THE EFFECT OF LEADERSHIP STYLE ON EMPLOYEES’ JOB SATISFACTION: THE CASE OF BERHAN BANK S.C

Abstract

The main objective of this study was to examine the effect of leadership style on employees’ job satisfaction in Berhan Bank S.C. The study employed explanatory research design, quantitative methods, and used primary source of data. This study depends on data gathered from professional employees of Berhan Bank S.C. in three branches and head office. Multifactor leadership questionnaire and job satisfaction were used. 199 questionnaires were distributed and out of which 185 were obtained and used for further analysis. And all gathered data were processed via SPSS version 26 and analyzed through descriptive statistics, (mean, standard deviation), correlation, and regression analysis using SPSS version 26. The finding of this study indicated that there was a significant relationship between leadership style and job satisfaction, and the highest mean score showed that employees favored transformational leadership style. Also, the regression analysis showed that only transformational leadership style positively and significantly predicts job satisfaction. Transactional and laissez-faire leadership styles were found to have an insignificant effect on job satisfaction. The researcher recommended the bank, should improve the employees' benefits package with a special focus on salary, job security, and a clear job promotion path for employees at all levels. Leaders of the bank should work on creating a platform for employees to use their skills and abilities creatively to encourage innovation, develop a robust employee training and development program to help employees to improve their performance. Moreover, the bank, should develop strong work ethics based on trust in its employees to encourage independent decision making and performance. The bank should work to develop leaders and instill them a transformational leadership style, and supervisors should continue to develop a mentoring relationship with their subordinates to encourage and guide their professional growth. And the bank should work hard in conducting a continuous assessment of job satisfaction surveys and take corrective action to improve and bring the success of their employees in their expertise.