EFFECT OF LEADERSHIP ON JOB SATISFACTION: A COMPARATIVE STUDY OF SELECTED BANKS IN WOLKITE TOWN

Abstract

Employee satisfactions are critical factors influencing organizational performance and success. This study investigates the determinants of employee job satisfaction in the context of public and private banks, focusing on leadership practices as key predictors. The research methodology involves regression analysis to examine the impact of transformational, transactional, laissezfaire, and servant leadership styles on employee job satisfaction. The findings reveal significant relationships between certain leadership styles and employee outcomes in both public and private banks. In the context of private banks, the regression analysis highlighted the significant influence of transformational leadership on employee satisfaction, with a noteworthy coefficient. Moreover, laissez-faire leadership also exhibited a substantial impact on satisfaction. Transformational leadership showed a significant effect. Additionally, servant leadership emerged as a significant factor affecting motivation. Conversely, in public banks, transformational leadership was found to significantly influence satisfaction, while laissez-faire leadership also demonstrated a substantial impact on satisfaction. These findings underscore the importance of various leadership styles in shaping employee job satisfaction across different banking sectors, providing valuable insights for organizational leadership strategies and practices. Based on these findings, several recommendations are proposed to enhance employeejob satisfaction in both public and private banks. These include promoting transformational and servant leadership practices, reviewing and strengthening transactional leadership approaches, mitigating laissez-faire leadership behaviors, encouraging continuous feedback and communication, fostering collaboration among employees, investing in leadership development initiatives, and prioritizing employee well-being