TRANSACTIONAL LEADERSHIP STYLE AND EMPLOYEE SATISFACTION IN HOSPITALITY FIRMS IN DELTA STATE, NIGERIA

Abstract

This study examined the link between transactional leadership style and employee satisfaction in hospitality firms in Delta State. Specifically, it investigated whether contingent reward and active management by exception as dimensions of transactional leadership style have significant effect on employee satisfaction. In order to achieve this objective, the survey research design was used and questionnaire was the major instrument of data collection.  The questionnaire was administered to one hundred and thirty-two (132) employees, out of which one hundred and eighteen (118) were fully retrieved.  Data obtained were analyzed by means of descriptive and inferential statistical techniques (Pearson correlation and multiple regression).  The results of the multiple regression model revealed that contingent reward and active management by exception leadership styles positively and significantly influence employee satisfaction in hospitality firms in Delta State. The study recommended that organizational leaders should employ contingent reward style of leadership so as to inspire employees achieve significant outcomes and be able to exchange benefits from leaders to employees.  In addition, there is the need for organizational leaders to possess active management by exception leadership style so as to build and boost employees’ self-confidence on the job and the power to increase their efficiency in decision-making when the need arises.  The research findings contribute to the overall knowledge on transactional leadership style and employee satisfaction relationship in Nigeria from the perspective of hospitality industry.

Keywords: Active management by exception, contingent reward, extrinsic reward intrinsic reward, leadership styles