The Effect of Leadership Style on Employee Satisfaction in Case of Bank of Abyssinia
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Date
2024-06-18
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A.A.U
Abstract
The objective of the study was to assess the effect of leadership styles on the employee
satisfaction in the case of Bank of Abyssinia. Both explanatory and descriptive research designs
were used in this study. Also, a cross-sectional survey design was used in the study. In addition,
a quantitative research methodology was applied. The management and employees of Bank of
Abyssinia were the study target population. The respondents from each departmental stratum
were identified using the random stratified sampling method. Both primary and secondary
sources of data were used. The study employed questionnaire and the cross-sectional survey
approach to collect data. SPSS V.25, a statistical application, was used for the analysis. Both
descriptive and inferential statistics was used to analyse the data. The data was presented and
summarized using descriptive statistics like mean, standard deviation, frequency, and percentage.
In terms of inferential statistics, the study examined the significance of each independent
variable's contribution to the dependent variable using binary logistic regression analysis and
used the Pearson correlation coefficient to illustrate the interdependence between the
independent and dependent variables. The purpose of the study was to determine which of the
three leadership styles has the most favourable and noteworthy influence on Bank of Abyssinia's
employee satisfaction. The study suggested the leadership style that the bank should use more
frequently in order to improve employee satisfaction. The study concluded that among the three
leadership style that the study focused on, only transformational and laissez-faire leadership
style have positive significant effects on employee satisfaction of bank of Abyssinia; and
transformational leadership style has a greatest impact on employee satisfaction of the bank. The
study recommended for the bank to provide complete freedom for its employees to solve problem
by their own, employees of the bank should be inspired to explore their maximum potential.
Keywords: Job Satisfaction, Leadership Style, Management, Success.