Paper ID: UTISGAD-2025-5-2-0610
Title: THE IMPACT OF LEADERSHIP STYLE ON EMPLOYEE MOTIVATION: EVIDENCE FROM THE TURKISH BANKING SECTOR
Authors: Zehra ÖZTÜRK, SENEM GÖL BEŞER & HANDE KARADAĞ
*Click to read Abstract | Full Paper
DOI: 10.5281/zenodo.18093447

ABSTRACT

Employee motivation critically influences organizational performance in service industries. This study examines how transformational, transactional, and laissez-faire leadership styles affect work motivation in the Turkish banking sector, extending existing leadership-motivation frameworks by addressing cultural and institutional factors unique to Türkiye’s collectivistic and hierarchical organizational context. Data from 120 employees at a major private bank were analyzed using correlation, regression, and ANOVA. Results demonstrate that transformational leadership significantly predicts employee motivation (β = 0.58, p < .001, R² = .42), while transactional and laissez-faire styles show no significant effects. Age and tenure positively influence motivation, whereas gender does not. These findings contribute to leadership theory by demonstrating how Self-Determination Theory’s autonomy, competence, and relatedness needs are satisfied through transformational leadership in high power-distance contexts. Practical implications include developing culturally-adapted leadership training programs for Turkish banking institutions.

Keywords: Leadership styles, Employee motivation, Banking sector, Transformational leadership, Turkish context

JEL Codes: M12, M54, L21