Relationship Between Leadership Styles and Employee Satisfaction

RELATIONSHIP BETWEEN
LEADERSHIP STYLES
AND EMPLOYEE
SATISFACTION

ABSTRACT
Leaders know how to attain goals and inspire people along with way. In the same way,
most effective leaders have one element in common and that is they able to keep their team
engaged. Similarly, the current study is also shed a light on different leadership styles and their
relationship with employee satisfaction. In a reality, it is very difficult for the company to engage
employees and manage the work by analysing the level of satisfaction. The current dissertation
also help to determine the significant relationship between employee's satisfaction and leadership
style and for that qualitative study is conducted in which researcher chooses 30 employees of
C&C Berhad who help to identify the leadership style opt by leader. Further, in the study, both
primary and secondary research has been conducted such that for primary, survey instrument is
used and findings suggested that there is a direct relationship between leadership style and
employee satisfaction. Different leadership style creates various impact upon organizational
performance and respondents are also happy with the working culture of employees because
leaders provide proper guidance to the employees when they face any challenges.

ACKNOWLEDGEMENT
I would like to extend my sincere and heartfelt obligation towards all the personage who
have helps me in this endeavour. So, first of all, I would like to thank my teacher and principle
who gave me this opportunity to perform the study.
Further, I would like to thank my guide for their valuable time and support for
completion of this project. I also extend my acknowledge with a deep sense of reverence to my
parents and member of my family who supported me morally and economically.
Last but not the least, I would like to thank my friends who directly and indirectly help
me to complete the project report.
Thanking you.

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................4
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1 Background...........................................................................................................................5
1.2 Problem statement.................................................................................................................6
1.3 Aim and objective.................................................................................................................7
1.4 Research questions................................................................................................................7
1.5 Significance of the study.......................................................................................................7
1.6 Scope of the study.................................................................................................................9
CHAPTER 2: LITERATURE REVIEW.......................................................................................12
2.1 Previous studies...................................................................................................................12
2.1.1 Project success criteria.....................................................................................................12
2.1.2 Importance or organization factors for business project..................................................13
2.2 Methodological issue..........................................................................................................28
2.3 Conceptual Framework.......................................................................................................30
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................31
3.1 Theoretical framework........................................................................................................31
2.2 Methodological issues.........................................................................................................35
3.3 Data analysis.......................................................................................................................37
CHAPTER 4: DATA ANALYSIS................................................................................................43
CHAPTER 5: DISCUSSION AND CONCLUSION....................................................................70
5.1 Summary of main findings..................................................................................................70
5.5 Direction for future Research..............................................................................................74
REFERENCES..............................................................................................................................78
Appendix........................................................................................................................................82
Questionnaire............................................................................................................................82
Title

“To examine the relation between the leadership style and the satisfaction of employees and its
impact over performance of company. A study on retail sector.”
CHAPTER 1: INTRODUCTION
1.1 Background
Leadership is defined as the art of directing and guising other people so that they can
work in effective manner in the direction of attaining goals of business. For the success of the
business the most important thing for the company is to have effective use of leadership (Kour
and Ashraf, 2018). This is necessary because of the reason that the leadership only directs the
employees that how they have to work within the company. The major reason underlying this
fact is that the leaders are the person who provides a vision to the company and helps the
company in making the policies and practices which will help the company in attaining the
business goals and vision. The leaders are the most important part in the success of the company
and if the leader will not be good then the company will not be able to work in proper manner.
Hence, it is necessary for the company to manage the leadership style in proper and
effective manner. The leadership style is defined as the pattern of leadership which the leader of
the company follows in order to give direction to the employees within the company. Thus, the
leadership style has a lot of impact over the employees and their performance. This is majorly
pertaining to the fact that if the involvement of the leader is very much then it might be possible
that the employees do not like it. This is due to the reason that more interference of the leader
within the operations of the company will not be liked by the employees of the company. This is
so because the role of leader is to make the policies and guide the employees. But if the leader
interferes to a great extent then the employees will not work in proper manner. Thus, the
employees will not be satisfied with the more involvement of the leader within the operations of
the company (Al-Sada, Al-Esmael and Faisal, 2017).
The chosen company for this report is Cycle & Carriage which is embark on a journey on
1899 and its main purpose is to become one of the top company at global level. Currently the
company provide retail services to other business after the sales service if Mercedes- Benz
vehicles. Also, the quoted firm is resilience to adapt and grow through unwavering commitment
to attain the excellence product and services. The present research will discuss about the
leadership style followed by the company and what is the impact of these leadership styles over

the performance and satisfaction level of the employees working in the company. This is very
necessary to study the impact of the leadership style over the employees of company because if
the employees will not be satisfied then they will not work up to their maximum potential. Hence
this will decrease the profitability of the company to a great extent (Asghar and Oino, 2017). It is
because if the leader will be much strict and work conscious then the employees will not be
comfortable working in such environment.
Hence, it is the responsibility of the leaders of the company to create the environment of
the company in such a manner that the employees of the company are very happy and satisfied
working within the company. Also, the leaders of company must not exercise much of the power
over the employees as this will demotivate the employees and they will not work in effective
manner. Also, there is a wide variety of leadership style which can be used by the leaders of
Cycle and Carriage Berhad. Also, all these leadership style has different impact over the
productivity and performance of the employees. This is majorly because of the reason that if the
leader will use the strict and rigid leadership styles then the employees will not be happy and
satisfied while working in the company.
On the other side if the leaders are too flexible and gives all the authority to the
employees then it might be possible that the employees become less caring towards the company
and can use more casual approach towards the company. Thus, there need to be balance between
the use of leadership style and the power which is given to the employees. This is because f there
will not be balance then anything can happen and the company may face huge losses. Thus, this
research will help the company in analysing the fact that if they exercise more of leadership over
the employees then what is the impact over their performance. Also, the company will come to
know about the fact that if more freedom is given to the employees than how this will impact the
performance of the employees and in which manner it will be impacted whether positive or
negative.
1.2 Problem statement
The major problem area of the research was to understand the relation between the
leadership used by the company and the satisfaction level of the employees. This problem is very
common in the current business environment as if the leaders are too harsh and strict then the
employees do not work with good efficiency. In the same manner if the leader is to friendly then
also the employees will not work in proper and effective manner. Thus, this is the major problem

and this will be identified with help of this research that which style of leadership will be more
beneficial for the company and whether people will like it or not.
1.3 Aim and objective
Aim
“To investigate the relationship among the selection of leadership style over the satisfaction of
employees and their performance. A study on Cycle & Carriage Berhad.”
Objectives
 To understand the concept of leadership styles and satisfaction of employees.
 To articulate the impact of leadership style over the performance and satisfaction of the
employees with respect to Cycle & Carriage Berhad.
 To identify the different challenges being faced by Cycle & Carriage Berhad at time of
satisfying the employees by using effective style of leadership.
 To recommend some of the measures to Cycle & Carriage Berhad in order to make
effective use of the leadership style in satisfying the employees within the workplace.
1.4 Research questions
1. What is the concept of leadership style and satisfaction of employees?
2. What is the impact of use of different leadership styles over the performance and
satisfaction of employees within company?
3. What are the major challenges which are being faced by company in satisfying the
consumers with their effective use of leadership styles?
4. What are some of the recommendation for the company to improve the use of leadership
styles to make the employees within the company more satisfied?
1.5 Significance of the study
The current study is related to the topic of relation among the leadership style and the
employees and their satisfaction. Thus, this current study is of significance to every person
working in the retail sector as well as the other companies. This is majorly because of the reason
that leadership is used in each type of business and every aspect of the business. This is because
without leadership not a single activity of the business can be carried on. Hence, for the success
of business and earning good amount of profit the most important thing is the effective use of
leadership.

Thus, this present report is of significance to Cycle & Carriage Berhad as the research is
conducted over the leadership style used by company and its impact over employee satisfaction
and performance. This is significant for the company because with this research they will come
to know that whether their leadership style is capable of satisfying the employees within the
company or not. If not then what corrective actions can the company take in order to maintain
the satisfaction level of the consumers (Jones and et.al. 2018). Also, this research is significant
for the competitors of the company because they can also apply these strategies and the
leadership style similar to Cycle & Carriage Berhad.
This is because of the fact that the competitors are also having same operations like Cycle
& Carriage Berhad. Thus, these competitors can also apply the same strategies and leadership
style as adopted by the leaders of Cycle & Carriage Berhad. Also, this research is significant to
the researchers who are also carrying on the research on the same topic or similar topic (Bekiari
and Ntakou, 2018). This is of significance to those researchers as they can use this research as
their base and can start the research in accordance with this research.
Rationale of study
The major reason behind researching on the issue of relation among leadership style and
employees satisfaction is that this is very interesting topic. This is an interesting topic because of
the fact that the whole organization and its operations are dependent over the working of the
leaders. This is because the leader is the one who directs the employees that in which direction
they have to work and how they have to operate.
Thus, this research will help the researcher in knowing that how the use of leadership
style will impact over the working of the employees within the company. Also, another major
reason is that this is a current issue faced by many of the companies that due to strict leadership
styles the employees are not satisfied working in the companies. Hence, there need to be a
research on this topic as this will help the researcher in outlining the fact that which style of
leadership is more helpful in the accomplishment of the research. In addition to this the
researcher also wants to know that what is the link between the leadership style and how it
impacts the working efficiency of the employees within the workplace.
One more important reason for the selection of this research topic is that this involves the
personal interest of the researcher as well. It means that the researcher also wants to know the
fact that how leadership style and the working capabilities of the employees are interconnected.