1Doctoral Student, Department of Commerce and Management Studies, Andhra University, Visakhapatnam, India
2Professor, Department of Commerce and Management Studies, Andhra University, Visakhapatnam, India
Online published on 10 February, 2015.
Leadership has got a paramount attention in both the academia and practitioners since recent decades as determinant factor on employee behavior. This study was meant to identify the association between leadership style and job outcome in Ethiopian banking industry. In this study, Leadership style was made to be characterized by transactional and transformational types while job outcome was made to be characterized by job satisfaction and performance. An assessment was made to see the level of variation in satisfaction and performance explained by transactional and transformational leadership styles. The population of the study constituted bank employees and managers. Convenience and judgment sampling procedures were applied to contact sample from the target population. On aggregate 549 informants were contacted for their opinion. Correlation and regression analysis were carried out to investigate the relationship and the magnitude of variation explained by transactional and transformational leadership styles on satisfaction and performance respectively. The finding showed that transformational leadership style explained the variation on satisfaction and performance better than transactional leadership style. Hence, the researchers recommended that if banks under study emphasis more on transformational leadership style dimensions, it would enable them to better satisfy and hence gain more output from their employees.
Ethiopian banking industry, Job performance, Job satisfaction, Transactional leadership, Transformational leadership
