisfaction and

productivity. A leader should endeavor to reassure his employees through effective and

accurate communication to dismay any anxieties for there to be job satisfaction (Kler,

Leeves & Shankar, 2015).

Ferguson, Frost and Hall (2012) sought to investigate predictors of anxiety, depression

and job satisfaction among teachers in North Ontario, Canada. They used data obtained

through self-report questionnaires and conducted factor analysis and multiple linear

regression to determine the sources of stress, stress symptoms and also to explore the

effects of stress, depression and anxiety on job satisfaction. The results revealed that

workload and student behavior were significant predictors of depression among the

teachers. However, anxiety, gender, grade level and position were not found to have

significant statistical influence on teacher job satisfaction. Thorsteinsson, Brown and

Richards (2014) examined the association between stress, organizational support and staff

health which incorporated anxiety, depression and fatigue together with work outcomes

like turnover intentions, organizational commitment and job satisfaction. They collected

data from 201 staff who were recruited through email and snowball sampling. The

findings of the study revealed that high work stress was associated with worse staff health

like anxiety, depression and fatigue all of which lead to negative work outcomes like low

job satisfaction, high turnover intentions and less organizational commitment.

Poursadeghiyan et al. (2016) carried out a study to establish the relationship between job

stress and anxiety, depression and anxiety among nurses in Iran. They obtained 250

nurses to participate in the research and data was collected using questionnaires. The

results showed that stress is a big contributor to anxiety but this was negatively associated

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with depression and job satisfaction. Zalewska (2011) agrees with the findings that job

anxiety is negatively correlated with the level of job satisfaction from their study carried

out among 240 employees. Nadinloyi, Sadeghi and Hajloo (2013) sought to examine the

relationship between job satisfaction and mental health. Their study was composed of 90

respondents and data was analyzed using multiple regression analysis. One of the findings

of the study based on their hypotheses revealed that there was a relatively weak but

significant correlation between job anxiety and job satisfaction meaning leaders need to

ensure there is no anxiety for job satisfaction to grow.

Allan, Dexter, Kinsey and Parker (2016) carried out a study on meaningful work and

mental health with job satisfaction as a moderator. They looked at depression, anxiety and

stress as variables of mental health which were some of the common problems modern

workers face. They noted that although having meaningful work is important and

facilitates personal growth, it is also important that work is satisfying and enjoyable in

order to improve outcomes. The sample was comprised of 212 working adults of various

age groups and data was analyzed using correlation and regression analysis. The study

found that having meaningful work was associated with better mental health which

translated to lower rates of depression, anxiety and stress. This also predicted lower

depression but did not significantly predict anxiety or stress. Thus, meaningful work

contributes to the level of job satisfaction.

According to Yaacob and Long (2015), anxiety that is not addressed ultimately leads to

stress. They sought to investigate the relationship between occupational stress and job

satisfaction among teachers through a cross sectional study. The study hypothesized

occupational stress as role ambiguity, role overload and work-family conflict. The sample

consisted of 386 teachers and data was collected using questionnaires. Thereafter, data

was analyzed and the results revealed that there was a significant relationship between

occupational stress and job satisfaction; therefore, organizational leaders should ensure

their employees have no anxiety and no work-related stress to ensure they feel satisfied

with their work. Higher job satisfaction levels yield better quality service which

culminates in better quality service.

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2.4.5.2 Fairness

Fairness refers to the appropriateness or rightfulness in the way outcomes should be

divided in the organization, the procedure used to determine the distribution and basically

how people are treated. It is an important element in human relations. Perceived fair

treatment influences employees to reciprocate by actively pursuing the organizational

objectives. It also elicits and sustains positive attitudes towards the organization. It acts as

an inducement and nudges employees to perform beyond expectations. Additionally, the

positive attitudes and behaviors that are elicited also include job satisfaction, enhanced

commitment and fewer turnover intentions (Silla et al., 2010). According to a study done

on why employees worry about their jobs, fairness was a construct presented in the study

because its absence led to insecurity (Keim, Pierce, Landis & Earnest, 2014).

Silla et al. (2010) studied job insecurity and employees’ attitudes with the moderating role

of fairness. Their study sought to examine the relationships between both job insecurity

and fairness and employees’ attitudes. They sampled 697 employees from a Spanish

public organization and conducted a cross sectional study based on self reported data. The

results of the study revealed that job insecurity was significantly and negatively

associated with organizational commitment and positively associated with turnover

intentions. However, the relationship between job insecurity and job satisfaction was not

significant.

Imran, Majeed and Ayub (2015) carried out a study on the relationship between

organizational justices, job security, and job satisfaction on organizational productivity in

Pakistan. Data was collected using questionnaires and was later analyzed using inferential

statistics. Both correlation and regression analysis revealed a positive and significant

relationship between job security and job satisfaction therefore making job security one of

the most important considerations leaders should offer their employees. Susanj and

Jakopec (2012) in their study exploring the role of justice perceptions and job satisfaction

concluded that employee job satisfaction depends on the perceived justice levels in the

organization.

Rai (2013) examined the impact of organizational justice on satisfaction, commitment and

turnover intentions with a view of establishing if fair treatment by organizations could

make a difference in the attitudes and behaviors of workers. He collected data from 511

employees from 10 health and rehabilitation centers and analyzed the data using Pearson

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correlation and hierarchical regression. The results of the study revealed that perceived

justice influenced job satisfaction, organizational commitment and the intention to leave.

If organizations want to effectively enhance job satisfaction while reducing turnover

intentions, they must pay attention to developing policies and procedures that encourage

fairness whilst adopting leadership styles that promote fairness.

Baah (2014) carried out a study on the organizational antecedents and perceptions of

fairness in policy implementation among employees in the banking sector of Ghana. The

study adopted a correlational research design and selected 100 participants randomly.

Data was collected using questionnaires and analyzed using the Pearson correlation and

ANOVA. The findings of the study revealed that job satisfaction and commitment were

positively and significantly related to the employees’ perception of fairness in the

implementation of policies. The study recommends implementation of policies that

enhance employee job satisfaction in the organization.

Kaur (2016) in a study on the psychological effect of organizational justice perceptions

on job satisfaction stated the importance of the perception of fairness in the organization.

The study noted that fairness results in favorable work outcomes like job satisfaction and

the lack of it thereof results in unfavorable work outcomes. A study of 218 employees

from the Indian Public Sector was carried out. Results from the Pearson correlation and

multiple regression revealed that distributive justice perceptions are likely to yield

positive organizational justice perceptions; therefore, organizational justice is a predictor

of job satisfaction. Paposa and Kumar (2015) also noted that there was a positive and

significant impact of performance measurement systems on job satisfaction.

Umair, Javaid, Amir and Luqman (2016) investigated the employee’s perception of

fairness in the performance appraisal system and the effect this had on job satisfaction of

the employees. They noted that the perception of fairness consisted of distributive justice,

procedural justice and interactional justice all of which were used as the independent

variables. Data was analyzed and the results of the study revealed that perceived fairness

in the appraisal system had an impact on job satisfaction among employees. Al-Ansi,

Rahardjo and Prasetya (2015) analyzed the impact of leadership style and pay fairness on

job satisfaction and organizational commitment. One of their research objectives was to

examine the relationship between pay fairness and job satisfaction. They had a

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convenience sample size of 120 employees. They concluded that pay fairness has a

positive and direct effect on job satisfaction but no effect on organizational commitment.

Yamazaki and Yoon (2012) studied fairness and job satisfaction of Japanese

multinationals in Asia with a focus on procedural justice and fairness. They focused on

HR practices of fairness where they sought to describe the processes that are used in

evaluating employee performance and promotion, by which employees can generally

judge how they are treated through how fair they perceive the process to be. Data was

collected and analyzed using various statistical tests. The results of the study revealed that

the perception of procedural and transparent justice had a significant impact on job

satisfaction in Asian multinational contexts of Japan, China, Hong Kong and Thailand.

Management therefore needs to review the processes to ensure there is a fair perception of

justice which will in turn enhance the satisfaction levels of the employees. However,

Khalifa and Truong (2010) conducted a study to establish the relationship between

employee perceptions of equity and job satisfaction in Egyptian private universities and

found a relationship where a motivator was involved and no relationship where a hygiene

factor was in consideration.

2.4.5.2 Stress

Riaz et al. (2016) sought to establish the impact of job stress on employee job satisfaction

in the nursing sector of DHQ Hospital of Okara. The study measured job stress under

workload, role conflict and physical environment and their impact on employee job

satisfaction. The sample size was composed on 100 nurses from the hospital and data was

collected using questionnaires. Data was analyzed using SPSS and different tests

including reliability, regression and correlation analysis were carried out. The results of

the study showed that there was a positive and very strong correlation between job stress

and employee job satisfaction. However, according to Agarwal (2015) who measured the

relationship of job stress and job satisfaction in the Indian IT Sector, there is no

relationship between job stress and job satisfaction.

Mansoor, Fida, Nasir and Ahmad (2011) carried out a study to determine the impact of

job stress on employee job satisfaction in the telecommunication sector of Pakistan. The

study had a sample size of 134 employees and job stress was measured under the

variables of conflict at work, workload and physical environment. Data was collected

using an instrument adapted from the Minnesota Satisfaction Questionnaire (MSQ). The

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results revealed that the people who had stressful jobs found their jobs less satisfying. The

findings are contradicted by a similar study in private colleges in Pakistan where the

results of the study reveal that stress is positively related to employee job satisfaction but

depending on the context (Ur Rehman et al., 2012).

Lin, Bahron and Boroh (2014) conducted a study on role stress and job satisfaction

among bank employees in Sabah, Malaysia. The study was inspired by many changes in

the industry’s competitive environment. One of the key variables under study was the

relationship of roles stress and job satisfaction. Role stress was measured using role

ambiguity and role conflict. The study had 163 respondents from 14 commercial banks

and data was collected using questionnaires. The hypotheses of the study were tested and

the results of the study showed that there was a significant relationship between role

stress and job satisfaction.

Khan, Ramzan and Butt (2013) sought to determine whether job satisfaction of Islamic

banks operational staff was determined through organizational climate, occupational

stress, age and gender. To this end, they interviewed 40 bank managers and officers from

five Islamic bank branches and had a response rate of 85%. The study was grounded on

exploratory research in which meetings, observations and interviews were conducted. The

results of the study revealed that organizational climate and occupational stress had a

significant impact on the level of job satisfaction. The study goes on to note that

occupational stress may not be avoided as it stems from both internal and external factors

such as political, economic and technological sources.

AbuRuz (2014) contends that there is a negative relationship between job stress and job

satisfaction among nurses in Jordan and Saudi. The cross-sectional study was carried out

among 150 nurses from 250 nurses from hospitals in both jurisdictions and the results

from both contexts were similar. Khamisa, Oldenburg, Peltzer and Ilic (2015) in a study

on nurses and job satisfaction found that the highest amount of variance in job satisfaction

was explained by job stress. Iqbal and Waseem (2012) sought to establish the impact of

job stress on job satisfaction among air traffic controllers from Pakistan. They found that

there was a negative relationship between job stress and job satisfaction and those who

had high job stress had low job satisfaction.

Ramos, Ales and Sierra (2014) carried out a study on role stress and work engagement as

antecedents of job satisfaction among Spanish workers and hypothesized that the role

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stress would negatively predict job satisfaction. The study was carried out among 435

Spanish workers from both public and private companies. Collection of data was done

through questionnaires which were administered by the researcher. The hypothesis was

tested using regression analysis having passed the preliminary tests to ensure that there

was no violation of the assumptions of regression. The results of the study revealed that

there was a negative relationship between role stress and job satisfaction. Hoboubi,

Choobineh, Ghanavati, Keshavarzi and Hosseini (2017) also found that job stress

influenced job satisfaction and workforce productivity in the Iranian petrochemical

industry.

2.5 Chapter Summary

This chapter has presented the theoretical review of the transformational leadership

theory, the conceptual framework for the study and an empirical review. Chapter three

presents the research methodology.

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CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

This chapter presents the research methodology used in this study. The chapter discusses

the research philosophy of the study, the research design used, the target population and

sample population for the study. The data collection method, the research procedures and

the data analysis methods are also discussed in this chapter.

3.2 Research Philosophy

According to Saunders et al. (2016), a research philosophy is a belief in which data about

a phenomenon should be gathered, analyzed and used. The philosophy of a study serves

as a base for the research strategy. Examples of research philosophies are pragmatism,

positivism and constructivism. Pragmatism as a world view comes from actions,

situations and consequences as opposed to antecedent conditions and is not committed to

any one philosophy. It encourages the use of the approaches available to understand a

problem. It mainly underpins the use of mixed methods in research. It also suggests that

the most critical determinants of the research philosophy which a research adopts are the

research questions and objectives (Saunders & Lewis, 2018).

The positivism philosophical approach contends that reality is stable, can be observed and

described objectively. Positivism also holds a deterministic ideal where causes determine

effects and outcomes. It is mainly related to the observations and experiments which

guide the research process and help to identify and assess the causes that influence

outcomes. The main concern for a positivist research is to study observable and

measurable variables in controllable conditions and to also illustrate the reactions of the

variables to the treatment applied by the researcher. Therefore, the emphasis is on

predicting the outcomes of the research so that the variables can be controlled in future

(Saunders et al., 2016; Bryman & Bell, 2015).

Constructivism contends that individuals seek to understand the world and the

environment in which they live and work in. They go on to develop subjective meanings

of their encounters directed towards understanding certain phenomenon. It relies on the

individual’s or participant’s view of what is being studied (Creswell, 2014).

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Constructivism challenges the thought that items like organization and culture are

predetermined and confronts social issues as external realities (Saunders & Lewis, 2018).

Positivism research philosophy was adopted in this study. This is because the positivism

research philosophy relates to the philosophical standpoint of natural science and is

concerned with an observable social reality to produce law-like generalizations (Bryman

& Bell, 2015). Additionally, positivism yields unambiguous accurate knowledge and

allows for a causal explanation and prediction of the relationship between variables. The

researcher developed hypotheses on the basis of the existing theory of transformational

leadership. To test the hypotheses the study translated idealized influence, individualized

consideration, intellectual simulation and intellectual simulation into testable hypotheses

in measurable forms (Saunders et al., 2016).

3.3 Research Design

A research design is a plan or a structure of investigation which is conceived with the aim

of helping a researcher to obtain answers to research questions. It can also be referred to

as a plan to be followed for data collection, measurement and analysis (Cooper &

Schindler, 2014). A research design helps to integrate the different components of a study

in a coherent, logical and acceptable way which helps in ensuring the study effectively

addresses the research problem under review. Examples of research designs are

exploratory, descriptive and causal (Creswell, 2014). Exploratory research design tends to

have loose structures and is mostly useful when researchers lack a clear idea of the

problem. It also tends to be qualitative as opposed to quantitative and in many cases does

not provide conclusive evidence. It is ideal when the researcher has little information,

where the researcher knows little about the problem and is designed to discover new

relationships, patterns, themes and ideas. It is therefore useful where a researcher wishes

to clarify an understanding of a phenomenon (Hair, Money, Samuel & Page, 2007).

Causal research seeks to identify the cause and effect relationships among variables and

its main aim is to determine cause and effect. Causality is difficult to prove without

examination and therefore the studies are done through experiments and simulations. The

main aim is to try to explain relationships among interacting variables. For example, a

causal predictive study aims to determine an effect of one variable on another by

manipulating the former and holding the latter constant (Cooper & Schindler, 2014). It

helps to bring out the causes of the variable being predicted and answers questions like

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why. Causal research is mostly recommended in experiments and is also known as

experimental designs (Shajahan, 2009).

Descriptive research design aims to generate data that describes the characteristics of the

research item. The main aim of descriptive research design is to reveal an accurate profile

of the phenomenon under study (Shajahan, 2009). With the descriptive research design,

data collection is usually structured. Studies under descriptive are either cross sectional or

longitudinal studies (Hair et al., 2007). It also illustrates characteristics of a phenomenon

by answering questions like, when, who, where what and how. It seeks to determine the

frequency of occurrence and whether a relationship exists between two variables.

Descriptive research design consists of case study, survey, meta-analysis and correlation

(Sekaran & Bougie, 2016).

Case studies focus on gathering information regarding a specific object, event or activity,

for example a specific organization or business unit. It is an in-depth study of a bounded

entity. Survey is a way of collecting information from or about people to describe,

compare and explain their behavior. It involves setting objectives for data collection,

designing the study, preparing a survey instrument, administering it, managing the data

collection process, analyzing the data and reporting the results (Bryman & Bell, 2015;

Hair et al., 2007). Meta-analysis involves a quantitative analysis of data sets from

previous research projects. It is a process of amalgamating existing data sets, combining

them and analyzing them. The researcher does not guarantee validity of the data since

they were not involved in the research process of the existing data sets (Quinlan, 2011).

Correlation helps to predict relationships; for example, the relationship between an

independent and dependent variable can be examined using correlation. Correlation

examines the relationship between two or more variables and tries to determine whether

and to what degree a relationship exists between them. It is highly recommended where a

study is seeking to test the relationship of two variables because it provides a platform for

description of the relationships between variables (Cooper & Schindler, 2014).

This study adopted a descriptive correlational research design because it was relevant to

the study at hand whose aim was to determine the influence of transformational

leadership on job satisfaction among employees in commercial banks in Kenya. The

descriptive correlational research design was chosen because it is ideal in revealing

accurate information about a phenomenon. The information derived is useful in making

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inferences on the extent of association and the relationship between variables; in this case

the relationship between transformational leadership and job satisfaction (Harrison &

Reilly, 2011).

3.4 Target Population

Cooper and Schindler (2014) describe the target population as a complete enumeration of

all the elements in consideration. Additionally, the target population is the total number of

individual elements with common observable characteristics. The target population in this

study was composed of all the managerial employees working in the 43 commercial

banks in Kenya (Appendix V). The target population was comprised of 10310 managerial

employees from the three bank tiers as indicated in Table 3.1 (CBK, 2017).

Table 3.1: Employment of Managerial Staff in the Banking Sector

Tier Population

One 4,495

Two 3,629

Three 2,186

Total 10,310

3.5 Sample Design

According to Cooper and Schindler (2014), a sample design is a plan for obtaining a

sample from a given population. Sampling helps to boost the accuracy of results because

it enables the researcher to focus on a specific group of people as opposed to focusing on

the entire target population. Under the sample design, the sampling frame, sampling

technique and the sample size are discussed.

3.5.1 Sampling Frame

A sampling frame refers to the collection of source information from which the sample is

drawn (Cooper & Schindler, 2014). The sampling frame consists of all items from which

the sample is to be drawn from. The sampling frame was obtained from the Banking

Supervision Report by the Central Bank of Kenya which outlined the number of

employees in the banking sector in four categories; management, supervisory, clerical and

secretarial, and support staff. In this study, the sampling frame was constituted of 10,310

employees serving in the commercial banks at the management level who were likely to

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experience leadership decisions firsthand and also be charged with implementation (CBK,

2017). Management employees were selected since they constitute the team which is

mostly impacted on by the nature of leadership; they are also the key persons running

with the day to day strategy implementation meaning there is substantial interaction

between them and the executive leadership.

3.5.2 Sampling Technique

A sampling technique refers to the identification of the process through which a sample

will be selected. There are various ways of sampling which can be divided into

probability and non-probability sampling. Non-probability sampling refers to sampling

techniques which are used to select a sample when there is no complete list of the

population; thus no sampling frame which introduces an element of subjective judgment.

Examples of sampling techniques are convenience and snowball. Convenience refers to

selecting elements that are easily available to obtain from the sample whereas snowball

refers to making contact with one or two elements in the population then asking them to

identify more elements and so on and stopping when the required sample is attained or

there are no more elements (Sekaran & Bougie, 2016).

Probability sampling presents an equal chance of selection or when the elements have a

known and nonzero chance of being chosen as samples in a population. It can be simple

random sampling where all elements have a known and equal chance of being selected as

a subject which could be cumbersome and expensive not withstanding an updated listing

of the population may not be available. Probability sampling is guided by restricted

sampling which offers viability and more efficiency in the sample selection. It takes the

form of simple random, systematic random, stratified random, cluster or multi-stage

sampling (Saunders et al., 2016).

Simple random sampling involves the selection of a sample at random from the sampling

frame using a computer or random number tables. Systematic random sampling involves

selecting a sample at regular intervals from a sampling frame (Creswell, 2014). Stratified

random sampling involves dividing the target population in strata based on one or more

attributes thus dividing the sampling frame in sub-sets from which a random sample

which could be simple or systematic is drawn from each stratum (Cooper & Schindler,

2014). In cluster sampling, the target population is divided into distinct groups before

sampling and the groups are based on any naturally occurring grouping. The sampling

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frame then becomes the complete set of clusters from which a few clusters are selected

using simple random sampling and data collected from every case in the selected clusters.

Multi-stage sampling is a development of cluster sampling which occurs where sampling

is done in several stages by modifying a cluster sample by adding another stage of

sampling which may take the form of random sampling (Saunders et al., 2016).

This study adopted stratified random sampling technique where the banks were grouped

into three tiers as per the Central Bank of Kenya classification which is based on

capitalization, market share and profitability (CBK, 2017). Tier one comprised of 7

banks, tier two 14 banks and tier three 22 banks. Tier one was comprised of the big banks,

tier two the medium sized banks and tier three the small banks. The target population was

distributed proportionately across the three tiers based on the sample size and the number

bank branches in each tier. Thereafter, the sample size for each tier was determined using

simple random sampling technique. Specifically, simple random sampling was carried out

by using computer generated random numbers for each tier.

3.5.3 Sample Size

A sample is a subset of the target population which is used in order to answer the research

questions. Additionally, the use of the entire target population as study respondents is

faced with several difficulties such as inadequate research budget, limited time factor and

large geographical coverage of the respondents which can be mitigated by drawing of a

subset of the target population as a true representative of the study population (Sekaran &

Bougie, 2016). This study used Yamane (1967) formula to obtain the sample size.

Yamane (1967), Formula:

Where:

N = target (total) population (10, 310)

n = desired sample size

d= confidence interval (0.05 testing at 5% significant level)

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The total sample size was 424 which included an additional 10% which was 39

employees to cater for non respondents as indicated in table 3.2.

The formula is recommended for determining a sample size where the population is

known and finite. A finite population is a population whose total number of elements is

known or can be counted. It is also suitable because it assumes a normal distribution, a

95% confidence level and a p< 0.05 (Yamane, 1967).

Table 3.2: Sample Size Distribution Based on Tiers of the Banks

Tier Target Employees Sample Employees

One 4495 (424/10301)4495 = 185

Two 3629 (424/10301)3629 = 149

Three 2186 (424/10301)2186 = 90

Total 10, 310 424

The study obtained the respondents from all the commercial banks in Kenya in the three

tiers as grouped by the Central Bank of Kenya; this was achieved by distributing the

sample employees per tier between all banks in a particular tier. Additionally, the study

focused on employees from the head offices of the various commercial banks all of which

were located in Nairobi. The focus on head office was informed by the fact that most of

the employees at management level were located in the head office.

3.6 Data Collection Methods

According to Sekaran and Bougie (2016), data collection methods include interviews,

observations and questionnaires. Interviews involve the researcher asking or interrogating

the respondents to obtain information on the issues of interest and it is suitable for

exploratory studies. They may be structured or unstructured, conducted face to face, by

telephone or online. Observation involves going into the field and watching what the

subjects of the study do, describing, analyzing and interpreting what one has seen. It is

most suited for research that requires behavior to be examined without directly asking the

respondents. A questionnaire is a written set of questions formulated by the researcher to

which respondents record their responses (Cooper & Schindler, 2014).

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This study sought to collect primary data by use of questionnaires. The questionnaires

were informed by the Multifactor Leadership Questionnaire (MLQ) which contains the

most commonly used and validated measures of transformational leadership which are

idealized influence, individualized consideration, inspirational motivation and intellectual

stimulation developed by Bass (1985). The questionnaire had six sections which

addressed the demographic and general information, idealized influence and job

satisfaction, individualized consideration and job satisfaction, inspirational motivation

and job satisfaction, intellectual stimulation and job satisfaction, and the moderating

effect of job security between transformational leadership and job satisfaction. The

questions were all closed ended and adopted a five-point Likert scale which was used to

rate the answers from the respondents; the ratings were: 1= Strongly Disagree (SD), 2 =

Disagree (D), 3 = Neutral (N), 4 = Agree (A), 5 = Strongly Agree (SA). Under each

research question, there were two sub-sections; the first was to determine if the leader

was transformational and the second one was to determine the influence of the constructs

of transformational leadership on job satisfaction.

3.7 Research Procedures

The research procedures outline how the pilot study was carried out, the results of the

reliability and validity tests from the pilot study, how the research instruments were

administered and the ethical considerations made by the researcher. The pilot study was

conducted after approval of the research proposal and the research instrument by the

researcher’s supervisors and the business school at USIU-Africa. The researcher also

obtained a permit to conduct the research from the National Commission for Science,

Technology and Innovation (NACOSTI). The questionnaires were administered to the

respondents by the researcher. The researcher visited banks in every tier and approached

the respondents to participate in the research. The respondents were briefed about the

research and the ethical considerations of anonymity and confidentiality of their

responses. Thereafter, they were requested to complete the questionnaires.

3.7.1 Pilot Study

A pilot study refers to the process of testing a questionnaire, interview schedule or

whichever data collection method with a small group of respondents who are similar to

those who will be used in the actual research to see if it works. Any issues that arise from

the pilot study can be corrected before the undertaking the actual research (Saunders et

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al., 2016). The primary aim of the pilot study was to test the reliability and validity of the

research instrument and also to ensure there were no problems in recording the data.

Cooper and Schindler (2014) explain reliability as the true measure of whether the

research instrument meets the intended purpose. With a pilot study, the researcher is able

to detect weaknesses in design of the questionnaire used and to adjust it accordingly

(Bryman, 2012).

This study focused on the influence of transformational leadership on job satisfaction

among employees in commercial banks in Kenyan. The total number of respondents

involved in the pilot study was 42 representing 10% of the entire sample size for the

study. The pilot response rate was 100% from 9 different banks; 17 respondents from tier

one, 14 respondents from tier two and 9 respondents from tier three. Collected data was

coded and entered in SPSS Version 22, cleaned and analyzed. The statistical test

conducted was Cronbach Alpha to test the reliability of the questionnaires.

3.7.2 Reliability of the Instruments

Reliability refers to the consistency of a measure of a concept; thus, the characteristic of

consistency of a measure which gives the same results when conducted on several

occasions (Bryman, 2012; MCBurney & White, 2007). Reliability is also known as

internal consistency and provides an estimate of the equivalence of sets of items from the

same tests. In this research, reliability was measured using Cronbach’s alpha which has

been used widely to measure reliability of research instruments. Sekaran and Bougie

(2016) highlighted that Cronbach’s alpha coefficient is a good measure of reliability; it

ranges between 0 and 1 with values of 0.7 or above indicating that the questions

combined in the scale are measuring the same thing and values 0.5 and less are

considered unacceptable and not measuring the same thing. The summary of the

combined variables in the study showed the item total Cronbach’s Alpha was .978. This

indicates that the questionnaire was highly reliable to be used in the study as indicated in

Table 3.3.

Table 3.3: Cronbach’s Alpha

Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items

.966 .978 30

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3.7.3 Validity of the Instruments

The ability of a research instrument to be a true measure of what it claims to measure or

the ability to gain meaning out of what the tool was supposed to measure is referred to as

validity (Bryman, 2012). In this research, validity was measured in three forms; content,

criterion, and construct validity. Face validity was performed to evaluate the outlay of the

tool while factor analysis was performed to evaluate construct validity.

The face validity of the instrument was used to determine criterion, and construct validity.

This was performed by observing the number of questionnaires filled (43 questionnaires).

Further the researcher collected feedback from the respondents on the flow of the

questions, understanding and comprehension. The questions raised as not clear were as

follows. My leader delegates work and authority to me: these were found to be two

questions in one. This was rephrased to ‘My leader delegates work to me’. My leader

persuades me to be creative and innovative in my job, ‘creative and innovation’ were

different and this was rephrased to ‘My leader permits me to be creative in my job’. I am

committed to the organization because my leader treats everyone fairly, the term ‘treats

everyone fairly’ was vague and was replaced to ‘My leader encourages fair treatment to

everyone’.

Content validity involves testing the items to ensure they give appropriate measures for

the concepts under study (Cooper & Schindler, 2014). Factor analysis was used to

determine the content validity of the questions. These questions were grouped based on

the number of items in each objective. The items with nearly zero difference had strong

content validity while those with bigger margins were not valid hence needed to be

rephrased.

3.7.4 Administration of the Instruments

Before data collection, the researcher obtained a clearance letter from USIU-Africa

(Appendix III) and a research permit from National Commission for Science, Technology

and Innovation (NACOSTI) (Appendix IV). All the approvals, NACOSTI and USIU

were presented to the respective bank managers by the researcher when collecting data.

This helped to authenticate the research and helped to obtain feedback from the

respondents with more ease.

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The corrected questionnaire based on the pilot study report was administered to the

respondents by the researcher. The research instrument had a cover letter which

introduced the research and gave details of the researcher, the USIU-Africa permit and

NACOSTI permit authorizing the researcher to carry out the study. The researcher

recruited and trained one research assistant on the study objectives and the content of the

questionnaires to be administered. Further, the research assistant was trained on the nature

of ethics and confidentiality that is required during the data collection exercise since

banks are very sensitive institutions as far as information concerned. Data was collected

by administering the questionnaires to the respondents through drop and pick method

where questionnaires were dropped at the respondent’s desk and collected upon

completion as requested by the researcher. The respondents were given ten days to

complete the questionnaires but as observed by the researcher it took two to three days.

Reminders were sent after four days to the respondents who had not returned the

questionnaires. All questionnaires, filled and unfilled were collected by the researcher and

prepared for data entry. A total of 347 questionnaires were returned representing an 82%

response rate; they were all coded to ensure they could all be accounted for.

3.7.5 Ethical Considerations

Research ethics refers to the appropriateness of the researcher’s behavior in regard to the

rights of those who become the subject of the research project or those who are affected

by it (Saunders et al., 2016). The researcher addressed the following ethical issues:

participant’s consent, confidentiality and anonymity through the research process and the

reporting. The researcher obtained a clearance letter from USIU-Africa and a research

permit from National Commission for Science, Technology and Innovation (NACOSTI).

All the approvals, NACOSTI and USIU-Africa clearance letters were presented to the

respective bank managers by the researcher and research assistant to obtain the final

authority to reach out to the staff in their organizations. Upon obtaining authority from

the bank management, the respondents were requested to participate in the study

voluntarily. The researcher notified the participants of their rights for information, asking

questions, and that they can withdraw from the research at will. The respondents were

also assured of their anonymity and that the information they provide towards the study

would be treated with confidentiality and for the sole purpose of this study. Information

received was also to be treated objectively and not to be altered for a desired objective.

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3.8 Data Analysis Methods

Descriptive and inferential statistical analyses used in the study are discussed. The

descriptive statistics adopted were mean, standard deviation, percentages and frequency

of response while inferential statistics adopted included test of correlations, Chi-square,

the ANOVA tests and regression analysis to obtain the relationship between the variables

of the study. The quantitative data analysis was done using Statistical Package for the

Social Sciences (SPSS). Presentations were done using tables and figures with detailed

interpretation of the findings.

3.8.1 Data Preparation

After data collection, the following iterative steps were taken. First, data was coded,

secondly, data was cleaned which meant detecting and correcting illogical, inconsistent,

illegal data and omission of information received from the respondents. Lastly, data was

transformed; this meant changing the ordinal numerical representation of a quantitative

value to another value to avoid problems in successive stages of the data analysis process.

This was done using the most suitable methods (Sekaran & Bougie, 2016).

3.8.2 Descriptive Analysis

According to Christensen, Johnson and Turner (2014), descriptive statistics are statistical

analysis focused on describing, summarizing and explaining a set of data. Descriptive

statistics are broken down into measures of central tendency and measures of variability.

A measure of central tendency refers to a single numerical value that is considered most

typical of the values of a quantitative variable and the measures include the mean, median

and mode. Cooper and Schindler (2014) state that a measure of variability is a numerical

index that provides information about how much variation there is in a variable and the

measures include standard deviation, range and variance. According to Sekaran and

Bougie (2016), descriptive statistics enable meaningful description of a distribution of

scores or measurements using a few indices or statistics. Descriptive statistics used

included mean, standard deviation, frequencies and percentages.

3.8.3 Inferential Analysis

According to Bandyopadhyay and Forster (2011), inferential statistics are concerned with

making inferences based on relations found in the sample to relations in the population.

The goal of inferential statistics is to go beyond the immediate available set of data and to

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infer characteristics of populations based on the sample data; thus, researchers use sample

data to make generalizations about populations. The inferential statistics that were used in

this study were correlation analysis, ANOVA, factorial analysis and multiple linear

regression analysis. Inferential analysis was majorly for testing the hypotheses (Sekaran

& Bougie, 2016). In this study, regression analysis aimed to predict the dependent

variable - job satisfaction - based on the independent variables – the four dimensions of

transformational leadership. Details of each of the inferential statistics are explained in

the successive sections.

3.8.3.1 Factor Analysis

Factor analysis is a statistical analysis used to determine the number of dimensions in a

set of items and informs the researcher if a test is unidimensional or multidimensional

(Cooper & Schindler, 2014). The tests conducted were Kaiser-Meyer-Olkin (KMO)

measure of sampling adequacy and Bartlett’s sphericity tests. From the test, values greater

than 0.6 qualified the use of factor analysis. Factor analysis was used to reduce the items

of analysis into few related items. In this study, questions with 5 scale measures under

each variable were tested. Factor analysis was based on component matrix where any

value of the component matrix above 0.6 indicated that there was no redundancy in the

questions and therefore the particular questions should not be dropped.

3.8.3.2 Correlation Analysis

According to Sekaran and Bougie (2016), correlation analysis is a method of statistical

evaluation used to study the strength of a relationship between two, numerically

measured, continuous variables. Any correlation value of the variable between 0.0-0.3

would indicate ‘no correlation’, correlation value between 0.31-0.69 would indicate

‘weak correlation’ and any correlation value above 0.7 would indicate strong correlation

between the variables. However, the statistical significance of the strength of the

correlation was based on a 5% significance level (P<.05). Correlation analysis was done

to test the correlation between the transformational leadership variables and job

satisfaction.

3.8.3.3 Chi-square

Chi-squared test is a statistical test applied to sets of categorical data to evaluate if two

variables are independent or whether the observed pattern occurred by chance (Sekaran &

Bougie, 2016). It is suitable for unpaired data from large samples (Bandyopadhyay &

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Forster 2011). It was used to test whether job satisfaction was related to transformational

leadership. The Chi-square test was at a 5% significance level (P<=.05). Chi-square value

above 5% significance level (P<.05) indicated job satisfaction was not related to

transformational leadership while any value below 5% significance level (P<=.05)

indicated job satisfaction was related to transformational leadership not by chance but by

factors alone.

3.8.3.4 One-way ANOVA

According to Bailey (2008), analysis of variance (ANOVA) is a collection of statistical

models used to analyze the differences among group means. The One-way ANOVA test

was performed to test the mean differences between idealized influence and the

demographic information of respondents; gender, age, education level, duration of

working at the bank and the tier of the bank. The significance measure was set at 5%

significance level (P<.05). Where the results were not statistically significant, it indicated

there was no significant difference between the mean values of all the respondents’

demographic information – gender, age, education level, duration of working, tier of the

bank - and the independent variables – idealized influence, individualized consideration,

inspirational motivation and intellectual stimulation.

3.8.3.5 Regression Analysis

Regression analysis is a model used to determine the relationships among variables;

direction, strength and projection. It includes many techniques for modeling and

analyzing several variables and it helps one to understand how the typical value of the

dependent variable changes when any one of the independent variables is varied

(Creswel, 2014). In this study, regression analysis was used to determine the relationship,

magnitude of the influence and the extent to which transformational leadership predicted

job satisfaction among employees in commercial banks in Kenya.

3.8.3.5.1 Assumptions of Regression Analysis

This section discusses the assumptions of the regression analysis that were tested. The

assumptions of regression have great impact in regression analysis (Ghasemi &

Zahediasl, 2012). The assumptions tested included normality, linearity, homoscedasticity

and multicollinearity.

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3.8.3.5.1.1 Normality

Normality test was conducted using Skewness test and Kurtosis test where Kurtosis was

demonstrated based on three distributions; smallest or flattest peak, medium peak and

peak (leptokurtic) (Cooper & Schindler, 2014). Any skewness value between -2 to 0

indicated that there was no excessive skewness in that data. Kurtosis was used to measure

the level of data pickiness based on the normal distribution of data. Any kurtosis value

between -1 to +2 would indicate that there was no excessive skewness in the data. Lack of

excessive skewness and kurtosis in the data indicated that the normality assumption was

not strictly violated and the research data (job satisfaction and transformational leadership

data) was fit for regression analysis.

3.8.3.5.1.2 Linearity

Linearity is the property of a mathematical relationship or function which means that it

can be graphically represented as a straight line. For the linear regression model to be

used, the expected value of the dependent variable is a straight-line function of each

independent variable holding others constant. Additionally, effects of different

independent variables on the expected value of the dependent variable are additive

(Bewick, Chuck & Ball, 2003). The linearity test was conducted to determine whether the

nature of the relationship between transformational leadership and job satisfaction was

linear or not. This was done on the basis of 5% significance level, one tail test where any

significant deviation from linearity (deviation > 0.05) greater than 0.05 would indicate

that there was linear relationship between the between transformational leadership and

job satisfaction variables.

3.8.3.5.1.3 Homoscedasticity

In statistics, Homoscedasticity test establishes if the dependent and independent variables

have similar variance on their distribution. Homoscedasticity test was done using the

Leven statistics at 5% significance level. One tail test would indicate that the variance

was homogenous and hence fitted for regression analysis (Hair et al., 2007). In this

research Homoscedasticity test was carried out to determine if transformational leadership

had similar variance to job satisfaction of the bank employees on the regression values.

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3.8.3.5.1.4 Multicollinearity

Multicollinearity was tested using variance inflation factors (VIF). According to Lather

(2004), VIF assesses how much the variance of an estimated regression coefficient

increases if the predictors are correlated. If the VIF measure is equal to or less than one

(1) or above ten (10) there is multicollinearity among factors. This means the correct

measure of VIF should be above 1 and less than 10 (Sekaran & Bougie, 2016; Oakshott,

2014). The test was done on the transformational leadership and job satisfaction variable

and the overall interpretation of multicollinearity test was based on the VIF values where

any VIF value between 1 to 10 indicated that the level of multicollinearity that exists in

the study was fit for regression analysis.

3.8.3.5.2 Regression Model and Hypotheses Testing

This section presents the regression model used for the regression analysis and

hypotheses testing.

3.8.3.5.2.1 Regression Model

Linear regression was used to determine the influence of transformational leadership on

job satisfaction among employees in commercial banks in Kenya. Multiple linear

regression analysis was used where there was more than one independent variable to

explain the variance on the dependent variable (Cooper & Schindler, 2014; Sekaran &

Bougie, 2016; Saunders et al., 2016).

Fischer distribution test called F-test was applied to test the joint significant contribution

of attributes of transformation leadership on job satisfaction. The p-value for the F-

statistic was applied in determining the robustness of the model. The conclusion was, if

the value was significant (p<.05) the model was significant and had good predictors of the

dependent variable hence null hypothesis rejected. Alternatively, if the p-value was

greater than 0.05, then the model would not be significant and cannot be used to explain

the variations in the dependent variable hence the null hypothesis would not be rejected.

Y =β0 + β1X1 + β2X2 + β3X3 + β4X4+ β5Z + ∑

Where;

Y = Job Satisfaction

β0 = Constant

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X1 = Idealized influence

X2 = Individualized consideration

X3 = Inspirational motivation

X4 = Intellectual Stimulation

Z = Moderating Variable (Job security)

∑ = Standard Error

In the model, β0 = the constant term while the coefficient βi = 1…4 was used to measure

the sensitivity of the dependent variable (Y) to unit change in the predictor variables. ∑

was the error term which captured the unexplained variations in the model. In each test,

the null hypothesis was rejected or not rejected; if the p-value was less than 0.05, the

model was significant hence null hypothesis rejected. Alternatively, if the p-value was

greater than 0.05, then the model was not significant hence the null hypothesis not

rejected.

3.8.3.5.2.2 Hypotheses Testing

The hypotheses were tested using multiple linear regression analysis which is

recommended where there is more than one independent variable to explain the variance

on the dependent variable (Sekaran & Bougie, 2016). The five hypotheses of the study

were all tested through the regression models outlined hereunder.

To test for H01: There is no significant influence of idealized influence on job

satisfaction among employees in commercial banks in Kenya.

Regression model 1:

Job Satisfaction = β0 + βi x idealized influence + ∑……… Equation 1

To test for H02: There is no significant influence of individualized consideration on job

satisfaction among employees in commercial banks in Kenya.

Regression model 2:

Job Satisfaction = β0 + βi x individualized consideration + ∑……… Equation 2

To test for H03: There is no significant influence of inspirational motivation on job

satisfaction among employees in commercial banks in Kenya.

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Regression model 3:

Job Satisfaction = β0 + βi x inspirational motivation + ∑……… Equation 3

To test for H04: There is no significant influence of intellectual stimulation on job

satisfaction among the employees in commercial banks in Kenya.

Regression model 4:

Job Satisfaction = β0 + βi x intellectual stimulation + ∑……… Equation 4

To test for H05: There is no significant moderating effect of job security between

transformational leadership and job satisfaction among employees in commercial banks in

Kenya.

Regression model 5:

Job Satisfaction = β0 + β1 x Idealized influence + β2 x Individualized consideration + β3 x

Inspirational motivation + β4 x Intellectual Stimulation + β5 x Job security + ∑….......

Equation 5

Table 3.4 presents a summary of the hypotheses testing.

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Table 3.4: Hypothesis Testing

Variable Hypothesis Test

Idealized

influence

To test for H01: There is no

significant influence of idealized

influence on job satisfaction among

employees in commercial banks in

Kenya

Linear regression:

Y =β0 + β1X1 + ∑

Accept if p<.05 or otherwise

reject

Individualized

consideration

To test for H02: There is no

significant influence of

individualized consideration on job

satisfaction among employees in

commercial banks in Kenya

Linear regression:

Y =β0 + β2X2 + ∑

Accept if p<.05 or otherwise

reject

Inspirational

motivation

To test for H03: There is no

significant influence of inspirational

motivation on job satisfaction

among employees in commercial

banks in Kenya

Linear Equation:

Y =β0 + β3X3 + ∑

Accept if p<.05 or otherwise

reject

Intellectual

Stimulation

To test for H04: There is no

significant influence of intellectual

stimulation on job satisfaction

among the employees in

commercial banks in Kenya

Linear regression:

Y =β0 + β4X4+ ∑

Accept if p<.05 or otherwise

reject

Moderating

effect of Job

satisfaction

To test for H05: There is no

significant moderating effect of job

security between transformational

leadership and job satisfaction

among employees in commercial

banks in Kenya

Multiple linear regression:

Y =β0 + β1X1 + β2X2 + β3X3 +

β4X4+ β5Z + ∑

Accept if p<.05 or otherwise

reject

3.9 Chapter Summary

This chapter has discussed the research methodology, the research philosophy, the

research design, the sampling design, the data collection methods, research procedures

and data analysis methods used in the study. It has also outlined the descriptive and

inferential statistics that the study adopted for the analysis and presentation of results and

findings. Chapter four presents the results and findings of data analysis.

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CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

This chapter presents the results and findings of the study. The presentation of the results

is done sequentially according to the research questions. Demographic and general

information is presented first followed by the descriptive and inferential statistics of

idealized influence, individualized consideration, inspirational motivation, intellectual

stimulation and job satisfaction, and lastly the moderating effect of job security between

transformational leadership and job satisfaction.

A total of 424 questionnaires were distributed, 347 questionnaires were returned and

analyzed representing an 82% response rate.

4.2 General Information

This section presents the demographic and general information. Descriptive statistics

were used to analyze the demographic information in form of percentage, mean and

standard deviation. The information analyzed included gender, age, education, duration of

working in the bank and tiers of the banks and the results are presented below.

4.2.1 Gender

Out of the 347 respondents, 52% were male and 48% who were female as indicated in the

figure 4.1.

Male52%

Female48%

Figure 4.1: Gender of Respondents

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4.2.2 Age of Respondents

Figure 4.2 shows the age distribution of the respondents. The results revealed that 49%

were aged 30-39; 35% were aged 21-29 years, 13% were aged 40-49 years, 3% were aged

50-59 years while those who were aged over 60 years were less than 1%.

35.20%

48.50%

13.10%

2.90%0.30%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

21-29 30-39 40-49 50-59 Over 60

Figure 4.2: Age of Respondents

4.2.3 Education of Respondents

Figure 4.3 shows the distribution of respondents based on education qualification. The

results revealed that majority of the respondents (about 59%) had a Bachelor’s degree.

This was followed by approximately 33% who were Master’s degree holders. A few of

the respondents (about 1%) were certificate holders.

1.20%5.80%

58.50%

32.90%

1.70%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Certificate Diploma Bachelor's Master's PhD

Figure 4.3: Education Qualification

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4.2.4 Duration of Working

Figure 4.4 shows results on the duration of work in the bank. There was clear pattern on

the duration of working; majority of respondents had worked for fewer years and fewer of

the respondents had worked for more years in the banking sector. Those who had worked

for between 0-5 years were about 37% followed by those who had worked for 6-10 years

who were about 34%. Only about 6% of the respondents had worked for more than 20

years. This showed that fewer people opted to remain in the banking sector as they grew

older.

37.30%

34.10%

19.10%

4.00%

5.50%

0-5

6-10

11-15

16-20

over 20

Figure 4.4: Duration of Working

4.2.3 Tiers of the Banks

Figure 4.5 presents results on the tiers of the banks. In Kenya, banks are classified into

three different tiers; thus, tiers; 1, 2 and 3. The respondents were asked to indicate the tier

of their bank; 49% indicated they worked for banks classified as tier 1, 34% worked for

banks classified as tier 2 and lastly 17% worked for banks classified as tier 3.

Tier 149%

Tier 234%

Tier 317%

Figure 4.5: Tier of the Banks

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4.3 Influence of Idealized Influence on Job Satisfaction

The first objective was to determine the influence of idealized influence on job

satisfaction. This was guided by the independent variable questions on idealized influence

and dependent variable questions on job satisfaction. The independent variable questions

were: my leader has charismatic attributes; my leader demonstrates trust in my abilities;

and my leader is ethical in the workplace. The dependent variable questions on job

satisfaction were: I am committed to the organization because of my leader’s charismatic

attributes; I am present at work because my leader demonstrates trust in my abilities; and

I have no intentions of leaving my job because my leader is ethical in the workplace. The

results and findings of both descriptive and inferential statistics are presented below.

4.3.1 Factor Analysis

Factor analysis was used to evaluate the variability among the observed correlated

variables to ensure the questions in the research instrument relate to the construct of

measure. Questions that did not relate to the construct were extracted from the analysis.

Factor analysis was conducted on three questions for the dependent variable ‘job

satisfaction’ and the three questions for independent variable ‘idealized influence’ as

presented below.

4.3.1.1 Factor Analysis on Idealized Influence

The independent variable in the study was idealized influence. As indicated in table 4.1a,

only one factor was derived with Kaiser-Meyer result of 0.721. The Bartlett’s test of

Sphericity was significant at X2 (3, N=347) = 462.905, p<.05. The factor was adequate for

extraction of component since Kaiser-Meyer-Olkin Measure was greater than 0.6 and the

Bartlett’s test was significant (p<.05). Table 4.1a shows the results.

Table 4.1a: KMO and Bartlett's Test on Idealized Influence

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .721

Bartlett's Test of Sphericity Approx. Chi-square 462.905

Df 3

Sig. .000

* Significant at p<0.05 level

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Using the principal component analysis, the total variance explained on the extraction

showed that the extracted values presented 78% of the first component. Only one

component was extracted ‘idealized influence’. Further, average value principle was used

to obtain the measure of the extracted independent variable by transformation. Table 4.1b

shows the results of the variance explained.

Table 4.1b: Total Variance Explained for Idealized Influence

Component

Initial Eigenvalues Extraction Sums of Squared Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance Cumulative %

1 2.327 77.554 77.554 2.327 77.554 77.554

2 .396 13.216 90.770

3 .277 9.230 100.000

Extraction Method: Principal Component Analysis.

One component for idealized influence had an Eigen value that was greater than one

which was in line with the results for total variance explained for idealized influence as

shown in Figure 4.6.

Figure 4.6: Scree Plot for Idealized Influence

The variables of the extracted components were indicated on the component matrix Table

4.1c. Only one factor was extracted representing ‘idealized influence’. The variables

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extracted and values were; my leader has charismatic attributes (.875), my leader

demonstrates trust in my abilities (.905) and my leader is ethical in the workplace (.861).

All the variables and components measured under the factor loading were greater than

.60. Further, using the average of the components, the transformed data had a stronger

component of .880 which was greater than .60. All the components were stronger and

were included as variables of analysis in the model ‘idealized influence’ since the values

were greater than .60.

Table 4.1c: Component Matrix on Idealized Influence

Idealized Influence

Component

1

My leader has charismatic attributes .875

My leader demonstrates trust in my abilities .905

My leader is ethical in the workplace .861

Extraction Method: Principal Component Analysis.

a. 1 component extracted.

4.3.1.2 Factor Analysis of Idealized Influence on Job Satisfaction

The dependent variable in the study was idealized influence on job satisfaction. As

indicated in Table 4.2a, only one factor was derived with Kaiser-Meyer Olkin result of

0.739. The Bartlett’s test of Sphericity was significant at X2 (3, N=347) = 497.434, p<.05.

The factor was adequate for extraction of the component since Kaiser-Meyer Olkin

Measure was greater than 0.6 and the Bartlett’s test was significant (p<.05).

Table 4.2a: KMO and Bartlett’s Test on Idealized Influence on Job Satisfaction

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .739

Bartlett's Test of Sphericity Approx. Chi-square 497.434

Df 3

Sig. .000

* Significant at p<0.05 level

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Using the principal component analysis, the total variance explained on the extraction

shows the extracted values presented 79% of the component. Only one component was

extracted ‘idealized influence on job satisfaction’. Further, average value principle was

used to obtain the measure of the extracted independent variable named ‘idealized

influence on job satisfaction’ by transformation. Table 4.2b shows the results of the total

variance explained on idealized influence.

Table 4.2b: Total Variance Explained on Idealized Influence

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 2.370 79.010 79.010 2.370 79.010 79.010

2 .326 10.871 89.880

3 .304 10.120 100.000

Extraction Method: Principal Component Analysis

The variables of the extracted components are indicated on the component matrix Table

4.2c. Only one factor was extracted representing ‘idealized influence on Job satisfaction’.

The variables and values extracted were: ‘I am committed to the organization because of

my leader’s charismatic attributes’ and ‘I have no intentions of leaving my job because

my leader is ethical in the workplace’ had similar component matrix value of .891 while

‘I am present at work because my leader demonstrates trust in my abilities’ had

component matrix value of .884. This shows the variables and components measured

under the factor loading were greater than .60. Further, using the average of the

components, the transformed data had a stronger component of .889 which was greater

than .60. The components of the dependent variables were included as variables of

analysis in the model as ‘idealized influence on job satisfaction’ since the values were

greater than .60. Table 4.2c shows the component matrix of idealized influence on job

satisfaction.

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Table 4.2c: Component Matrix of Idealized Influence on Job Satisfaction

Idealized Influence on Job Satisfaction Component

1

I am committed to the organization because of my leader has

charismatic attributes .891

I am hardly absent from work because my leader demonstrates

trust in my abilities .884

I have no intentions of leaving my job because my leader is

ethical in the workplace .891

Extraction Method: Principal Component Analysis.

a. 1 component extracted.

4.3.2 Descriptive Statistics for Idealized Influence

On idealized influence, majority of the respondents agreed on the attribute ‘my leader is

ethical in the workplace’ (M= 4.23, SD = 0.84) and also ‘my leader demonstrates trust in

my abilities’ (M= 4.08, SD = 0.88). This clearly shows the difference; with the decrease

in mean, the standard deviation increased indicating responses were varied. Table 4.3

shows the results of the descriptive statistics of idealized influence. On job satisfaction,

majority of the respondents agreed on the attribute ‘I am hardly absent from work because

my leader demonstrates trust in my abilities’ (M= 3.42, SD = 1.21) followed by ‘I am

committed to the organization because of my leader’s charismatic attributes’ (M= 3.25,

SD = 1.14). The trend of the mean and standard deviation varied depicting varied

responses as indicated in Table 4.3.

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Table 4.3: Mean and Standard Deviation of Idealized Influence

Idealized Influence M SD Skewness Std Error

My leader has charismatic attribute 3.89 0.97 -1.03 0.13

My leader demonstrates trust in my abilities 4.08 0.88 -1.05 0.13

My leader is ethical in the workplace 4.23 0.84 -1.28 0.13

Effect of Idealized Influence on Job Satisfaction

I am committed to the organization because of

my leader has charismatic attributes 3.25 1.14 -0.23 0.13

I am hardly absent from work because my

leader demonstrates trust in my abilities 3.42 1.21 -0.44 0.13

I have no intentions of leaving my job

because my leader is ethical in the workplace 2.91 1.27 0.04 0.13

4.3.3 Chi-square Test of Idealized Influence and Job Satisfaction

The Chi-square test was used to determine whether there was a significant association

between idealized influence and job satisfaction. The chi-square test results showed that

there was a significant association between idealized influence and job satisfaction X2

(132, N = 346) = 302.886, p<.05). The results are presented in Table 4.4.

Table 4.4: Chi-square Test of Idealized Influence and Job Satisfaction

Idealized Influence Value df Asymp. Sig. (2-sided)

Pearson Chi-square 302.886a 132 .000

Likelihood Ratio 260.451 132 .000

Linear-by-Linear Association 84.977 1 .000

N of Valid Cases 346

a. 134 cells (85.9%) have expected count less than 5. The minimum expected count is .01.

* Significant at p<0.05 level

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4.3.4 Correlation Analysis between Idealized Influence and Job Satisfaction

Correlation analysis was used to test the relationship between idealized influence

variables and job satisfaction. As shown in Table 4.5a, all the variables were highly

correlated. The first variable under idealized influence ‘my leader has charismatic

attributes’ was positively correlated with job satisfaction r (345) =.563, p<.05; ‘my leader

demonstrates trust in my abilities’ was positively correlated with job satisfaction r (346)

=.596, p<.05; and ‘my leader is ethical in the workplace’ was positively correlated with

job satisfaction r (343) =.564, p<.05.

Table 4.5a: Correlation Analysis between Idealized Influence Variables and Job

Satisfaction

Idealized Influence Pearson Correlation Job Satisfaction

My leader has charismatic attribute. Pearson Correlation .563**

Sig. (2-tailed) .000

N 345

My leader demonstrates trust in my

abilities.

Pearson Correlation .596**

Sig. (2-tailed) .000

N 346

My leader is ethical in the workplace. Pearson Correlation .564**

Sig. (2-tailed) .000

N 343

* Significant at p<0.05 level

Further, correlation analysis was used to test the relationship between idealized influence

and job satisfaction. The results showed that there was a strong and positive correlation

between idealized influence and job satisfaction r (346) =.496, p<.05. The results are

presented in Table 4.5b.

Table 4.5b: Correlation Analysis between Idealized Influence and Job Satisfaction

Job Satisfaction

Idealized influence Pearson Correlation .496**

Sig. (2-tailed) .000

N 346

* Significant at p<0.05 level

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4.3.5 One-way ANOVA on Idealized Influence

The One-way ANOVA test was performed to test the mean differences between idealized

influence and the demographic information of respondents; gender, age, education level,

duration of working at the bank and the tier of the bank. Table 4.6a shows the results

which indicate that there was no significant difference between the mean values of all the

respondents’ demographic information of gender, age, education level, duration of

working, tier of the bank and idealized influence.

Table 4.6a: One-way ANOVA on Idealized Influence

Sum of

Squares df

Mean

Square F Sig.

Gender Between Groups 3.773 11 .343 1.388 .177

Within Groups 82.041 332 .247

Total 85.814 343

Age Between Groups 9.847 11 .895 1.514 .124

Within Groups 195.652 331 .591

Total 205.499 342

Education Between Groups 4.900 11 .445 1.144 .326

Within Groups 129.259 332 .389

Total 134.160 343

How long

have you

worked

Between Groups 13.850 11 1.259 1.031 .418

Within Groups 406.747 333 1.221

Total 420.597 344

Tier of your

bank

Between Groups 10.262 11 .933 1.686 .075

Within Groups 184.767 334 .553

Total 195.029 345

* Significant at p<0.05 level

The One-way ANOVA test was also performed to test the mean differences between job

satisfaction and the demographic factors of gender, age, education, duration of working at

the bank and tier of the bank. Table 4.6b shows the results which indicate that there was

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no significant difference between the mean values of majority of the demographic

variables and job satisfaction. However, the means for job satisfaction were significantly

different across the demographic variable of the number of years worked in the

organization.

Table 4.6b: One-way ANOVA on Idealized Influence on Job Satisfaction

Sum of

Squares

df Mean

Square

F Sig.

Gender

Between Groups 2.103 12 .175 .693 .758

Within Groups 83.711 331 .253

Total 85.814 343

Age

Between Groups 7.701 12 .642 1.071 .384

Within Groups 197.798 330 .599

Total 205.499 342

Education

Between Groups 4.325 12 .360 .919 .528

Within Groups 129.835 331 .392

Total 134.160 343

How long have

you worked

Between Groups 30.497 12 2.541 2.163 .013

Within Groups 390.100 332 1.175

Total 420.597 344

Tier of your

bank

Between Groups 4.647 12 .387 .677 .773

Within Groups 190.382 333 .572

Total 195.029 345

* Significant at p<0.05 level

4.3.6 Regression Analysis and Hypothesis Testing

This section presents the regression analysis, the model used for hypothesis testing in the

study and the assumptions of regression. Regression analysis was done to determine the

relationship, magnitude of the effect and projection of the influence of idealized influence

on job satisfaction among employees in commercial banks in Kenya.

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4.3.6.1 Assumptions for Regression Analysis on Idealized Influence

Before running the regression analysis, assumptions for regression were tested. The

following tests were conducted: normality test, linearity test, homoscedasticity test and

multicollinearity tests as presented hereunder.

4.3.6.1.1 Normality Test on Idealized Influence

Using one sample Kolmogorov-Smirnov Test, the test of normality was conducted to

determine the distribution of data depicting either a normal or skewed curve. This was

determined by the statistical significance of the dependent and the independent variable

(p<.05). The normal parameters test indicated difference on mean: idealized influence

had (M= 4.07, SD = .788) compared to Job satisfaction (M= 3.20, SD = 1.07). The

variance on the mean was low compared to the standard deviation variance which was

high. Further, the results showed the variance on the most extreme differences was

minimal and the variables were significant to each other (p<.05) indicating a high level of

relationship hence the data was not normally distributed (p<.05). Table 4.7a indicates the

results of the normality test.

Table 4.7a: One-Sample Kolmogorov-Smirnov Test on Idealized Influence

Idealized_ influence Job_ satisfaction

N 346 346

Normal Parametersa,b Mean 4.0655 3.1965

Std. Deviation .78771 1.07253

Most Extreme Differences Absolute .184 .103

Positive .118 .084

Negative -.184 -.103

Test Statistic .184 .103

Asymp. Sig. (2-tailed) .000c .000c

a. Test distribution is Normal.

b. Calculated from data.

c. Lilliefors Significance Correction.

* Significant at p<0.05 level

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4.3.6.1.2 Linearity Test on Idealized Influence

The analysis of variance (ANOVA) was used to determine linearity. The linearity test was

conducted to determine whether the nature of the relationship between idealized influence

and job satisfaction was linear or not. As indicated in Table 4.7b, there was a significant

relationship between idealized influence and job satisfaction on the combined and

linearity tests (p<.05). However, the deviation from linearity was not significant. Hence

the relationship between idealized influence and job satisfaction was linear and passed the

test of linearity.

Table 4.7b: Linearity Test on Idealized Influence

Sum of

Squares df

Mean

Square F Sig.

Idealized

influence * Job

satisfaction

Between

Groups

(Combined) 62.420 12 5.202 11.422 .000

Linearity 52.728 1 52.728 115.782 .000

Deviation from

Linearity 9.692 11 .820 1.988 .071

Within Groups 151.651 333 .455

Total 214.071 345

* Significant at p<0.05 level

4.3.6.1.3 Multicollinearity Test on Idealized Influence

Multicollinearity test was performed to determine if the values of idealized influence and

job satisfaction had high similarity. The test of multicollinearity was using the Variance

Inflation Factor (VIF). Statistically, there is no multicollinearity when the value of VIF

between 1 and 10. As indicated in Table 4.7c, the VIF value was 1.860 which shows there

was no multicollinearity between idealized influence and job satisfaction.

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Table 4.7c: Multicollinearity Test on Idealized Influence

Model

Unstandardized

Coefficients

Standardized

Coefficients

T Sig.

Collinearity

Statistics

B

Std.

Error Beta Tolerance VIF

1 (Constant) .449 .264 1.702 .090

Idealized

Influence .676 .064 .496 10.603 .003 1.860 1.860

4.3.6.1.4 Homoscedasticity Test on Idealized influence

Homoscedasticity test was carried out to determine if idealized influence of the bank

employees had similar variance to job satisfaction on the regression values. As indicated

on Table 4.7d, the results indicate that the value of the Levene Statistic, F (10, 334) =

1.69, p = .08 was above the study’s level of significance (p <.05) indicating the data was

homogenous.

Table 4.7d: Homoscedasticity Test on Idealized Influence

Levene Statistic df1 df2 Sig.

1.688 10 334 .082

* Significant at p<0.05 level

4.3.6.2 Regression and Hypothesis Testing

Regression analysis was carried out to determine the extent to which idealized influence

influenced job satisfaction among employees in commercial banks in Kenya. Multiple

linear regression was used to predict job satisfaction of employees in commercial banks

in Kenya from idealized influence. The hypothesis tested was:

H01: There is no significant influence of idealized influence on job satisfaction among

employees in commercial banks in Kenyan.

The regression results for the hypothesis testing were presented in the form of the model

summary, regression ANOVA and regression coefficient.

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4.3.6.2.1 Regression Model Summary

The model summary results presented in Table 4.8 indicate that idealized influence

explained 25% of job satisfaction among employees in commercial banks in Kenya (R2) =

.246.

Table 4.8: Model Summary of Idealized Influence and Job Satisfaction

Model R

R

Square

Adjusted

R

Square

Std.

Error of

the

Estimate

Change Statistics

R

Square

Change

F

Change df1 df2

Sig. F

Change

1 .496a .246 .244 .93247 .246 112.421 1 344 .000

a. Predictors: (Constant), Idealized Influence

* Significant at p<0.05 level

4.3.6.2.1 Regression ANOVA

The regression ANOVA showed that idealized influence had a significant influence on

job satisfaction F(1, 97.750) = 112.421, p<.05) as indicated Table 4.9. This means that

the regression model was suitable for predicting the outcome variable on how idealized

influence influenced job satisfaction among employees in commercial banks in Kenya.

Table 4.9: Regression ANOVA of Idealized Influence on Job Satisfaction

Model

Sum of

Squares Df Mean Square F Sig.

1 Regression 97.750 1 97.750 112.421 .000b

Residual 299.108 344 .869

Total 396.858 345

a. Dependent Variable: Job satisfaction

b. Predictors: (Constant), idealized influence

* Significant at p<0.05 level

4.3.6.2.3 Regression Coefficient on Idealized Influence

Table 4.10 shows the results of the regression coefficient. In the regression coefficients

model, the analysis showed that idealized influence statistically predicted job satisfaction

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(β = .676, (.449) t = 10.603, p<.05). The beta weight gauges the importance of

explanatory variable across the model and was positive on idealized influence, Beta of

.449 and statistically significant at p<.05. This means, one unit of increase in idealized

influence increased the unit of job satisfaction by .449.

Table 4.10: Coefficients of Idealized Influence on Job Satisfaction

Model

Unstandardized

Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) .449 .264 1.702 .090

Idealized Influence .676 .064 .496 10.603 .003

a. Dependent Variable: Job satisfaction

* Significant at p<0.05 level

From the coefficient table, the values of the regression model were derived:

The general form of the regression model used was:

= Constant; = idealized influence and = Error term.

From the coefficient table, idealized influence influenced job satisfaction among

employees in commercial banks in Kenya.

Y= 0.449 + .676X + .064

Multiple linear regression analysis was used to test if idealized influence significantly

predicted job satisfaction among employees in commercial banks in Kenya. The results

revealed that idealized influence explained 25% of job satisfaction (R2 = .246, F (1,

97.750) = 112.421, p<.05) while the remaining 75% of job satisfaction were explained by

other factors. Further, idealized influence significantly predicted job satisfaction (β =

.676, (.449) t = 10.603, p<.05). Therefore, the study rejected the null hypothesis H01:

There is no significant influence of idealized influence on job satisfaction among

employees in commercial banks in Kenya and accepted the alternate hypothesis, H11:

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There is a significant influence of idealized influence on job satisfaction among

employees in commercial banks in Kenya.

4.4 Influence of Individualized Consideration on Job Satisfaction

The second objective was to determine the influence of individualized consideration on

job satisfaction. This was guided by the independent variable questions on individualized

consideration and dependent variable questions on job satisfaction. The independent

variable questions were: my leader delegates work to me; my leader mentors me in the

workplace; and my leader supports me in my work. The dependent variable questions on

job satisfactions were: I have no intentions of leaving my job because my leader delegates

work to me; I am committed to the organization because my leader mentors me in the

workplace; and I am hardly absent from work because my leader supports me in my

work. The results and findings of both the descriptive and inferential statistics are

presented below.

4.4.1 Factor Analysis

Factor analysis was used to evaluate the variability among the observed correlated

variables to ensure the questions in the research instrument relate to the construct of

measure. Questions that did not relate to construct were extracted from the analysis.

Factor analysis was conducted on three questions for dependent variable ‘job satisfaction’

and three questions for independent variable ‘individualized consideration’ as presented

below.

4.4.1.1 Factor Analysis on Individualized Consideration

The independent variable in the study was individualized consideration. As indicated in

Table 4.11a, only one factor was derived with Kaiser-Meyer Olkin result of .654. The

Bartlett’s test of sphericity was significant at X2 (3, N=347) = 309.573, p<.05. The factor

was adequate for extraction of component since Kaiser-Meyer-Olkin Measure was greater

than .60 and the Bartlett’s test was significant (p<.05).

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Table 4.11a: KMO and Bartlett's Test on Individualized Consideration.

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .654

Bartlett's Test of Sphericity Approx. Chi-square 309.573

df 3

Sig. .000

* Significant at p<0.05 level

Using the Principal component analysis, the total variance explained on the extraction

showed the extracted values presented 69% of the first component. Only one component

was extracted ‘individualized consideration’. The average value principle was used to

obtain the measure of the extracted independent variable by transformation. Table 4.11b

shows the results of the variance explained.

Table 4.11b: Total Variance Explained for Individualized Consideration

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 2.069 68.980 68.980 2.069 68.980 68.980

2 .606 20.217 89.196

3 .324 10.804 100.000

Extraction Method: Principal Component Analysis.

One component for individualized consideration had an Eigen value that was greater than

one which was in line with the results for total variance explained for individualized

consideration as shown in Figure 4.7.

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Figure 4.7: Scree Plot for Individualized Consideration

The variables of the extracted components were indicated on the component matrix Table

4.11c. Only one factor was extracted representing ‘individualized consideration’. The

variables extracted and values were; my leader mentors me in the workplace (.847), my

leader supports me in my work (.885) and my leader delegates work to me (.754). All the

variables and components analyzed under the factor loading were greater than .60.

Further, using the average of the components, the transformed data had a stronger

component of .829 which was greater than .60. All the components were included as

variables of analysis in the model ‘individualized consideration’ since the values were

greater than .60. Table 4.11c shows the component matrix on individualized

consideration.

Table 4.11c: Component Matrix on Individualized Consideration

Individualized consideration

Component

1

My leader mentors me in the workplace .847

My leader supports me in my work .885

My leader delegates work to me .754

Extraction Method: Principal Component Analysis.

a. 1 component extracted.

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4.4.1.2 Factor Analysis of Individualized Consideration on Job Satisfaction

The dependent variable in the study was individualized consideration on job satisfaction.

As indicated in Table 4.12a, only one factor was derived with Kaiser-Meyer Olkin result

of .730. The Bartlett’s test of sphericity was significant at X2 (3, N=347) = 590.668,

p<.05. The factor was adequate for extraction of the component since Kaiser-Meyer-

Olkin Measure was greater than .60 and the Bartlett’s test was significant (p<.05).

Table 4.12a: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .730

Bartlett's Test of Sphericity Approx. Chi-square 590.668

df 3

Sig. .000

* Significant at p<0.05 level

Using the Principal component analysis, the total variance explained on the extraction

showed the extracted values presented 81% of the component. Only one component was

extracted ‘individualized consideration on job satisfaction’. Further, average value

principle was used to obtain the measure of the extracted independent variable named

‘individualized consideration on job satisfaction’ by transformation. Table 4.12b shows

the results of the variance explained.

Table 4.12b: Total Variance Explained for Individualized Consideration

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance Cumulative %

1 2.439 81.315 81.315 2.439 81.315 81.315

2 .350 11.669 92.984

3 .210 7.016 100.000

Extraction Method: Principal Component Analysis.

The variables of the extracted components are indicated on the component matrix table.

Only one factor was extracted representing ‘individualized consideration on job

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satisfaction’. The variables extracted and values were: ‘I am committed to the

organization because my leader mentors me in the workplace’ had a component matrix

value of .909; ‘I am hardly absent from work because my leader supports me in my work’

had a component matrix value of .923 and lastly, ‘I have no intentions of leaving my job

because my leader delegates work to me’ had a component matrix value of .873. All the

variables and component measure under the factor loading were greater than .60. Further,

using the average of the components, the transformed data had a stronger component of

.902 which was greater than .60. All the components of dependent variables were

included as variable of analysis in the model as ‘individualized consideration on job

satisfaction’ since the values were greater than .60. Table 4.12c shows the component

matrix for individualized consideration.

Table 4.12c: Component Matrix of Individualized Consideration on Job Satisfaction

Individualized Consideration

Component

1

I am committed to the organization because my leader mentors me in the

workplace .909

I am hardly absent from work because my leader supports me in my work .923

I have no intentions of leaving my job because my leader delegates work to

me .873

Extraction Method: Principal Component Analysis.

a. 1 component extracted.

4.4.2 Descriptive Statistics for Individualized Consideration

On individualized consideration, majority of the respondents agreed on attribute ‘my

leader delegates work to me’ (M= 4.2, SD = .774) followed by ‘my leader supports me in

my work’ (M= 4.0, SD = .900). This clearly showed the difference, with the decrease in

mean, the standard deviation increased which means there were varied responses. Table

4.13 shows the results of the descriptive statistics of individualized consideration. On job

satisfaction, majority of the respondents agreed on the attribute, ‘I am committed to the

organization because my leader mentors me in the workplace’ (M= 3.29, SD = 1.19). This

was followed by ‘I am hardly absent from work because my leader supports me in my

work’ (M= 3.27, SD = 1.14). The trend of the mean and standard deviation was on the

opposite direction indicating varied responses as indicated in Table 4.13.

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Table 4.13: Mean and Standard Deviation of Individualized Consideration

Individualized Consideration M SD Skewness Std

Error

My leader mentors me in the workplace 3.7637 1.07873 -.824 .131

My leader supports me in my work 4.0202 .90096 -1.137 .131

My leader delegates work to me 4.1902 .77431 -1.282 .131

Influence of Individualized Consideration on Job Satisfaction

I am committed to the organization because my

leader mentors me in the workplace

3.2911 1.18712 -.287 .131

I am hardly absent from work because my leader

supports me in my work

3.2795 1.14786 -.344 .131

I have no intentions of leaving my job because my

leader delegates work to me

2.9308 1.20972 -.005 .131

4.4.3 Chi-square Test on Individualized Consideration and Job Satisfaction

The Chi-square test was used to determine whether there was a significant association

between individualized consideration and job satisfaction. The chi-square test results

showed that there was a significant association between individualized consideration and

job satisfaction X2 (132, N = 347) = 385.123, p<.05) as shown in Table 4.14.

Table 4.14: Chi-square Test on Individualized Consideration and Job Satisfaction

Individualized consideration Value df Asymp. Sig. (2-sided)

Pearson Chi-square 385.123a 132 .000

Likelihood Ratio 296.020 132 .000

Linear-by-Linear Association 122.398 1 .000

N of Valid Cases 347

a. 136 cells (87.2%) have expected count less than 5. The minimum expected count is

.01.

* Significant at p<0.05 level

4.4.4 Correlation Analysis between Individualized Consideration and Job

Satisfaction

Correlation analysis was used to test the relationship between the individualized

consideration variables and job satisfaction. As shown in Table 4.15a, all the variables

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were highly correlated. The first variable under idealized influence ‘my leader mentors

me in the workplace’ was positively correlated with job satisfaction r (347) =.872, p<.05;

‘my leader supports me in my work’ was positively correlated with job satisfaction r

(347) =.876, p<.05; and ‘my leader delegates work to me’ was positively correlated with

job satisfaction r (347) =.734, p<.05.

Table 4.15a: Correlation Analysis between Individualized Consideration Variables

and Job Satisfaction

Individualized Consideration Pearson Correlation Job Satisfaction

My leader mentors me in the

workplace

Pearson Correlation .872**

Sig. (2-tailed) .000

N 347

My leader supports me in my work Pearson Correlation .876**

Sig. (2-tailed) .000

N 347

My leader delegates work to me Pearson Correlation .734**

Sig. (2-tailed) .000

N 347

* Significant at p<0.05 level

Further, correlation analysis was used to test the relationship between individualized

consideration and job satisfaction. The results showed that there was strong and positive

correlation between individualized consideration and job satisfaction r (347) =.595,

p<.05. The results are shown in Table 4.15b.

Table 4.15b: Correlation Analysis between Individualized Consideration and Job

Satisfaction

Job Satisfaction

Individualized

Consideration

Pearson Correlation .595**

Sig. (2-tailed) .000

N 347

* Significant at p<0.05 level

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4.4.5 One-Way ANOVA on Individualized Consideration

The One-way ANOVA test was performed to test the mean difference between

individualized consideration and the demographic information of respondents; gender,

age, education level, duration of working at the bank and the tier of the bank. Table 4.16a

shows the results which indicate there was no significant difference between the mean

values of all the respondents’ demographic information and individualized consideration.

Table 4.16a: One-way ANOVA on Individualized Consideration

Sum of

Squares df

Mean

Square F Sig.

Gender Between Groups 4.020 11 .365 1.484 .136

Within Groups 82.021 333 .246

Total 86.041 344

Age Between Groups 3.713 11 .338 .552 .867

Within Groups 203.122 332 .612

Total 206.834 343

Education Between Groups 6.285 11 .571 1.469 .142

Within Groups 129.558 333 .389

Total 135.843 344

How long

have you

worked

Between Groups 17.074 11 1.552 1.285 .232

Within Groups 403.528 334 1.208

Total 420.601 345

Tier of your

bank

Between Groups 5.789 11 .526 .929 .512

Within Groups 189.704 335 .566

Total 195.493 346

* Significant at p<0.05 level

The One-way ANOVA test was also performed to test the mean differences between job

satisfaction and the demographic factors of gender, age, education, duration of working at

the bank and tier of the bank. Table 4.16b shows the results which indicate that there was

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no significant difference between the mean values of the demographic variables of gender

and tier of the bank with job satisfaction. However, the means for job satisfaction were

significantly different across the age, education and number of years worked.

Table 4.16b: One-way ANOVA of Individualized Consideration on Job Satisfaction

Sum of

Squares

df Mean

Square

F Sig.

Gender

Between Groups 2.796 12 .233 .929 .518

Within Groups 83.245 332 .251

Total 86.041 344

Age

Between Groups 13.382 12 1.115 1.908 .033

Within Groups 193.452 331 .584

Total 206.834 343

Education

Between Groups 8.682 12 .723 1.889 .035

Within Groups 127.162 332 .383

Total 135.843 344

How long

have you

worked

Between Groups 28.751 12 2.396 2.036 .021

Within Groups 391.850 333 1.177

Total 420.601 345

Tier of

your bank

Between Groups 5.702 12 .475 .836 .613

Within Groups 189.791 334 .568

Total 195.493 346

* Significant at p<0.05 level

4.4.6 Regression Analysis and Hypothesis Testing

This section presents the regression analysis, the model used for hypothesis testing in the

study and the assumptions for the regression. The regression analysis was done to

determine the relationship, magnitude of the influence and projection of the effect of

individualized consideration on job satisfaction among employees in commercial banks in

Kenya.

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4.4.6.1 Assumptions for Regression Analysis on Individualized Consideration

Before running the regression analysis, assumptions for regression were tested. The

following tests were conducted: normality test, linearity test, homoscedasticity test and

multicollinearity tests as presented hereunder.

4.4.6.1.1 Normality Test on Individualized Consideration

Using one sample Kolmogorov-Smirnov Test, the test of normality was conducted to

determine the distribution of data depicting either a normal or skewed curve. This was

determined by the statistical significance of the dependent and the independent variable

(p<.05). The normal parameters test indicated difference on mean: individualized

consideration had (M= 3.99, SD = .766) compared to Job satisfaction (M= 3.18, SD =

1.06). The variance on the mean was low compared to the standard deviation variance

which was high. Further, the output showed the variance on the most extreme differences

was minimal and the variables were significant to each other (p<.05) indicating high level

of relationship hence the data was not normally distributed (p<.05). Table 4.17a indicates

the results of normality test.

Table 4.17a: One-Sample Kolmogorov-Smirnov Test on Individualized

Consideration

Individualized

concentration

Individualized

concentration on Job

satisfaction

N 347 347

Normal Parametersa,b Mean 3.9914 3.1671

Std. Deviation .76592 1.06481

Most Extreme Differences Absolute .173 .115

Positive .101 .083

Negative -.173 -.115

Test Statistic .173 .115

Asymp. Sig. (2-tailed) .000c .000c

a. Test distribution is Normal.

b. Calculated from data.

c. Lilliefors Significance Correction.

* Significant at p<0.05 level

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4.4.6.1.2 Linearity Test on Individualized Consideration

The analysis of variance (ANOVA) was used to determine linearity. The linearity test was

conducted to determine whether the nature of the relationship between individualized

consideration and job satisfaction was linear or not. As indicated in Table 4.17b, the

output indicated a significant relationship between individualized concentration and job

satisfaction on the combined and linearity tests (p<.05). However, the deviation from

linearity was not significant. Hence individualized concentration and job satisfaction were

linear and passed the test of linearity.

Table 4.17b: Linearity Test on Individualized Concentration

Sum of

Squares df

Mean

Square F Sig.

Job

Satisfaction *

Individualized

concentration

Between

Groups

(Combined) 144.353 11 13.123 17.730 .000

Linearity 138.779 1 138.779 187.500 .000

Deviation

from Linearity 5.575 10 .557 .753 .674

Within Groups 247.952 335 .740

Total 392.305 346

* Significant at p<0.05 level

4.4.6.1.3 Multicollinearity Test on Individualized Consideration

Multicollinearity test was performed to determine if the values of individualized

consideration and job satisfaction had high similarity. The test of multicollinearity was

analyzed by the variance inflation factor (VIF); statistically, there was no

multicollinearity when the value of VIF between 1 and 10. As indicated in Table 4.17c,

the VIF value was 1.210 shows there was no multicollinearity between individualized

consideration and job satisfaction.

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Table 4.17c: Multicollinearity Test on Individualized Consideration

Model

Unstandardized

Coefficients

Standardized

Coefficients

T Sig.

Collinearity

Statistics

B

Std.

Error Beta Tolerance VIF

1 (Constant) 2.627 .110 23.957 .000

Job Satisfaction .426 .032 .577 13.127 .000 1.210 1.210

4.4.6.1.4 Homoscedasticity Test on Individualized Consideration

Homoscedasticity test was carried out to determine if individualized consideration of the

bank employees had similar variance to job satisfaction on the regression values. As

indicated on Table 4.17d, the results indicate that the value of the Levene Statistic, F(10,

335) = 1.84, p = .053 was above the study’s level of significance (p ≤ .05) indicating the

data was homogenous.

Table 4.17d: Homoscedasticity Test on Individualized Consideration

Levene Statistic df1 df2 Sig.

1.837 10 335 .053

* Significant at p<0.05 level

4.4.6.2 Regression and Hypothesis Testing on Individualized Consideration

Regression analysis was carried out to determine the extent to which individualized

consideration influenced job satisfaction among employees in commercial banks in

Kenya. Multiple linear regression was used to predict job satisfaction among employees

in commercial banks in Kenya from individualized consideration. The hypothesis tested

was:

H02: There is no significant influence of individualized consideration on job satisfaction

among employees in commercial banks in Kenya

The regression results for the hypothesis testing were presented in form of the model

summary, regression ANOVA and regression coefficient.

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4.4.6.2.1 Regression Model Summary

The model summary results presented in Table 4.18 indicate that individualized

consideration explained 35% of job satisfaction among employees in commercial banks

in Kenya (R2) = .354.

Table 4.18: Model Summary of Individualized Consideration on Job Satisfaction

Model R

R

Square

Adjusted

R Square

Std.

Error of

the

Estimate

Change Statistics

R Square

Change

F

Change df1 df2

Sig. F

Change

1 .595a .354 .352 .85724 .354 188.851 1 345 .000

a. Predictors: (Constant), Individualized Consideration

* Significant at p<0.05 level

4.4.6.2.2 Regression ANOVA

The regression ANOVA showed that idealized influence had a significant influence on

job satisfaction F(1, 97.750) = 112.421, p<.05) as indicated Table 4.19.

The regression ANOVA revealed that individualized consideration had a significant

influence on job satisfaction F(1, 138.779) = 188.851, p<.05) as indicated in Table 4.19.

This means that the regression model constructed was suitable for predicting the outcome

variable on how individualized consideration influenced job satisfaction among

employees in commercial banks in Kenya.

Table 4.19: Regression ANOVA of Individualized Consideration on Job Satisfaction

Model Sum of Squares df Mean Square F Sig.

1 Regression 138.779 1 138.779 188.851 .000b

Residual 253.527 345 .735

Total 392.305 346

a. Dependent Variable: Job Satisfaction

b. Predictors: (Constant), Individualized Consideration

* Significant at p<0.05 level

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4.4.6.2.3 Regression Coefficient of Individualized Consideration

Table 4.20 shows the output of the regression coefficient. In the regression coefficient

model, the analysis showed that individualized consideration statistically predicted job

satisfaction (β = .827, (-.545) t = 13.742, p<.05). The beta weight gauges the importance

of the explanatory variable across the model and was positive on the individualized

consideration, Beta of .827 and statistically significant at p<.05. This means a unit

increase in individualized consideration increases the unit of job satisfaction by .827.

Table 4.20: Coefficients of Individualized Consideration on Job Satisfaction

Model

Unstandardized

Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) -.133 .245 -.545 .586

Individualized

Concentration .827 .060 .595 13.742 .000

a. Dependent Variable: Job Satisfaction

* Significant at p<0.05 level

From the coefficient table, the values of the regression model were derived:

The general form of the regression model used was:

= Constant; = individualized consideration and = Error term.

From the coefficient table, individualized consideration influences job satisfaction among

employees in commercial banks in Kenya.

Y= -.133 + .827X + .060

The multiple linear regression analysis was used to test if individualized consideration

significantly predicted job satisfaction among employees in commercial banks in Kenya.

The results revealed individualized consideration explained 35% of job satisfaction (R2 =

.354, F(1, 138.779) = 188.851, p<.05) while the remaining 65% of job satisfaction was

explained by other factors. Further, individualized consideration significantly predicted

job satisfaction (β = .827, (-.545) t = 13.742, p<.05). Therefore, the study rejected the null

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hypothesis H02: There is no significant influence of individualized consideration on job

satisfaction among employees in commercial banks in Kenya and accepted the alternate

hypothesis, H12: There is a significant influence of individualized consideration on job

satisfaction among employees in commercial banks in Kenya.

4.5 Influence of Inspirational Motivation on Job Satisfaction

The third objective in this research was to determine the influence of inspirational

motivation on job satisfaction. This was guided by the independent variable questions on

inspirational motivation and dependent variable questions on job satisfaction. The

independent variable questions were: my leader encourages two-way communication; my

leader promotes teamwork among employees; and my leader’s behavior motivates me at

work. The dependent variable questions on job satisfaction were: I am committed to the

organization because my leader encourages two-way communication, I am hardly absent

from work because my leader promotes teamwork among employees and lastly, I have no

intentions of leaving my job because my leader’s behavior motivates me at work, the

findings are presented as shown below.

4.5.1 Factor Analysis

Factor analysis was used to evaluate the variability among the observed correlated

variables to ensure the questions in the research instrument relate to the construct of

measure. Questions that did not relate to construct were extracted from the analysis.

Factor analysis was conducted on three questions for dependent variable ‘job satisfaction’

and three questions for independent variable ‘inspirational motivation’ presented

separately as follow.

4.5.1.1 Factor Analysis on Inspiration Motivation

The independent variable in this study was inspirational motivation. As indicated in Table

4.21a, only one factor was derived with Kaiser-Meyer Olkin result of .747. The Bartlett’s

test of sphericity was significant at X2 (3, N=347) = 608.536, p<.05. The factor was

adequate for extraction of component since Kaiser-Meyer-Olkin Measure was greater

than .60 and the Bartlett’s test was significant (p<.05).

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Table 4.21a: KMO and Bartlett's Test on Inspirational Motivation

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .747

Bartlett's Test of Sphericity Approx. Chi-square 608.536

df 3

Sig. .000

* Significant at p<0.05 level

Using the Principal component analysis, the total variance explained on the extraction

showed the extracted values presented 83% of the first component. Only one component

was extracted ‘inspiration motivation’. Further, average value principle was used to

obtain the measure of the extracted independent variable by transformation. Table 4.21b

shows the results of the variance explained.

Table 4.21b: Total Variance Explained for Inspirational Motivation

Componen

t

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 2.477 82.559 82.559 2.477 82.559 82.559

2 .293 9.753 92.312

3 .231 7.688 100.000

Extraction Method: Principal Component Analysis.

One component for inspirational motivation had an Eigen value that was greater than one

which was in line with the results for total variance explained for inspirational motivation

as shown in Figure 4.8.

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Figure 4.8: Scree Plot for Inspirational Motivation

The variables of the extracted components are indicated on the component matrix Table

4.21c. Only one factor was extracted representing ‘inspirational motivation’. The

variables extracted and values were: my leader encourages two-way communication

(.897), my leader promotes teamwork among employees (.919), and my leader’s behavior

motivates me at work (.909). All the variables and component measure under the factor

loading were greater than .60. Further, using the average of the components, the

transformed data had a stronger component of .908 which was greater than .60. All the

components were included as variables of analysis in the model ‘inspirational motivation’

since the values were greater than .60.

Table 4.21c: Component Matrix on Inspirational Motivation

Inspirational Motivation

Component

1

My leader encourages two-way communication .897

My leader promotes teamwork among employees .919

My leader’s behavior motivates me at work .909

Extraction Method: Principal Component Analysis.

a. 1 component extracted.

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4.5.1.2 Factor Analysis on Inspirational Motivation and Job Satisfaction

The dependent variable in the study was influence of inspirational motivation on job

satisfaction. As indicated in Table 4.22a, only one factor was derived with Kaiser-Meyer

Olkin result of .75. The Bartlett’s test of sphericity was significant at X2 (3, N=347) =

685.906, p<.05. The factor was adequate for extraction of the component since Kaiser-

Meyer-Olkin Measure was greater than .60 and the Bartlett’s test was significant (p<.05).

Table 4.22a: KMO and Bartlett's Test Inspirational Motivation and Job Satisfaction

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .750

Bartlett's Test of Sphericity Approx. Chi-square 685.906

df 3

Sig. .000

* Significant at p<0.05 level

Using the Principal component analysis, the total variance explained on the extraction

showed the extracted values presented 84% of the component. Only one component was

extracted ‘inspirational motivation on job satisfaction’. Further, the average value

principle was used to obtain the measure of the extracted independent variable named

‘inspirational motivation on job satisfaction’ by transformation. Table 4.22b shows the

results of the variance explained.

Table 4.22b: Total Variance Explained for Inspirational motivation on Job

Satisfaction

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Total

% of

Variance Cumulative % Total

% of

Variance

Cumulative

%

1 2.529 84.313 84.313 2.529 84.313 84.313

2 .274 9.128 93.441

3 .197 6.559 100.000

Extraction Method: Principal Component Analysis.

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The variables of the extracted components were indicated on the component matrix table.

Only one factor was extracted representing ‘inspirational motivation on job satisfaction’.

The variables extracted and values were; I am committed to the organization because my

leader encourages two-way communication had a component matrix value of .918; I am

hardly absent from work because my leader promotes teamwork among employees had a

component matrix value of. 932 and lastly; I have no intentions of leaving my job because

my leader’s behavior motivates me at work had a component matrix value of .905. All the

variables and component measure under the factor loading were greater than .60. Further,

using the average of the components, the transformed data has a stronger component of

.918 which is greater than .60. This means all the components of the independent variable

were included as variables of analysis in the model as ‘inspirational motivation on job

satisfaction’ since the values were greater than .60. Table 4.22c shows the component

matrix of inspirational motivation on job satisfaction.

Table 4.22c: Component Matrix on Inspirational Motivation and Job Satisfaction

Inspirational Motivation on Job Satisfaction

Component

1

I am committed to the organization because my leader encourages

two-way communication .918

I am hardly absent from work because my leader promotes

teamwork among employees .932

I have no intentions of leaving my job because my leader’s behavior

motivates me at work .905

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

4.5.2 Descriptive Statistics for Inspirational Motivation

On inspirational motivation, majority of the respondents agreed on the attribute ‘my

leader promotes teamwork among employees’ (M= 4.12, SD = .92), followed by ‘my

leader encourages two-way communication’ (M= 4.08, SD = .92). This clearly shows the

difference; with decrease in mean, the standard deviation increased indicating varied

responses. Table 4.23 indicates the results of the descriptive statistics of inspirational

motivation. On job satisfaction, majority of the respondents agreed that ‘I am committed

to the organization because my leader encourages two-way communication’ (M= 3.41,

SD = 1.10). This was followed by ‘I am hardly absent from work because my leader

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promotes teamwork among employees’ (M= 3.23, SD = 1.09. The trend of the mean and

standard deviation varied depicting varied responses as indicated in Table 4.23.

Table 4.23: Mean and Standard Deviation of Inspirational Motivation

Inspirational Motivation M SD Skewness Std Err

My leader encourages two-way communication 4.0807 .91825 -1.219 .131

My leader promotes teamwork among

employees 4.1210 .92323 -1.262 .131

My leader’s behavior motivates me at work 3.8542 1.05230 -.917 .132

Inspirational Motivations on Job

Satisfaction

I am committed to the organization because my

leader encourages two-way communication 3.4150 1.10992 -.467 .131

I am always present at work because my leader

promotes teamwork among employees 3.2305 1.09063 -.240 .131

I have no intentions of leaving my job because

my leader’s behavior motivates me at work 3.0490 1.16570 -.063 .131

4.5.3 Chi-square Test: Inspirational Motivation and Job Satisfaction

The Chi-square test was used to determine whether there was a significant association

between inspirational motivation and job satisfaction. The chi-square test results showed

that there was as significant association between inspirational motivation and job

satisfaction X2 (156, N = 347) = 445.180, p<.05). The results are presented in Table 4.24.

Table 4.24: Chi-square Test on Inspirational Motivation and Job Satisfaction

Inspirational Motivation Value df Asymp. Sig. (2-sided)

Pearson Chi-square 445.180a 156 .000

Likelihood Ratio 312.954 156 .000

Linear-by-Linear Association 119.052 1 .000

N of Valid Cases 347

a. 163 cells (89.6%) have expected count less than 5. The minimum expected count is .02.

* Significant at p<0.05 level

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4.5.4 Correlation Analysis between Inspirational Motivation and Job Satisfaction

Correlation analysis was used to test the relationship between the inspirational motivation

variables and job satisfaction. As shown in Table 4.25a, all the variables were highly

correlated. The first variable under inspirational motivation ‘my leader encourages two-

way communication’ was positively correlated with job satisfaction r (347) =.893, p<.05;

‘my leader promotes teamwork among employees’ was positively correlated with job

satisfaction r (347) =.915, p<.05; and ‘my leader’s behavior motivates me at work’ was

positively correlated with job satisfaction r (347) =.917, p<.05.

Table 4.25a: Correlation Analysis between Inspirational Motivation Variables and

Job Satisfaction

Inspirational Motivation Pearson Correlation Job Satisfaction

My leader encourages two-way

communication

Pearson Correlation .893**

Sig. (2-tailed) .000

N 347

My leader promotes teamwork among

employees

Pearson Correlation .915**

Sig. (2-tailed) .000

N 347

My leader’s behavior motivates me at

work

Pearson Correlation .917**

Sig. (2-tailed) .000

N 347

* Significant at p<0.05 level

Further, correlation analysis was used to test the relationship between inspirational

motivation and job satisfaction. The results show that there was a strong and positive

correlation between inspirational motivation and job satisfaction r (347) =.587, p<.05.

The results are as shown in Table 4.25b.

Table 4.25b: Correlation Analysis between Inspirational Motivation and Job

Satisfaction

Job Satisfaction

Inspirational Motivation Pearson Correlation .587**

Sig. (2-tailed) .000

N 347

* Significant at p<0.05 level

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4.5.5 One-Way ANOVA on Inspirational Motivation

The One-way ANOVA test was performed to test the mean difference between

inspirational motivation and the demographic information of respondents; gender, age,

education level, duration of working at the bank and the tier of the bank. Table 4.26a

shows the results which indicate that there was no significant difference between the

mean values of all the respondents’ demographic information and inspirational

motivation.

Table 4.26a: One-way ANOVA on Inspirational Motivation

Sum of

Squares df Mean Square F Sig.

Gender Between Groups 4.328 13 .333 1.349 .183

Within Groups 81.712 331 .247

Total 86.041 344

Age Between Groups 4.501 13 .346 .565 .881

Within Groups 202.333 330 .613

Total 206.834 343

Education Between Groups 4.072 13 .313 .787 .674

Within Groups 131.771 331 .398

Total 135.843 344

How long

have you

worked

Between Groups 15.776 13 1.214 .995 .455

Within Groups 404.825 332 1.219

Total 420.601 345

Tier of your

bank

Between Groups 11.005 13 .847 1.528 .105

Within Groups 184.488 333 .554

Total 195.493 346

* Significant at p<0.05 level

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The One-way ANOVA test was also performed to test the mean differences between job

satisfaction and the demographic factors of gender, age, education, duration of working at

the bank and tier of the bank. Table 4.26b shows the results which indicate that there was

no significant difference between the mean values of the demographic variables on

inspirational motivation and job satisfaction.

Table 4.26b: One-way ANOVA of Inspirational Motivation on Job Satisfaction

Sum of

Squares

df Mean

Square

F Sig.

Gender

Between

Groups 2.985 12 .249 .994 .454

Within

Groups 83.055 332 .250

Total 86.041 344

Age

Between

Groups 7.091 12 .591 .979 .468

Within

Groups 199.743 331 .603

Total 206.834 343

Education

Between

Groups 6.501 12 .542 1.391 .168

Within

Groups 129.343 332 .390

Total 135.843 344

How long have you

worked

Between

Groups 18.449 12 1.537 1.273 .233

Within

Groups 402.152 333 1.208

Total 420.601 345

Tier of your bank

Between

Groups 4.348 12 .362 .633 .814

Within

Groups 191.145 334 .572

Total 195.493 346

* Significant at p<0.05 level

4.5.6 Regression Analysis and Hypothesis Testing

This section presents the regression analysis, the model used for hypothesis testing in the

study and the assumptions for the regression. The regression analysis was done to

determine the relationship, magnitude of the effect and projection of the effect of

inspirational motivation on job satisfaction among employees in commercial banks in

Kenya.

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4.5.6.1 Assumptions for Regression Analysis on Inspirational Motivation

Before running the regression analysis, assumptions for regression were tested. The

following tests were conducted: normality test, linearity test, homoscedasticity test and

multicollinearity tests as presented below.

4.5.6.1.1 Normality Test on Inspirational Motivation

Using one sample Kolmogorov-Smirnov Test, the test of normality was conducted to

determine the distribution of data depicting either normal or skewed curve. This was

determined by statistical significance of the dependent and the independent variable

(p<.05). The normal parameters test indicated a difference on mean: inspirational

motivation had (M= 4.02, SD = .876) compared to Job satisfaction (M= 3.23, SD = 1.03).

The variance on the mean was low compared to the standard deviation variance which

was high. Further, the output showed the variance on the most extreme differences was

minimal and the variables were significant to each other (p<.05) indicating high level of

relationship hence the data was not normally distributed (p<.05). Table 4.27a shows the

output of the normality test.

Table 4.27a: One-Sample Kolmogorov-Smirnov Test on Inspirational Motivation

Inspirational

motivation

Inspirational

motivation on

Job Satisfaction

N 347 347

Normal Parametersa,b Mean 4.0216 3.2315

Std. Deviation .87640 1.03000

Most Extreme Differences Absolute .185 .126

Positive .132 .075

Negative -.185 -.126

Test Statistic .185 .126

Asymp. Sig. (2-tailed) .000c .000c

a. Test distribution is Normal.

b. Calculated from data.

c. Lilliefors Significance Correction.

* Significant at p<0.05 level

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4.5.6.1.2 Linearity Test on Inspirational Motivation

The analysis of variance (ANOVA) was used to determine linearity. The linearity test was

conducted to determine the nature of the relationship between inspirational motivation

and job satisfaction whether linear or not. As indicated in Table 4.27b, there was a

significant relationship between inspirational motivation and job satisfaction on the

combined and linearity tests (p<.05). However, the deviation from linearity was not

significant. Hence inspirational motivation and job satisfaction were linear and passed the

test of linearity.

Table 4.27b: Linearity Test on Inspirational Motivation

Sum of

Squares Df

Mean

Square F Sig.

Inspirational

motivation on

Job Satisfaction

* Inspirational

motivation

Between

Groups

(Combined) 134.195 13 10.323 14.761 .000

Linearity 126.302 1 126.302 180.606 .000

Deviation

from Linearity 7.893 12 .658 .941 .506

Within Groups 232.874 333 .699

Total 367.069 346

* Significant at p<0.05 level

4.5.6.1.3 Multicollinearity Test on Inspirational Motivation

Multicollinearity test was performed to determine if the values of inspirational motivation

and job satisfaction had higher similarity. The test of multicollinearity was tested using

the variance inflation factor (VIF); statistically, there was no multicollinearity when the

value of VIF between 1 and 10. As indicated in Table 4.27c, the VIF value was 2.260

which showed that there was no multicollinearity between inspirational motivation and

job satisfaction.

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Table 4.27c: Multicollinearity Test on Inspirational Motivation

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Collinearity

Statistics

B

Std.

Error Beta Tolerance VIF

1 (Constant) .459 .211 2.177 .030

Inspirational

motivation .689 .051 .587 13.453 .000 2.260 2.260

4.5.6.1.4 Homoscedasticity Test on Inspirational Motivation

Homoscedasticity test was carried out to determine if inspirational motivation of the bank

employees had similar variance to job satisfaction on the regression values. As indicated

on Table 4.27d, results indicate that the value of the Levene Statistic, F(12, 333) = 3.25,

p = .00 was above the study’s level of significance (p ≤ .05) indicating the data was not

homogenous.

Table 4.27d: Homoscedasticity Test on Inspirational Motivation

Levene Statistic df1 df2 Sig.

3.248 12 333 .000

* Significant at p<0.05 level

4.5.6.2 Regression and Hypothesis Testing on Inspirational Motivation

Regression analysis was carried out to determine the extent to which inspirational

motivation influenced job satisfaction among employees in commercial banks in Kenya.

Multiple linear regression was used to predict job satisfaction among employees in

commercial banks in Kenya from inspirational motivation. The hypothesis tested was:

H03: There is no significant influence of inspirational motivation on job satisfaction

among employees in commercial banks in Kenya

The regression results for the hypothesis testing were presented in the form of the model

summary, regression ANOVA and regression coefficient.

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4.5.6.2.1 Regression Model Summary

The model summary results presented in Table 4.28 indicate that inspirational motivation

explained 34% of job satisfaction of employees in commercial banks in Kenya (R2) =

.344.

Table 4.28: Model Summary on Inspirational Motivation and Job Satisfaction

Model R

R

Square

Adjusted

R

Square

Std.

Error of

the

Estimate

Change Statistics

R

Square

Change

F

Change df1 df2

Sig. F

Change

1 .587a .344 .342 .83539 .344 180.980 1 345 .000

a. Predictors: (Constant), Inspirational motivation

* Significant at p<0.05 level

4.5.6.2.2 Regression ANOVA

The regression ANOVA showed that inspirational motivation had a significant influence

on job satisfaction F(1, 126.302) = 180.980, p<.05) as indicated in Table 4.29. This

showed the regression model constructed was suitable in predicting the outcome variable

on how inspirational motivation influenced job satisfaction among employees in

commercial banks in Kenya.

Table 4.29: ANOVA for Inspirational Motivation and Job Satisfaction

Model

Sum of

Squares df Mean Square F Sig.

1 Regression 126.302 1 126.302 180.980 .000b

Residual 240.767 345 .698

Total 367.069 346

a. Dependent Variable: Inspirational motivation on Job Satisfaction

b. Predictors: (Constant), Inspirational motivation

* Significant at p<0.05 level

4.5.6.2.3 Regression Coefficient of Inspirational Motivation

Table 4.30 shows the results of the regression coefficient. In the regression coefficient

model, the analysis showed inspirational motivation statistically predicted job satisfaction

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(β = .689, (2.117) t = 13.453, p<.05). The beta weight gauges the importance of

explanatory variable across the model and was positive on the inspirational motivation,

Beta of .689 and statistically significant at p<.05. This means, one unit of increase in

inspirational motivation increased the unit of satisfaction by .689.

Table 4.30: Coefficients of Inspirational Motivation on Job Satisfaction

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) .459 .211 2.177 .030

Inspirational

motivation .689 .051 .587 13.453 .000

a. Dependent Variable: Inspirational motivation on Job Satisfaction

* Significant at p<0.05 level

From the coefficient table, the values of the regression model were derived:

The general form of the regression model used was:

= Constant; = Inspirational Motivation and = Error term.

From the coefficient table, inspirational motivation influenced job satisfaction among

employees in commercial banks in Kenya.

Y= 0.459 + .689X +.051

Multiple linear regression analysis was used to test if inspirational motivation

significantly predicted job satisfaction among employees in commercial banks in Kenya.

The results revealed that inspirational motivation explained 34% of the job satisfaction

(R2 = .344, F(1, 126.302) = 180.980, p<.05) while the remaining 66% of job satisfaction

was explained by other factors. Further, inspirational motivation significantly predicted

job satisfaction (β = .689, (2.117) t = 13.453, p<.05). Therefore, the study rejected the

null hypothesis H03: There is no significant influence of inspirational motivation on job

satisfaction among employees in commercial banks in Kenya and accepted the alternate

hypothesis, H12: There is a significant influence of inspirational motivation on job

satisfaction among employees in commercial banks in Kenya.

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4.6 Influence of Intellectual Stimulation on Job Satisfaction

The fourth objective in this study was to determine the influence of intellectual

stimulation on job satisfaction. This was guided by the independent variable questions on

intellectual stimulation and dependent variable questions on job satisfaction. The

independent variable questions were: my leader encourages knowledge sharing among

employees; my leader permits me to be creative in my job and; my leader allows me to

take risks in my job. The dependent variable questions were: I am committed to the

organization because my leader encourages knowledge sharing among employees; I am

hardly absent from work because my leader permits me to be creative in my job; and I

have no intentions of leaving my job because my leader allows me to take risks in my job.

The findings are presented as follows.

4.6.1 Factor Analysis

Factor analysis was used to evaluate the variability among the observed correlated

variables to ensure the questions in the research instrument relate to the construct of

measure. Questions that did not relate to construct were extracted from the analysis.

Factor analysis was conducted on three questions for dependent variable ‘intellectual

stimulation’ and three questions on independent variable ‘intellectual stimulation’

presented separately as shown below.

4.6.1.1 Factor Analysis on Intellectual Stimulation

The independent variable in study was intellectual stimulation. As indicated in Table

4.31a, only one factor was derived with Kaiser-Meyer Olkin result of .712. The Bartlett’s

test of sphericity was significant at X2 (3, N=347) = 460.533, p<.05. The factor was

adequate for extraction of component since Kaiser-Meyer-Olkin Measure was greater

than .60 and the Bartlett’s test was significant (p<.05).

Table 4.31a: KMO and Bartlett's Test on Intellectual Stimulation

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .712

Bartlett's Test of Sphericity Approx. Chi-square 460.533

df 3

Sig. .000

* Significant at p<0.05 level

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Using the Principal component analysis, the total variance explained on the extraction

showed that the extracted values presented 77% of the first component. Only one

component was extracted ‘intellectual stimulation’. Further, the average value principle

was used to obtain the measure of the extracted independent variable by transformation.

Table 4.31b shows the results of the variance explained.

Table 4.31b: Total Variance Explained for Intellectual Stimulation

Component

Initial Eigen values

Extraction Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 2.310 77.010 77.010 2.310 77.010 77.010

2 .418 13.938 90.948

3 .272 9.052 100.000

Extraction Method: Principal Component Analysis

The variables of the extracted components are indicated on the component matrix table.

Only one factor was extracted representing ‘intellectual stimulation’. The variables and

values extracted were: ‘my leader encourages knowledge sharing among employees’

(.859), ‘my leader permits me to be creative in my job’ (.908); and ‘my leader allows me

to take risks in my job’ (.864). All variables and component measure under the factor

loading were greater than .60. Further, using the average of the components, the

transformed data had a stronger component of .877 which is greater than .60. All the

components were included as variables of analysis in the model ‘intellectual stimulation’

since the values were greater than .60. Table 4.31c shows the component matrix for

intellectual stimulation.

Table 4.31c: Component Matrix on Intellectual Stimulation

Intellectual stimulation Component

1

My leader encourages knowledge sharing among employees .859

My leader permits me to be creative in my job .908

My leader allows me to take risks in my job .864

Extraction Method: Principal Component Analysis.

a. 1 component extracted.

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4.6.1.2 Factor Analysis on Intellectual Stimulation on Job Satisfaction

The dependent variable in the study was intellectual stimulation on job satisfaction. As

indicated in Table 4.32a, only one factor was derived with Kaiser-Meyer Olkin result of

.733. The Bartlett’s test of sphericity was significant at X2 (3, N=347) = 600.174, p<.05.

This indicated the factor was adequate for extraction of component since Kaiser-Meyer-

Olkin Measure was greater than .60 and the Bartlett’s test was significant (p<.05).

Table 4.32a: KMO and Bartlett's Test on Intellectual Stimulation on Job

Satisfaction

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .733

Bartlett's Test of Sphericity Approx. Chi-square 600.174

df 3

Sig. .000

* Significant at p<0.05 level

Using the Principal component analysis, the total variance explained on the extraction

showed the extracted values presented 82% of the component. Only one component was

extracted ‘intellectual stimulation on job satisfaction’. Further, the average value principle

was used to obtain the measure of the extracted independent variable named ‘intellectual

stimulation on job satisfaction’ by transformation. Table 4.32b shows the results of the

variance explained.

Table 4.32b: Total Variance Explained for Intellectual Stimulation

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 2.454 81.786 81.786 2.454 81.786 81.786

2 .331 11.046 92.832

3 .215 7.168 100.000

Extraction Method: Principal Component Analysis

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One component for intellectual stimulation had an Eigen value that was greater than one

which was in line with the results for total variance explained for intellectual stimulation

as shown in Figure 4.9.

Figure 4.9: Scree Plot for Intellectual Stimulation

The variables of the extracted components are indicated on the component matrix table.

Only one factor was extracted representing ‘intellectual stimulation on job satisfaction’.

The variables and values were: ‘I am committed to the organization because my leader

encourages knowledge sharing among employees’ had a component matrix value of .897;

‘I am hardly absent from work because my leader permits me to be creative in my job’

had a component matrix value of. 927 and lastly; ‘I have no intentions of leaving my job

because my leader allows me to take risks in my job’ had a component matrix value of

.889.

All the variables and component measure under the factor loading were greater than .60.

Further, using the average of the components, the transformed data had a stronger

component of .904 which was greater than .60. All the components were included as

variables of analysis in the model as ‘intellectual stimulation’. Table 4.32c shows the

component matrix for intellectual stimulation on job satisfaction.

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Table 4.32c: Component Matrix on Intellectual Stimulation and Job Satisfaction

Intellectual stimulation on job satisfaction Component

1

I am committed to the organization because my leader encourages

knowledge sharing among employees .897

I am hardly absent from work because my leader permits me to be

creative in my job .927

I have no intentions of leaving my job because my leader allows

me to take risks in my job .889

Extraction Method: Principal Component Analysis.

a. 1 component extracted.

4.6.2 Descriptive Statistics on Intellectual Stimulation

On intellectual stimulation, majority of the respondents agreed on the attribute ‘my leader

encourages knowledge sharing among employees’ (M= 4.13, SD = .86) followed by ‘my

leader permits me to be creative in my job’ (M= 4.0, SD = .94). This clearly showed the

difference; with decrease in mean, the standard deviation increased indicating varied

responses. Table 4.33 shows the results of the descriptive statistics of intellectual

stimulation.

On job satisfaction, majority of the respondents agreed on the attribute ‘I am committed

to the organization because my leader encourages knowledge sharing among employees’

(M= 3.48, SD = 1.11). This was followed by ‘I am hardly absent from work because my

leader permits me to be creative in my job’ (M= 3.31, SD = 1.12). The trend of the mean

and standard deviation indicates variance in responses as presented in Table 4.33.

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Table 4.33: Mean and Standard Deviation of Intellectual Stimulations

Intellectual Stimulation M SD Skewness Std. Err

My leader encourages knowledge sharing

among employees 4.1326 .86000 -1.273 .131

My leader permits me to be creative in my

job 4.0086 .93884 -1.050 .131

My leader allows me to take risks in my

job 3.5850 1.04555 -.433 .131

Influence of Intellectual Stimulation on Job Satisfaction

I am committed to the organization

because my leader encourages knowledge

sharing among employees

3.4784 1.11297 -.445 .131

I am always present at work because my

leader permits me to be creative in my job 3.3112 1.12305 -.267 .131

I have no intentions of leaving my job

because my leader allows me to take risks

in my job

2.9193 1.16517 .070 .131

4.6.3 Chi-square Test on Intellectual Stimulation and Job Satisfaction

The Chi-square test was used to determine whether there was a significant association

between intellectual stimulation and job satisfaction. The chi-square test showed that

there was a significant association between intellectual stimulation and job satisfaction X2

(144, N = 347) = 426.404, p<.05). The results are presented in Table 4.34.

Table 4.34: Chi-square Test on Intellectual Stimulation and Job Satisfaction

Intellectual Stimulation Value df Asymp. Sig. (2-sided)

Pearson Chi-square 426.404a 144 .000

Likelihood Ratio 314.315 144 .000

Linear-by-Linear Association 101.155 1 .000

N of Valid Cases 347

a. 147 cells (87.0%) have expected count less than 5. The minimum expected count is

.03.

* Significant at p<0.05 level

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4.6.4 Correlation Analysis between Intellectual Stimulation and Job Satisfaction

Correlation analysis was used to test the relationship between the intellectual stimulation

variables and job satisfaction. As shown in Table 4.35a, all the variables were highly

correlated. The first variable under intellectual stimulation ‘my leader encourages

knowledge sharing among employees’ was positively correlated with job satisfaction r

(347) =.638, p<.05; ‘my leader permits me to be creative in my job’ was positively

correlated with job satisfaction r (347) =.547, p<.05; and ‘my leader allows me to take

risks in my job’ was positively correlated with job satisfaction r (347) =.550, p<.05.

Table 4.35a: Correlation Analysis between Intellectual Stimulation Variables and

Job Satisfaction

Intellectual Stimulation Pearson Correlation Job Satisfaction

My leader encourages knowledge

sharing among employees

Pearson Correlation .638**

Sig. (2-tailed) .000

N 347

My leader permits me to be creative in

my job

Pearson Correlation .547**

Sig. (2-tailed) .000

N 347

My leader allows me to take risks in my

job

Pearson Correlation .550**

Sig. (2-tailed) .000

N 347

* Significant at p<0.05 level

Further, correlation analysis was used to test the relationship between intellectual

stimulation and job satisfaction. The results show there was strong and positive

correlation between intellectual stimulation and job satisfaction r (347) =.541, p<.05. The

results are outlined in Table 4.35b.

Table 4.35b: Correlation Analysis between Intellectual Stimulation and Job

Satisfaction

Job Satisfaction

Intellectual Stimulation Pearson Correlation .541**

Sig. (2-tailed) .000

N 347

* Significant at p<0.05 level

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4.6.5 One-way ANOVA on Intellectual Stimulation

The One-way ANOVA test was performed to test the mean differences between

intellectual stimulation and the demographic information of respondents; gender, age,

education level, duration of working at the bank and lastly the tier of the bank. Table

4.36a shows the results which indicate there was no significant difference between the

mean values of all the respondents’ demographic information and intellectual stimulation.

Table 4.36a: One-way ANOVA on Intellectual stimulation

Sum of

Squares Df

Mean

Square F Sig.

Gender Between Groups 3.659 12 .305 1.229 .261

Within Groups 82.381 332 .248

Total 86.041 344

Age Between Groups 3.507 12 .292 .476 .928

Within Groups 203.327 331 .614

Total 206.834 343

Education Between Groups 6.618 12 .551 1.417 .156

Within Groups 129.226 332 .389

Total 135.843 344

How long

have you

worked

Between Groups 15.730 12 1.311 1.078 .378

Within Groups 404.871 333 1.216

Total 420.601 345

Tier of

your bank

Between Groups 7.987 12 .666 1.186 .292

Within Groups 187.506 334 .561

Total 195.493 346

* Significant at p<0.05 level

The One-way ANOVA test was also performed to test the mean differences between job

satisfaction and the demographic factors of gender, age, education, duration of working at

the bank and tier of the bank. Table 4.36b shows the results which indicate that there was

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no significant difference between the mean values of the demographic variables on

intellectual stimulation and job satisfaction.

Table 4.36b: One-way ANOVA on Intellectual stimulation on Job Satisfaction

Sum of

Squares

df Mean

Square

F Sig.

Gender

Between

Groups 2.909 12 .242 .968 .479

Within

Groups 83.132 332 .250

Total 86.041 344

Age

Between

Groups 7.890 12 .658 1.094 .364

Within

Groups 198.944 331 .601

Total 206.834 343

Education

Between

Groups 5.453 12 .454 1.157 .313

Within

Groups 130.390 332 .393

Total 135.843 344

How long have you

worked

Between

Groups 21.948 12 1.829 1.528 .112

Within

Groups 398.653 333 1.197

Total 420.601 345

Tier of your bank

Between

Groups 5.570 12 .464 .816 .634

Within

Groups 189.923 334 .569

Total 195.493 346

* Significant at p<0.05 level

4.6.6 Regression Analysis and Hypothesis Testing

This section presents the regression analysis, the model used for hypothesis testing in the

study and the assumptions for the regression. The regression analysis was done to

determine the relationship, magnitude of the effect and projection of the effect of

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intellectual stimulation on job satisfaction among employees in commercial banks in

Kenya.

4.6.6.1 Assumptions for Regression Analysis on Intellectual Stimulation

Before running the regression analysis, assumptions for regression were tested. The

following tests were conducted: normality test, linearity test, homoscedasticity test and

multicollinearity tests as presented below.

4.6.6.1.1 Normality Test on Intellectual Stimulation

Using one sample Kolmogorov-Smirnov Test, the test of normality was conducted to

determine the distribution of data depicting either normal or skewed curve. This was

determined by statistical significance of the dependent and the independent variable

(p<.05). The normal parameters test indicated a difference on mean: intellectual

stimulation had (M= 3.91, SD = 0.832) compared to Job satisfaction (M= 3.24, SD =

1.02). The variance on the mean was low compared to the standard deviation variance

which was high. Further, the output showed the variance on the most extreme differences

was minimal and the variables were significant to each other (p<.05) indicating a high

level of relationship hence the data was not normally distributed (p<.05). Table 4.37a

indicates the results of the normality test.

Table 4.37a: One-Sample Kolmogorov-Smirnov Test on Intellectual Stimulation

Intellectual

Stimulation Job Satisfaction

N 347 347

Normal Parametersa,b Mean 3.9087 3.2363

Std. Deviation .83227 1.02499

Most Extreme Differences Absolute .146 .112

Positive .105 .085

Negative -.146 -.112

Test Statistic .146 .112

Asymp. Sig. (2-tailed) .000c .000c

a. Test distribution is Normal.

b. Calculated from data.

c. Lilliefors Significance Correction.

* Significant at p<0.05 level

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4.6.6.1.2 Linearity Test on Intellectual Stimulation

The analysis of variance (ANOVA) was used to determine linearity. The linearity test was

conducted to determine whether the nature of the relationship between intellectual

stimulation and job satisfaction was linear or not. As indicated in table 4.37b, there was

significant relationship between intellectual stimulation and job satisfaction on the

combined and linearity tests (p<.05). However, the deviation from linearity was not

significant. Hence intellectual stimulation and job satisfaction were linear and passed the

test of linearity.

Table 4.37b: Linearity Test on Intellectual Stimulation

Sum of

Squares df

Mean

Square F Sig.

Job

Satisfaction

* Intellectual

Stimulation

Between

Groups

(Combined) 114.587 12 9.549 12.813 .000

Linearity 106.274 1 106.274 142.596 .000

Deviation

from Linearity 8.313 11 .756 1.014 .433

Within Groups 248.924 334 .745

Total 363.511 346

* Significant at p<0.05 level

4.6.6.1.3 Multicollinearity Test on Intellectual Stimulation

Multicollinearity test was performed to determine if the values of intellectual stimulation

and job satisfaction had higher similarity. The test of multicollinearity was tested by the

Variance Inflation Factor (VIF); statistically, there was no multicollinearity when the

value of VIF between 1 and 10. As indicated in Table 4.37c, the VIF value was 1.801

hence it indicated there was no multicollinearity between intellectual stimulation and job

satisfaction.

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Table 4.37c: Multicollinearity Test on Intellectual Stimulation.

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Collinearity

Statistics

B

Std.

Error Beta Tolerance VIF

1 (Constant) .633 .223 2.842 .005

Intellectual

Stimulation .666 .056 .541 11.939 .000 1.801 1.801

4.6.6.1.4 Homoscedasticity Test on Intellectual Stimulation

Homoscedasticity test was carried out to determine if intellectual stimulation of the bank

employees gives similar variance to job satisfaction on the regression values. As indicated

on Table 4.37d, the results indicate that the value of the Levene Statistic, F(12, 334) =

2.26, p = .01 was below the study’s level of significance (p ≤ .05) indicating the data was

not homogenous.

Table 4.37d: Homoscedasticity Test on Intellectual Stimulation

Levene Statistic df1 df2 Sig.

2.259 12 334 .009

* Significant at p<0.05 level

4.6.6.2 Regression and Hypothesis Testing on Intellectual Stimulation

Regression analysis was carried out to determine the extent to which intellectual

stimulation influenced job satisfaction among employees in commercial banks in Kenya.

Multiple linear regression was used to predict job satisfaction of employees in

commercial banks in Kenya from intellectual stimulation. The hypothesis tested was:

H04: There is no significant influence of intellectual stimulation on job satisfaction among

the employees in commercial banks in Kenya.

The regression results for the hypothesis testing were presented in the form of the model

summary, regression ANOVA and regression coefficient.

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4.6.6.2.1 Regression Model Summary

The model summary results presented in Table 4.38 indicate that intellectual stimulation

explained 29% of job satisfaction of employees in commercial banks in Kenya (R2) =

.292.

Table 4.38: Model Summary on Intellectual Stimulation on Job Satisfaction

Model R

R

Square

Adjusted

R

Square

Std. Error

of the

Estimate

Change Statistics

R

Square

Change

F

Change df df2

Sig. F

Change

1 .541a .292 .290 .86349 .292 142.533 1 345 .000

a. Predictors: (Constant), Intellectual Stimulation

b. Dependent Variable: Job Satisfaction

* Significant at p<0.05 level

4.6.6.2.2 Regression ANOVA

The regression ANOVA showed that intellectual stimulation had a significant influence

on job satisfaction F(1, 106.274) = 142.533, p<.05) as indicated in Table 4.39. This

means that the regression model was suitable for predicting the outcome variable on how

intellectual stimulation influenced job satisfaction among employees in commercial banks

in Kenya.

Table 4.39: ANOVA of Intellectual Stimulation on job satisfaction

Model Sum of Squares df Mean Square F Sig.

1 Regression 106.274 1 106.274 142.533 .000b

Residual 257.237 345 .746

Total 363.511 346

a. Dependent Variable: Job Satisfaction

b. Predictors: (Constant), Intellectual Stimulation

* Significant at p<0.05 level

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4.6.6.2.3 Regression Coefficient of Intellectual Stimulation

Table 4.40 shows the results of the regression coefficient. In the regression coefficient

model, the analysis showed that intellectual stimulation statistically predicted job

satisfaction (β = .666, (2.842) t = 11.939, p<.05). The beta weight gauges the importance

of explanatory variable across the model and was positive on intellectual stimulation,

Beta of .666 and statistically significant at p<.05. This means, one unit of increase in

intellectual stimulation increased the unit of job satisfaction by .666.

Table 4.40: Coefficients of Intellectual Stimulation on job satisfaction

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Collinearity

Statistics

B Std. Error Beta Tolerance VIF

1 (Constant) .633 .223 2.842 .005

Intellectual

Stimulation .666 .056 .541 11.939 .000 1.000 1.000

a. Dependent Variable: Job Satisfaction

* Significant at p<0.05 level

From the coefficient table, the values of the regression model were derived:

The general form of the regression model used was:

= Constant; = Intellectual Stimulation and = Error term.

From the coefficient table, intellectual stimulation influences job satisfaction in the

Kenyan banking sector.

Y= 0.633 + .666X +.056

The multiple linear regression analysis was used to test if intellectual stimulation

significantly predicted job satisfaction among employees in commercial banks in Kenya.

The results revealed that intellectual stimulation explained 29% of the job satisfaction (R2

= .292, F(1, 106.274) = 142.533, p<.05) while the remaining 71% of job satisfaction was

explained by other factors. Further, intellectual stimulation significantly predicted job

satisfaction (β = .666, (2.842) t = 11.939, p<.05). Therefore, the study rejected the null

hypothesis H04: There is no significant influence of intellectual stimulation on job

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satisfaction among the employees in commercial banks in Kenya and accepted the

alternate hypothesis, H14: There is a significant influence of intellectual stimulation on job

satisfaction among the employees in commercial banks in Kenya.

4.7 Moderating Effect of Job Security on the Influence of Transformational

Leadership on Job Satisfaction

The last objective in this study was to determine the moderating effect of ‘job security’ on

the influence of transformational leadership on job satisfaction. The moderating effect of

job security questions were: my leader encourages fair treatment to everyone; my leader’s

behavior does not cause me stress; and my leader does not leave room for anxiety. The

dependent variable questions were: I am committed to the organization because my leader

encourages fair treatment to everyone; I am hardly absent from work because my leader’s

behavior does not cause me stresses; and I have no intentions of leaving my job because

my leader does not leave room for anxiety. All the responses were measured on a five

point Likert scale. The results and findings of both the descriptive and inferential statistics

are presented below.

4.7.1 Factor Analysis

Factor analysis was used to evaluate the variability among the observed correlated

variables to ensure the questions in the research instrument relate to the construct of

measure. Questions that did not relate to construct were extracted from the analysis.

Factor analysis was conducted on three questions for dependent variable ‘job satisfaction’

and three questions for moderating variable ‘job security’ presented below.

4.7.1.1 Factor Analysis on ‘Job Security’ as Moderating Variable

The dependent and moderating variables had three questions each. As indicated in Table

4.41a, only one factor was derived with Kaiser-Meyer Olkin result of .733. The Bartlett’s

test of sphericity was significant at X2 (3, N=347) = 563.351, p<.05. The factor was

adequate for extraction of components since Kaiser-Meyer-Olkin Measure was greater

than .60 and the Bartlett’s test was significant (p<.05).

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Table 4.41a: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .733

Bartlett's Test of Sphericity Approx. Chi-square 563.351

df 3

Sig. .000

* Significant at p<0.05 level

Using the Principal component analysis, the total variance explained on the extraction

showed the extracted values presented 81% of the first component. Only one component

was extracted ‘Job security as moderating effect’. Further, average value principle was

used to obtain the measure of the extracted independent variable by transformation. Table

4.41b shows the results of the variance explained.

Table 4.41b: Total Variance Explained for Job Security as Moderating Variable

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 2.424 80.798 80.798 2.424 80.798 80.798

2 .350 11.665 92.462

3 .226 7.538 100.000

Extraction Method: Principal Component Analysis.

The variables of the extracted components are indicated on the component matrix table.

Only one factor was extracted representing the ‘moderating effect’. The variables and

values were: ‘my leader encourages fair treatment to everyone’ with component matrix of

.872; ‘my leader’s behavior does not cause me stress’ with component matrix of .913; and

‘my leader does not leave room for anxiety’ with component matrix of .911. All variables

and component measure under the factor loading were greater than .60. Further, using the

average of the components, the transformed data had a stronger component of .899 which

was greater than .60. All the components were included as variables of analysis in the

model. Table 4.41c shows the component matrix for the moderating effect of job security.

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Table 4.41c: Component Matrix on Job Security as Moderating Effect

Job security as moderating effect

Component

1

My leader encourages fair treatment to everyone .872

My leader’s behavior does not cause me stress .913

My leader does not leave room for anxiety .911

Extraction Method: Principal Component Analysis.

a. 1 component extracted.

4.7.1.2 Factor Analysis on Job Security as Moderating Variable on Job Satisfaction

Job security was the moderating variable in this study. As indicated in Table 4.42a, only

one factor was derived with Kaiser-Meyer Olkin result of .729. The Bartlett’s test of

sphericity was significant at X2 (3, N=347) = 601.909, p<.05. This indicated the factor as

adequate for extraction of component since Kaiser-Meyer-Olkin Measure is greater than

.60 and the Bartlett’s test is significant (p<.05).

Table 4.42a: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .729

Bartlett's Test of Sphericity Approx. Chi-square 601.909

df 3

Sig. .000

* Significant at p<0.05 level

Using the Principal component analysis, the total variance explained on the extraction

shows the extracted values present 82% of the component. Only one component was

extracted ‘moderating effect on job satisfaction’. Further, average value principle was

used to obtain the measure of the extracted independent variable named ‘moderating

effect on job satisfaction’ by transformation. Table 4.42b shows the results of the

variance explained.

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Table 4.42b: Total Variance Explained for Job Security as Moderating Variable

Component

Initial Eigenvalues Extraction Sums of Squared Loadings

Total

% of

Variance Cumulative % Total % of Variance Cumulative %

1 2.453 81.769 81.769 2.453 81.769 81.769

2 .338 11.283 93.051

3 .208 6.949 100.000

Extraction Method: Principal Component Analysis.

One component for job security had an Eigen value that was greater than one which was

in line with the results for total variance explained for job security as shown in Figure

4.10.

Figure 4.10: Scree Plot for Job Security

The details on the extracted component forming the dependent variable ‘Moderating

effect’ were indicated in the Table 4.42c. The component extraction of each of variable

showed ‘I am committed to the organization because my leader encourages fair treatment

to everyone’ had a component matrix value of .897; ‘I am hardly absent from work

because my leader’s behavior does not cause me stress’ had a component matrix value of.

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929 and lastly; ‘I have no intentions of leaving my job because my leader does not leave

room for anxiety’ had a component matrix value of .886. This showed the variables and

component measure under the factor loading were greater than .60. Further, using the

average of the components, the transformed data had a stronger component of .904 which

was greater than .60. All the components of dependent variables were included as

variable of analysis. Table 4.42c indicates the component matrix measure of ‘job security’

as moderating effect on job satisfaction.

Table 4.42c: Component Matrix on Job Security as Moderating Variable on Job

Satisfaction

Job security on job satisfaction

Component

1

I am committed to the organization because my leader encourages fair treatment to

everyone .897

I am hardly absent from work because my leader’s behavior does not cause me

stress .929

I have no intentions of leaving my job because my leader does not leave room for

anxiety .886

Extraction Method: Principal Component Analysis.

a. 1 Component extracted.

4.7.2 Descriptive Statistics for Moderating Variable

The mean and standard deviation of the moderating variable were analyzed using

descriptive statistics. Majority of the respondents agreed on the attribute ‘my leader

encourages fair treatment to everyone’ (M= 3.92, SD = 1.06) and also ‘my leader’s

behavior does not cause me stress’ (M= 3.66, SD = 1.08). Other results are also presented

in the table. This clearly showed the difference, with the decrease in mean, the standard

deviation increased indicating varied responses. Table 4.43 shows the results of the

descriptive statistics of the moderating effect of job security.

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Table 4.43: Distribution of Job Security as Moderating Variable

Job Security M SD Skewness Std Err

My leader encourages fair treatment to

everyone 3.9164 1.06247 -1.069 .131

My leader’s behavior does not cause

me stress 3.6599 1.08574 -.559 .131

My leader does not leave room for

anxiety 3.5116 1.05249 -.325 .131

Moderating Effect of Job Security on Job Satisfaction

I am committed to the organization

because my leader encourages fair

treatment to everyone

3.4162 1.16478 -.449 .131

I am hardly absent from work because

my leader’s behavior does not cause

me stress

3.2594 1.13873 -.250 .131

I have no intentions of leaving my job

because my leader does not leave room

for anxiety

2.9366 1.16128 .068 .131

4.7.3 Chi-square Test of Job Security as Moderating variable and Job Satisfaction

The Chi-square test was used to determine whether there was a significant association

between job security and job satisfaction. The chi-square test showed that there was a

significant association between job security as the moderating effect variable and job

satisfaction X2 (144, N = 347) = 664.814, p<.05). The results are presented in Table 4.44.

Table 4.44: Chi-square Test of Job Security and Job Satisfaction

Job security as moderating

variable

Value df Asymp. Sig. (2-

sided)

Pearson Chi-square 664.814a 144 .000

Likelihood Ratio 431.895 144 .000

Linear-by-Linear Association 168.179 1 .000

N of Valid Cases 347

a. 153 cells (90.5%) have expected count less than 5. The minimum expected count is .02.

* Significant at p<0.05 level

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4.7.4 Correlation Analysis between Job Security and job satisfaction

Correlation analysis was used to test the relationship between job security variables and

job satisfaction. All the variables were highly correlated. The first variable under job

security ‘My leader encourages fair treatment to everyone was positively correlated with

job satisfaction r (347) =.593, p<.05; ‘My leader’s behavior does not cause me stress r

(347) =.628, p<.05; and ‘My leader does not leave room for anxiety’ r (347) =.660,

p<.05. The results of the correlation test are presented in Table 4.45.

Table 4.45a: Correlation Analysis between Job Security Variables and Job

Satisfaction

Moderating effect of Job Security Pearson Correlation Job Satisfaction

My leader encourages fair treatment to

everyone

Pearson Correlation .593**

Sig. (2-tailed) .000

N 347

My leader’s behavior does not cause me

stress

Pearson Correlation .628**

Sig. (2-tailed) .000

N 347

My leader does not leave room for anxiety Pearson Correlation .660**

Sig. (2-tailed) .000

N 347

* Significant at p<0.05 level

Further, correlation analysis was used to test the relationship between job security and job

satisfaction. The results showed that there was strong and positive correlation between

job security and job satisfaction r (347) =.697, p<.05. The results are as shown in Table

4.45b.

Table 4.45b: Correlation Analysis between Job Security and Job Satisfaction

Job security on job satisfaction Job Satisfaction

Job security as

moderating variable

Pearson Correlation .697**

Sig. (2-tailed) .000

N 347

* Significant at p<0.05 level

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4.7.5 One-Way ANOVA on Job Security

The One-way ANOVA test was conducted to test the mean difference between job

security and the demographic information of respondents; gender, age, education level,

duration of working at the bank and lastly the tier of the bank. Table 4.46a shows the

results which indicate there was no significant difference between the mean values of all

the respondents’ demographic information and job security.

Table 4.46a: One-way ANOVA on Job Security

Sum of Squares Df Mean Square F Sig.

Gender Between Groups 1.803 12 .150 .592 .848

Within Groups 84.237 332 .254

Total 86.041 344

Age Between Groups 4.520 12 .377 .616 .828

Within Groups 202.314 331 .611

Total 206.834 343

Education Between Groups 5.554 12 .463 1.179 .296

Within Groups 130.289 332 .392

Total 135.843 344

How long

have you

worked

Between Groups 13.483 12 1.124 .919 .528

Within Groups 407.118 333 1.223

Total 420.601 345

Tier of your

bank

Between Groups 4.102 12 .342 .596 .845

Within Groups 191.391 334 .573

Total 195.493 346

* Significant at p<0.05 level

The One-way ANOVA test was also performed to test the mean differences between job

satisfaction and the demographic factors of gender, age, education, duration of working at

the bank and tier of the bank. Table 4.46b shows the results which indicate that there was

no significant difference between the mean values of the demographic variables on job

security and job satisfaction.

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Table 4.46b: One-way ANOVA on Job Security on Job Satisfaction

Sum of Squares df Mean Square F Sig.

Gender

Between Groups 3.149 12 .262 1.051 .402

Within Groups 82.892 332 .250

Total 86.041 344

Age

Between Groups 5.977 12 .498 .821 .629

Within Groups 200.857 331 .607

Total 206.834 343

Education

Between Groups 5.268 12 .439 1.116 .346

Within Groups 130.575 332 .393

Total 135.843 344

How long

have you

worked

Between Groups 13.417 12 1.118 .914 .533

Within Groups 407.184 333 1.223

Total 420.601 345

Tier of

your bank

Between Groups 4.520 12 .377 .659 .791

Within Groups 190.973 334 .572

Total 195.493 346

* Significant at p<0.05 level

4.7.6 Regression Analysis and Hypothesis Testing

This section presents the regression analysis, the model used for hypothesis testing in the

study and the assumptions for the regression. Regression analysis was done to determine

the relationship, magnitude of the effect and projection of the moderating effect job

security between transformational leadership and job satisfaction among employees in

commercial banks in Kenya.

4.7.6.1 Assumptions for Regression Analysis on the Moderating Variable

Before running the regression analysis, assumptions for regression were tested. The

following tests were conducted: normality test, linearity test, homoscedasticity test and

multicollinearity tests as presented below.

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4.7.6.1.1 Normality Test on Job Security

Using one sample Kolmogorov-Smirnov Test, the test of normality was conducted to

determine the distribution of data depicting either a normal or skewed curve. This was

determined by the statistical significance of the dependent and the independent variable

(p<.05). The normal parameters test indicates the difference on mean in all the dependent,

independent and moderating effect variables. The results showed the mean and standard

deviation were as follows: Idealized influence (M = 4.07, SD =.79) followed by

Inspirational motivation (M =4.02, SD=.88), Individualized consideration (M = 4.0, SD=

.77), Intellectual stimulation (M= 3.90, SD = .83), Moderating effect of job security (M =

3.7, SD= .96) and lastly, the job satisfaction (M = 3.2, SD= .95). The results of the mean

showed the difference in mean and variance in responses. The variance on the most

extreme differences was minimal and the variables were significant to each other (p<.05)

indicating a high level of relationship hence the data was not normally distributed. Table

4.47a shows the results of the normality test.

Table 4.47a: One-Sample Kolmogorov-Smirnov Test

Job

Sati

sfact

ion

Idea

lize

d

infl

uen

ce

Ind

ivid

uali

zed

Con

sid

erati

on

Insp

irati

on

al

moti

vati

on

Inte

llec

tual

Sti

mu

lati

on

Mod

erati

ng

Eff

ect

N 347 346 347 347 347 347

Normal

Parametersa,b

Mean 3.2077 4.0655 3.9914 4.0216 3.9087 3.6964

SD .94919 .78771 .76592 .87640 .83227 .96073

Most Extreme

Differences

Absolute .055 .184 .173 .185 .146 .142

Positive .040 .118 .101 .132 .105 .094

Negative -.055 -.184 -.173 -.185 -.146 -.142

Test Statistic .055 .184 .173 .185 .146 .142

Asymp. Sig. (2-tailed) .014c .000c .000c .000c .000c .000c

a. Test distribution is Normal.

b. Calculated from data.

c. Lilliefors Significance Correction.

* Significant at p<0.05 level

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4.7.6.1.2 Linearity Test on Job Security

The analysis of variance (ANOVA) was used to determine linearity. The linearity test was

conducted to determine if the relationship between transformational leadership and job

satisfaction was linear or not. As indicated in Table 4.47b, there was a significant

relationship between transformational leadership variables (collapsed value of

independent variable) and job satisfaction p<.05. Similarly, the linearity between the

transformational leadership variables and job satisfaction was significant p<.05.

However, the deviation from linearity was not significant. Hence the relationship between

transformational leadership and job satisfaction was linear and passed the test of linearity.

Table 4.47b: Linearity Test on Job Security

Sum of

Squares Df

Mean

Square F Sig.

Job Satisfaction Between

Groups

(Combined) 168.274 79 2.130 3.964 .000

Linearity 129.561 1 129.561 241.139 .000

Deviation

from Linearity 38.713 78 .496 .924 .655

Within Groups 143.456 267 .537

Total 311.731 346

* Significant at p<0.05 level

4.7.6.1.3 Multicollinearity Test on Job Security

Multicollinearity test was performed to determine if the values of transformational

leadership, moderating effect of job security and job satisfaction had higher similarity.

The test of multicollearity was tested using the Variance Inflation Factor (VIF);

statistically, there is no multicollinearity when the value of the VIF is between 1 and 10.

As indicated in Table 4.47c, Idealized influence had a VIF of 2.425; individualized

consideration had VIF of 2.313; Inspirational motivation had VIF of 3.207; Intellectual

stimulation had VIF of 2.113; and moderating effect variable had a VIF of 2.577, no

multicollinearity.

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Table 4.47c: Multicollinearity Test on Job Security

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Collinearity

Statistics

B

Std.

Error Beta Tolerance VIF

1 (Constant) .142 .229 .622 .534

Idealized Influence -.039 .076 -.032 -.511 .610 .412 2.425

Individualized

Consideration .219 .076 .177 2.880 .004 .432 2.313

Inspirational

Motivation .190 .078 .175 2.427 .016 .312 3.207

Intellectual

Stimulation .042 .067 .036 .621 .535 .473 2.113

Moderating Variable .384 .064 .389 6.011 .000 .388 2.577

a. Dependent Variable: Job Satisfaction

4.7.6.1.4 Homoscedasticity Test on Job Security

Homoscedasticity test was carried out to determine if the moderating effect of job

security of the bank employees gave similar a variance to job satisfaction on the

regression values. As indicated in Table 4.47d, the results indicate that the value of the

Levene Statistic, F(12, 334) = 3.62, p = .00 was below the study’s level of significance (p

≤ .05) indicating the data was not homogenous.

Table 4.47d: Homoscedasticity Test on Job Security

Levene Statistic df1 df2 Sig.

3.620 12 334 .000

* Significant at p<0.05 level

4.7.6.2 Regression and Hypothesis Testing

Regression analysis was carried out to determine the extent to which job security

moderated the relationship between transformational leadership and job satisfaction

among employees in commercial banks in Kenya. Multiple linear regression analysis was

used to predict the moderating effect of job security on the influence of transformational

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leadership on job satisfaction among employees in commercial banks in Kenya. The

hypothesis tested was:

H05: There is no significant moderating effect of job security between transformational

leadership and job satisfaction among employees in commercial banks in Kenya.

The regression results for the hypothesis testing were presented in the form of the model

summary, regression ANOVA and regression coefficient.

4.7.6.2.1 Regression Model Summary

The model summary results presented in Table 4.48 indicate that the moderating effect of

job security between transformational leadership and job satisfaction explained 44% of

job satisfaction of employees in commercial banks in Kenya (R2) = .446.

Table 4.48: Model Summary of the Moderating Effect of Job Security between

Transformational Leadership and Job Satisfaction

Model R

R

Square

Adjusted

R

Square

Std.

Error of

the

Estimate

Change Statistics

R

Square

Change

F

Change df1 df2

Sig. F

Change

1 .668e .446 .438 .71187 .059 36.126 1 340 .000

e. Predictors: (Constant), Idealized Influence, Individualized Consideration, Inspirational

Motivation, Intellectual Stimulation, Moderating variable,

f. Dependent Variable: Job Satisfaction

* Significant at p<0.05 level

4.7.6.2.2 Regression ANOVA

The regression ANOVA showed that job security had a significant moderating effect

between transformational leadership and job satisfaction F(5, 27.760) = 54.780, p<.05) as

indicated Table 4.49.

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Table 4.49: ANOVA Transformational Leadership and Moderating Variable on Job

Satisfaction

Model Sum of Squares df Mean Square F Sig.

1 Regression 138.802 5 27.760 54.780 .000f

Residual 172.299 340 .507

Total 311.101 345

f. Predictors: (Constant), Idealized Influence, Individualized Consideration, Inspirational

Motivation, Intellectual Stimulation, Moderating Variable Effect

* Significant at p<0.05 level

4.7.6.2.3 Regression Coefficient of Job Security

Table 4.50 shows the results of the regression coefficient. In the regression coefficient

model, the analysis showed that ‘idealized influence’ and ‘intellectual stimulation’ were

not statistically significant hence dropped from the equation and that ‘individualized

consideration’ statistically predicted job satisfaction (β = .219, t (.622) = 2.880, p<.05).

The beta weight gauges the importance of the explanatory variable across the model and

was positive on ‘individualized consideration’ and was statistically significant. This

meant that one unit of increase in ‘individualized consideration’ increased the unit of job

satisfaction by .219 with the inclusion of moderating variable. The variable ‘inspiration

motivation’ also statistically predicted job satisfaction (β = .190, t (.622) = 2.427, p<.05).

The beta weight gauges the importance of the explanatory variable across the model and

was positive on ‘inspiration motivation’ and statistically significant indicating one unit of

increase in ‘inspiration motivation’ increased the unit of job satisfaction by .190. Lastly,

the moderating variable statistically predicted job satisfaction (β = .384, t (.622) = 6.011,

p<.05). The beta weight gauges the importance of moderating variable across the model

and was statistically significant (p<.05). This meant, one unit of increase in ‘moderating

variable’ increased the unit of job satisfaction by .384 without the influence of

moderating variable.

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Table 4.50: Coefficients of Independent Variables and Moderating Effect on Job

Satisfaction

Model

Unstandardized

Coefficients

Standardized

Coefficients

T Sig. B Std. Error Beta

1 (Constant) .142 .229 .622 .534

Idealized Influence -.039 .076 -.032 -.511 .610

Individualized

Consideration .219 .076 .177 2.880 .004

Inspirational

Motivation .190 .078 .175 2.427 .016

Intellectual Stimulation .042 .067 .036 .621 .535

Moderating Variable .384 .064 .389 6.011 .000

a. Dependent Variable: Job Satisfaction

* Significant at p<0.05 level

The general form of the multiple linear regression model used was:

Job Satisfaction = β0 + β1 x Idealized influence + β2 x Individualized consideration + β3 x

Inspirational motivation + β4 x intellectual stimulation + β5 x Job security + ∑

X1 = Idealized influence

X2 = Individualized consideration

X3 = Inspirational motivation

X4 = Intellectual stimulation

X5 = Moderating Variable

∑ = Error term

Idealized influence and intellectual stimulation were not statistically significant hence

dropped from the model equation which was comprised of individualized consideration,

inspirational motivation and job security.

Job Satisfaction = β0 + β2 X2 + β3 X

3 + β4 X4 + β5 X

5 + ∑

Y= 0.142 + .219X2 + .190X3 + .384X5 + .229

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Multiple linear regression analysis was used to test if there was a significant moderating

effect of job security between transformational leadership and job satisfaction among

employees in commercial banks in Kenya. The results revealed that job security had a

significant moderating effect between transformational leadership and job satisfaction (R2

= .446, F(5, 27.760) = 54.780, p<.05) . Individualized consideration statistically predicted

job satisfaction with inclusion of the moderating variables (β = .219, t (.622) = 2.880,

p<.05): the beta weight decreased from .258 to .219 with the inclusion of moderating

variable reducing its influence on job satisfaction. Inspirational motivation variable

statistically predicted job satisfaction with the inclusion of the moderating variable, (β =

.190, t (.622) = 2.427, p<.05), the beta weight also decreased from .338 to .190 reducing

its effect on job satisfaction. However, both idealized influence and intellectual

stimulation were not significant. Lastly, the moderating variable significantly predicted

job satisfaction (β = .384, t (.622) = 6.011, p<.05).

This showed that with the moderating effect of job security, transformational leadership

significantly predicted job satisfaction. Therefore, the study rejects the null hypothesis

H05: There is no significant moderating effect of job security between transformational

leadership and job satisfaction among employees in commercial banks in Kenya and

accepts the alternate hypothesis, H15: There is a significant moderating effect of job

security between transformational leadership and job satisfaction among employees in

commercial banks in Kenya.

4.8 Chapter Summary

This chapter has presented the findings of the study. The demographic presentation

covered the characteristics of the respondents working in the banking industry; age,

gender, education level, working duration and the tiers of the bank. This was followed by

the presentation of the results based on each research question. The items presented were;

factor analysis, descriptive statistics, Chi-square test, correlation analysis and regression

analysis.

On the first research question, the results revealed that there was a significant correlation

between idealized influence and job satisfaction among employees in commercial banks

in Kenya r (346) =.496, p<.05. Chi-square test revealed a significant association between

idealized influence and job satisfaction X2 (132, N = 346) = 302.886, p<.05). The One-

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way ANOVA test showed there was no significant difference on the mean values of the

respondents’ demographic information on idealized influence and job satisfaction except

for number of years worked in the organization. The multiple linear regression analysis

results revealed that idealized influence explained 25% of job satisfaction (R2 = .246, F(1,

97.750) = 112.421, p<.05) and significantly predicted job satisfaction (β = .676, (.449) t =

10.603, p<.05). Therefore, the null hypothesis that there is no significant influence of

idealized influence on job satisfaction among employees in commercial banks in Kenya

was rejected.

On the second research question, the results revealed that there was a significant

correlation between individualized consideration and job satisfaction among employees in

commercial banks in Kenya r (347) =.595, p<.05. Chi-square test revealed a significant

association between individualized consideration and job satisfaction X2 (132, N = 347) =

385.123, p<.05). The One-way ANOVA test showed that there was no significant

difference on the mean values of the respondents’ demographic information on

individualized consideration and job satisfaction except for age, education and number of

years worked in the organization. The multiple linear regression results revealed that

individualized consideration explained 35% of job satisfaction (R2 = .354, F(1, 138.779)

= 188.851, p<.05) and significantly predicted job satisfaction (β = .827, (-.545) t =

13.742, p<.05). Therefore, the null hypothesis that there is no significant influence of

individualized consideration on job satisfaction among employees in commercial banks in

Kenya was rejected.

On the third research question, the results revealed that there was a significant correlation

between inspirational motivation and job satisfaction among employees in commercial

banks in Kenya r (347) =.587, p<.05. The Chi-square test showed a significant

association between inspirational motivation and job satisfaction X2 (156, N = 347) =

445.180, p<.05). The One-way ANOVA test revealed there was no significant difference

on the mean values of the respondents’ demographic information on inspirational

motivation and job satisfaction. The multiple linear regression results revealed that

inspirational motivation explained 34% of job satisfaction (R2 = .344, F(1, 126.302) =

180.980, p<.05) and significantly predicted job satisfaction (β = .689, (2.117) t = 13.453,

p<.05). Therefore, the null hypothesis that there is no significant influence of

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inspirational motivation on job satisfaction among employees in commercial banks in

Kenya was rejected.

On the fourth research question, the results revealed that there was a significant

correlation between the intellectual stimulation and job satisfaction among employees in

commercial banks in Kenya r (347) =.541, p<.05. The Chi-square test revealed a

significant association between intellectual stimulation and job satisfaction X2 (144, N =

347) = 426.404, p<.05). The One-way ANOVA test showed there was no significant

difference on the mean values of the respondents’ demographic information on

intellectual stimulation and job satisfaction. The multiple linear regression results

revealed that intellectual stimulation explained 29% of job satisfaction (R2 = .292, F(1,

106.274) = 142.533, p<.05) and significantly predicted job satisfaction (β = .666, (2.842)

t = 11.939, p<.05). Therefore, the null hypothesis that there is no significant influence of

intellectual stimulation on job satisfaction among employees in commercial banks in

Kenya was rejected.

On the last research question, the results revealed that there was a significant correlation

between the moderating effect of job security and job satisfaction among employees in

commercial banks in Kenya r (347) =.697, p<.05. The Chi-square test revealed a

significant association between job security as moderating effect variable and job

satisfaction X2 (144, N = 347) = 664.814, p<.05). The One-way ANOVA test showed

there was no significant difference on the mean values of the respondents’ demographic

information on job security and job satisfaction. The multiple linear regression results

revealed that transformational leadership explained 44% of job satisfaction when

moderated by job security (R2 = .446, F(5, 27.760) = 54.780, p<.05). Job security had a

significant moderating effect between transformational leadership and job satisfaction (β

= .384, (.622) t = 6.011, p<.05). Therefore, the null hypothesis that there is no significant

moderating effect of job security between transformational leadership and job satisfaction

among employees in commercial banks in Kenya was rejected.

The next chapter presents a summary of the findings, discussions of the findings,

conclusions and recommendations based on the findings of the study.

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CHAPTER FIVE

5.0. SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter presents the summary, discussion, conclusions and recommendations of the

study. The summary, discussions and conclusions are presented based on the research

questions. Recommendations are made based on the findings of the study. The study also

gives suggestions for future research.

5.2 Summary of the Study

The purpose of this study was to examine the influence of transformational leadership

style on job satisfaction among employees in commercial banks in Kenya. This study was

guided by the following research questions: To what extent does idealized influence

influence 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 was based on the positivism research philosophy. The study adopted the

descriptive correlation research design. The target population was 10,310 managerial

employees in the commercial banks in Kenya. Stratified random sampling technique was

used to select a sample of 424 managers in commercials banks in Kenya who participated

in the study. A response rate of 82% was obtained. The study used a structured

questionnaire to collect data from the managerial employees. Data analysis was done

using both descriptive and inferential statistics; descriptive statistics tests performed were

percentage, mean and standard deviation. The inferential statistical tests carried out were

chi-square test, correlation analysis, ANOVA, and regression analysis to obtain the

relationship between the variables of the study. Statistical Package for the Social Sciences

(SPSS) was used to analyze the data.

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The first research question sought to examine the extent to which idealized influence

influenced job satisfaction among employees in commercial banks in Kenya. The results

revealed that there was a significant correlation between idealized influence and job

satisfaction among employees in commercial banks in Kenya r (346) =.496, p<.05. Chi-

square test revealed that there was a significant association between idealized influence

and job satisfaction X2 (132, N = 346) = 302.886, p<.05). The One-way ANOVA test

showed that there was no significant difference on the mean values of the respondents’

demographic information on idealized influence and job satisfaction except for number of

years worked in the organization at (p<.05). The multiple linear regression analysis

results revealed that idealized influence explained 25% of job satisfaction (R2 = .246, F(1,

97.750) = 112.421, p<.05) and significantly predicted job satisfaction (β = .676, (.449) t =

10.603, p<.05). Therefore, the study rejected the null hypothesis, H01: There is no

significant influence of idealized influence on job satisfaction among employees in

commercial banks in Kenya.

The second research question sought to examine the extent to which individualized

consideration influenced job satisfaction among employees in commercial banks in

Kenya. The results revealed that there was a significant correlation between

individualized consideration and job satisfaction among employees in commercial banks

in Kenya r (347) =.595, p<.05. Chi-square test revealed that there was a significant

association between individualized consideration and job satisfaction X2 (132, N = 347) =

385.123, p<.05). The One-way ANOVA test showed that there was no significant

difference on the mean values of the respondents’ demographic information on

individualized consideration and job satisfaction except for age, education and number of

years worked in the organization at (p<.05). The multiple linear regression results

revealed that individualized consideration explained 35% of job satisfaction (R2 = .354,

F(1, 138.779) = 188.851, p<.05) and significantly predicted job satisfaction (β = .827, (-

.545) t = 13.742, p<.05). Therefore, the study rejected the null hypothesis, H02: There is

no significant influence of individualized consideration on job satisfaction among

employees in commercial banks in Kenya.

The third research question sought to examine the extent to which inspirational

motivation influenced job satisfaction among employees in commercial banks in Kenya.

The results revealed that there was a significant correlation between inspirational

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motivation and job satisfaction among employees in commercial banks in Kenya r (347)

=.587, p<.05. The Chi-square test revealed that there was a significant association

between inspirational motivation and job satisfaction X2 (156, N = 347) = 445.180,

p<.05). The One-way ANOVA test showed that there was no significant difference on the

mean values based on the respondents’ demographic information on inspirational

motivation and job satisfaction (p<.05). The multiple linear regression results revealed

that inspirational motivation explained 34% of job satisfaction (R2 = .344, F(1, 126.302)

= 180.980, p<.05) and significantly predicted job satisfaction (β = .689, (2.117) t =

13.453, p<.05). Therefore, the study rejected the null hypothesis, H03: There is no

significant influence of inspirational motivation on job satisfaction among employees in

commercial banks in Kenya.

The fourth research question sought to examine the extent to which intellectual

stimulation influenced job satisfaction among employees in commercial banks in Kenya.

The results revealed that there was a significant correlation between intellectual

stimulation and job satisfaction among employees in commercial banks in Kenya r (347)

=.541, p<.05. The Chi-square test revealed there was a significant association between

intellectual stimulation and job satisfaction X2 (144, N = 347) = 426.404, p<.05). The

One-way ANOVA test showed that there was no significant difference on the mean

values based on the respondents’ demographic information on intellectual stimulation and

job satisfaction (p<.05). The multiple linear regression results revealed that intellectual

stimulation explained 29% of job satisfaction (R2 = .292, F(1, 106.274) = 142.533,

p<.05) and significantly predicted job satisfaction (β = .666, (2.842) t = 11.939, p<.05).

Therefore, the study rejected the null hypothesis, H04: There is no significant influence of

intellectual stimulation on job satisfaction among employees in commercial banks in

Kenya.

The fifth research question sought to examine the extent to which job security moderated

the relationship between transformational leadership and job satisfaction among

employees in commercial banks in Kenya. The results revealed that there was a

significant correlation between the moderating effect of job security and job satisfaction

among employees in commercial banks in Kenya r (347) =.697, p<.05. The Chi-square

test revealed that there was a significant association between job security as moderating

variable and job satisfaction X2 (144, N = 347) = 664.814, p<.05). The One-way ANOVA

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test showed there was no significant difference on the mean values of the respondents’

demographic information on job security and job satisfaction. The multiple linear

regression results revealed that transformational leadership explained 44% of job

satisfaction when moderated by job security (R2 = .446, F(5, 27.760) = 54.780, p<.05).

Job security had a statistically significant moderating effect between transformational

leadership and job satisfaction (β = .384, t (.622) = 6.011, p<.05). This showed that job

security had a significant moderating effect between transformational leadership and job

satisfaction. Therefore, the study rejected the null hypothesis, H05: There is no significant

moderating effect of job security between transformational leadership and job satisfaction

among employees in commercial banks in Kenya.

5.3 Discussion of Results

This section presents the discussion of results which is presented in line with the research

questions. Correlation analysis, Chi-square, One-way ANOVA and Multiple linear

regression results are discussed in this section.

5.3.1 Influence of Idealized Influence on Job Satisfaction

The first research question sought to examine the extent to which idealized influence

influenced job satisfaction among employees in commercial banks in Kenya. The results

of correlation analysis revealed a positive correlation between idealized influence

variables and job satisfaction; charismatic attributes (r (345) =.563, p<.05), trust (r (346)

=.596, p<.05), and ethical (r (343) =.564, p<.05). This showed idealized influence had a

positive and strong correlation with job satisfaction. The findings were similar to Hwang

et al. (2005) study which showed there was correlation between commitment and

performance which are mainly a function of satisfaction. Huang et al. (2005) in their

study dubbed ‘fitting in organizational values’ sought to investigate whether CEO

charismatic leadership had a positive effect on employees. The findings demonstrated that

charisma had significant effects on employee outcomes of extra effort, job satisfaction

and organizational commitment. Ahmed et al. (2012) sought to establish the relationship

between organizational ethics and job satisfaction in employees of banks in Pakistan and

found that benevolent ethical climate and top management support for ethical behavior

were positively correlated to job satisfaction.

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However, there are studies that have found no correlation between idealized influence and

job satisfaction. Hanaysha et al. (2012) study in Malaysia among administrative and

clerical staff involved in graduate and postgraduate affairs in three universities found a

positive relationship between charisma and job satisfaction which was statistically

insignificant. Ahmed et al. (2012) sought to establish the relationship between

organizational ethics and job satisfaction in employees of banks in Pakistan and found out

that egoistic ethical climate was negatively related to job satisfaction. Further, principled

ethical climate had no relationship with job satisfaction. These findings necessitate more

research in the area since majority of the studies indicate a positive correlation between

charisma and job satisfaction with statistical significance. However, there are very few

studies with a negative relationship hence most agree that idealized influence is positively

correlated with job satisfaction.

The chi-square test was used to establish the strength of association between idealized

influence and job satisfaction. The results showed that there was a significant association

between idealized influence and job satisfaction X2 (132, N = 346) = 302.886, p<.05). The

idealized influence variables were trust, charisma and ethics. Research indicates that

people who are in high trust environments live longer, enjoy greater wellness and job

satisfaction. In contrast, a low trust environment sucks energy, results into stress and

reduced wellness which has the possibility of destroying performance. Lack of trust also

suppresses expressions which may lead to a lot of dysfunctions in the organization hence

the need to cultivate a trust culture which is a precursor to job satisfaction and

performance (Jameson, 2010).

Bacha (2010) in a study on the relationships among organizational performance,

environmental uncertainty and employee’s perceptions of CEOs found that CEOs who are

found to be increasingly energetic have an impact on organizational performance as

opposed to model CEOs who have no significant impact on organizational performance.

This shows that the environment that creates ethics or trust between employees is

determined by the individual characteristics. Khuong and Hoang (2015) further affirmed

this when they found that as much as compensation and fringe benefits matter, the

leader’s personality and characteristics are more important as they affect the motivational

work environment for the staff which in turn yields positive job attitudes. This shows that

ethics, trust and charisma are determined by a leader. Lastly, a good ethical environment

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has the potential to boost an employee’s job satisfaction level while the consequences of

ethical misgivings are detrimental to the organization (Yang & Islam, 2012; Avolio &

Bass, 2002; Khuong & Hoang, 2015). All these studies found out that idealized influence

factors; trust, charisma and ethics are determined by individual leaders which has a

significant impact on the job satisfaction.

The One-way ANOVA test results showed that there was no significant difference on the

mean values of all the respondents’ demographic information on idealized influence and

job satisfaction except on the number of years worked in the organization (p<.05). This

shows that idealized influence is not determined by an individual’s background but by

other factors as outlined by researcher. According to Nikoloski (2015), the ethics of

charismatic leaders refers to how they use their power, and in what. Charismatic leaders

who are high on ethics have better workplace environments with less interpersonal and

workplace deviance. These leaders act as role models and their behavior more often than

not cascades through the organization. Khuong and Hoang (2015) also stated that a leader

who possesses charisma, trust and ethics is able to influence his followers because

followers identify with him; this in turn boosts the employee’s job satisfaction. This

supports the findings that idealized influence on an individual is not determined by the

background. Further, an ethical climate refers to individual beliefs about the

organizational practices, procedures, standards and ethical values and not the individuals

background (Ahmed et al., 2012). Sarker et al. (2003) found that the overall job

satisfaction indicated that job satisfaction rises in the tenure of service in majority of the

age groups except those below twenty five years old. Therefore, job satisfaction among

hotel employees was significantly dependent on the tenure of service in the organization.

The results of multiple linear regression indicated that idealized influence significantly

influenced job satisfaction (R2 = .246, F (1, 97.750) = 112.421, p<.05). The analysis

revealed that idealized influence statistically predicted job satisfaction (B = .676, (.449) t

= 10.603, p<.05). Different studies support this including Gitoho et al. (2016) who

studied the influence of idealized influence on employee satisfaction amongst listed

companies in Nairobi securities exchange and found out that idealized influence affects

job satisfaction. Emu and Umeh (2014) empirically examined the relationship between

leadership style and job satisfaction among customer relationship officers in Nigerian

banks. The results indicated that idealized influence explained 25% of job satisfaction.

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The low degree of influence (25%) was similar to what Long et al. (2014) found in their

study ‘impact of transformational leadership on job satisfaction in Malaysia’. The results

of the study revealed a positive but non-significant relationship between idealized

influence and job satisfaction. The research findings were in line with existing findings

that idealized influence significantly influenced job satisfaction.

5.3.2 Influence of Individualized Consideration on Job Satisfaction

The second research question sought to examine the extent to which individualized

consideration influenced job satisfaction among employees in commercial banks in

Kenya. The results of correlation analysis showed a positive significant relationship

between individualized consideration and job satisfaction: mentorship at the workplace (r

(347) =.872, p<.05), support in and outside work place (r (347) =.876, p<.05) and work

delegation (r (347) =.734, p<.05). Miao and Kim (2010) investigated the influence of

perceived organizational support and job satisfaction as positive correlations of employee

performance in China. The results indicated that organizational citizenship behavior

increased with more favorable perception of organizational support and job satisfaction.

Long et al. (2014) carried out a study on the impact of transformational leadership style

on job satisfaction and found that only the aspect of individualized consideration and

more so the support a leader offers to his employees had a significant impact on job

satisfaction. Social support also predicts job involvement and job satisfaction because it

acts as a buffer to stressors that arise from the work or interaction with colleagues

(Salami, 2010). Research that supports the correlation between individualized

consideration and job satisfaction includes but is not limited to management support

among other factors like recognition and job security (Mosadeghrad & Ferdosi, 2013).

Emmanuel and Hassan (2015) carried out a study to establish the effect of

transformational leadership on job satisfaction in four and five star hotels in Kuala

Lumpur. The results of this study revealed a positive and significant correlation between

individualized consideration and job satisfaction. It has also been established that

employees who are entrusted with decision making and receive support from their

supervisors and colleagues are more satisfied with their jobs (Musenze et al., 2014).

Conversely, there is research that has found a negative correlation between individualized

consideration and job satisfaction. In a study by Weng at al. (2010), there was no

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significant relationship between psychosocial mentoring and three aspects of employee

job satisfaction which were; co-workers, the job itself and promotion.

Further, Arzi and Farahbod (2014) in their study on the impact of leadership on job

satisfaction in Iranian hotels found that supportive leadership had a significant impact on

job satisfaction but recognition did not affect job satisfaction. Additionally, Riisgaard et

al. (2016) in a review paper with the aim of establishing the relations between task

delegation and job satisfaction in general practice found that nurses had negative attitudes

and experiences towards task delegation especially due to an increased workload.

However, majority were generally satisfied with their jobs and the various tasks they

performed which were delegated to them by the general physicians. They attributed this

satisfaction to the autonomy which they enjoyed. The results revealed that contrary to

most of the studies in this thematic area, the effect of delegation of authority and

responsibility was not significant on job satisfaction but empowerment had a significant

impact on job satisfaction.

The chi-square test was used to determine the strength of association between

individualized consideration and job satisfaction. The results revealed that there was a

significant association between individualized consideration and job satisfaction X2 (132,

N = 347) = 385.123, p<.05). The individualized consideration variables were mentoring,

support and delegation. The results show that mentorship, support and delegation

influence job satisfaction. Belias and Koustelios (2014) stated that individualized

consideration fosters the provision of support, encouragement, coaching, feedback

mechanisms and delegation which play a big role in the follower’s personal development

which in turn positively impacts job satisfaction. Further, Bass and Avolio (1994) noted

that a leader demonstrates individualized consideration when providing the followers with

support. The study went on to note that the improvement of individualized consideration

around supportive and developmental leadership is likely to have a transformational

impact (Long et al., 2014). Individualized consideration refers to the personal attention

the leaders have towards the needs of the followers which makes the followers to feel

valued; this explains the significant relationship between individualized consideration

with job satisfaction. However, some studies show that bank jobs are characterized by

long working hours, pressure from the job itself, poor treatment, non-conducive working

environment, minimal promotion opportunities and unfairness (Sattar & Ali, 2014). These

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studies show there is no significant relationship between individualized consideration and

job satisfaction especially when the working environment is poor.

The One-way ANOVA test results showed that there was no significant difference on the

mean values of all the respondents’ demographic information on individualized

consideration and job satisfaction. However, the means for job satisfaction were

significantly different across the age, education and number of years worked (p<.05).

Hoboubi et al. (2017) found that there were significant differences in job satisfaction

mean scores among three age groups of young, middle age and older people. Job

satisfaction was found to be higher for older employees and the young employees but

lower for the middle aged employees. They attributed this to young employees being

motivated and older ones settling in their lives whereas the middle aged employees would

be unhappy with repetitiveness of roles. They also found that the education level affected

job satisfaction indicating that people who had good educational qualifications were more

satisfied. Olorunsola (2012) found that age significantly influenced job satisfaction of

administrative staff in Nigeria Universities. They attributed this to the values and

expectations of the staff at the different ages.

Research by Alkahtani (2016) noted that the leader’s ability to create a supportive

environment by listening, coaching and mentoring speaks volumes to the followers about

how their leaders consider their needs by ensuring that as the organization grows the

employees also grow in their areas of interest. The leaders also help the employees to get

through their personal challenges because they are concerned not only about the work but

also their followers well-being. Ahmad et al. (2014) stated that leaders train the followers

on how to achieve the set goals and objectives. The accomplishment results in aspects of

recognition which are key drivers of job satisfaction. Further, Muenjohn (2010) found out

that encouragement from the leaders allows the followers to express themselves freely

and also to implement their ideas.

The results of multiple linear regression showed that individualized consideration

significantly influenced job satisfaction (R2 = .354, F (1, 138.779) = 188.851, p<.05).

The analysis showed that individualized consideration statistically predicted job

satisfaction (B = .827, (-.545) t = 13.742, p<.05). These results were similar to Mustafa

and Lines (2014) who found out that supportive leadership has a positive impact on job

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satisfaction which reaffirms that a leader’s characteristics and behaviors play an

important role in boosting job satisfaction, ultimately leading to positive outcomes in the

workplace. Kombo et al. (2014) found that delegation had a strong relationship with job

satisfaction and performance through raised enthusiasm for the employees. Additionally,

delegation was not only rewarding for the employees but it also raised the employees’

sense of accomplishment and self-esteem.

Horner (2017) carried out a study to establish whether mentoring based on Watson’s

caring model positively influenced nurses’ job satisfaction. All the participants reported

that mentor experience or relationship positively influenced job satisfaction. Additionally,

job satisfaction was associated with reduced turnover of staff and improved patient

retention. Hanaysha et al. (2012) conducted a study in Malaysia among administrative

and clerical staff involved in graduate and postgraduate affairs in three universities. The

findings revealed that individualized consideration was negatively related to job

satisfaction which contradicts most research. It is however attributed to the fact that

perhaps employees could not meet their leaders due to their busy schedules.

5.3.3 Influence of Inspirational Motivation on Job Satisfaction

The third research question sought to examine the extent to which inspirational

motivation influenced job satisfaction among employees in commercial banks in Kenya.

The results of correlation analysis of inspirational motivation and job satisfaction showed

a positive correlation on all the variables with job satisfaction: communication (r (347)

=.893, p<.05), teamwork (r (347) =.915, p<.05); and motivation (r (347) =.917, p<.05).

Other studies have found a positive correlation between inspirational motivation and job

satisfaction. Kakakhel et al. (2015) carried out a study on the impact of organizational

communication on organizational commitment and job satisfaction in Pakistan. The

findings of the study indicated that organizational communication had a positive effect on

job satisfaction. Monga et al. (2015) who studied job satisfaction of employees of ICICI

bank found that among other factors like communication, attitudes of supervisors, job

security and team work had an important role in determining employee job satisfaction.

Rizwan et al. (2012) conducted an empirical study of employee job satisfaction and aimed

to establish the crucial problems faced by employees and to find ways to enhance

employee loyalty. Findings revealed a strong and positive relationship between team

work and job satisfaction.

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The chi-square test was used to determine the strength of association between

inspirational motivation and job satisfaction. The results showed that there was a

significant association between inspirational motivation and job satisfaction X2 (156, N =

347) = 445.180, p<.05). The variables of inspirational motivation are communication,

teamwork and support which have a significant association with job satisfaction.

Research indicates that effective communication, teamwork and motivation influence job

satisfaction. A study found that communication whether horizontal or vertical, formal or

informal in any environment was an important factor that influenced the organization’s

success which is a factor of satisfaction (Epure et al., 2013). Another study goes on to

note that if employees receive proper communication about their roles, responsibilities

and performance expectations, their satisfaction increases. Thus, the supervisor’s role on

inspirational motivation cannot be overemphasized because of the significant impact it

has on job satisfaction (Kakakhel et al., 2015).

Leaders need to ensure they promote job satisfaction and commitment yielding policies

and practices. Employee commitment is beyond being passively loyal to being actively

involved and being ready to transcend personal gain for organizational gain. This explains

why inspirational motivation factors like teamwork, communication and motivation are

individual based and have a significant association with job satisfaction. However, E.O

Darko and T.O Darko (2015) research in Ghana noted that as a result of high competition

in the banking industry, employees are expected to work harder to ensure they retain and

attract new business regardless of the carder of the Bank. Such competition affects

personal motivation at work which in turn affects the job satisfaction (Thirulogasundaram

& Sahu, 2014). This greatly affects motivation and commitment and as stated by Yucel

and Bektas (2012), the level of commitment can greatly influence the quality of service

rendered to customers and influences job satisfaction. This research shows that the bank’s

working environment can contribute to negative association between inspirational

motivation and job satisfaction.

The One-way ANOVA test results showed that there was no significant difference on the

mean value of all the respondents’ demographic information on inspirational motivation

and job satisfaction (p<.05). The results revealed that personal individual background

does not influence or relate to inspirational motivation. Teamwork as a factor that

influences inspiration motivation is determined by personal individual skills, mutual

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accountability and complements to each other. In order to create effective teamwork,

there must be clear goals, relevant skills, mutual trust, commitment, effective

communication, negotiation skills and good leadership with both internal and external

support (Benrazavi & Silong, 2013; Musriha, 2013). Additionally, attributes of

inspirational motivation enable a leader to instill pride in the followers and induces the

follower’s interests beyond personal interests for the good of the organization (Guay,

2013). A leader’s optimistic talk about the future also helps to build hope in the followers

because the leader provides an exciting image of organization’s future (Guay, 2013; Rao

& Abdul, 2015; Bass, 1985). This supports the research finding that individual

background does not influence inspirational motivation variables.

The results of multiple linear regression revealed that inspirational motivation

significantly influenced job satisfaction (R2 = .344, F(1, 126.302) = 180.980, p<.05). The

analysis showed inspirational motivation statistically predicted job satisfaction (B = .689,

(2.117) t = 13.453, p<.05). Akpinar et al. (2013) stated that job satisfaction was a result of

organizational commitment and not organizational communication. Additionally, results

indicated that there was a positive relationship between employee’s perception of

organizational communication and organizational commitment. However, unlike many

studies, the results indicated communication to a greater extent predicted organizational

commitment as opposed to job satisfaction. Shujaat et al. (2014) conducted a research to

establish the impact of team work on employee job satisfaction. The results of the study

revealed that there was a significant impact of team work on job satisfaction. This

indicates that it is important for organizational leaders to build a team work culture, build

team skills and hold it in high regard because of its significant effect on job satisfaction

and achieving organizational goals. Rana (2015) sought to determine the job satisfaction

factors affecting employees in the Bangladesh banking sector. The results indicated that

there was a significant and positive relationship between human resource management

practices like team work, job autonomy and leadership behavior on job satisfaction;

however, team work was the most important factor affecting job satisfaction

5.3.4 Influence of Intellectual Stimulation on Job Satisfaction

The fourth research question sought to examine the extent to which intellectual

stimulation influenced job satisfaction among employees in commercial banks in Kenya.

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The results of correlation analysis test on intellectual stimulation and job satisfaction

showed a positive correlation on all the variables: knowledge sharing (r (347) =.638,

p<.05), creativity (r (347) =.547, p<.05) and risk taking (r (347) =.550, p<.05). Cheung

and Wong (2011) examined the link between transformational leadership and employee

creativity in Hong Kong. The results of the study revealed a positive and significant

relationship between transformational leadership and employee creativity which in turn

boosts employee job satisfaction. Raisi and Forutan (2017) conducted a study on the

relationship between a knowledge sharing culture and job satisfaction in the context of

Bank Sepah Branches in Shriraz, Iran. Results revealed a positive and significant

relationship between a knowledge sharing culture and components of job satisfaction.

Habib et al. (2014) sought to establish the impact of organizational culture on job

satisfaction, employee commitment and turnover intention. The results of the study

revealed that organization culture, specifically, innovation and risk taking highly

influenced employee commitment, job satisfaction and retention. However, the study

found that intellectual stimulation was positively correlated to job satisfaction because

leaders foster inspiration through stimulation which in turn creates excitement

The chi-square test was used to determine the strength of association between intellectual

stimulation and job satisfaction. The results showed that there was a significant

association between intellectual stimulation and job satisfaction X2 (144, N = 347) =

426.404, p<.05). The variables under intellectual stimulation are knowledge sharing,

creativity and risk-taking. Different researchers have noted the importance of intellectual

stimulation variables that lead to job satisfaction. Chen et al. (2009) found that

organizations need to provide a supportive process and environment for employees to be

creative. Additionally, the organizations should provide challenges, involvement of staff

and trust because these motivate employees to make contributions. An environment that

allows creativity is catalyzed by some room for ambiguity, freedom and some room for

risk taking (Chen et al., 2009). Iqbal et al. (2013) and Raju (2017) support the need for

intellectual stimulation; an ethical organizational climate is a key enabler for creativity

among employees in the organizations. Employees were more associated with

organizations which encouraged creativity and provided a platform for freedom of

expression. This shows how a work environment that encourages creativity, risk taking

and knowledge sharing contributes to job satisfaction.

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The One-way ANOVA test results showed that there was no significant difference in the

mean values of all the respondents’ demographic information on intellectual stimulation

and job satisfaction (p<.05). The results indicate that organizations that encourage

innovation and provide a supportive climate are likely to experience growth and retention

of talent. This is attributed to the organizational leadership which provides employees

with a conducive and supportive environment to enable them to be creative and

innovative whilst allowing room for implementation of their innovations (Farrukh et al.,

2014). The research conducted by Raisi and Forutan (2017) on a knowledge sharing

culture and job satisfaction in the context of Bank Sepah Branches in Shriraz, Iran also

showed a positive relationship between a knowledge sharing culture and intellectual

stimulation. This shows that the culture of the organization influences intellectual

stimulation variables and not individual background.

The results of the multiple linear regression revealed that intellectual stimulation

significantly influenced job satisfaction (R2 = .292, F (1, 106.274) = 142.533, p<.05). The

analysis showed that intellectual stimulation statistically predicted job satisfaction (B =

.666 (2.842) t = 11.939, p<.05). Yee et al. (2014) conducted a study on the effect of a

psychological climate for creativity on job satisfaction and work performance. The

findings showed that a creative climate is a key predictor of job satisfaction and work

performance among electrical engineers. In this regard, leaders need to create a culture

and an environment which promotes creativity in their organizations since it is a predictor

of job satisfaction. Kianto et al. (2016) sought to establish if knowledge management

could be used to nurture job satisfaction and also examined how it could be used to

increase individual employee job satisfaction. The results revealed that knowledge

sharing was a key component of the knowledge management process which was found to

have a positive correlation with job satisfaction. The overall study concludes that having

knowledge management processes in place is linked to high job satisfaction. Abbaspour

and Noghreh (2015) examined the relationship between organizational culture and job

satisfaction of Tourism Bank employees in Iran. The results revealed that there was a

relationship between organizational culture factors like risk taking and job satisfaction.

Specifically, there was a relationship between risk-taking and job satisfaction which was

not statistically significant.

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5.3.5 Moderating Effect of Job Security on the Influence Transformational

Leadership on Job Satisfaction

The fifth research question sought to examine the extent to which job security moderated

the relationship between transformational leadership and job satisfaction among

employees in commercial banks in Kenya. The results of the correlation analysis test

revealed that there was a positive correlation on the moderating effect of job security and

job satisfaction: ‘My leader encourages fair treatment to everyone’ was positively

correlated with job satisfaction r (347) =.593, p<.05; ‘My leader’s behavior does not

cause me stress’ was positively correlated with job satisfaction r (347) =.628, p<.05; and

‘My leader does not leave room for anxiety’ was positively correlated with job

satisfaction r (347) =.660, p<.05. Anxiety manifests itself through future concerns and the

inability to predict that future employment and career concerns all which have the

possibility of affecting the employee’s judgments, perceptions, satisfaction and

productivity. Studies have found these elements to be strong predictors of job satisfaction

and thus a leader should endeavor to reassure employees through effective and accurate

communication to dispel any anxieties for there to be job satisfaction (Kler et al., 2015).

Nadinloyi et al. (2013) sought to examine the relationship between job satisfaction and

mental health. The findings based on their hypothesis indicate there was a relatively weak

but significant correlation between anxiety and job satisfaction meaning leaders need to

ensure there is minimum or no anxiety for job satisfaction to grow. However, according

to Agarwal (2015) who measured the relationship of job stress and job satisfaction in the

Indian IT Sector, there is no relationship between job stresses to job satisfaction. The

discussion shows the results on the correlation differ though most studies indicate that

stress is negatively correlated to job satisfaction as found in this study.

The chi-square test was used to determine the strength of association between job security

as the moderating variable and job satisfaction. The results showed that there was a

significant association between job security as the moderating variable and job

satisfaction X2 (144, N = 347) = 664.814, p<.05). The job security variables were anxiety,

fairness and stress. These results showed that anxiety, fairness and stress are job security

variables which affect job satisfaction. Darko E.O and Darko (2015), in Ghana noted that

as a result of high competition in the banking industry, employees are now expected to

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work harder to ensure they retain and attract new business which affects their job

security. This emanates from the fact that organizations depend on people to achieve their

objectives and when there is no job satisfaction then the employees are faced with choices

of whether to quit or remain on the job. This negatively affects the organizational

effectiveness (Tetteh & Brenyah, 2016).

According to Islam and Rahman (2016), the banking industry has been curbed by

problems like extended working hours, pressure, non-conducive working environments,

lack of fairness, reducing career growth opportunities and poor treatment. All these have

a significant impact on the level of organizational commitment and job satisfaction.

Thorsteinsson et al. (2014) examined the association between stress, organizational

support and staff health which incorporated anxiety, depression and fatigue together with

work outcomes like turnover intentions, organizational commitment and job satisfaction.

The findings indicate that high work stress was associated with worse staff health like

anxiety, depression and fatigue all of which lead to negative work outcomes like low job

satisfaction, high turnover intentions and less organizational commitment. These results

are generalizable to the banking sector where job security affects job satisfaction.

The One-way ANOVA test results showed that there was no significant difference

between the mean values of the entire respondent’s demographic data on job security and

job satisfaction. The demographic information included; gender, age, education level,

duration of working at the bank. Different researchers have found out that job satisfaction

is not determined by an individual’s characteristics but by other factors. Umair et al.

(2016) investigated the employee’s perception of fairness in the performance appraisal

system and the effect this had on job satisfaction of the employees. They found that the

perception of fairness consisted of distributive justice, procedural justice and interactional

justice which had an impact on job satisfaction. Lin et al. (2014) conducted a study on

role stress and job satisfaction among bank employees in Sabah, Malaysia. The results

indicate that there was a significant role of stress attributed to bank characteristics of

extended working hours, pressure, non-conducive working environments, lack of fairness,

reducing career growth opportunities and poor treatment (Islam & Rahman, 2016). These

discussions can be summarized by Yousef (1998) who found out that the importance of

job security comes from its influence on work related outcomes for example employee

health, turnover and job satisfaction.

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The results of multiple linear regression revealed that job security had a significant

moderating effect between transformational leadership and job satisfaction (R2 = .446,

F(5, 27.760) = 54.780, p<.05). Additionally, the analysis revealed that the regression

coefficient for job security was statistically significant (β = .384, t (.622) = 6.011, p<.05).

This showed that with the moderating effect of job security, transformational leadership

predicted job satisfaction. Thus, job security is a key factor in determining job

satisfaction. Studies have revealed that lack of job security has consequences among them

turnover intentions which consequently affect the job satisfaction. This also affects the

quality of service rendered to customers, productivity and ultimately the overall

organizational success. Knowledge of this and a vision of the bigger picture of the

consequences of turnover and job satisfaction should spur leaders into providing the best

environments to obviate the lack of job security (Joarder & Ashraf, 2012).

Allan et al. (2016) conducted a research on meaningful work and mental health with job

satisfaction as a moderator. The study found that having meaningful work was associated

with better mental health meaning lower rates of depression, anxiety and stress.

Meaningful work predicted lower depression but did not significantly predict anxiety or

stress. Thus, meaningful work contributes to the level of job satisfaction. Khan et al.

(2013) conducted a research to establish whether job satisfaction of operational staff in

Islamic banks was determined through organizational climate, occupational stress, age

and gender. The results revealed that organizational climate and occupational stress have

a significant impact on the level of job satisfaction. These research findings support the

results of this study which indicate that job security influences job satisfaction.

5.4 Conclusions

This section presents the conclusions based on the findings of the study. The presentation

is done according to the research questions.

5.4.1 Influence of Idealized Influence on Job Satisfaction

The multiple linear regression test results revealed that idealized influence had a

significant influence on job satisfaction (R2 = .246, F(1, 97.750) = 112.421, p<.05). As a

result, the null hypothesis that there was no significant influence of idealized influence on

job satisfaction among employees in commercial banks in Kenya was rejected. The study

concluded that idealized influence significantly influenced job satisfaction among

employees in commercial banks in Kenya.

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5.4.2 Influence of Individualized Consideration on Job Satisfaction

The multiple linear regression test results revealed that individualized consideration had a

significant influence on job satisfaction (R2 = .354, F(1, 138.779) = 188.851, p<.05). As a

result, the null hypothesis that there was no significant influence of individualized

consideration on job satisfaction among employees in commercial banks in Kenya was

rejected. The study concluded that individualized consideration significantly influenced

job satisfaction among employees in commercial banks in Kenya.

5.4.3 Influence of Inspirational Motivation on Job Satisfaction

The multiple linear regression test results revealed that inspirational motivation had a

significant influence on job satisfaction (R2 = .344, F(1, 126.302) = 180.980, p<.05). As a

result, the null hypothesis that there was no significant influence of inspirational

motivation on job satisfaction among employees in commercial banks in Kenya was

rejected. The study concluded that inspirational motivation significantly influenced job

satisfaction among employees in commercial banks in Kenya.

5.4.4 Influence of Intellectual Stimulation on Job Satisfaction

The multiple linear regression test results revealed that intellectual stimulation

significantly influenced job satisfaction (R2 = .292, F(1, 106.274) = 142.533, p<.05). As a

result, the null hypothesis that there was no significant influence of intellectual

stimulation on job satisfaction among employees in commercial banks in Kenya was

rejected. The study concluded that intellectual stimulation significantly influenced job

satisfaction among employees in commercial banks in Kenya.

5.4.5 Moderating effect of Job Security on the Influence of Transformational

Leadership on Job Satisfaction

The multiple linear regression test revealed that job security had a significant moderating

effect between transformational leadership and job satisfaction (R2 = .446, F(5, 27.760) =

54.780, p <.05). As a result, the null hypothesis that there was no significant moderating

effect of job security between transformational leadership and job satisfaction among

employees in commercial banks in Kenya was rejected. The study concluded that job

security has a significant moderating effect on the influence of transformational

leadership and job satisfaction among employees in commercial banks in Kenya.

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5.5 Recommendations

This section presents suggestions for improvement based on the findings of the study and

also presents suggestions for further research.

5.5.1 Suggestions for Improvement

5.5.1.1 Influence of Idealized Influence on Job Satisfaction

The study established that idealized influence significantly influenced job satisfaction

among employees in commercial banks in Kenya. Based on the finding, the leaders of

banks should leverage on idealized influence to enhance job satisfaction among the

employees. To achieve this, they can demonstrate or model how the employees should

behave through charisma. Additionally, being trustworthy and ethical will help to

enhance job satisfaction among the employees.

5.5.1.2 Influence of Individualized Consideration on Job Satisfaction

The study established that individualized consideration significantly influenced job

satisfaction among employees in commercial banks in Kenya. Based on the finding,

leaders in the commercial banks should leverage on individualized consideration to drive

job satisfaction among the employees. This can be achieved through mentorship, support

and delegation. These aspects demonstrate concern and care for the employees needs.

This helps in boosting the job satisfaction among the employees.

5.5.1.3 Influence of Inspirational Motivation on Job Satisfaction

The study established that inspirational motivation significantly influenced job

satisfaction among employees in commercial banks in Kenya. As a result, the leaders in

the commercial banks should use inspirational motivation elements to drive and sustain

job satisfaction. Motivation can be achieved through communication, encouraging

teamwork and providing motivational elements in the workplace which promote job

satisfaction among the employees.

5.5.1.4 Influence of Intellectual Stimulation on Job Satisfaction

The study established that intellectual stimulation significantly influenced job satisfaction

among employees in commercial banks in Kenya. Therefore, leaders in commercial banks

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need to stimulate their employees in order to enhance and sustain their job satisfaction.

This can be achieved through knowledge sharing and allowing creativity among the

employees. As much as some of the jobs in commercial banks can be routine, the

leadership needs to develop ways of stimulating the intellect of the employees. This will

in turn drive job satisfaction among the employees.

5.5.1.5 Moderating Effect of Job Security on the Influence of Transformational

Leadership on Job Satisfaction

The study established that job security significantly moderated the relationship between

transformational leadership and job satisfaction among employees in commercial banks in

Kenya. It is therefore important that leaders in commercial banks ensure employees have

job security which positively influences job satisfaction significantly. The lack of job

security negatively influences job satisfaction. Job security can be provided by ensuring

there is fairness, effective communication to reduce anxiety, no stress and that the work

environment is habitable. Aspects of lack of fairness, factors leading to anxiety and stress

should be eliminated in order to enhance job security among the employees.

5.5.2 Suggestions for Further Research

This study sought to establish the influence of transformational leadership on job

satisfaction among employees in commercial banks in Kenya. This was a cross-sectional

study carried out when commercial banks in Kenya were going through a lot of

turbulence due to new legislation which capped the interest rates. As a result, this led to a

reduction in the profitability of the commercial banks. Additionally, the country was

going through an electioneering period which resulted in reduced business for the

commercial banks. Based on this, most banks had to review their strategies to cut on costs

and most chose to leverage on electronic platforms and reduce investments in brick and

motor. As a result, most banks were downsizing through staff lay-offs and early

retirement programs which caused a lot of anxiety among the employees in the industry

due to lack of job security. This situation could have influenced the lack of job

satisfaction among the employees in the banking sector at the particular time this study

was carried out. Therefore, future research should carry out a study on the influence of

transformational leadership on job satisfaction among employees in other sectors such as

the microfinance institutions in Kenya at a time when the industry will have stabilized.

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APPENDICES

Appendix I: Cover Letter

4th August, 2017

Dear Respondent,

I am a Doctoral candidate in the Business Administration program at United States

International University of Africa (USIU – Africa). As part of my doctoral degree

requirement, I am expected to successfully conduct Applied Research on a relevant topic

in my area of concentration which is Leadership and Change Management.

This study will focus on The Influence of Transformational Leadership on Job

Satisfaction among employees in Kenyan Banks.

I would like to humbly request that you spend some time (10-15 minutes) to complete this

questionnaire to the best of your knowledge. Thank you in advance for accepting to be a

positive contributor to our society. I assure you that your responses will be treated with

utmost confidentiality.

To maintain anonymity, I request that you do not write your name on the questionnaire.

The findings of this study will go help bank managers institute the effective leadership

style which will positively influence job satisfaction among employees in the banking

sector.

Yours Sincerely,

Andrew Njiraini Njiinu (Doctoral Candidate)

For more information, please contact me on:

Cell: 0723 869 792

Email: [email protected]

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Appendix II: Questionnaire

This questionnaire has five sections which will cover general and demographic data,

influence of idealized influence on job satisfaction, influence of individualized

consideration on job satisfaction, influence of inspirational motivation on job satisfaction,

influence of intellectual stimulation on job satisfaction and the moderating effect of job

security on the influence of transformational leadership on job satisfaction.

Instructions: Please tick in the appropriate box. You are requested to complete this

questionnaire as honestly and objectively as possible.

SECTION A: DEMOGRAPHIC AND GENERAL INFORMATION

Please tick (√) appropriately within the box provided

1. What is your gender?

Male [ ] Female [ ]

2. What is your age bracket?

21-29 years [ ] 30-39 years [ ] 40-49 years [ ] 50-59 years [ ] Over 60 years [ ]

3. What is your highest level of education?

Certificate [ ] Diploma [ ] Bachelor’s Degree [ ] Master’s Degree [ ] PhD [ ]

4. How long have you worked in the Bank?

0-5 years [ ] 6-10 years [ ] 11-15 years [ ] 16-20 years [ ] Over 20 years [ ]

5. What is the Tier of your bank?

Tier I [ ] Tier II [ ] Tier III [ ]

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SECTION B: INFLUENCE OF IDEALIZED INFLUENCE ON JOB

SATISFACTION

This section focuses on the influence of idealized influence on job satisfaction.

Idealized influence is the capability to exert influence by serving as a role model. It brings

out positive emotions from employees and makes them desire to emulate the leader who

is a role model. It is achieved through charisma, trust and ethics. Job satisfaction is an

emotional state or a pleasurable experience of an employee from the expectations of the

job and the reality of the job situation.

Using a scale of 1-5, where one 1 = Strongly Disagree (SD), 2 = Disagree (D), 3 =

Neutral (N), 4 = Agree (A) and 5 = Strongly Agree (SA), indicate the extent to which you

agree or disagree with the following statements by ticking the box that best represents

your opinion on each statement.

Idealized Influence 1 2 3 4 5

SD D N A SA

My leader has charismatic attributes

My leader demonstrates trust in my abilities

My leader is ethical in the workplace

Influence of Idealized Influence on Job Satisfaction

I am committed to the organization because my leader

has charismatic attributes

I am hardly absent from work because my leader

demonstrates trust in my abilities

I have no intentions of leaving my job because my

leader is ethical in the workplace

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SECTION C: INFLUENCE OF INDIVIDUALIZED CONSIDERATION ON JOB

SATISFACTION

This section focuses on the influence of individualized consideration on job satisfaction.

Individualized consideration is the degree to which the leader attends to the needs of the

employees by displaying attention to their developmental needs. It involves leaders

offering mentorship, coaching and support to the needs of the employees. Job satisfaction

is an emotional state or a pleasurable experience of an employee from the expectations of

the job and the reality of the job situation.

Using a scale of 1-5, where one 1 = Strongly Disagree (SD), 2 = Disagree (D), 3 =

Neutral (N), 4 = Agree (A) and 5 = Strongly Agree (SA), indicate the extent to which you

agree or disagree with the following statements by ticking the box that best represents

your opinion on each statement.

Individualized Consideration 1 2 3 4 5

SD D N A SA

My leader mentors me in the workplace

My leader supports me in my work

My leader delegates work to me

Influence of Individualized Consideration on Job Satisfaction

I am committed to the organization because my leader mentors

me in the workplace

I am hardly absent from work because my leader supports me in

my work

I have no intentions of leaving my job because my leader

delegates work to me

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SECTION D: INFLUENCE OF INSPIRATIONAL MOTIVATION ON JOB

SATISFACTION

This section focuses on the influence of inspirational motivation on job satisfaction.

Inspirational motivation is the ability of a leader to behave in a way that inspires,

motivates and generates enthusiasm from employees. It is achieved through

communication, teamwork and motivation. Job satisfaction is an emotional state or a

pleasurable experience of an employee from the expectations of the job and the reality of

the job situation.

Using a scale of 1-5, where one 1 = Strongly Disagree (SD), 2 = Disagree (D), 3 =

Neutral (N), 4 = Agree (A) and 5 = Strongly Agree (SA), indicate the extent to which you

agree or disagree with the following statements by ticking the box that best represents

your opinion on each statement.

Inspirational Motivation 1 2 3 4 5

SD D N A SA

My leader encourages two-way communication

My leader promotes teamwork among employees

My leader’s behavior motivates me at work

Influence of Inspirational Motivation on Job Satisfaction

I am committed to the organization because my leader

encourages two-way communication

I am hardly absent from work because my leader promotes

teamwork among employees

I have no intentions of leaving my job because my leader’s

behavior motivates me at work

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SECTION E: INFLUENCE OF INTELLECTUAL STIMULATION ON JOB

SATISFACTION

This section focuses on the influence of intellectual stimulation on job satisfaction.

Intellectual stimulation refers to the leader’s actions which persuade the employees to use

their sense of logic to analyze situations using their creative thinking to find solutions. It

involves creativity and innovation, risk taking and knowledge sharing. Job satisfaction is

an emotional state or a pleasurable experience of an employee from the expectations of

the job and the reality of the job situation.

Using a scale of 1-5, where one 1 = Strongly Disagree (SD), 2 = Disagree (D), 3 =

Neutral (N), 4 = Agree (A) and 5 = Strongly Agree (SA), indicate the extent to which you

agree or disagree with the following statements by ticking the box that best represents

your opinion on each statement.

Intellectual Stimulation 1 2 3 4 5

SD D N A SA

My leader encourages knowledge sharing among employees

My leader permits me to be creative in my job

My leader allows me to take risks in my job

Influence of Intellectual Stimulation on Job Satisfaction

I am committed to the organization because my leader

encourages knowledge sharing among employees

I am hardly absent from work because my leader permits me

to be creative in my job

I have no intentions of leaving my job because my leader

allows me to take risks in my job

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SECTION F: MODERATING EFFECT OF JOB SECURITY ON THE

INFLUENCE OF TRANSFORMATIONAL LEADERSHIP ON JOB

SATISFACTION

This section focuses on the moderating effect of job security on the influence of

transformational leadership on job satisfaction.

Job security refers to expectations regarding the continuity of a job situation and goes

over and above the loss or retention of a job to the continuation or loss of certain

desirable job features such as promotion opportunities and favorable working condition. It

is influenced by anxiety, fairness and stress. Job satisfaction is an emotional state or a

pleasurable experience of an employee from the expectations of the job and the reality of

the job situation.

Using a scale of 1-5, where one 1 = Strongly Disagree (SD), 2 = Disagree (D), 3 =

Neutral (N), 4 = Agree (A) and 5 = Strongly Agree (SA), indicate the extent to which you

agree or disagree with the following statements by ticking the box that best represents

your opinion on each statement.

Job Security 1 2 3 4 5

SD D N A SA

My leader encourages fair treatment to everyone

My leader’s behavior does not cause me stress

My leader does not leave room for anxiety

Influence of Job Security on Job Satisfaction

I am committed to the organization because my leader

encourages fair treatment to everyone

I am hardly absent from work because my leader’s behavior

does not cause me stress

I have no intentions of leaving my job because my leader

does not leave room for anxiety

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Appendix III: USIU Research Introduction Letter

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Appendix IV: NACOSTI Research Permit

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Appendix V: Classification of Banks in Tiers

Tier One Banks

No Bank Name

1 Kenya Commercial Bank

2 Standard Chartered Bank Kenya Limited

3 Barclays Bank of Kenya Limited

4 Commercial Bank of Africa Limited

5 Co-operative Bank of Kenya Limited

6 Diamond Trust Bank Limited

7 Equity Bank Limited

Tier Two Banks

No Bank Name

1 National Bank of Kenya Limited

2 Citibank N A

3 Bank of Africa Kenya Limited

4 Chase Bank Limited

5 Stanbic Bank Kenya Limited

6 NIC Bank Limited

7 ECO Bank Limited

8 I&M Bank Limited

9 Housing Finance Bank

10 Family Bank Ltd

11 Bank of India

12 Bank of Baroda (Kenya Limited)

13 Prime Bank Limited

14 Imperial Bank Limited

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Tier Three Banks

No Bank Name

1 Habib Bank Limited

2 M-Oriental Bank Limited

3 Habib Bank A G Zurich

4 Middle East Bank Kenya Limited

5 Consolidated Bank of Kenya Limited

6 Credit Bank Limited

7 Trans-National Bank Limited

8 African Banking Corp. Bank Ltd

9 Giro Commercial Bank Limited

10 Spire Bank Ltd

11 Paramount Universal Bank Limited

12 Jamii Bora Bank

13 Guaranty Trust Bank ( Kenya) Ltd.

14 Victoria Commercial Bank Limited

15 Guardian Bank Limited

16 Development Bank of Kenya Limited

17 Fidelity Commercial Bank Limited

18 Sidian Bank Limited

19 Gulf African Bank Ltd

20 First Community Bank

21 UBA Kenya Bank Ltd

22 Dubai Bank of Kenya Ltd