The impact of leadership style on employee satisfaction : the case of BLOM bank and LGB bank in Lebanon

Abstract

Purpose: this dissertation aims to detect what leadership style is mostly adopted in the alpha banks in Lebanon and investigates the corresponding impact of the different leadership styles on employee satisfaction. This study shall conclude the leadership style that should be most adopted to reach the highest level of employee satisfaction. Design/methodology/approach: the research approach was specified as a deductive one. Then, the population represented by the chosen sample of 124 bank employees, specifically 62 from each of LGB and Blom bank. In addition, the research strategy was specified to be the survey method, where the primary tool for data collection is the questionnaire. Findings: the comparative study verified hypothesis 1 where the leadership style varies between Blom and LGB banks. Next, the results of the regression analysis were illustrated, verifying that leadership style does affect the level of satisfaction, thus verifying hypothesis 3. In addition, the fourth hypothesis was also verified, since the different leadership styles yielded different degrees of influence on the level of satisfaction. Research limitations/implications: the difficulties started with the revolution which caused repetitive bank closures making it impossible to distribute the questionnaires and proceed with the investigation. Then, this issue was amplified with the Covid-19 pandemic and the regulations that were set to face it. Finally, the internal regulations of the bank and the decrease in their hour of work made the collection of data more difficult. Practical implications: this study helps supervisors understand what best suits its employees and satisfies them. In addition, it helps them understand the level of satisfaction of their employees, evaluate the attitudes and managerial approaches of their managers and extend perhaps this research to link its results to the performance of their employees and the bank as a whole. Originality/value: this topic is a unique study conducted to compare between BLOM Bank and LGB Bank, highlighting the importance of Leadership Style on employee Satisfaction. The Study focuses on how effective leadership style will affect employee satisfaction and thus ensuring organizational success and sustainability.