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Leadership Styles and Its Effect on Job Satisfaction

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Leadership is defined as leading a certain group of peoples to achieve desired target or goal. Whereas, leadership styles are referred as the attitude or approach of people toward their employee or sub-ordinates. Leadership styles are not forced. They are adopted according to the demand and requirement of the organization and its job. Leadership has a direct effect on employees.

The first research paper tells us about the importance of organization commitment and trust in leaders. Organization is a social unit which controls individuals through proper management. Organizational commitment is defined as the willingness/strength of an employee to work for the organization and their involvement in organization.

The writer states about the components of organizational commitment. He says that there are three basic components of organization commitment namely: (1) strong belief on the goal of organization (identification); (2) employ’s willingness to use every possible method to achieve the goal (involvement); (3) employ’s desire to stay in the organization (loyalty). Hence identification, involvement and loyalty are the three main components of an organizational commitment on which all employees are judged.

Later in research paper the author tells us about the importance of trust in leaders. Trust in leader means that the willingness of employees or subordinates to be vulnerable to the actions taken by his/her leader which are not in control of subordinates. Writer states that the employees feel vulnerable while trusting a supervisor/leader because he has powers and resources given by the organization.

So, they actually rely on their supervisors for their tasks and promotion opportunities. He says that both employ and employer have a reciprocal relationship in terms of trust. Besides trust on leader interpersonal trust also plays an important role in the smooth working of an organization. Interpersonal trust is defined as interpersonal interaction with individuals in a specific relationship. When interdependent workers/employs work together for the completion of a goal then their efficiency increases. Hence, trust plays an important role in increasing the efficiency and effectiveness of a goal.

In the second research paper the author describes about the two different styles of leadership and their impact on job satisfaction. Writer states that the employs who work in retail sector have long working hours with respect to other sectors. Moreover they also have low compensation as compared to other sectors. So, the employee in the retail sector feels less job satisfaction which ultimately affects the employee performance. Here the author discusses two leadership styles and their effect on employee. The two leadership styles are transformational leadership and transactional leadership.

Leadership styles are dependent on the type and nature of an organization. Then the writer describes transformational leadership. He states that transformational leadership is a style in which a leader himself/herself teams up with his/her employs to work together as a team. In this style leader involves himself/herself in the tasks to find the solution of a problem, to identify the need to change and inspiring his/her employees through vision.

He states that this leadership style is based on the ‘’four I’s’’ model which was developed by Bass and Riggio (2006). The four dimensions developed by Bass and Riggio related to the transformational leadership style are Inspiration motivation dimension, Idealized influence dimension, Intellectual simulation dimension and the Individual consideration dimension.

Then the author describes the second leadership style which is transactional leadership. In this style a leader motivates his/her subordinates or employees by rewards and also punishment depending on their behavior and performance. Those who perform well or reach a particular standard are rewarded in terms of promotion or maybe financially and those who don’t perform well are punished.

So, this particular leadership is like a reward punishment mechanism. Different theories states that this particular leadership style develops job satisfaction and confidence in employs/subordinates. So, if an employee feels satisfaction in his/her job then his performance will increase which helps in completing the organizational goals.

Job satisfaction and performance are two main parameters dependent on leadership styles. Job satisfaction shows an emotional attitude of an employee towards his organization that what he actually feels about his job. Job satisfaction can be divided into categories. One is content perspective and the other is process perspective. Content perspective defines the satisfaction of an employee through needs fulfillment. Does this job fulfill his/her requirements or how he has been treated? On the other hand process perspective is an awareness/cognitive process which results in job satisfaction. (Abdulla, 2011)

Whereas, performance is defined as the output of work or the results achieved from the work. It is a parameter on which all workers are judged. If an employee is satisfied with his job then his performance will be good because of his satisfaction in his job and leadership style. So, it proves that performance is directly related to job satisfaction.

In a research paper published on APJME (Asia Pacific Journal of Management & Education) on the topic leadership style effect on job satisfaction and performance, it has been proved that job satisfaction and performance both are dependent on leadership styles. Consider leadership style as a variable (X) and job satisfaction and performance as Y1 and Y2. So, the equation becomes X = Y1 + Y2 .

In the research paper they used regression analysis and path analysis method to find the relationship between these three variables. Job satisfaction and performance has direct relation with leadership style. So, here leadership style is an independent variable whereas both job satisfaction and performance are dependent on leadership style. So, if leadership style is changed then both job satisfaction and performance will respond according to the leadership style.

So, after complete research and analysis it has been proved that job satisfaction also affects performance. So, according to research leadership style direct affects the performance by a value 0.226 while indirectly it affects the performance through job satisfaction by a value of 0.445.

So, the result of that analysis indicates that the leadership style has a good and positive impact on the employee job satisfaction and his /her performance. So, as a higher leadership style is adopted, it results in higher job satisfaction value and higher performance.

References

  1. The leadership style effect on the job satisfaction and the performance;R Rahmat, M Ramly, S Mallongi, R Kalla – Asia Pacific Journal of Management and Education, 2019 https://www.semanticscholar.org/paper/The-Leadership-Style-Effect-on-The-Job-Satisfaction-Rahmat-Ramly/a841083f3f9174dc266ac6a4f47c857b13d21215
  2. Asghar, S., & Oino, I. (2018). Leadership Styles and Job Satisfaction, Market Forces, 13(1), 1-13. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3197150
  3. Dyah Ayu Puri Palupi, Mardanung Patmo Cahjono, Endang Satyawati(2017); Effect of Leadership on the Job Satisfaction with Organizational Commitment and Trust in Leader as Mediators; Review of Integrative Business and Economics Research, Vol. 6, Issue 4 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3004373

Cite this paper

Leadership Styles and Its Effect on Job Satisfaction. (2021, May 23). Retrieved from https://samploon.com/leadership-styles-and-its-effect-on-job-satisfaction/

FAQ

FAQ

How do leadership styles affect employees?
Leadership styles can greatly impact employee motivation, job satisfaction, and productivity. A positive leadership style can inspire employees to work harder and feel more invested in the success of the company, while a negative leadership style can lead to low morale and high turnover rates.
Is leadership style a reliable indicator of job satisfaction?
No, leadership style is not a reliable indicator of job satisfaction. Job satisfaction is determined by a variety of factors, including pay, workload, company culture, and relationships with co-workers and superiors.
What are the 4 types of leadership styles?
The four types of leadership styles are: autocratic, democratic, laissez-faire, and transformational. Each leadership style has its own strengths and weaknesses, so it's important to choose the right style for the situation.
Which style of leadership improves the level of job satisfaction?
The 5 key elements of time management are: 1. Setting priorities 2. Organizing and scheduling 3. Delegating 4. Timeboxing 5. Taking breaks
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