TRANSFORMATIONAL LEADERSHIP AND EMPLOYEE ENGAGEMENT IN

GOVERNMNET PARASTATALS: A CASE OF NATIONAL WATER AND

SEWARAGE CORPORATION UGANDA

BY

BARBRA ...........................

REG. NO: .............................................

SUPERVISOR

DR. .............................................................

A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS AND

MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE AWARD OF POST GRADUATE IN M&E OF

UGANDA MANAGEMENT INSTITUTE

MAY, 2025
 CHAPTERONE

INTRODUCTION

1.1 Introduction

This study will investigate the connection between transformational leadership and employee
engagement at National Water and Sewerage Corporation (NWSC) using the West Nile case.
The study's background, problem statement, general goal, specific goal, research questions,
conceptual framework, hypothesis, and significance are all included in this chapter. It also gives
the study's scope, a rationale, and an operational definition of important terms.

1.2 Background to the Study

The theoretical, conceptual, historical, and contextual perspectives of the research are presented
in this section.

1.2.1 The Historical background

The term "engagement" was initially used in management research by Kahn (1990), who
proposed a correlation between an individual's self-presentation and performance quality. In
order to measure this level of self-awareness, Kahn (1990) developed and defined the concepts
of personal engagement and disengagement, which relate to the employee's cognitive, emotional,
and physical manifestation of their work roles. Disengagement is the level of withdrawal from
the organization, whereas engagement is the level and amount of involvement. Organizational
productivity and employee engagement are positively correlated (Echols 2005). Nonetheless,
there is a lot of ambiguity in the literature with regard to the theories and concepts that have been
connected to higher employee engagement. Numerous interconnected elements that affect
employee performance make up employee engagement.

Career development was found to have an effect on employee engagement in all ten of the study
countries. Firstly, companies with high employee engagement levels give their workers the
chance to grow professionally, pick up new skills, increase their knowledge, and reach their full
potential. This makes sense since employees who receive investment from their employers also
receive investment from those companies.

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1.2.2 Theoretical Background

The foundation of the study will be McGregor Burns' groundbreaking transformational

leadership theory (1978). McGregor Burns was the first to propose the idea of transformational
leadership (1978). According to Barnett, McCormick, and Conners (2019), Burns made a
distinction between ordinary (transactional) leaders who provided tangible rewards for their
followers' dedication and diligence and extraordinary (transformational) leaders who interacted
with their followers, attended to higher order intrinsic needs, and placed an emphasis on clear
objectives and creative methods of reaching those objectives.

Bass and Conger (2019) have identified four key traits of transformational leaders: intellectual
stimulation, idealized influence, inspirational motivation, and personalized attention. Change-
oriented leaders take initiative. Consequently, transformational leaders exhibit actions that may
have an impact on staff engagement. Six dimensions were found by Conger and Kanungo
(2021), and they include actions related to avoiding status quo, taking personal risks, sharing a
group vision, and being aware of the needs of followers.

1.2.3 Conceptual Background

Transformational leadership and employee engagement are the two main study concepts. "A
positive work-based individual psychological state that enables an individual to work with
energy and enthusiasm" is the definition of employee engagement given by Shimazu (2019).
According to Mulugeta and Hailemariam (2020), employee engagement is a fulfilling mental
state associated with work that is marked by vigor, dedication, and absorption. When they
approached the idea, they adopted different positions. According to Ogola, Sikalieh, and Linge's
(2022) research, vigor is the capacity to work with a lot of energy and mental toughness, to be
willing to work hard, and to endure hardship. Dedication is characterized by a person's sense of
purpose, zeal, inspiration, pride, and challenge, claims Gomes (2022). When someone is fully
engrossed in their work, enjoying every second, and finding it difficult to take a break from it,
they are said to be in a state of absorption (Abbas, Iqbal, Waheed & Naveed, 2023).

Transformational leadership, according to Bass and Avolio (2020), is a leadership approach that
affects change in both individuals and social systems. Transformational leadership is generally
acknowledged to require four key elements: (1) idealized influence; (2) inspirational motivation;

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(3) intellectual stimulation; and (4) individualized consideration. A behavior that promotes
setting an example is referred to as "idealized influence." These behaviors include prioritizing
the good of the group over the interests of the individual and acting out of a strong sense of
moral obligation (Bono & Judge, 2021). The capacity to effectively and concisely convey
concepts while motivating employees to fulfill significant company objectives is necessary for
inspirational motivation. When talking about the future, transformational leaders are said to be
positive and optimistic, which encourages and increases the motivation of their followers
(Dubinsky, Yammarino, & Jolson, 2022). Two aspects of intellectual stimulation are pushing the
follower to approach problems in novel ways and encouraging creativity (Bass, 2023).
According to Judge and Bono (2019), the last component of individualized consideration is to
view each follower as an individual with unique needs that must be satisfied. Activities that fall
under the category of personalized consideration emphasize the follower's development (Bass,
2023).

1.2.4 Contextual Background

The study will be conducted in the National Water and Sewerage Corporation's (NWSC) West
Nile sub-region. The National Water and Sewerage Corporation (NWSC) is the name of this
organization. NWSC aspires to be a customer-focused infrastructure that provides dependable,
reasonably priced, and superior sewage and water services (Mugisha, 2022). At the summit of
NWSC's organizational hierarchy is the Head Office. The Head Office hires auxiliary working
sub-units in a number of towns under its ward, including the West Nile Cluster (Mugisha, 2016).
A parliamentary act created the National Water and Sewerage Corporation (NWSC), a fully
owned government parastatal corporation whose main duty is to provide water and sewer
services.

The National Water and Sewerage Corporation's organizational structure permits its corporate
office to sign several contracts with its subsidiary, which oversees sub-utilities in various towns
under its control (Sparks, 2022). According to its annual report (2019, 2019), NWSC is
committed to developing a workforce of high performers and making itself one of the best places
to work. By providing a variety of staff training programs and internship opportunities to
students from various postsecondary institutions, the company has attempted to achieve this.
Furthermore, NWSC's financial viability has increased due to a shift in organizational behavior

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toward a strong customer and commercial orientation (Mugisha, 2022). The researcher plans to
examine the connection between transformational leadership and employee engagement at
National Water and Sewage Corporation in order to determine whether the need for
transformational leadership in organizations more fully justifies employee engagement in
Uganda's government parastatals.

1.3 Problem Statement

As employee involvement and dedication are critical to the accomplishment of any project the
company works on, human resource managers are primarily in charge of guaranteeing employee
engagement. The National Water and Sewerage Cooperation has only occasionally included
employee engagement. This can be explained by the organization's failure to use a traditional
performance measurement tool. For example, NWSC has recently adopted a range of leadership
philosophies, such as laissez-faire, transformational, transactional, and autocratic leadership (HR
Report, 2021). The goal of these is to encourage staff involvement (NWSC Report, 2021).
Despite the previously mentioned factors, it seems that employee engagement at NWSC has
completely disappeared. There are still signs of employee disengagement at NWSC. They lack
vigor, exert less effort, and show less passion for what they are doing.

This results in subpar work performance at their positions. The lack of attention given to this
disengagement is ascribed to the leaders' inadequate leadership approaches. If NWSC
management hopes to achieve an engaged workforce, they must act quickly to implement
practices that include appropriate leadership styles and employee support (Mutunga, 2019). For
instance, employee engagement declined by 3% in the Financial Year (FY) 2019–20 (NWSC
Report, 2020). In a similar vein, it decreased by 7% in FY 2020–2021 and 6% in FY 2021/22
(NWSC Report, 2021). The expected consequences of a decline in employee engagement could
include low absorption, diminished vigor, and a lack of commitment from employees (NWSC
Report, 2022). This claim is refuted by the study design, which looks at how transformational
leadership affects employee engagement with a particular emphasis on West Nile, Uganda. The
company utilised in the case study is the Uganda National Water and Sewage Corporation
(NWSC).

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1.4 Purpose of the study

The primary objective of the research is to investigate the connection between employee
engagement and transformational leadership through the lens of National Water and Sewerage
Corporation (NWSC).

1.5 Specific Objectives

i. To evaluate how idealized influence affects NWSC employees' engagement.

ii. To investigate how inspirational motivation affects NWSC employees' engagement.

iii. To ascertain how intellectual simulation affects NWSC employees' engagement.

1.6 Research questions

i. What effect does idealized influence have on the engagement of NWSC employees?
ii. ii. How does employee engagement at NWSC stem from inspirational motivation?
iii. How does intellectual simulation affect NWSC staff engagement?

1.7 Research Hypotheses

We will test the subsequent research hypotheses:
H1: At NWSC, idealized influence significantly affects employee engagement.
H2: Inspirational motivation has a major impact on NWSC employees' engagement.
H3: At NWSC, intellectual simulation significantly affects worker engagement.

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1.8 Conceptual Framework

8Conceptual frame work

Transformational leadership (I.V)

Idealized Influence
 Ethical
 Exemplary Employee Engagement (D.V)
 Reliable
Employee Engagement
Inspirational Motivation
 Optimistic  Vigor
 Visionary
 Dedication
 Self-assured
Intellectual simulation  Absorption

 Raising awareness,
 Being inventive and
creative
 Empowering

Source: Researcher-modified versions of Antonakis & Avolio, 2019; Armstrong & Murlis,

2020.

1.9 Justification of the Study

The extensive empirical research on transformational leadership and employee engagement
carried out from a global perspective has resulted in knowledge and geographic gaps between the
developed and less developed countries of Africa. Few of these studies were carried out in
African contexts, most notably Uganda, and no study was specifically conducted at NWSC
(Ojokuku, Odetayo & Sajuyigbe, 2019). Therefore, the main contribution of my research will be
to provide empirical data that can serve as a foundation for additional research.

1.10 Significance of the Study

The following will be prioritized by the study:

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Policy makers

The study findings and recommendations of my research will be used by the Government of
Uganda through different Ministries and Authorities to adopt appropriate leadership styles which
are more responsive to the needs of civil servants to increase on their engagement through cost
efficiency, quality services, customer satisfaction and customer care.

Practitioners

In order to improve employee engagement through cost-effectiveness, superior services, client

satisfaction, and customer care, National Water and Sewerage Corporation's management will
create effective leadership philosophies based on the study's findings.

Stakeholders

The study's conclusions and recommendations will be utilized by other important stakeholders,
such as the private sector, to enhance and implement their current leadership philosophies in an
effort to increase employee engagement through cost effectiveness, high-quality services,
customer satisfaction, and customer care.

Students

As a student of research, the study findings will enhance my knowledge and skills as a
researcher, and enable me to grow and have practical approach when analysing leadership styles
and employee engagement. Additionally, my knowledge and skills on how to conduct studies
from primary and secondary sources will be strengthened. Besides, I will learn more on how to
analyse data and make interpretations.

This study will also help other researchers by filling in some of the gaps in the current literature
about transformational leadership and employee engagement and by identifying new research
areas.

7
1.11 Scope of the Study
Other researchers will find this study useful as it addresses some of the gaps in the literature on
transformational leadership and employee engagement.

1.11.1 Geographical Scope

The National Water and Sewerage Corporation (NWSC) west Nile, which includes the following
areas, will be the study's site. Arua City, Koboko, Yumbe, Adjumani, Moyo, Nebbi, Paidha,
Parombo, and Pakwach area are included in this cluster. Because the researcher is based in the
private sector and has conducted multiple studies there, the site has been selected to fill in the
contextual gaps. Second, this follow-up study aims to broaden the application of earlier findings
about worker engagement and transformational leadership.

1.11.2 Content Scope

The study's main goal is to determine how transformational leadership impacts NWSC West Nile
employees' engagement. Employee engagement will be the dependent variable, and
transformational leadership will be the independent variable.

1.11.3 Time Scope

Employee engagement and transformational leadership at NWSC will be examined in this five-
year study, which runs from 2019 to 2024. Employee engagement has not yet been achieved,
despite NWSC's adoption of various leadership philosophies, such as transformational leadership
(HR Report, 2024).

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 CHAPTERTWO
LITERATUREREVIEW

2.1 Introduction
This chapter provides a critical review of the body of research on "The role of transformational
leadership on employee engagement using National Water and Sewerage Corporation" that has
been written by other authors and is pertinent to the current investigation. This chapter provides
an overview of the literature, a theoretical literature review, a conceptual review that supports the
objectives of the study, and a literature summary.

2.2 Theoretical review

The groundbreaking transformational leadership theory developed by McGregor Burns in 1978
will serve as the research's map. In 1978, leadership specialist McGregor Burns created the
theory of transformational leadership. According to Bahati et al. (2018), he made a distinction
between two types of leaders: ordinary (transactional) leaders who engaged with followers,
pointed out the importance of particular outcomes and creative ways in which those outcomes
could be achieved, and extraordinary (transformational) leaders who engaged with followers in
exchange for material rewards for their hard work and dedication. Despite its many benefits,
transformational leadership has its detractors and supporters. Idealized influence is the aspect of
transformational leadership that is most frequently criticized because some charismatic leaders
begin abusing their privilege and power and cease assisting their followers. The theory is
relevant because it states that organizations need to be open to evolving, growing, and improving
over time if they hope to advance in terms of overall engagement. The greatest way to get staff
members to support new initiatives, like innovations aimed at propelling the county to new
heights, is through transformational leadership. They initiate the changes themselves, which
motivates others to follow suit. When used properly, this process enables the organization, the
leader, and the followers to eventually perform to the best of their abilities.

2.3. Review of Related Literature

When handling related review, the study's objectives are adhered to, goal by goal.

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2.3.1 Idealised Influence and Employee Engagement
Datche and Mukulu (2021) looked into how employee engagement in Kenya's civil service is
impacted by transformational leadership. A total of 252 civil service employees were included in
the sample and were given structured questionnaires. results showed a negative relationship
between employee engagement and a leader's idealized influence. Because these studies focused
more on the civil service than on parastatals like the National Water and Sewerage Cooperation
in Uganda, it is unclear whether the specific findings of these studies applied to parastatals in
Uganda. Closing this research gap is the aim of this study.

2.3.2. Inspirational Motivation and Employee Engagement

When employees look for psychological safety in the form of equitable reward structures and
cordial superior-subordinate relationships, there is a positive correlation between employee
engagement, job responsibility, and an institution's ability to carry out those responsibilities
(May, Gilson, and Harter, 2022). An employee's level of commitment to their goals and the
company is largely determined by their leader's inspirational motivation and the positive aspects
of the work environment (Hayati et al., 2022).

2.3.3 Intellectual Simulation (IS) and Employee Engagement

According to Gibson, J. (2021), employee engagement and creativity have a positive
relationship. Disengaged workers produce work of lower quality, show less interest in learning
new skills, and put forth less effort overall. Mafini (2021) discovered that innovation in
organizations improves employee performance in South Africa. Employees must therefore be
enthralled with their work and challenged by new assignments and projects in order to rekindle
their motivation (K'Aol, Njenga, & Murage, 2022).

2.4. Outline of literature review and gaps in knowledge

Most of these studies showed that the association between engagement and intellectual
stimulation is significantly moderated by employee motivation. There is a gap because the
context and focus of the current study are different from those of the majority of these studies.
Prior research on transformational leadership and employee engagement in parastatals like
National Water and Sewerage Corporation has been lacking. More research is required because
this leaves a gap.

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 CHAPTERTHREE

METHODOLOGY

3.1 Introduction
There is also discussion of the research design, sample size and selection, sampling techniques,
data collection methods and associated instruments, and data analysis process.

3.2 Research Design

The study will employ a cross-sectional research design. This design will be used since data from
a range of respondents will be gathered at a particular time. This study will test a hypothesis
regarding the relationship between transformational leadership and employee engagement using
National Water and Sewerage Corporation and a simple correlation design. The majority of this
study will be quantitative in character. A quantitative approach will be employed in order to
examine the relationship between various variables, which is the study's goal.

3.3 Population of the Study

The National Water and Sewerage Corporation's West Nile cluster branches will be the site of
the study. Nine branches total—three from each performance cluster—will be selected at
random. There are nineteen branches altogether. The 70 respondents who will be considered
include territorial leaders, area managers, branch managers, branch engineers, finance and
administration officers, commercial officers, marketing assistants, store assistants, plumbers, and
production assistants.

3.4 Sample Size Selection

The West Nile cluster branches of the National Water and Sewerage Corporation will be the
study's sites. Three randomly chosen branches from each performance cluster will make up the
total of nine branches. There are nineteen branches in all. Among the 70 respondents, the
following will be considered: territorial leaders, finance and administration officers, branch
managers, branch engineers, marketing assistants, store assistants, plumbers, and production
assistants. Consequently, a sample of 140 individuals from the 182 total population will be used.
This category includes, among other employee categories, area managers, accounts officers, area

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engineers, commercial officers, commercial assistants, marketing assistants, technical
supervisors, and plumbers.
Table 1: Showing a sample size and selection methods
Group of population Population Sample size Sampling techniques

Area Managers 4 3 Purposive sampling

Middle managers 5 4 Purposive sampling

Line managers 25 21 Simple random sampling

Lower level staff 100 80 Simple random sampling

Auditors 6 5 Purposive sampling

Total 140 103

Source: NWSC Staff list. Primary data (2025)

3.5 The techniques and Procedures of sampling

The sample of responders will be obtained using a variety of sampling techniques. In the first
sampling method, stratified random sampling, the three groups of respondents will be the
auditors, middle managers, and the board of directors. Following stratification, the board of
directors, middle managers, and auditors will be specifically chosen because they are believed to
possess in-depth knowledge of the subject under investigation, while line managers and lower
level employees will be chosen using a straightforward random sample technique.

3.6 Methods of Gathering Data

3.6.1 Method of questionnaire surveys

Data for the study will be gathered via a questionnaire survey. Using a questionnaire will be
essential because the study's objective is to ascertain how employee engagement and
performance are related. Since it makes correlation and regression analysis of respondents'
attitude disposition toward the independent and dependent variables easier, a closed-ended
questionnaire is the most effective method of gathering this data.

3.6.2 In -depth Interviews

The study's interviews will provide the researcher with additional information regarding worker
performance and engagement. This approach helps the researcher because it allows them to
12
reword their questions, make them more understandable, remove any confusion, establish a
rapport, and dig further for more details.

3.6.3 Document Review

To collect recorded data pertinent to the study's subject, the investigator will review records. This
approach is employed because it allows the researcher to access data whenever it is most
convenient for him, to obtain thoughtful data that the informants have taken care to obtain, and to
obtain data in the respondent's language.

3.7 Data collection Instruments

A questionnaire and an interview guide will be the study's tools.

3.7.1 Interview guide

An unstructured interview guide will be used to facilitate in-depth interviews with the primary
informants. A list of current topics and questions that will be discussed during the interview is
included in the guide. The purpose of the guide's questions is to gather key informants'
perspectives on the connection between employee engagement and performance.

3.7.2. Questionnaire
The chosen respondents' thoughts, opinions, and perceptions will be gathered by the researcher
through the administration of a structured questionnaire. Quantifiable soft primary data on a five-
point Likert scale will be gathered from each respondent using a standard questionnaire. The
scale will be created in the way that is indicated below: Five: We strongly agree; Four: we agree;
Three: we're not sure; Two: we disagree; and One: we disagree strongly. The participants will
document their responses within precisely defined options. The selection of the questionnaire to
be administered by the researcher will be based on the desire for a high response rate in a brief
amount of time as well as the chance to inform the respondents about the research topic in the
hopes of encouraging them to provide candid responses.

3.8 Control of Quality

3.8.1 Validity
Expert judgment and opinion will be used to guarantee the content validity of the interview guide
and questionnaire. The two experts (institute based) will be given the instrument to assess each
13
item's relevance to the objectives (face validity). Each item on the scale will be rated by the
experts as follows: very relevant (4), quite relevant (3), passing pertinent (2), and irrelevant (1).
A Validity Index (C.V.I.) of 0.78 is obtained by dividing the total number of items in the
obtained questionnaire by the total number of items that both judges rated as 3 or 4. Any flaws in
the device that are discovered before use will be fixed.

3.8.2 Reliability
The consistency or dependability of the measuring device is its reliability (Leary, 2004). A pretest
will be given to the four respondents who decide not to take part in the study. Using the statistical
package for social scientists (SPSS) software, Cronbach's alpha reliability coefficients will be
computed in order to evaluate the questionnaire's reliability. Any tool that has a Cronbach's alpha
reliability coefficient of 0.70 or higher is considered reliable, according to Sekaran (2003).

3.9 Procedure for Data collection

In front of a UMI panel, the researcher will submit their research proposal for defense. The
researcher will receive a letter to present to NWSC after UMI approves the proposal, which will
allow them to interview the selected respondents and give them questionnaires. Alongside each
questionnaire, the researcher will write a cover letter outlining the study's goals to make sure the
respondents are not suspicious or biased. In order to make sure the questionnaires are completed,
the researcher will distribute them to various respondents and then follow up with them. After
the data is gathered, it will be analyzed using the SPSS software, and a report will be prepared
and sent for defense at UMI

3.10 Analysis of Data

SPSS is the statistical program that will be utilized to analyze the data for this investigation.
Numerous statistical techniques, such as regression analysis and correlation, will be heavily
utilized. The statistical significance upper bound will be set at 5% for the purposes of hypothesis
testing. There will be a two-tailed significance level applied to each statistical test result.
Through data analysis and correlation using the Person Product-Moment correlation coefficient,
the relationship between the independent and dependent variables will be determined. One
statistic that shows how strongly two variables are related is the Pearson Product-Moment
Correlation Coefficient. The direction of the relationship between -1.00 and +1.00 is indicated by

14
the correlation coefficient's sign (+ or -). It is possible for variables to have both positive and
negative correlations. A positive correlation between two variables indicates a direct positive
relationship between them. Conversely, a negative correlation means that there is an inversely
negative relationship between the two variables. The Pearson Product-Moment Correlation will
be used in this study to ascertain how employee engagement and performance are related.

3.8.3 Measurement of variables

To determine how much people agree or disagree with the statements, a five-point Likert scale
with standardized response categories will be employed. We will then add up each respondent's
answers to a set of questions that tap a particular concept or variable. The nominal scale will be
used to categorize the variables in the survey.

3.9 Ethical Consideration

Before gaining consent to participate, the research will ensure that the respondents are informed
of the study's goals and that confidentiality is maintained. If the respondents do not want their
identities and personal information to be shared, it will be kept private. Additionally, the
researcher will make sure that all of the literature that is read, evaluated, and cited in the study is
properly attributed. By obtaining participants' informed consent, outlining the benefits of the
investigation, and guaranteeing and respecting their rights to privacy and confidentiality, the
researcher will conduct the study in accordance with research ethics. Participation in the study
will only occur voluntarily. The person will not face any repercussions if they choose not to
participate. It will be expected that the respondents' dignity will be protected. It is anticipated
that this will increase the study's response rate.

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