The Effect of Leadership Style on Employee Job Satisfaction: The Case of Selected Private Commercial Banks in Ethiopia
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Date
2024-06-06
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A.A.U
Abstract
The main objective of this thesis was to investigate the effect of leadership styles on employee
job satisfaction in the case of selected private commercial banks of Ethiopia. The study used
quantitative research approach, both descriptive research and explanatory research design
due to its intent to find the effect of the independent variables transformational leadership,
transactional leadership, laissez-faire leadership, democratic leadership, and autocratic
leadership on the dependent variable employee job satisfaction. This study used
proportionate sampling and simple random sampling technique. Primary data was collected
through structured questionnaires. The study also used a cross-sectional research survey, in
which data from respondents was gathered at a single point in time. In this study, a total of
338 questionnaires were provided to the respondents. To analyse the collected data through
questionnaires from the respondents, the researcher used SPSS version 23. The researcher
used descriptive statistics to describe & summarizing data and inferential statistic such as
correlation analysis and multiple linear regressions analysis. Accordingly, the Pearson
correlation test revealed that all the two independent variables have a positive and
significant relationship with dependent variable employee job satisfaction. The regression
result confirmed that, two independent variables (transactional leadership and democratic
leadership have positive and significant impact and the other transformational, laissez-faire
and autocratic leader ship style are insignificant) on the employee job satisfaction.
Transactional and democratic leadership styles were identified as the most influential
predictors of employee job satisfaction. These leadership styles appear to foster a work
environment that enhances satisfaction among employees, thereby highlighting the
importance of effective leadership in organizational settings