Abstract:
The purpose of this study was to assess the effects of leadership style on employee job
satisfaction in Ministry of Revenue Addis Ababa area based on path goal leadership
theory. The study employed explanatory research design and both quantitative and
qualitative research methods employed. Primary and secondary sources of data were
used in the study. In addition the study employed a stratified random sampling method
to collect data from professional employees of Ministry of Revenue found in branches
under the four districts of Addis Ababa and head office. The total population of the study
was 2451, from this, 344 questionnaires were distributed and 315 (91.56%) usable
questionnaires were obtained valid and used for further analysis. The collected data
was analyzed using SPSS software version 22. In addition, to analyze the collected
data descriptive statistics (frequencies, means & standard deviations), and multiple
regression analysis were used. The finding of this study indicated that job satisfaction of
MOR employees is significantly affected by the two types of leadership
style(transformational and transactional) in addition, it was found that transformational
leadership style has a significant effect on job satisfaction of MOR employees than
transactional. It is also indicated that currently the most dominant type of leadership is
transformational leadership style. Accordingly the researcher forwarded the following
recommendation. Ministry of revenue Addis Ababa leaders are to adopt the
transformational leadership style, if they want to improve and increase job satisfaction
and which will lead to increase organizational outcomes.
