The Impact of Transformational Leadership on Employee Satisfaction in Service Organizations: An Empirical Study An Applied Study on Specialized Banks in Libya

Abstract

This study examines the impact of transformational leadership on employee satisfaction within service institutions, with a particular focus on the mediating role of job satisfaction in enhancing employees’ job performance. A combination of data collection tools was used, including questionnaires and personal interviews. Data were gathered from the study population, which consisted of 67 employees at the Savings Bank. The study revealed that transformational leadership is one of the most influential modern leadership styles within the work environment, as it relies on intrinsically motivating employees, strengthening their commitment, and encouraging innovation and collaboration, in addition to formulating an inspiring future vision that transcends traditional organizational frameworks.The concept and importance of employee satisfaction were also addressed, as job satisfaction represents a fundamental element for organizational stability and achieving strategic objectives. Job satisfaction reflects the psychological and emotional state of the employee toward their work and is influenced by several factors, including the physical environment, nature of tasks, relationships with colleagues and management, and supervisory style. Job satisfaction was classified into two types: general satisfaction, which reflects the employee’s overall feeling toward the job, and specific satisfaction, which relates to particular aspects of work such as salary, promotion opportunities, and working conditions. Based on an analysis of the relationships among variables, the study found that transformational leadership has a direct impact on employee satisfaction, which in turn contributes to enhancing job performance and improving employees’ skills.