Impact Of Leadership on Employee Performance, Job Satisfaction as A Mediating Factor: The Case of Menta Security and Manpower Service Plc
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Date
2024-10
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Addis Ababa University
Abstract
The study has an objective to investigate the relationship between leadership styles, job satisfaction, and employee performance within Menta Security and Manpower Service PLC. Utilizing a deductive approach and explanatory research design, quantitative data analysis techniques were employed to explore these relationships. The target population consisted of all employees at Menta Security and Manpower Service PLC in Addis Ababa, with a sample size of 303 determined using systematic random sampling. Data collection involved the use of self-administered survey questionnaires. Descriptive and inferential statistical analyses, including correlation and regression analyses, were performed to examine the relationships between variables. Additionally, Sobel tests were employed to explore the potential mediating role of job satisfaction. The study revealed that transformational leadership styles were positively perceived by employees, with a particularly strong impact on articulating a vision. However, job satisfaction exhibited mixed results, with areas for improvement identified in compensation and recognition. Nonetheless, both transformational and transactional leadership styles positively correlated with employee performance, with transformational leadership showing a stronger influence. Furthermore, job satisfaction significantly mediated the relationship between both leadership styles and employee performance, underscoring its crucial role in translating leadership behaviors into improved organizational outcomes. The findings underscore the need for organizations to prioritize leadership development programs that cultivate transformational leadership behaviors to enhance job satisfaction and overall performance.
Key Words: Employee Performance, Job satisfaction, Transformational Leadership Style, Transactional Leadership Style.