THE EFFECT OF LEADERSHIP STYLES ON EMPLOYEES’ JOB SATISFACTION IN THE CASE OF HIBRET BANK SOUTH ADDIS ABABA DISTRICT

Abstract

The main objective of this study was to examine the effect of leadership styles on employees’ job satisfaction at Hibret Bank South Addis Ababa district. The study employs an explanatory research design, and quantitative research approach, and uses both primary and secondary sources of data. The primary data was collected using structured questionnaires from the samples. Stratified and Simple random sampling techniques of probability sampling were used to select the samples. 193 questionnaires were distributed out of which 180 were returned and used for further analysis and the data were processed via SPSS version 26 and analyzed through descriptive statistics (mean and standard deviation), correlation, and regression analysis. The findings of this study indicate that there was a significant relationship between leadership styles and employees' job satisfaction and the highest mean score showed that employees favored transformational leadership over the transactional and laisses-faire leadership styles. The regression analysis showed that transformational and transactional leadership positively and significantly affects job satisfaction. Based on the findings it is recommended that the bank should develop transformational leadership by implementing development programs to build skills in inspiring vision, motivating employees, providing individual support, and strengthening transactional leadership by enhancing the performance management system with clear goals, regular feedback, and appropriate rewards, and develop recognition programs to reward achievements and adherence to organizational goal. It is also advisable to minimize laissez-faire leadership by encouraging active engagement from leaders through training and regular feedback mechanisms and implementing systems for monitoring and evaluating leadership practices to reduce hands-off management styles