The Impact of Leadership Styles (Transformational and Transactional Leadership) on Employees Job Satisfaction in the Banking Sector of District Kotli, Pakistan

Abstract

The aim of this research project was to examine the impact of leadership styles (transformational and transactional leadership) on employee's job satisfaction in the banking sector of District Kotli (A.K). A five point Likert scale questionnaire consisting of 20 items divided into four parts (Demographics, Transactional Leadership, Transformational Leadership and Employees Job Satisfaction) adapted from previous studies was used. Different banks of District Kotli were selected on the basis of simple random sampling. A total 100 questionnaire were distributed, out of which 88 were returned back and showing the 88% response rate. Data was analyzed by applying the Pearson correlation and regression analysis with the help of SPSS. The results of this research indicate that transformational and transactional leadership styles have a positive and significant relationship with employee's job satisfaction. But transactional leadership style is less significant than transformational leadership style. Results also reveal that due to changing trends and emerging economy leaders change their leadership styles according to the situation. They mostly try to adopt the charismatic leadership style for inspiring and motivating their employees for achieving organizational goals and objectives effectively and efficiently.