The Effect of Leadership Styles (Laissez-Faire, Transactional and Transformational Leadership) on Employees Job Satisfaction: A Case Study on Banking Sector of Pakistan

Abstract

The aim of this study was to examine the effect of leadership styles (Laissez-Faire, transactional and transformational leadership) on job satisfaction of employees in the banking sector of Pakistan. The questionnaire used in this research study was consisted upon 27 items adapted from previous studies. The items were divided into five categories (Demographics, Laissez-Faire leadership, Transactional leadership, Transformational leadership and Employees Job Satisfaction) by using five point Likert scale. The authors have collected the data from various banks of Pakistan through simple random sampling. The authors have distributed 150 questionnaires and the number of completed surveys which were returned to the researchers was 122. This represents a response rate of 81%. This research study found that all three leadership styles have a positive and significant relationship with job satisfaction
of employees. However, Laissez-Faire leadership style is less significant than transactional and transformational leadership style. The findings show that mostly leaders adopt transformational leadership style in order to motivate and encourage their employees.