Leadership and Employee Satisfaction in the Ghanaian Banking Sector

Abstract

The study was carried out with the purpose of investigating the relationship between leadership and employee satisfaction in the banking industry in Ghana. A questionnaire consisting of three (3) sections was used for the study. Section one of the questionnaire solicited information on demographic characteristics of respondents, section two dealt with the Job Satisfaction Survey (JSS) while the third section dealt with the Multifactor Leadership Questionnaire (MLQ). A total of 200 questionnaires were circulated to randomly selected respondents from both private and public banks in the Accra Metropolis of Ghana, out of which 150 were returned showing a return rate of 75% and out of that 140 were usable. The findings of the study were that there was positive relationship between leadership styles and job satisfaction. The results further indicated that inspirational motivation which is a type of transformational leadership, management by exception and laissez-fair which are types of transactional leadership positively and significantly affected job satisfaction. Thus, leadership styles of managers impact on satisfaction of banking employees so managers should exhibit good leadership.

Keywords: Transformational leadership, Transactional leadership, Employee satisfaction, Banking sector