The Effect of Leadership Style on Employee’s Job Satisfaction and Organisational Performance

THE EFFECT OF LEADERSHIP STYLE ON EMPLOYEE SATISFACTION AND PERFORMANCE OF BANK EMPLOYEES IN BANGKOK
Rochelle Joy Belonio1

Abstract: This paper aims to determine the effect of leadership styles on employee job satisfaction and the effect of employee job satisfaction on employee job performance. A survey was conducted by administering questionnaires to 400 respondents in the banking sector in Bangkok. The results show that most of the bank employees, most of them females between 20 and 39 years old, are neither satisfied nor dissatisfied. They are ambivalent. Transformational leadership style was seen to have a positive effect on various facets of employee job satisfaction. Transactional leadership also turned out to be perceived as having a positive effect on different facets of employee job satisfaction. So did laissez-faire leadership. Employee job satisfaction was seen to have a positive effect on the various aspects of employee job performance analyzed. It was found that leaders and managers combine the various leadership styles identified in the research paper in proportions that produce a positive result when administering their leadership duties. The proportions at which these leadership styles are combined depend on the nature of the situation they encounter in the workplace. Keywords: Leadership, Transformational, Transactional, Laissez-faire, Satisfaction, Performance 1. Introduction Most firms and businesses consist of employers and employees or, put differently, management and staff or leaders and followers. Most of them are goal oriented. In order to achieve the desired objectives, there must be an interaction between employers and employees (or management and staff or leaders and followers). The leadership style that characterizes the interaction between leaders (or managers) and their followers (or staff members) is most important in terms of employees’ efficiency and productivity. Employees are the workforce of any businesses and they carry out the

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