Report: Leadership Styles and Employee Performance in Nigerian Banks

This report analyzes the impact of transactional and transformational leadership styles on employee performance in Nigerian banks. Data were collected from 111 participants in Lagos, Nigeria, through online surveys. The study examined demographics such as age, gender, education, and years of experience. The research investigated the effects of transformational leadership, which was found to significantly and positively affect employee performance, as evidenced by a Cronbach’s alpha of 0.923 and Pearson correlation analysis. Similarly, transactional leadership styles were also shown to significantly and positively impact employee performance. Furthermore, the report explored the relationship between leadership styles and job satisfaction, revealing that transformational leadership styles are more significant in promoting job satisfaction among employees in the Nigerian banking industry. A t-test confirmed a significant difference between the means of transactional and transformational styles concerning job satisfaction. The findings highlight the importance of leadership styles in influencing employee performance and job satisfaction within the Nigerian banking sector.

Running Header: Nigerian Banks Employee Job Performance Evaluation 1
Nigerian Banks Employee Job Performance Evaluation
Students Name:
Students ID:
Date:
The following report aims at analyzing the online data collected through the
Survey Monkey site. The report aims at determining the effect of
transactional and transformational leadership styles on staff performance in

Nigerian Banks Employee Job Performance Evaluation 2
Nigerian banks. Data were collected from 111 participants in Lagos Nigeria
through online means. The research targeted 200 employees from the
banking industry. Thus, it can be deduced that the response rate was at
55.5%.
Key Demographics
Age
The report aimed at capturing data from bank employees from Nigerian
banks from all age brackets.
Figure 1: Age
25 - 35 years 36 -45 years 46 & above years Below 25 years
45.95%
35.14%
9.91% 9.01%
Age
From figure 1, it is evident that most of the respondents were between the

Nigerian Banks Employee Job Performance Evaluation 3
ages of 25 to 35 years old (45.95%). They were closely followed by the age
brackets of 36 to 45 years old (35.14%) with the rest of the respondents
having representations that are below 10%.
Gender
On the other hand, most of the respondents were male (71.17%) as seen in
figure 2 below. The female population was represented by 28.83% of the
responses.
Figure 2: Gender
Male
71%
Female
29%
Gender
Highest Education Qualification
The survey sought to find out the level of educational qualification attained
by the Nigerian bank employees.
Figure 3: Education qualification

Nigerian Banks Employee Job Performance Evaluation 4
Bachelor degree
Masters
Higher Diploma
Certificate/
Diploma
57.66%
32.43%
5.41%
4.50%
Education level
As seen in table 3 above, most of the employees had undertaken a
bachelor's degree (57.66%). Employees with a master's degree were second
with a representation rate of 32.43%. Higher diploma (5.41%) and
Certificate/diploma (4.50%) form the least representation among bank staffs
in Nigeria.
Years of experience
The years of experience of the bank staff who undertook the survey was also
captured.
Figure 4: Years of experience in the bank

Nigerian Banks Employee Job Performance Evaluation 5
1 - 3 years 4 - 6 years 7 - 10 years 11 - 15 years 16 & above
36.04%
21.62%
14.41% 15.32%
12.61%
Years of experience
It is clear that most of the bank employees have been in the banking
industry between 1 and 3 years. The fact is evident from the response rate
from the survey of 36.04%. The figure was closely followed by bankers with
an experience of 4 to 6 years with a response rate of 21.62%. 11 to 15 years
and 7 to 10 years had a representation o 15.32% and 14.41% respectively
while the least representation went to bankers aged between 11 to 15
years.
Transformational leadership

Nigerian Banks Employee Job Performance Evaluation 6
Transformational leadership styles are styles employed by leaders who aim
at motivating their teams and organizations to take action and make going
forward (Bass & Riggio, 2006, p.10). The afro-mentioned leadership style is
an approach that aims at changing individuals and the social systems. As a
result, it creates a positive change which is valuable to the followers
thereby leading to achievement of end goals and consequently changes
them into leaders. Transformational leadership is aimed at idealizing
influence, inspiring motivation, stimulating the intellect and individualizing
consideration (Dvir et al., 2002, p. 739).
A hypothesis was developed aimed at finding whether transformational
leadership styles significantly and positively affect employee performance in
Nigerian banks. Thus;
Ho: The Transformational leadership style does not significantly and
positively affect employee performance in Nigerian Banks.
The transformational styles variables were identified from the data
collected.
Questions 5 to 16 aim to identify the transformational styles which the
employees experience from their employees while job performance was
evaluated using Q24.
A reliability check was also carried out using the Cronbach’s alpha. The
Cronbach’s alpha measures the internal consistency or how closely related

Nigerian Banks Employee Job Performance Evaluation 7
a set of items are as a group. The Cronbach’s alpha for transformational
styles is 0.923.
Table 1: Reliability test
Reliability Statistics
Cronbach's
Alpha
N of
Items
0.923 12
Since the reliability coefficient is higher than 0.7, the coefficient is
acceptable. Thus, the items have a high internal consistency.
Moreover, the following Pearson correlation table was obtained.
Table 2: Transformational styles and employee performance
Correlations
Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q24
Q5
Pearson
Correlation 1
Sig. (2-
tailed)
Q6
Pearson
Correlation .471** 1
Sig. (2-
tailed) .000
Q7
Pearson
Correlation .456** .780** 1
Sig. (2-
tailed) .000 .000
Q8
Pearson
Correlation .361** .471** .476** 1
Sig. (2-
tailed) .000 .000 .000
Q9 Pearson
Correlation
.293** .380** .427** .516** 1

Nigerian Banks Employee Job Performance Evaluation 8
Sig. (2-
tailed) .002 .000 .000 .000
Q10
Pearson
Correlation .411** .600** .600** .546** .584** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000
Q11
Pearson
Correlation .350** .530** .532** .424** .366** .567** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000
Q12
Pearson
Correlation .282** .495** .518** .355** .490** .538** .707** 1
Sig. (2-
tailed) .003 .000 .000 .000 .000 .000 .000
Q13
Pearson
Correlation .355** .503** .507** .344** .448** .608** .639** .671** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000 .000 .000
Q14
Pearson
Correlation .456** .569** .481** .539** .532** .664** .537** .519** .548** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000
Q15
Pearson
Correlation .528** .507** .503** .470** .388** .546** .515** .427** .537** .677** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
Q16
Pearson
Correlation .420** .490** .455** .455** .472** .616** .446** .484** .554** .594** .497** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
Q24
Pearson
Correlation .325** .454** .437** .369** .307** .388** .399** .289** .343** .385** .437** .437** 1
Sig. (2-
tailed) .000 .000 .000 .000 .001 .000 .000 .002 .000 .000 .000 .000
**. Correlation is significant at the 0.01 level (2-tailed).

Nigerian Banks Employee Job Performance Evaluation 9
From the Pearson correlation analysis, it was found out that the correlation
is significant at the 0.01 level (2-tailed). Thus, we reject the null hypothesis
and conclude that transformational leadership style significantly and
positively affect employee performance in Nigerian Banks.
Transactional leadership
Unlike transformational leadership, transactional leadership focuses on
results, conformity existing structures within the organization and
measuring the success structure in accordance with the system of the
organization's rewards and penalties (Judge & iccolo, 2004, p.755).
Transactional leader value the order and structure of an organization (Bono
& Judge, 2004, p.901). To test the hypothesis II, the transactional variables
were identified. They were from question 17 to question 23.
The hypothesis aims at finding if there is any relationship between the
transactional leadership and employee performance in Nigerian Banks.
Thus;
Ho: The Transactional leadership style does not significantly and positively
affect employee performance in Nigerian Banks.
A reliability check was also carried out using the cronbach’s alpha. The
cronbach’s alpha for transactional styles is 0.73.
Table 3: Reliability test

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Reliability Statistics
Cronbach's
Alpha
N of
Items
0.73 7
Since the reliability coefficient is higher than 0.7, the coefficient is
acceptable. Thus, the items have a relatively high internal consistency.
The following Pearson correlation was then obtained.
Table 4: Transactional leadership style and employee performance
Correlations
Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24
Q17 Pearson Correlation 1
Sig. (2-tailed)
Q18 Pearson Correlation .672** 1
Sig. (2-tailed) .000
Q19 Pearson Correlation .476** .668** 1
Sig. (2-tailed) .000 .000
Q20 Pearson Correlation -.062 .165 .234* 1
Sig. (2-tailed) .518 .083 .013
Q21 Pearson Correlation .299** .360** .405** .027 1
Sig. (2-tailed) .001 .000 .000 .777
Q22 Pearson Correlation .040 .216* .219* .170 .175 1
Sig. (2-tailed) .676 .023 .021 .075 .066
Q23 Pearson Correlation .622** .464** .390** -.011 .442** .207* 1
Sig. (2-tailed) .000 .000 .000 .910 .000 .029
Q24 Pearson Correlation .420** .394** .308** .066 .280** .203* .528** 1
Sig. (2-tailed) .000 .000 .001 .493 .003 .032 .000
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
From the Pearson correlation analysis in table 2, it was found out that the
correlations are significant at the 0.05 level (2-tailed) with exemption of

Nigerian Banks Employee Job Performance Evaluation 11
Q20. Thus, we reject the null hypothesis and conclude that transactional
leadership styles significantly and positively affect employee performance in
Nigerian Banks.
Transactional leadership and transformational leadership
A third hypothesis was also developed to determine the significance of the
relationship between transactional, transformational leadership styles and
the employee's job satisfaction. Thus;
Ho: There is no significant relationship between transactional,
transformational leadership styles and employee’s job satisfaction.
H1: There is a significant relationship between transactional,
transformational leadership styles and employee’s job satisfaction.
The following Pearson correlations were derived:
Table 5: Correlation between transformational leadership styles and job
satisfaction mediated between transformational leadership and employee
performance
Correlations
Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q29
Q5
Pearson
Correlation 1
Sig. (2-
tailed)
Q6 Pearson
Correlation
.471** 1

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Sig. (2-
tailed) .000
Q7
Pearson
Correlation .456** .780** 1
Sig. (2-
tailed) .000 .000
Q8
Pearson
Correlation .361** .471** .476** 1
Sig. (2-
tailed) .000 .000 .000
Q9
Pearson
Correlation .293** .380** .427** .516** 1
Sig. (2-
tailed) .002 .000 .000 .000
Q10
Pearson
Correlation .411** .600** .600** .546** .584** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000
Q11
Pearson
Correlation .350** .530** .532** .424** .366** .567** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000
Q12
Pearson
Correlation .282** .495** .518** .355** .490** .538** .707** 1
Sig. (2-
tailed) .003 .000 .000 .000 .000 .000 .000
Q13
Pearson
Correlation .355** .503** .507** .344** .448** .608** .639** .671** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000 .000 .000
Q14
Pearson
Correlation .456** .569** .481** .539** .532** .664** .537** .519** .548** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000
Q15
Pearson
Correlation .528** .507** .503** .470** .388** .546** .515** .427** .537** .677** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000

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Q16
Pearson
Correlation .420** .490** .455** .455** .472** .616** .446** .484** .554** .594** .497** 1
Sig. (2-
tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
Q29
Pearson
Correlation .102 .324** .310** .202* .157 .254** .142 .203* .218* .252** .211* .248** 1
Sig. (2-
tailed) .289 .001 .001 .034 .100 .007 .138 .032 .021 .008 .026 .009
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
All the items of transformational leadership style confer job satisfaction
with exemption to Q5, Q9 and Q11 which are not significant.
Table 6: Correlation between transactional leadership styles and job
satisfaction mediated between transactional leadership and employee
performance
Correlations
Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q28
Q17 Pearson Correlation 1
Sig. (2-tailed)
Q18 Pearson Correlation .672** 1
Sig. (2-tailed) .000
Q19 Pearson Correlation .476** .668** 1
Sig. (2-tailed) .000 .000
Q20 Pearson Correlation -.062 .165 .234* 1
Sig. (2-tailed) .518 .083 .013
Q21 Pearson Correlation .299** .360** .405** .027 1
Sig. (2-tailed) .001 .000 .000 .777
Q22 Pearson Correlation .040 .216* .219* .170 .175 1
Sig. (2-tailed) .676 .023 .021 .075 .066
Q23 Pearson Correlation .622** .464** .390** -.011 .442** .207* 1
Sig. (2-tailed) .000 .000 .000 .910 .000 .029

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Q28 Pearson Correlation .054 .031 .041 .028 .065 .340** .038 1
Sig. (2-tailed) .572 .745 .674 .775 .500 .000 .691
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Unlike transformational leadership styles, transactional leadership styles
lead to job satisfaction but they are not significant at both the 0.01 and 0.05
level. However, Q22 was significant.
Thus, from table 5 and 6, it can be seen that transformational leadership
styles are more significant in promoting job satisfaction among employees
in the Nigerian banking industry.
A t-test was carried out to compare the means of transactional styles and
transformational styles impact on job satisfaction whether there was
statistical evidence which associates population means is significantly
different.
Table 7: t-test analysis
t df
Sig. (2-
tailed)
Mean
Difference
95% Confidence
Interval of the
Difference
Lowe
r Upper
Q28
26.00
7 109 0 2.127 1.97 2.29
Q29 25.18 110 0 1.865 1.72 2.01

Nigerian Banks Employee Job Performance Evaluation 15
Since p < 0.01 is less than our chosen significance level α = 0.05, we can
reject the null hypothesis, and conclude that the means of transactional
styles and transformational styles are significantly different.
Findings
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
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.

Nigerian Banks Employee Job Performance Evaluation 16
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.
Reference:
Bass, B. M., and Riggio, R. E. 2006. Transformational leadership.
Psychology Press.

Nigerian Banks Employee Job Performance Evaluation 17
Bono, J. E., and Judge, T. A. 2004. Personality and transformational and
transactional leadership: a meta-analysis. Journal of applied
psychology, 89(5), pp. 901.
Dai, Y.D., Dai, Y.Y., Chen, K.Y. and Wu, H.C., 2013. Transformational vs transactional
leadership: which is better? A study on employees of international tourist hotels in Taipei
City. International Journal of Contemporary Hospitality Management, 25(5), pp.760-
778.
Dvir, T., Eden, D., Avolio, B. J., and Shamir, B. 2002. Impact of
transformational leadership on follower development and
performance: A field experiment. Academy of management
journal, 45(4), p. 735-744.
Eagly, A.H., Johannesen-Schmidt, M.C. and Van Engen, M.L., 2003. Transformational,
transactional, and laissez-faire leadership styles: a meta-analysis comparing women and
men. Psychological bulletin, 129(4), p.569.
Emery, C.R. and Barker, K.J., 2007. The effect of transactional and transformational leadership
styles on the organizational commitment and job satisfaction of customer contact
personnel. Journal of organizational culture, communications and conflict, 11(1), p.77.

Nigerian Banks Employee Job Performance Evaluation 18
Judge, T. A., and Piccolo, R. F. 2004. Transformational and transactional
leadership: a meta-analytic test of their relative validity. Journal of
applied psychology, 89(5), pp. 755.
Leban, W. and Zulauf, C., 2004. Linking emotional intelligence abilities and transformational
leadership styles. Leadership & Organization Development Journal, 25(7), pp.554-564.
Spreitzer, G.M., Perttula, K.H. and Xin, K., 2005. Traditionality matters: An examination of the
effectiveness of transformational leadership in the United States and Taiwan. Journal of
Organizational Behavior, 26(3), pp.205-227.
APPENDIX I
LEADERSHIP SURVEY
Q1. What is your age?
Answer Choices Response

Nigerian Banks Employee Job Performance Evaluation 19
Below 25 years
25 - 35 years
36 -45 years
46 & above years
Q2. What is your gender
Answer Choices Response
Male
Female
Q3. What is your highest Education Qualification?
Answer Choices Response
Certificate/ Diploma
Higher Diploma
Bachelor degree
Masters
Q4. What are your Years of experience in the bank?
Answer Choices Response
1 - 3 years
4 - 6 years
7 - 10 years
11 - 15 years
16 & above
Q5. My supervisor makes workers feel good to be around him/her
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q6. I am proud to be associated with my supervisor
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q7. I have complete faith in my supervisor
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree

Nigerian Banks Employee Job Performance Evaluation 20
Disagree
Strongly disagree
Q8. My supervisor expresses in a few words what we could and should
do
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q9. My Supervisor provides appealing images about what we can do
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q10. My supervisor helps me find meaning in my work
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q11. My supervisor provides new ways of looking at issues/problems
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q12. My supervisor encourages others to rethink ideas that they had
never questioned before
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q13. My supervisor encourages me to question how things are done
Answer Choices Response

Nigerian Banks Employee Job Performance Evaluation 21
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q14. My supervisor shows concern in the individual development
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q15. My supervisor gives honest feedback
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q16. My supervisor gives personal attention to others who seem
rejected
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q17. My supervisor recognize/rewards workers that achieve their
targets
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q18. My supervisor tells others what to do if they want to be rewarded
for their work
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree

Nigerian Banks Employee Job Performance Evaluation 22
Disagree
Strongly disagree
Q19. My supervisor tells us the standard we have to know to carry out
our work
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q20. My supervisor punishes those workers that perform below-set
targets
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q21. My supervisor make sure every activity follow procedures
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q22. As long as things are working, my supervisor does not try to
change anything
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q23. I have a good working relationship with my supervisor
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q24. How do you rate your performance in your organization

Nigerian Banks Employee Job Performance Evaluation 23
Answer Choices Response
Very satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very dissatisfied
Q25. How do you rate your productivity on the Job?
Answer Choices Response
Far above average
Above average
Average
Below average
Far below average
Q26. How do you evaluate the performance of your peers at their job
compared with yourself doing the same kind of work?
Answer Choices Response
Far above average
Above average
Average
Below average
Far below average
Q27. How do you evaluate the performance of yourself at your job
compared with your peers doing the same work
Answer Choices Response
Far above average
Above average
Average
Below average
Far below average
Q28. Job satisfaction is mediating between transactional leadership
and employee performance (Transactional leadership focuses
on maintaining the normal flow of operations. Here leaders
use disciplinary power to motivate employees to perform at their best
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Q29. Job satisfaction is mediating between transformational leadership
and employee performance (Transformational leadership style focuses

Nigerian Banks Employee Job Performance Evaluation 24
on team-building, motivation, and collaboration with employees)
Answer Choices Response
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree