The Effect of Leadership Style on Employee Job Satisfaction

This paper aims to determine the effect of leadership styles on employee job satisfaction. The survey was conducted by administering questionnaires to 400 respondents from different organizations within Pakistan. Transformational leadership style was seen to have a positive effect on various facets of employee job satisfaction. Transactional leadership also turns out to be perceived as having a positive effect on different facets of employee job satisfaction, and so does empowering managerial leadership. It was found that leaders and managers combine the various leadership styles identified in the research paper in proportions that produce a positive result when administering their leadership duties. The proportions at which these leadership styles are combined depend upon the nature of the situation they encounter in the workplace.


INTRODUCTION
The basic ideologies of the global socio-economic development in the 21st century have been abruptly transformed due to massive technological advancements and disruptions. The recent past decades have witnessed a substantial rise in global attention and interest in entrepreneurship subject, particularly in small and medium enterprises. This concentration can be synchronized in the realm of evolving global economic concerns, escalating poverty structure, requires lower financial investments, and even makes an organization appear to be larger than its actual size, which makes it favorable to the SMEs 11 . Consequently, this paper will focus on how small businesses can utilize the social media tools not only for advertising and marketing of their products and services but also building the business overall, by means of transactional mechanisms, sharing information with customers and receiving their feedback and recommendations on a regular basis. In developing economies due to financial and other institutional barriers, SMEs face genuine problems in leveraging customers and cannot afford the colossal advertising budgets that the more established, more affluent "big business" can, either at the national level or globally.

Background of the Study
Leadership style is considered as a major subject for researchers because it is still an attractive attribute about leadership among academics and managers As well, the attention to leadership style has come for subordinates since they like to work more effectively and productively when their managers adopted a specific leadership style. Thus, leadership style is the most important item of leadership process, since managers develop leadership style via their education, training, and experience. That let leadership to be one of the most social phenomena, which have been examined, and it is significant for the effectiveness of functions in both business and society organizations. Job satisfaction is considered as an important goal in organizations for two reasons. First, employees deserve respect and fair treatment. Second, employees' job satisfaction will affect the functions of organization. Furthermore, reported that satisfied employees are less absent, stay at work, and they have positive contributions to their organizations, while dissatisfied employees are more absent, show job stress, and look for new job (Al-ababneh 2015).

Statement of Problem
Leadership styles can either motivate or discourage employees, which in return can cause employee's increase or decrease in their level of performance. According to (Belonio, 2012) the sources of employee job dissatisfaction include inadequate salary, conflicting job demands (from the leadership) and absence of promotion prospects. For efficiency purposes, an effective leadership style, one that positively affects employees' satisfaction and results in better

Journal of Entrepreneurship, Management and Innovation
Volume 1, Issue 1, July 2019 [4] performances, effectiveness and productivity is clearly desirable (Belonio 2012). This paper aims to determine the effect of leadership styles on employee job satisfaction.

Research Questions
RQ1: How is transformational Leadership related to employee's job satisfaction?
RQ2: How is transactional Leadership related to employee's job satisfaction?
RQ3: How is empowering Leadership related to employee's job satisfaction?

OBJECTIVES OF STUDY
In this study, the researcher investigates the extent to which three leadership styles (namely, transformational, transactional, and empowering influence employees' job satisfaction, by examining how leadership style enhances the level of job satisfaction.

JUSTIFICATION/ SIGNIFICANCE OF STUDY
The findings will benefit, supporting a more universal approach to leadership style preferences rather than a 'beauty is in the eye of the beholder' or cultural perspective to leadership style.
Particularly, age groups, firm tenure, national location and industry effects supported propositions of the effectiveness of different approaches to leadership in general. It will enhance the level of employee's job satisfaction by adopting appropriate leadership style.

Limitation of Study
Some of the respondents' failure to fill the questionnaires without making sure that the information was correct on the one hand and time constraints on the other were the two main limitations encountered in conducting this research paper.
Another limitation is that our questionnaires answered were not covering the target population entirely which might not be the complete opinion each and every employee working in all sectors of different industries.

SCOPE OF THE STUDY
The research scope of this study was the Pakistani manufacturing and service providing industry; while this limitation may limit the generalizability of the findings, a key objective was to assess the impact of leadership style in this specific cultural situation. The study drew a

Introduction
Most firms and businesses consist of employers and employees or, put differently, management and staff or leaders and followers. Most of them are goal oriented. In order to achieve the desired objectives, there must be an interaction between employers and employees (or management and staff or leaders and followers) (Belonio 2012).
The leadership style that characterizes the interaction between leaders (or managers) and their followers (or staff members) is most important in terms of employees' efficiency and productivity (Belonio 2012) Employees are the workforce of any businesses and they carry out the duties required to achieve the desired objective of any firm. Employee satisfaction is impacted by the employees' perception of their job and the organization for which they work for. Employees' perception of leadership behavior is an important predictor of employee job satisfaction and commitment).
Individual perception of the organization is related to job attitudes (Belonio 2012) Leadership styles can either motivate or discourage employees, which in return can cause employee's increase or decrease in their level of performance. The sources of employee job dissatisfaction include inadequate salary, conflicting job demands (from the leadership) and absence of promotion prospects (Belonio 2012) Journal of Entrepreneurship, Management and Innovation Volume 1, Issue 1, July 2019 [6] For efficiency purposes, an effective leadership style, one that positively affects employees' satisfaction and results in better performances, effectiveness and productivity is clearly desirable) (Belonio 2012).
The various schools of thought about leadership and leadership styles will be fully documented in the literature review part of this article. The conceptual framework and methodology will then be considered. Next, the findings will be discussed and recommendations made (Belonio 2012).
Transformational Leadership (Rothfelder, Ottenbacher, and  relationships hold in differing cultural contexts. To bridge this gap in the literature, this study aimed to analyze the influence of contingent reward and management-by-exception on employee job satisfaction, individually.

Empowering Leadership
Empowering leadership represents a significant paradigm shift and emphasizes follower selfinfluence rather than external, top-down influence Leaders who use empowering behaviors believe that followers are an influential source of wisdom and direction. These leaders emphasize self-influence; self-management; self-control; or, to use term, self-leadership (Yun et al. 2007)

Transactional Leadership's Impact on Employees' Job Satisfaction
Transactional managers (often in concert with subordinates) determine and define the goals and work that subordinates need to achieve, suggest how to execute their tasks, and provide feedback. This process should assist employees in becoming confident about meeting their role requirements. Transactional supervisors also recognize the immediate needs of their subordinates and communicate to employees how those needs will be met (what organizational rewards they will receive) through effective performance. As a result, subordinates presumably will be directed and motivated to accomplish their goals. A fully implemented example of this contractual relationship between salespersons and their transactional leader is typified by the sign above the sales manager's desk in a commission-oriented sales organization that reads, "NO ORDERS, NO MONEY (Dubinsky et al. 1995).
Transformational Leadership's Impact on Employees' Job Satisfaction: Transformational leadership raise subordinates' awareness of the importance and value of designated outcomes, get employees to transcend their own self-interests for the sake of the group or organization, and change or increase subordinates' needs (Dubinsky et al. 1995).
Through such means, employees' motivation and self-confidence are enhanced. To accomplish these results, transformational leaders possess and display four key characteristics (Dubinsky et al. 1995): charismatic leadership, inspirational leadership, intellectual stimulation, and individualized consideration.

Empowering Leadership's Impact on Employees' Job Satisfaction
If the leader is a real empowering leader, he or she recognizes the potential of the followers to be self-leaders as well as the importance of the team process, interaction, and collaboration among the members in the team-based context. This recognition makes the empowering leader emphasize teamwork, collaboration, or interaction among team members as well as individual self-initiative in doing their work. Also, empowering leaders influence followers to recognize the importance of teamwork, interaction, collaboration, or extra-role behaviors which can make teamwork more harmoniously in the team-based context. Thus, empowering leaders can increase team citizenship behaviors directly or indirectly through job satisfaction (Yun et al. 2007).

Hypothesis
H1: There is a positive relationship between transformational leadership style and employees' job satisfaction.
H2: There is a positive relationship between transactional leadership style and employees' job satisfaction.
H3: There is a positive relationship between empowering leadership style and employees' job satisfaction.

Research Design
The type of research was quantitative or explanatory type where the independent variables were available in the literature and were explained in this research and the model was made and theory was tested. The research method used was mono research, and its scope was basic because it covered almost all employees of all the industrial sectors. Technique of research was secondary since the information was gathered from previously conducted studies. The approach of research was deductive since the research was conducted on all industrial scale employees and can be specified to any industry or organization. Time horizon in this research can be considered as cross sectional because single respondents were supposed to answer the data for single time. The study setting was natural since no leader was made to change his or her original leadership style from those they possess from the given three. The type of

Journal of Entrepreneurship, Management and Innovation
Volume 1, Issue 1, July 2019 [9] investigation was correlational since it could not be said that the change in dependent variable was purely because of the change in leadership style. While the statistical technique used was Chi-square since all the variables were qualitative.

Sampling Unit
Sampling unit was considered an individual person. Since individuals working in different sectors and organizations were used to collect data.

Sampling Technique
Sampling technique used was probability sampling since the sampling frame could be known.

Sample Size
Sample size taken is 384 as population size is vast. Confidence level is taken as 95%. Confidence interval is 5.

Instrumentation Variables
There were four variables in all and all of them were qualitative, unidimensional unobserved variables.
Transformational Leadership: This variable was independent variable which was measured under 12 items adopted from literature whose reference is given below.
Transactional Leadership: This variable was independent variable which was measured under 3 items adopted from literature whose reference is given below.
Empowering Leadership: This variable was independent variable which was measured under 10 items adopted from literature whose reference is given below.
Employee Job Satisfaction: This variable was dependent variable which was measured under 2 items adopted from literature whose reference is given below.

Variables
Items Scaling Reference 1. He/she is not afraid to "break the mold" to find different ways of doing things.
2. He/she isn't bound by tradition when it comes to getting things done.
All items were measured using

RESULTS
As per the questionnaires answered and the analysis of data gathered through them, we have inferred that all three of our hypotheses are accepted that are: H1: There is a positive relationship between transformational leadership style and employees' job satisfaction.
H2: There is a positive relationship between transactional leadership style and employees' job satisfaction.
H3: There is a positive relationship between empowering leadership style and employees' job satisfaction.
As per this claim we had previously assumed that their there was positive dependency of transformational, transactional and empowering leadership on employee's job satisfaction and from the data analysis, hypothesis is accepted hence proving that transformational,

Journal of Entrepreneurship, Management and Innovation
Volume 1, Issue 1, July 2019 [12] transactional and empowering leadership do have positive relationship with employees job satisfy.

Discussion and Conclusion
The findings in this study show that managers (leaders) in different sectors and organizations in Pakistan combine various aspects or factors of leadership styles which depends on the working environment in which they operate. As seen in the above study, using various leadership styles produces various effects on job satisfaction and job satisfaction of an employee.
Transformational leadership was seen to have a positive effect on the significant subscales of job satisfaction. Transactional leadership also had a positive effect on the significant subscales of job satisfaction and empowering leadership had a positive effect as well on the significant subscales of job satisfaction. Since various factors of leadership styles affect various aspects of employee job satisfaction, which in turn affect job performance, managers, supervisors, leaders and organizational heads should not stick to only one form of leadership style. A combination of the various leadership styles will bring more satisfaction and enhance employee performance. They should therefore find the appropriate combinations of the leadership styles that would achieve the organizational goals together with the individual targets or objectives of the employees.

RECOMMENDATIONS AND FUTURE DIRECTIONS
Reviewing the literature indicated that leadership styles are different according to managers' demographic profiles. But this study was specifically limited to the organizations within the country Pakistan. In addition, job satisfaction among employees was varied based on their demographic profiles, and employees showed different attitudes towards their job satisfaction and job facets. action.