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

2957 Words May 17th, 2013 12 Pages
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
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- Theories of Leadership Several schools are considered in chronological order in this part.. (i) The Trait School: Turner and Muller (2005) stated that this school of thought was popular before 1940’s. It assumes that leaders are born, not made and that they possess certain features that are not in non-leaders. (ii) The Behavioral or Style School: As Turner and Muller (2005) mentioned, this school of thought was popular from the 1940’s to the 1960’s. It assumes that effective leaders can be made. Anyone can be trained to be a leader. (iii) The Contingency School: The contingency theory suggests that what makes an effective leader depends on the situation. House (1971) made mention of the Path-goal theory which is a contingency theory that identifies four leadership behaviors, namely, directive leaders, supportive leaders, participative leaders and achievement-oriented leaders. (iv) The Visionary or Charismatic School: The visionary or charismatic school of thought was popular during the 1980’s and 1990’s (Turner & Muller, 2005). Under this school of thought, Burns (1979) mentioned the transactional and transformational leadership styles. (v) The Emotional Intelligence School: Goleman, et al (2002) identifed six leadership styles under the emotional intelligence school of thought: visionary, coaching, affiliative, democratic, pace-setting and commanding. This school of thought was popular in the late 1990’s. (vi) The Competency
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