EFFECTS OF LEADERSHIP PRACTICES ON CUSTOMER SATISFACTION IN FINANCIAL SECTOR

Abstract

This study examined the influence of the working environment on employee performance, focusing on selected institutions in Tanzania. The specific objectives were to: (i) examine the effect of physical working conditions on employee performance; (ii) assess the influence of leadership and communication practices on employee performance; and (iii) evaluate the impact of motivation and organizational support on employee performance. The study adopted a quantitative research design, using structured questionnaires administered to employees selected through stratified and simple random sampling. Data were analysed using the Statistical Package for Social Sciences (SPSS) Version 27, employing descriptive statistics (frequencies, means, and standard deviations) and inferential statistics (multiple linear regression analysis) to test the study hypotheses. The regression results revealed a strong and significant relationship between the working environment variables and employee performance (R = 0.684; R² = 0.468; p < 0.001). All predictors physical working conditions (β = 0.298, p < 0.001), leadership and communication practices (β = 0.337, p < 0.001), and motivation and organizational support (β = 0.241, p = 0.003) had positive and statistically significant effects on performance. The study concluded that a favourable working environment significantly enhances employee productivity, commitment, and job satisfaction. It recommends that management strengthen workplace infrastructure, improve communication and leadership practices, and promote motivational initiatives to sustain high performance and organizational effectiveness