Abstract:
Generally, the leadership styles of leaders influence employee job satisfaction
in the organizations. Bank managers can affect employee’s job satisfaction, by
following appropriate leadership styles. The previous studies confirm that the
leadership styles create environments in the organizations by influence employee
job attitude. Competitiveness in the banking sector specifically private and public
banks are higher in Sri Lanka and banks have to focus on quality customer service
to attract more loyal customers. This require more satisfied employee base to
provide higher service level. The main objective of the research is to test two
different leadership styles and its influence on satisfaction of bankingemployees.
TheleadershipstylesareTransactionalandTransformationalleadership style and job
satisfaction factors which affect the two different leadership styles. For the purpose
of this study, 150 questionnaires distributed through the method of simple random
sampling among public bank and private banks in Vavuniya district. From the
selected sample, there were only 105 questionnaires completed and usable and
returned. Correlation and regression analysis were done to test the hypotheses.
The finding of this study indicated that transformational leadership has a strong
positive relationship with employee job satisfaction.Further the study foundthat
transactional leadership has a moderate positive relationship with employee job
satisfaction in banking sector.
