A Case Study of the Impact of Leadership Styles on Bank Employees´Job Satisfaction

Abstract: Leadership always plays an important role in the growth and performance of an organization. Changes in organizational structure, vision and leadership are inevitable in any institution. Leadership style is a special characteristic that distinguishes a leader from another and this powerful force is what pushes an employee or employees to complete a task that produces maximum results; especially in the banking sector. Survey questionnaires were used in this study as a main method for data collection. The data was analyzed by using the Structural Equation Modeling (SEM) Method using Lisrel software. This research has been conducted to determine the impact of using transformational, relation-oriented and transactional leadership styles and their direct effect on job Satisfaction. A total of one hundred questionnaires were distributed among SEB and Swede bank´s employees and seventy-one fully answered questionnaires were used for statistical analysis. In other words, seventy-one percent of the questionnaires were returned. The results clearly show that leadership style (Relation-oriented, Transactional, and Transformational) have a significantly positive effect on both the employer and employee’s satisfaction with the job. The results indicate that the Transformational approach ads the most contribution toward job satisfaction compared to the Transactional and Relation-oriented styles of leadership.