Abstract
Organizations are social systems where human resources are the most important factors for effectiveness and efficiency. Organizations need effective managers and employees to achieve their objectives. Leadership is a process by which a person influences others to accomplish an objective and plays a crucial role in many professions, such as banking, education, healthcare, insurance service jobs. Infact, leadership styles are one of the important factors that have the prospective to improve the employee satisfaction and performance. The purpose of this research paper is to examine the relationship between leadership styles and job satisfaction among of 842 subordinates and 421 their respective supervisors. Structural Equation Modeling is used to test the hypothesised relationship. The results revealed that transformational style and democratic style have a positive impact on job satisfaction but transactional style and laissez faire style have a negative impact on job satisfaction. To enhance skills of the employees, the study suggested that firms who want to adopt the job satisfaction must resource their initiatives and increase the capabilities that should be given serious attention by organization aiming to be world class.
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