Abstract:
The study was about the effect of leadership styles on organizational commitment; employee job
satisfaction as a mediator variable. It was aimed to investigate the effect of leadership style son
organizational commitment: employee job satisfaction as a mediating effect in Jimma University.
Both descriptive and explanatory research design were applied. Stratified random sampling
technique was used. A quantitative research approach was adopted. The study used primary and
secondary data sources. Primary data were gathered through questionnaires whereas secondary
data were collected from different documents, employees profile and internet sources. Using the
exclusion criteria 6305 population of target were identified from which 376 sample size was
taken with 80 % response rate. The data was analyzed using SPSS version 25 and SEM version
23 of AMOS. Both descriptive and inferential analysis were conducted. Transformational
leadership has moderate correlation with job satisfaction, affective and normative but, low
correlation with continuance commitment. Similarly, transactional leadership has moderate
correlation with job satisfaction but, low correlation with all organizational commitment factors.
Laissez-faire leadership is insignificant to job satisfaction and affective commitment, but it has
low correlation with normative and continuance commitments. Job satisfaction is moderately
correlated to affective commitment but, there is low correlation between job satisfaction,
normative and continuance commitments. Based on the findings a researcher concludes that
transformational leadership being proven as more predictive of employee job satisfaction and
organizational commitment. It is recommended that the HR managers of JU should focus their
talent management strategy on attracting, developing and retaining transformational leaders
which as result in the long-term, could impact the work in a more positive regard as employees
become and remain satisfied and committed.
