The Effect of Leadership Style on Employee’s Job Satisfaction: The Case of Dashen Bank S.C, North Addis Ababa District

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Date

2025-09

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Addis Ababa University

Abstract

The purpose of this study was to analyze the effect of leadership style on employee’s job satisfaction: the case of dashen Bank. On the literature review, five key leadership styles (Transformational, Transactional, Democratic, servant and Laissez-faire leadership styles) are identified as independent variables. The study used descriptive and explanatory research design and adopted a quantitative research approach. Data is collected through a self-administered questionnaire from sample employees of 230 that were selected from north Addis Ababa district of the bank using convince and simple random sampling technique. The collected data analyzed by using the Statistical Package for Social Sciences (SPSS v27) software. The relationship between the independent variables (Leadership styles) and dependent variable (employee’s job satisfaction) is proven by using correlation and multiple regression analysis. The dominant leadership style practiced in the bank is transformational leadership followed by Transactional, Democratic, servant and Laissez-faire leadership styles. The finding also revealed that except Laissez-faire leadership style which has positive but insignificant effect on employee’s job satisfaction the other four leadership style namely, Transformational, Transactional, Democratic and Servant leadership styles have a strong association, significant and positive effect on employee’s job satisfaction at dashen Bank. Following the finding the study recommended that the bank's management should apply more of the four leadership style other than Laissez-faire leadership style as needed in order to increase employee’s job satisfaction

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Keywords

(Leadership style, job satisfaction, Transformational leadership, Transactional leadership, democratic leadership, servant and Laissez faire leadership styles)

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