Abstract:
With increasing competition among today's' organizations, stakeholders tend to be more
concerned about probing the new ways of getting the employees more committed to
what they do and to the organization as well. The role of leadership is an important
determinant of employee’s performance and commitment. The purpose of this study
was to investigate the effect of transformational leadership on employee performance in
Sacco’s in Nyeri County. The specific objectives of the study were to establish the
relationship between Intellectual stimulation and employee performance in Sacco’s in
Nyeri county. A total of 12 Sacco’s in Nyeri County were randomly selected and
surveyed as the population of the study comprising of 164 respondents. Stratified
Random sampling technique was used to draw the sample of 66 respondents. A
questionnaire and an interview guide were used for data collection with closed ended
questions designed for the employees and an open ended interview guide for managers.
A descriptive survey design was used. Data was analyzed using SPSS and multiple
regression analysis. Results showed that transformational leadership in Sacco’s led to
improved employee performance. When managers utilized intellectual stimulation,
there were positive reactions from employees. With the role of leadership in the
modeling of employee commitment and performance considered very crucial in the
modern organization, it was paramount for Sacco’s to put more effort in entrenching
transformational leadership in their organizations.
