Leadership Characteristics and Employee Satisfaction
by
Karl Hittle
University of the Incarnate Word
DBA 8340
Submitted to:
Dr. Kruti Lehenbauer
Fall, 2021
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Leadership Characteristics and Employee Satisfaction
Table of Contents
Abstract ……………………………………………...
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Research Statement and Introduction ….……….…...
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History and Context of the Problem ………………...
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Consequences of the Problem ……………………….
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Solutions to the Problem………….………………….
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Conclusion and Future Scope.………….…………….
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References ….…………………….………………….
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Abstract
The need to determine what satisfies employees is a persistent issue for leaders because the
desires of the workforce are ever-changing. There is an abundance of literature available
concerning the characteristics of successful leaders. Through a literature analysis conducted for
this study, the leadership characteristics which influence employee satisfaction are revealed.
Fairness, communication, teaching ability, and credibility most often appeared as the
characteristics of leaders that are likely to generate higher employee satisfaction. By identifying
these specific characteristics, this study serves as a consolidated resource for leaders focused on
the improvement of employee morale. This study also provides results that are helpful to those
who make hiring decisions within organizations where improved employee satisfaction is desired.
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Leadership Characteristics and Employee Satisfaction
Research Statement and Introduction
An impactful leader demonstrates characteristics that enhance relationships with all
stakeholders within an organization. In their research, Fleishman (1953) and Likert (1961) found
that effective leadership needs to be concerned not only with production but also provide
consideration for the people responsible for the work. Positively impacting employee morale is a
desire of leaders because high employee satisfaction usually contributes to the success of an
organization, while poor job satisfaction may harm it (Galup, 2008). This paper focuses upon four
of the most impactful leadership characteristics in the context of employee satisfaction.
When employees view their working conditions favorably, their output, efficiency, and
commitment levels often rise accordingly (“Increasing employee job satisfaction,” 2020). The
amount of literature available regarding this topic is immense; however, the body of available
literature does not provide a concise list of effective leadership characteristics focused on
improving employee satisfaction. This paper reviews the context of the problem and the
consequences of not having a condensed list of characteristics available to improve employee
morale. The attributes of successful leaders are then reviewed and reduced to four specific
characteristics that effectively improve the satisfaction of workers. A discussion of the findings is
provided followed by concluding remarks.
History and Context of the Problem
Leadership is a management function directed towards social interaction and influencing
people so that they will work to achieve the goals of the organization (Skansi, 2000).
Organizational leaders continuously seek ways to improve the satisfaction of the employees for
which they oversee. Employee satisfaction can be defined as the gratification or prosperity that the
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employees receive from their job (Springer, 2010). Researchers, such as Brown and Leigh (1996),
believe that the culture within an organization is more important than ever in the global
marketplace. Employee satisfaction also leads to greater retention of employees who add value to
the bottom line and continue to work to achieve the organization’s goals. Lado and Wilson (1994)
also found in their research that successful organizations depend on the high performance of their
employees to meet objectives. To achieve the strategic goals of an organization the employees
must perform at elevated levels.
Current research contains a considerable number of studies that discuss organizational
changes, not specifically leadership approaches, which improve employee satisfaction. Changes
such as salaries, fringe benefits, achievement, autonomy, recognition, communication, working
conditions, job importance for coworkers, interpersonal relationships, working for a reputable
company, job security, and workplace flexibility improve employee satisfaction (Rad &
Yarmohammadian, 2006). Leadership may address these issues to improve morale, however,
having a respected boss may be important when improving morale is a specific goal for leadership.
The Rad and Yarmohammadian (2006) study also found that employees demonstrated less
satisfaction with salaries, benefits, work conditions, promotion, and communication and higher
levels of satisfaction with employees who had a leader that possessed a participative style of
leadership.
The study of leadership characteristics has spanned across cultures, decades, and
theoretical beliefs (Horner, 1997). When looking for general attributes of successful leaders, one
finds that the current literature contains research regarding leadership characteristics in general.
However, there is limited information focused specifically on characteristics of leaders that have
the greatest impact on worker satisfaction. As an example of the leadership theories in the
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literature, Transformational Leadership Theory (Bass, 2006) is a well-tested and often cited theory.
This theory reveals that leaders who are successful in positively transforming their organizations
possess four qualities. Those qualities include idealized influence, inspirational motivation,
intellectual stimulation, and individualized consideration (Bass, 2006). Transformational leaders
have a positive relationship with their employees; however, this theory does not discuss specific
characteristics which lead to that positive relationship.
The literature also reveals universal characteristics of successful leaders. As an example of
this type of research, the study conducted by Astin and Astin (2012) of leaders in higher education
found that effective leaders were committed, empathetic, competent, authentic, and self-aware.
The effective leaders in the study had employees who were supportive and satisfied; however, the
study did not discuss specifically which of these characteristics had the greatest influence on
employee satisfaction.
Research concerning leadership characteristics that directly impact employee satisfaction
is not as prevalent within the current body of information. In the healthcare industry, as an
example, studies were conducted in several countries regarding leaders and their impact on morale.
These studies have demonstrated that there is a positive correlation between leadership and the job
satisfaction of healthcare providers (Berson & Linton, 2005; Sfantou et al., 2017; and
Mosadeghrad & Ferdos, 2013). There is not, however, a concise summary of those characteristics
shown to directly improve the satisfaction of the workforce.
Consequences of the Problem
Leaders who ignore the importance of employee satisfaction may experience higher
turnover, longer periods to fill vacant positions, and more stress-related issues (Barling et al. 2005).
Each of these issues adds cost to the organization including the hidden cost of turnover, the loss
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of productivity due to vacant positions remaining open for extended periods, and the additional
healthcare costs experienced by organizations for stress-related health issues and increased
absenteeism (Barling et al. 2005).
The need to determine what satisfies employees is a persistent issue for leaders because the
desires of the workforce are dynamic and ever-changing. The pace of change in the business world
is ever-increasing and the needs of those working in the business environment are also changing
rapidly. Determining what is important to employees is a moving target that must be continually
assessed and addressed. Leaders interested in improving their approach to building trust and
commitment within a group of employees must evolve to survive in the global marketplace (Levi
& Askay, 2021).
One example of the changing needs of the workforce is the age diversity of today’s
employees. Bottomley and Burgess (2018) explain that today’s workforce contains three different
generations of employees with a fourth generation about to enter the mix. Leaders must satisfy the
needs of the Baby Boomers (1943-1960), Generation X (1961-1981), and the Millennials (19822004) in today’s workforce. Each generation has different wants, needs, and desires that leaders
must address. Generation Z (2005-present) will join the workforce in the coming years causing
another evolution in these needs. In addition to age-related issues, today’s workforce is diverse in
other ways with each component having dynamic needs.
Those leaders who do not learn and adapt to the changing needs of the workforce could
face the consequence of losing their competitive edge as an organization. A survey of 60 human
resource professionals, conducted by Deloitte (2021), found that the organization’s ability to
attract and retain new talent was perceived by these professionals as being a critical management
issue for their organizations. The survey also revealed that businesses that fail to address employee
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concerns may face the consequence of losing skilled professionals in the years ahead. Increased
retention and a higher degree of job satisfaction are often the result of a positive work atmosphere
the leaders provide for their employees (“Increasing employee job satisfaction,” 2020). Those
leaders who fail to determine the issues that are important to their employees could lose the highperforming members of their workforce to organizations that value their efforts.
Of the consequences reviewed above, the most significant consequence may be the
company’s loss of its competitive edge. Global competition, volatile markets, and a demanding
cost accounting environment have put pressure on organizations to remain successful and solvent
(Kocakulah et al., 2017). In today’s economy, competing in a global marketplace and the local
market is more difficult than ever. A company that fails to make satisfying their employees a
priority may not be competitive with other industries providing comparable products and services.
Unsatisfied employees will also add cost to the organization through higher turnover, vacant
positions impacting productivity, and stress-related issues mentioned. These added costs will also
make it difficult for an organization to compete.
Solutions to the Problem
Leaders who desire to improve their approach to collaborating with subordinates to build
a positive workforce and avoid the consequences of losing their competitive edge should consider
improving their leadership approach. They should modify their approach to become a fair leader
who communicates, teaches, and build credibility with their employees. In the analysis of the
current research for this study, fairness, communication, teaching ability, and credibility most
often appeared as characteristics that are likely to generate higher employee satisfaction.
As an example of studies that revealed fairness, the findings in the Qiu et al. (2009) study
of 50 Product Development Teams (PDTs) in the Midwest portion of the United States revealed
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that team members of supervisors who exhibited fairness as a leadership trait were more productive
and displayed better citizenship behavior. This study also revealed that fair interactions between
supervisors and their team resulted in greater job engagement
The ability of leaders to effectively communicate was often found in the literature as a
characteristic that improved employee satisfaction. Madlock (2008) studied 220 working adults
who ranged in age from 18 to 64 and worked in a variety of organizations. This research concluded
that when leaders communicate effectively, their followers experience significantly greater levels
of satisfaction. Effective communication also resulted in having employees ranking a positive
work environment ahead of higher pay.
Other research revealed teaching as an impactful characteristic of leaders. Lazear et al.
(2015) surveyed 23,878 workers and 1,940 supervisors from 2006 and 2010 and found that training
a worker to do their job better motivates them to work harder and enjoy their work. The worker
will also retain more of their performance improvements as they progress within the company.
This research documented that having a boss that is a good teacher has a positive and long-term
effect on employee satisfaction and performance.
The final characteristic of a successful leader most often found in the peer-reviewed
literature for this study was credibility. A study conducted by Goodall et al. (2011) provides a good
example of the available research regarding this trait. Goodall et al. (2011) studied a population of
42 clinical lab managers, some of which recognized as experts in their field. The findings revealed
that those recognized as experts had a greater impact on improving morale. Expert managers can
recognize talents in the employees they oversee and bring out the best in them. Similar to star
athletes who become great coaches, coaches who have had success as an athlete in their sport can
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share knowledge that helped them achieve greatness. This leads to improved morale with the
supervisor viewed as a credible leader by their team.
The characteristics of fairness, effective communication, teaching, and credibility were
identified in this literature analysis as critical attributes for leaders who desire to influence the
satisfaction of employees. By compiling these four characteristics into one paper, this study
contains a consolidated list for leaders interested specifically in attributes they should develop if
they desire to improve their employees’ satisfaction.
Conclusions and Future Scope
There is extensive research available regarding the characteristics of successful leaders,
with less research available focused specifically on leadership characteristics that have the greatest
impact on worker satisfaction. By providing research that reveals specific characteristics which
improve the satisfaction of employees, as presented by Qiu et al. (2009), Madlock (2008), Lazear
et al. (2015), and Goodall et al. (2011), this study provides a consolidated resource for leaders that
may assist them when their focus is to improve employee morale. In addition to these findings,
this study provides results that are helpful to those who make hiring decisions within organizations
where employee satisfaction is an issue.
There is a need for further research on this specific topic. A comprehensive literature
review, as opposed to the literature analysis conducted in this study, which reveals the
characteristics of leaders that directly impact employee satisfaction, would fill a void in the
currently available information. Once the characteristics are identified in a comprehensive
literature review, a quantifiable comparison of the characteristics would further reveal those
attributes that are statistically most effective for leaders. This would further supplement the
information found in this study and provide a unique contribution to the literature.
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