Are Bank Employees Satisfied with Perceived Leadership and Empowerment?

Abstract

One of the reasons affecting job satisfaction is the leadership style that engages the employees on a daily basis. Although perceived leadership has been studied well in the past, but there are fewer studies focusing on the mediating effect of employee empowerment. The key objective of this research is to study the relationship of perceived leadership, employee empowerment and job satisfaction of the employees, and also to study the mediating role of employee empowerment on the relationship between perceived leadership, and job satisfaction of the employee. A sample of 200 professionals from different banks was selected for the purpose of this study. Moreover, the Smart PLS 3.0 software was used to analyze whether the model was fit by referring to the PLS-SEM. The results of this study revealed that the independent variable (perceived Leadership) has a significant and positive influence on job satisfaction. All the hypotheses were accepted, and there were none that could be rejected after the results were revealed. The study proves that a partial mediating effect of employee empowerment exists between perceived leadership and job satisfaction. This study can help managers in designing the right strategies for retaining their employees by empowering them according to the boundaries set by their organizations. The results can help organizations to identify the potential reasons for job satisfaction, which will eventually lead to higher productivity and profitability.