(WP14/2016) Empirical Investigation into the Path-Goal Leadership Theory in the Central Bank Fraternity: Leadership Styles and Job Satisfaction

Publication Date : April 2016Authors : Lim Choon Yang and Vincent Lim CSPages : 27 : Total Downloads : 1450

The paper attempts to investigate the validity of the Path-Goal leadership theory in the central bank fraternity, in particular the relationship between leader style and job satisfaction. From the point of view of subordinates, we survey the perceived leadership styles of central banks’ managers and conduct an empirical study to determine whether the perceived leadership styles have any significant relationships with subordinates’ job performance/satisfaction across the central banks. The results indicate that in the central bank fraternity, Perceived Participative Leadership style has a consistent positive effect on job satisfaction of subordinates. This result is generally consistent across genders, age groups, number of years of working experience, education background and the department in which they work. This finding has implicit implications for the subordinates’ motivation to stay focused and perform better. For supervisors, they must be flexible enough to exercise the appropriate leadership styles at the right situation.

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