SYSTEMATIC LITERATURE REVIEW: LEADERSHIP STYLE COMPARISON ON EMPLOYEE SATISFACTION AND ORGANIZATIONAL PERFORMANCE

Abstract

This essay thoroughly reviews 20 studies on leadership, organisational success, and employee satisfaction. These studies' findings highlight the significance of leadership styles in impacting organisational outcomes and employee satisfaction. Autocratic leadership styles were consistently associated with poorer employee happiness levels, whereas democratic, transformational, and transactional leadership styles had favourable effects on organisational performance and employee satisfaction. The most successful leadership approach was revealed, and it consistently predicted better levels of organisational commitment and worker satisfaction. These results extend leadership theory by validating the effectiveness of democratic and transformational leadership styles in attaining organisational goals and increasing employee happiness. The implications for company practice suggest that adopting leadership philosophies that offer employees agency, involve them in decision-making, and promote a sense of belonging should be given top attention. Managers should create inclusive and participative work environments that foster open communication, teamwork, and shared decision-making. By displaying transformational leadership qualities, managers can encourage creativity, offer specialised support, and excite and motivate employees.