The Effect of Leadership Style On Employee Job Satisfaction: The Case of Commercial Bank of Ethiopia (CBE)
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Date
2022-08
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Addis Ababa University
Abstract
The main objective of the study was to examine effects of leadership style on employee job satisfaction in CBE. A total of 246 questionnaires were sent to 246 non managerial employees through CBE and 234 respondents completed the MLQ and JSS questionnaires. The collected data was analyzed through SPSS version 25. Descriptive statistics analyzed through frequencies, mean and standard deviation to identify the dominant leadership style and level of job satisfaction and correlation and regression analysis were also used to identify the relationship between variables and the effect of leadership style on employee job satisfaction. The descriptive result indicates that transactional leadership style was the most frequently used by the leaders of CBE. The result of correlation analysis indicated that there is strong correlation between transactional leadership style and job satisfaction. In addition regression analysis revealed that the three leadership styles has an effect on job satisfaction and the regression model used was found a good fit for the data. It is concluded that transactional leadership style is most dominantly exercised so it is recommended that CBE should update its leadership development program enhance the knowledge and skills of their branch managers and supervisors to adopt transformational leadership style in addition to transactional leadership style in order to improve job satisfaction and organizational outcomes.
Keywords: Transformational Leadership, Transactional Leadership, Laissez-faire leadership, Job Satisfaction