Report on Employee Job Performance Evaluation in Nigerian Banks

This report presents an evaluation of employee job performance in Nigerian banks, based on a survey of 111 bank employees in Lagos. The study utilizes a causal research design and simple random sampling, employing questionnaires administered online to gather data on transformational and transactional leadership styles, as well as employee job satisfaction. Data analysis includes descriptive statistics, Pearson correlation, and t-tests to assess the relationship between leadership styles and employee performance. Key findings indicate that both transformational and transactional leadership styles significantly and positively affect employee performance. Additionally, the report explores the relationship between leadership styles and job satisfaction, revealing statistically significant differences between the two leadership styles. The research provides insights into the impact of leadership on employee performance within the Nigerian banking sector.

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Nigerian Banks Employee Job Performance Evaluation
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METHODOLOGY
Introduction
The methodology is aimed at explaining what was utilized in executing the research in order to
ensure that it is a success (Kothari, 2004, p.10). The following section is aimed at describing the
design of the research, the site of the research, the population targeted, the design of sampling,
the tools, and procedures used in collecting the data, analysis of the data and the presentation.
Research Design
A causal design was used for this study since it has the ability to measure what impact of a
specific change has on an existing assumption and norm (Blossfeld, 2001, p.16). Causal
explanations are sought after since they reflect the test of the hypothesis (Woodward, 2005,
p.16). Causal effect ensues when deviations in one phenomenon which is usually an independent
variable result of a variation in another phenomenon (dependent variable). A causal design was
necessary since there is a valid conclusion which can be based on finding the connection a
between the independent and the dependent variable. The main advantage of causal designs is
that it is associated with greater levels of internal validity and plays an instrumental role in
identifying reasons behind a wide range of processes. However, the design is disadvantaged in
that coincidences in events may be perceived as cause-and-effect relationships and may be
difficult to reach appropriate conclusions on basis of causal research findings.
Target population
The study conducted was targeted on bank employees who work in Nigeria, specifically in
Lagos.

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Sampling Technique
The researcher adopted the use of simple random sampling for the study. Simple random
sampling was used since it is representative of the population (Thompson, 2012, p.11).
Sample size
The sample size included all the respondents who participated in the online survey since they had
all the information that was required for the study. Information gathered from the online survey
of the bank employees in Nigeria confirmed that a total of 111 Nigerian Bank employees
participated in the survey. Thus, the sample size consisted of 100% from each responded who
participated in the online survey.
Research instruments
The main tools for data collection were questionnaires which are structured. The questionnaires
were self-administered online and had both closed-ended questions. The items of the
questionnaires were developed in such a way that could draw responses that were in line with the
goals and objectives of the study (Beiske, 2002, p. 18). The questionnaires developed included
four parts. The first part entailed four questions which were aimed at gathering information with
regards to the personal details of the respondents. They include the age and gender of the
respondents, their highest education qualification and the years of experience they had in the
banking industry. The above details were captured from question one to question four. The rest
of the three parts included questions which were of Likert scale in nature. The Likert scale is a
sequence of items or questions which ask respondents to select on a scale which ranges from one
extreme to another (Jamieson, 2004, p.1217). For the questionnaire in use, the scale used ranged

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from strongly disagree to strongly agree. Likert scale questions were used because they give a
deeper insight of what the respondents are thinking and how they feel (Norman, 2010, p.627).
The second part gathered information with regards to transformational styles used by the
supervisors. The transformational styles are shown in the table below:
Table 1: Transformational leadership styles components
Transformational styles
 How supervisor makes workers feel around him/her
 Pride to be associated with the supervisor
 Faith in supervisor
 Supervisors expression of what to do
 Supervisor appealing image of what can be done
 Supervisor help in the finding of meaning in work
 Supervisor provision of new ways of looking at issues/problems
 Supervision encouragement on how to rethink ideas that they had never questioned
before
 Supervisor encouragement to question how things are done
 Supervisor show of concern in the individual development
 Supervisor giving of homes feedback
 supervisor giving of personal attention to those seeming rejected
The transformational styles were questions from question four to question sixteen. The third part
contains questions that regard transactional styles. The transactional styles in question were as
shown in the table below:
Table 2: Transactional leadership styles components
Transactional styles
 If supervisor recognizes/rewards the workers when they achieve their targets
 If a supervisor tells others what to do if they want to be rewarded
 The supervisor tells the standard we have to know to carry out work
 Supervisor punishes workers performing below-set targets
 The supervisor makes sure every activity follows the procedure
 The supervisor does not change anything as long as they are working
 A good relationship with supervisor

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The transactional questions span the range from question seventeen to question twenty-three.
The fourth part asked questions with regards to job performance and job satisfaction. The two
attributes were asked from question twenty for to question twenty-nine.
Since the tool of collecting information was easily administered, it was able to capture huge
quantities of information while enabling the responses to be given in a short time (Fricker &
Schonlau, 2002, p.350). Consequently, the researcher selected this method of collecting
information since it was possible to store the information gathered further for future references.
Moreover, using an online tool made it possible to administer the questionnaires at a low cost
compared to other methods of collecting information.
Data collection procedure
The questionnaires were administered through an online survey platform that is the survey
monkey.
Data Analysis
Various methods were used in analyzing the collected data. They include the use of descriptive
analysis, Pearson correlation, and t-test analysis. The collected data was scanned so as to ensure
it was complete. Moreover, all the instructions had to ensure that they had to be followed by the
respondents. Having passed all the reliability tests, the analysis was conducted using the IBM
SPSS Statistical Software. Descriptive statistics included mean scores, percentages, and
proportions which were used to establish the importance of variables under study. A Pearson
correlation was used to test the relationship between the independent variables and the dependent
variables (Beesty et al., 2009, p.2). A reliability test was also carried out to assess the degree to
which the tests are consistent and stable in measuring what is intended to be measured (Tavakol

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& Denick, 2011, p.53). A t-test was also carried out to tests whether there were significant
differences in the means between formational leadership styles, transactional leadership styles
and employee job satisfaction (Norusis, 2006, p.29). Results of data analysis were presented in
the form of tables and figures to help in understanding the three hypotheses developed. The study
used at least five percent probability level and one percent probability level as the basis for
rejecting a null hypothesis.
Ethical Considerations
The researcher ensured that the respondents’ contributions were voluntary and that their replies
were treated with total discretion to elude any destructive consequences to themselves or the
targeted banks.
SUMMARY OF FINDINGS
Information gathered from the online survey of the bank employees in Nigeria confirmed that a
total of 111 Nigerian Bank employees participated in the survey. The survey aimed to capture
200 employees from the Nigerian banks. Thus, it can be deduced that the response rate from the
survey is 55.5%.
From the data gathered, it was found that most of the employees in banks in Nigeria are between
the ages of 25 and 35 years of age (45.95%). The ages of 36 and 45 years of age come in second
with a representation with 35.14%. However, with the progression of age, that is from 46 years
and above, the number of employees working in the bank decreases to 9.91%. Employees who
work below the ages of 25 years are the minority with only 9% working in banks. However,

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most of the employees had one to three years of experience (36.04%) with the experience of four
to six years (21.62%) coming in second. The rest of the employees had eleven to fifteen years of
experience (15.32%), seven to ten years of experience (14.41%) and 16 years and above
(12.61%).
On a gender basis, most of the employees in Nigerian banks in Lagos are male with a
representation of 71%. The level of education achieved by banking employees was also a key
factor that needed consideration. The categories of education determined were
certificate/diploma, higher diploma, masters, and the bachelor’s degree. The analysis shows that
most of the banking employees have pursued a bachelor’s degree as their highest level of
education qualification (57.66%). They were closely followed by employees with a masters
(32.43%). Higher diploma and Certificate/diploma had the lowest representation with 5.41% and
4.5% respectively.
The first hypothesis was aimed at finding whether transformations leadership styles significantly
and positively affect employee performance in Nigerian banks or not. Since the Cronbach’s
alpha is 0.923, it was observed that the items have a high internal consistency in transformational
leadership styles thereby necessitating for a Pearson correlation to be carried out. From the
Pearson correlation analysis, it was found out that the correlation is significant at the 0.01 level.
Thus we choose to reject the null hypothesis and conclude that transformational leadership style
does significantly and positively affect employee performance in Nigerian banks. The same
could also be mentioned for the transactional leadership styles in terms of the Cronbach’s alpha
and Pearson correlation. Thus, transactional leadership styles significantly and positively affect
employee performance in Nigerian banks.

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The third hypothesis aimed at finding if transactional, transformational leadership styles and
employee’s job satisfaction had a significant relationship. Two Pearson correlations were carried
out. The first Pearson correlation was conducted on the transformational leadership style on job
satisfaction mediated between transformational leadership style and employee performance. The
result shows that the correlations were positive but some of them were not significant (Q5, Q9,
and Q11). The second Pearson correlation carried out on transactional leadership style on job
satisfaction mediated between transactional leadership style and employee performance showed
that the results were positive. However, none of the correlations was significant with the
exemption of Q22.
A t-test was carried out to determine whether the two styles have a difference that is statistically
significant. The two variables had a significance level of p < 0.05. Thus, the two leadership
styles have a difference that is statistically significant.
ANALYSIS OF DATA
How transformational leadership style affect staff performance
The questions which assess transformational leadership styles (Q5-Q16) were tested for
reliability using the Cronbach’s alpha. It was found out that the transformational leadership
attributes had a Cronbach’s alpha of 0.923. Thus, they had a high level of consistency. In tandem
with this, a Pearson correlation analysis was carried out. It was observed that transformational
leadership style significantly and positively affects employee performance in Nigerian banks. All
the transformational leadership styles attribute analyzed had a positive correlation with employee

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job performance. The attributes correlation raged from 0.29 to 0.44 which suggests that the
relationship is weak but significant at 0.01 level.
How transactional leadership style affects staff performance
Consequently to transformational leadership style, a Cronbach alpha was determined to establish
transactional leadership style reliability. The Cronbach alpha obtained was 0.73. Thus,
transactional leadership styles have a relatively high internal consistency. A Pearson correlation
was determined. The result of the analysis shows that transactional leadership styles are
positively correlated with employee performance. Thus, transactional leadership style affects
employee performance significantly and positively. All the attributes related to transactional
leadership styles were positive. Nonetheless, the correlations were significant at the 0.01 level
with exception of Q20 which aims to know whether the supervisor punishment of workers who
perform below-set target guarantee employee performance.
The better leadership style suitable for the banking industry in Nigeria
From the Pearson correlation conducted on the transformational leadership style on job
satisfaction mediated between transformational leadership style and employee performance, it
was seen that the correlations were positive but some of them were not significant. Thus, when
supervisors make workers feel good to be around them, provide appealing images about what
can be done, and provide a new way of looking at issues/problems, do not significantly confer
job satisfaction. Similarly, the correlation carried out on transactional leadership style on job
satisfaction mediated between transactional leadership style and employee performance showed
that the results were positive. However, none of the correlations was significant with the
exemption of Q22. Therefore, if the supervisor does not try to change anything, as long as it is

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working then the supervisors will be guaranteed job satisfaction. From this, it can be deduced
that transformational leadership styles are more effective in ensuring job satisfaction for
employees in Nigerian banks compared to transactional leadership styles.
But can the two leadership styles be used together in Nigeria banking industry? From the
significance of the t-test carried out, it was seen that the two styles have a difference that is
statistically significant. Thus, they cannot be used together in the banking industry in Nigeria.
CONCLUSION AND RECOMMENDATIONS
The objectives of this research were met accordingly. The analysis proved that transformational
leadership styles have a positive and significant effect on employees’ performance. The same can
also be seen for transactional leadership styles. Ideally, transformational leadership styles are
used by leaders who are aiming at motivating their teams and organizations to take action and go
forward (Leban & Zulauf, 2004). Thus, the findings are in support with the findings of Emery &
Barker (2007) which states that transformational styles improve and help in reshaping the image
of a company through the creation of a positive environment for employees. A fact that can be
attributed to the fact that transformational leadership is aimed at idealizing influence, inspiring
motivation, stimulating the intellect and individualizing consideration. Conversely, transactional
leadership styles and transformational leadership styles have a positive impact on employee’s job
satisfaction.
However, the finding revealed that the impact of transactional leadership styles were not
significant for employee’s job satisfaction. Transactional leadership focuses on results,
conformity existing structures within the organization and measuring the success structure in

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accordance with the system of the organization's rewards and penalties (Eagly et al., 2003).
Transactional leader value the order and structure of an organization. The analysis is in support
of the findings of Emery & Barker (2007), that transactional leadership impacts positively on the
performance of the employees.
Transactional leadership styles and transformational leadership styles impact employee’s job
satisfaction in a similar way. However, the research findings show that transformational
leadership styles are more significant compared to transactional leadership styles. Thus
supporting Dai et al. (2013) claim that transformational leadership style confers greater job
satisfaction than transactional leadership styles. Though both leadership styles are necessary
conditions for an operational leadership, the research has shown that transformational styles of
leadership and transactional styles of leadership cannot be used as one. According to Spreitser et
al (2005), transformational leadership styles and transactional leadership styles are suited for
different situations. Thus, based on the contemporary market or working conditions, supervisors
need to determine the best style which will get out the best of the employees to ensure that they
continue to be productive in the organization.
The following research has shown that organizations need to make a review of the ensuing
market conditions and organizational objectives before adopting a transformational leadership
style. The following research had its limitations in terms of the number of the number of
employees who responded and the scope of the research. Future researchers can opt to improve
the following research by increasing the target population in a bid to increase the response rates.
Moreover, they can choose to increase the scope of the survey to include other cities and regions
and not Lagos alone.

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Dai, Y.D., Dai, Y.Y., Chen, K.Y. and Wu, H.C., 2013. Transformational vs transactional
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