MODERATING EFFECT OFLEADERSHIP
STYLE ON EMPLOYEE ENGAGEMENT
STRATEGIES AND EMPLOYEE
PERFORMANCE:
CASE OF KENYA POWER AND LIGHTING
COMPANY, KENYA
By
EDEL LIGARE
SUPERVISOR
Prof. Dr. Kipsang
Dr. Kimwolo Andrew
2.
Background
• Successful organizationsconsistently invest in strategies, tools,
and environments that enable their employees to perform at their
best—be it through training, motivation, leadership, or clear
performance goals.
• By elevating employee performance, these organizations benefit
from improved efficiency, innovation, and output.
• This translates directly into stronger business outcomes like
higher profits, better customer satisfaction, and sustainable
growth.
• Employee performance is the extent to which an employee
meets the expectations of their job role and the organization as a
whole (Evans & Anderson, 2020).
3.
Background cont..’’
• Employeeengagement is the emotional commitment
employees have toward their work and organization.
• It fuels higher performance, productivity, and business success
through motivated and loyal teams..
• Leadership style is the leader's approach to directing,
inspiring, and managing people, shaping workplace culture,
decision-making, and team dynamics.
• An effective leadership style builds trust, increases employee
engagement, encourages productivity, and directly influences
overall organizational performance and job satisfaction..
• Therefore, this study will focus on moderating effect of
leadership style on employee engagement and
performance at Kenya Power and Lighting Company.
4.
Statement of theProblem
Employees are key assets, and their performance is crucial to
achieving better organizational outcomes.
High-performing firms prioritize employee engagement to
drive commitment, efficiency, and effectiveness at the
workplace.
At KPLC, employee performance and engagement indicators
are generally positive, yet gaps remain in leadership and
communication.
Studies report a lack of employee engagement due to top-down
leadership and weak communication between staff and
management at KPLC.
This disconnect leads to low motivation, job dissatisfaction,
and difficulties in retaining and inspiring high-performing
employees.
5.
Statement of theProblem …Cont’’
• Globally and locally, research links employee engagement to
job satisfaction, commitment, and performance—but mainly
in general contexts.
• While transformational leadership enhances engagement, no
focused study exists on its effect at KPLC specifically.
• This study fills the gap by examining the moderating effect of
leadership style on employee engagement and performance at
KPLC.
• It aims to offer insights for leadership strategies that can
better align engagement efforts with performance outcomes at
KPLC..
6.
Main Objective
•The studyseeks to evaluate the moderating
effect of leadership style on the relationship
between employee engagement practices and
performance at Kenya Power and Lighting
Company.
7.
Specific Objectives
i. Toidentify the effect of career development on employee performance at KPLC;
ii. To establish the effect of skill development on employee performance at KPLC;
iii. To analyze the effect of personal growth on employee performance at KPLC;
iv. To determine the effect of job design on employee performance at KPLC;
v. To determine the effect of leadership style on employee performance at KPLC
vi. To establish the moderating effect of leadership style on the relationship between career development and employee
performance at KPLC
vii. To establish the moderating effect of leadership style on the relationship between skill development and employee performance
at KPLC
viii. To establish the moderating effect of leadership style on the relationship between personal growth and employee performance
at KPLC
ix. To establish the moderating effect of leadership style on the relationship between job design and employee performance at
KPLC
8.
Hypotheses
H01: Career developmentdoes not have a significant effect on employee at KPLC.
H02: Skill development does not have a significant effect on employee performance at
KPLC.
H03: Personal growth does not have a significant effect on employee performance at
KPLC.
H04: Job design does not have a significant effect on employee performance at KPLC.
H05: Leadership style has no moderating effect on:
a.career development and employee performance
b.skill development and employee performance
c.personal growth and employee performance
d.job design and employee performance
9.
Significance
Informs HRpolicy makers on effective employee
engagement practices that drive improved employee
performance.
Guides management and boards on leadership styles that
best support engagement and organizational success.
Provides practical insights for both public and private sector
organizations on enhancing performance through employee
involvement.
Benefits KPLC’s leadership and staff by highlighting the
role of engagement in improving job satisfaction and
performance.
Contributes to academic knowledge and supports future
research in HR practices and employee performance.
10.
Scope
• The studyexamines the effect of employee engagement
practices on employee performance at Kenya Power and
Lighting Company (KPLC).
• Key engagement variables include recognition, reward, skill
development, and personal growth, with performance as the
outcome variable.
• The study is grounded on the Three-Component Model of
Engagement, Self-Determination Theory, and Expectancy
Theory.
• Study targets 5,582 employees across top, middle, and lower
management levels, with a sample of 400 respondents.
• The research will adopt an explanatory design, use
questionnaire for data collection and will be conducted
between February and June 2025.
11.
Literature Review
Reviewed literaturefrom various sources on:
Employee performance, employee engagement
and leadership concepts
Review of Theories: Three Component Model
of Engagement, Self-Determination Theory and
Expectancy Theory.
Empirical review on Leadership style, Employee
engagement and Performance
Summary and literature gaps
Conceptual framework
12.
Models & Theories
•Three Component Model of Engagement: This model
emphasizes emotional, cognitive, and behavioral engagement. It
helps explore how employee involvement practices like
recognition or development stimulate deeper commitment, and
how leadership style can enhance or hinder this engagement-
performance link.
• Self-Determination Theory: This theory focuses on autonomy,
competence, and relatedness as key drivers of motivation. It
supports examining how leadership styles either support or
suppress intrinsic motivation derived from engagement
practices, ultimately influencing employee performance
outcomes.
• Expectancy Theory: It asserts that employees are motivated
when they believe their effort leads to performance and desired
rewards. The study uses this to assess how leadership
strengthens or weakens the belief in engagement translating to
performance..
Research Methodology
Research Design:Explanatory research design; it
is suitable as it provides deeper insights into the
relationships between variables within the study's
context.
It will entail both Quantitative and Qualitative
approaches; such a mixed-method approach
enhances validity, provides depth, and offers
comprehensive insights.
Research location: Kenya Power & Lightning HQ.
Target population: 4,472 members of staff in
different employment levels
15.
Target population
Regions PermanentContract Temporary Total
Nairobi North 608 63 173 844
Nairobi South 528 88 211 827
Nairobi West 562 87 259 908
Central Office 1,420 215 258 1,893
Total 4,472
Source: (Kenya Power and Lighting Company Limited, HR records, 2024)
16.
Sampling procedure &Design
Regions Population Sample proportions
Permanent 3118 256
Contract 453 37
Temporary 908 75
Total 4,472 368
• Stratified-simple random sampling technique will be
employed
• The sample size will be computed from the entire
population using Yamane (1967) formula for proportions
where confidence level is 95% and P ≥ 0.5 are assumed.
• Thus, a sample size of 368 resulted from the use of Yamane
sampling formula.
17.
Pilot Study, Validityand Reliability
Research tool: 5-likert scale Questionnaire and
interviews
• Pilot Study: A pilot study in KenGen Company will
test research instruments using 37 employees,
representing 10% of the study population.
• Validity and Reliability test: Reliability will be
tested using Cronbach’s Alpha (≥0.7), while content
validity ensures accurate variable measurement..
• Instrument Refinement: Feedback from the pilot
study and expert input will help refine research
instruments before conducting the full-scale study.
18.
Data collection andAnalysis
• Data collection procedure: Data collection will be achieved
using questionnaires through a drop and pick method and
interviews by the researcher.
• Data Analysis: Using SPSS, data will be analyzed
descriptively to draw means and Std deviation.
• Inferential statistics : Regression & correlation tests to
determine the relationship between the predictive and
predicted variables, and to test the hypotheses.
• Both direct and hierarchical regression tests will be conducted
• Regression assumptions: involve linearity, normality and
multicollinearity tests
19.
Ethical consideration
•The studywill ensure confidentiality, privacy, and
informed consent, adhering to ethical research
standards in data collection and respondent
engagement.
•Approval will be sought through an introductory
letter from Moi University and a research permit
from NACOSTI to ensure compliance.
•Respondents will be informed of the study’s purpose,
assured of confidentiality, and proper credit given to
all sourced materials.