TRANSACTIONAL LEADERSHIP STYLE AND EMPLOYEE SATISFACTION IN WATER SERVICE INDUSTRY IN KENYA: CASE OF MALINDI WATER AND SEWERAGE COMPANY

Abstract

Employee satisfaction among organizations requires an optimal mix of leadership styles. Managers of firms grapple with the various leadership styles that can suit their organizational employees, so as to satisfy them. Data from water services companies in Kenya indicates a grim picture on the state on employee satisfaction levels.The purpose of this study was to examine transactional leadership and employee satisfaction in the water service industry: a case of Malindi water and Sewerage Company limited. The study objectives were to determine the effect of contingent reward on employee satisfaction in the water service industry; to evaluate the effect of active management by exception on employee satisfaction in the water service industry; to assess the effect of passive management by exception on employee satisfaction in the water service industry. This study was guided by three theories namely the transactional theory of leadership, the fulfilment theory and the discrepancy theory. This study adopted a descriptive research design. The target population was 206 employees of Malindi water and Sewerage Company limited. The sample size of this study was 62 respondents. A questionnaire was used and data was analyzed through SPSS. Findings revealed that; there is a negative and significant relationship between contingent reward and employee satisfaction in Malindi Water and Sewerage Company limited; there is a negative and insignificant influence of management by exception on employee satisfaction in Malindi Water and Sewerage Company limited; there is a positive and insignificant influence of passive management by exception on employee satisfaction in Malindi Water and Sewerage Company limited. Overally, contingent reward, active management by exception and passive management by exception positively and insignificantly affect employee satisfaction in Malindi Water and Sewerage Company limited. This study recommends that the company should be fair in its appraisal and reward scheme. It is a recommendation of this study that managers should concentrate on successes at the workplace. The management of the company should encourage the employees to be proactive in the course of performing their duties. It is a recommendation of this study that accomplishments be recognised and rewards be instituted.