Impact of Leadership Style on Employees’ Job Satisfaction: A Case of Bank of Ceylon - Head Office

Abstract

Acquiring and preserving talent is the most vital challenge facing the banking industry. In order to gain the competitive advantage through those employees their performance should be efficient and effective. Accordingly, for that purpose they should be well satisfied. Leadership style is a major determinant of employees’ job satisfaction. Therefore the purpose of this study was to examine the relationship and the impact between leadership styles and job satisfaction among junior executive officers in Bank of Ceylon Head Office, Sri Lanka. A sample of 65 junior executive officers working in Bank of Ceylon Head Office was obtained to participate in this study. The studied leadership styles are transactional and transformational leadership while job satisfaction includes extrinsic and intrinsic job satisfaction. The findings of the study shows that there is a positive and moderate relationship of 40.4% between leadership style and job satisfaction, and transformational leadership and job satisfaction also had a 48.5% of positive and moderate relationship, while transactional leadership and job satisfaction had a strong negative relationship. But the overall impact of leadership and job satisfaction had only 16%, a small impact. And transformational leadership had 24% impact on job satisfaction. Therefore from this study Bank of Ceylon can maximize their profits upon choosing the transformational leadership style as the appropriate leadership style.