LEADERSHIP DYNAMICS AND EMPLOYEE SATISFACTION: EXPLORING THE EFFECT OF LEADERSHIP STYLES IN ETHIOPIAN PRIVATE HIGHER EDUCATION

Abstract

This explanatory quantitative study investigates the effect of leadership on the job satisfaction level of employees in Ethiopian private Universities and colleges, utilizing data collected from 301 employees through structured questionnaires and analyzed via multiple linear regression. The findings demonstrate that transactional and transformational leadership styles significantly enhance employee satisfaction on their job through motivational behaviors and structured reward systems, while laissez-faire leadership negatively impacts satisfaction due to its passive nature, with these relationships potentially mediated by organizational culture and work environment and moderated by employee empowerment and commitment. Based on these results, the study recommends that institutional leaders actively promote transformational and transactional approaches by engaging staff in decision-making and providing inspirational motivation, while simultaneously implementing leadership training programs to mitigate the detrimental effects of laissez-faire management, thereby creating more satisfying work environments that foster organizational success in Ethiopia's private higher education sector.