Arthatama Journal of Business Management and Accounting ISSN: 2655-786x .
, 2774-5678 .
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Exploring the Relationship Between Leadership and Job Satisfaction of Bank Mandiri Employees Annisa Findarty1 Universits Negeri Yogyakarta.
Yogyakarta.
Indonesia Corresponding author: Annisa Findarty .
rty@gmail.
Abstract Leadership significantly influences employee job satisfaction, shaping a productive work environment and supporting organizational success in the competitive banking sector.
This study aims to examine the relationship between leadership styles and employee job satisfaction at Bank Mandiri, a leading Indonesian bank, by analyzing how leadership practices impact employee wellbeing and retention.
The research employed a Systematic Literature Review, analyzing 30 peer-reviewed journal articles published between 2019 and 2024, sourced from databases like Scopus and ScienceDirect.
The findings reveal a strong positive correlation between transformational and participative leadership styles and employee job satisfaction, driven by open communication, recognition, and employee involvement in decision-making.
In contrast, authoritarian leadership often reduces satisfaction due to limited autonomy.
These results highlight the importance of adaptive leadership in fostering a motivated The study concludes that Bank Mandiri should prioritize leadership training programs focusing on transformational and participative approaches to enhance employee satisfaction and organizational performance.
By addressing these leadership practices, the bank can strengthen its human resource management strategies, ensuring a balance between achieving business goals and promoting employee well-being in a dynamic industry.
Keywords Bank Mandiri.
Human Resource Management.
Job Satisfaction.
Leadership.
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Introduction In the era of increasingly fierce and dynamic business competition, companies in the financial services sector, especially banking, are required to not only focus on achieving financial targets but also on managing human resources optimally.
Human resources are vital assets in the organization, as the success of a banking institution is largely determined by the quality and performance of its employees.
Creating a conducive work environment and increasing job satisfaction are critical aspects that cannot be ignored.
In this context, leadership plays a key role as the main driver in shaping organizational culture, motivating employees, and directing the organization toward its strategic goals.
Effective leadership fosters employee engagement, enhances morale, and drives organizational success, particularly in large-scale institutions like Bank Mandiri, one of IndonesiaAos leading banks (Yukl, 2.
Bank Mandiri, as a cornerstone of IndonesiaAos financial system, faces challenges such as digital transformation, interbank competition, and rising customer These challenges necessitate human resources that are not only competent but also highly committed and loyal.
Effective leadership at all managerial levels is a key driver of employee morale and satisfaction.
A leader is not only tasked with giving instructions but also with inspiring, guiding, and providing solutions for the team.
Good leadership can create a positive work climate, increase employeesAo sense of belonging, and ultimately enhance job satisfaction.
Job satisfaction, defined as a positive emotional state resulting from employeesAo evaluation of their work, is a critical indicator of organizational effectiveness and employee retention (Robbins & Judge, 2.
Despite extensive research on leadership and job satisfaction, there remains a gap in understanding how specific leadership styles, such as transformational and participative leadership, influence job satisfaction in the context of IndonesiaAos banking sector, particularly at Bank Mandiri.
According to Wijayati et al.
leadership styles that promote employee engagement and adaptability significantly enhance performance, yet their impact on job satisfaction in large banking institutions remains underexplored.
Similarly.
Hilton et al.
highlight that transformational leadership mediates job satisfaction and organizational performance, but few studies focus on its application in IndonesiaAos state-owned This research gap underscores the need to systematically review how leadership practices affect employee satisfaction in a dynamic and competitive banking environment like Bank Mandiri (Anom et al.
, 2.
The urgency of this research lies in its potential to address mismatches between leadership styles and employee expectations, which can lead to dissatisfaction and reduced performance.
For instance, authoritarian leadership may stifle employee initiative, while participative and transformational approaches foster a sense of involvement and motivation (Fatahuddin & Tanuwijaya, 2.
By examining these dynamics, this study offers insights into creating a healthy work environment that supports employee welfare and organizational productivity.
As a leading financial institution.
Bank Mandiri must exemplify progressive, humane, and visionary leadership practices to sustain its role in IndonesiaAos economic development (Luthans, 2.
Annisa Findarty Exploring the Relationship Between Leadership and Job Satisfaction of Bank Mandiri Employees This study aims to analyze and evaluate the relationship between leadership styles and employee job satisfaction at Bank Mandiri through a Systematic Literature Review (SLR) approach.
The objectives are twofold: first, to identify how employees perceive leadership styles practiced by their superiors, and second, to assess the extent to which these styles influence job satisfaction levels.
By synthesizing findings from recent studies, this research seeks to provide practical recommendations for improving managerial quality at Bank Mandiri and contribute to the theoretical understanding of leadershipAos role in fostering job satisfaction in modern The study also aims to inform sustainable human resource management strategies, ensuring a balance between organizational goals and employee well-being.
Literature Review Leadership Theories and Their Relevance to Organizational Performance Leadership is a critical factor in shaping organizational outcomes, as it influences employee motivation, engagement, and performance.
According to Yukl .
, leadership is the process of influencing others to achieve shared goals through inspiration, direction, and interpersonal skills.
Transformational leadership, characterized by inspiring vision, intellectual stimulation, and individualized consideration, has been widely studied for its positive impact on employee outcomes.
Avolio and Bass .
argue that transformational leaders foster a sense of purpose and commitment, which enhances organizational performance.
Similarly.
Hersey and BlanchardAos situational leadership theory emphasizes the need for leaders to adapt their style to the maturity and needs of their team, ensuring flexibility in dynamic environments like banking.
In the context of IndonesiaAos banking sector.
Fatahuddin and Tanuwijaya .
found that transformational leadership significantly improves employee performance by fostering motivation and a supportive work culture.
This aligns with Wijayati et al.
, who highlight that change-oriented leadership styles, such as those incorporating artificial intelligence and adaptability, enhance employee engagement.
These theories underscore the importance of leadership styles that prioritize employee development and organizational goals, providing a foundation for exploring their impact on job Leadership styles like transactional and authoritarian also influence organizational dynamics, though with varying outcomes.
Transactional leadership, which focuses on rewards and punishments, can ensure compliance but may limit creativity and intrinsic motivation (Avolio & Bass, 2.
In contrast, authoritarian leadership often leads to reduced employee autonomy and satisfaction, particularly in high-pressure environments like banking (Fatahuddin & Tanuwijaya, 2.
These findings suggest that leadership styles must align with organizational contexts to maximize positive outcomes.
For instance.
Bank Mandiri, with its complex structure and digital transformation demands, requires adaptive and empowering leadership to sustain employee performance and loyalty (Paramita et al.
, 2.
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Job Satisfaction and Its Determinants Job satisfaction, defined as a positive emotional state resulting from an employeeAos appraisal of their job, is a key indicator of organizational health and employee retention.
According to Robbins and Judge .
, job satisfaction is influenced by factors such as work environment, recognition, and opportunities for HerzbergAos Two-Factor Theory further distinguishes between motivators .
, achievement, responsibilit.
and hygiene factors .
, salary, company policie.
, which collectively shape employee satisfaction.
Hilton et al.
emphasize that transformational leadership acts as a motivator by fostering a sense of purpose and recognition, thereby enhancing job satisfaction.
Similarly.
Sulistio and Darmastuti .
highlight that employee empowerment, through delegated authority and skill development, significantly increases job satisfaction in organizational settings.
These findings suggest that intrinsic and extrinsic factors interplay to determine how employees perceive their roles.
In the banking sector, additional factors like work-life balance and organizational culture play a critical role.
According to Rizqulloh and Kuncoro .
, work-life balance positively influences job satisfaction by reducing stress and improving employee well-being, particularly in high-pressure environments.
Paramita et al.
found that a strong organizational culture at Bank Mandiri, emphasizing commitment and collaboration, moderates the relationship between leadership and job satisfaction.
However, gaps remain in understanding how these factors specifically interact in large-scale banking institutions.
For example, while empowerment and recognition are well-studied, their application in IndonesiaAos state-owned banks requires further exploration to address unique cultural and operational challenges (Anom et al.
, 2.
This highlights the need for a systematic review to synthesize these determinants in the context of modern banking.
Leadership and Job Satisfaction in the Banking Context The banking sector, characterized by high competition and rapid digital transformation, presents unique challenges for maintaining employee job According to Idris et al.
, leadership styles that foster motivation and a supportive work environment significantly enhance job satisfaction among Bank Mandiri employees.
Transformational leadership, in particular, has been shown to create a positive work climate by encouraging open communication and employee involvement in decision-making (Anom et al.
, 2.
This aligns with Mwesigwa et al.
, who found that transformational leadership in academic settings enhances job satisfaction by fostering organizational commitment.
contrast, authoritarian leadership styles, which prioritize control over collaboration, often lead to dissatisfaction and reduced loyalty in banking environments (Fatahuddin & Tanuwijaya, 2.
These findings underscore the importance of adaptive leadership in addressing the dynamic needs of banking employees.
Studies specific to Bank Mandiri highlight the critical role of leadership in navigating organizational complexities.
For instance.
Alfredo et al.
found that leadership styles combined with a supportive organizational culture improve employee performance through increased job satisfaction.
Similarly.
Ramadhania and Sukarno .
emphasize that work-life balance, facilitated by empathetic Annisa Findarty Exploring the Relationship Between Leadership and Job Satisfaction of Bank Mandiri Employees leadership, enhances job satisfaction at Bank MandiriAos Kupang branch.
However, there is a lack of comprehensive studies synthesizing how various leadership styles impact job satisfaction across different branches and levels of Bank Mandiri, indicating a research gap (Idris et al.
, 2.
This gap necessitates a systematic review to consolidate findings and provide actionable insights for improving leadership practices in IndonesiaAos banking sector, particularly at Bank Mandiri.
Methods This research employs a qualitative approach using a Systematic Literature Review (SLR) to synthesize findings on the relationship between leadership and employee job satisfaction, with a focus on the banking sector and Bank Mandiri.
The SLR method was chosen for its structured and evidence-based approach to identify, evaluate, and integrate relevant studies, providing a comprehensive overview of trends, gaps, and significant findings.
The study was conducted from April to May 2025, utilizing online scientific databases such as Google Scholar.
Scopus.
ScienceDirect.
ProQuest, and Garuda, accessible via digital devices with internet connectivity, ensuring flexibility in data collection without geographic constraints (Sugiyono, 2.
The research targets peer-reviewed scientific articles published between 2019 and 2024, focusing on leadership styles, job satisfaction, and their interplay in banking or comparable organizational contexts.
A total of 30 articles were selected to ensure a robust sample for analysis, covering quantitative, qualitative, and mixedmethods studies.
A checklist was used to assess the relevance and quality of the literature, incorporating criteria such as topic alignment with leadership and job satisfaction, publication in accredited national or international journals, and clear methodological rigor.
The Critical Appraisal Skills Programme (CASP) tool was applied to evaluate the quality of selected studies, ensuring only high-quality research was included (Robbins & Judge, 2.
The data collection process followed a systematic four-stage approach to ensure transparency and reproducibility.
First, articles were identified using keywords such as "leadership," "leadership style," "job satisfaction," "employee satisfaction," "banking," and "organizational behavior" across the specified databases.
Second, duplicates were removed, and an initial screening was conducted based on titles and abstracts to filter relevant studies.
Third, full-text articles were reviewed against inclusion criteria to confirm their suitability.
Finally, data extraction was performed to collect key information, including author names, publication year, research objectives, methods, findings, and conclusions.
This process ensured a rigorous selection of 30 articles that provide a comprehensive foundation for analyzing the leadership-job satisfaction relationship.
Data analysis was conducted using a descriptive SLR approach, synthesizing findings through thematic analysis to identify patterns and relationships.
Each article was thoroughly reviewed to extract information on leadership styles .
transformational, transactiona.
, job satisfaction factors, and their interconnections.
The extracted data were summarized in a comparative table to facilitate synthesis and highlight consistencies or discrepancies across studies.
This approach allowed the Arthatama Journal of Business Management and Accounting Vol.
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identification of key trends, such as the positive impact of transformational leadership on job satisfaction, and any contradictory findings, ensuring a robust and evidence-based conclusion.
Results This study synthesizes findings from 30 scientific articles published between 2019 and 2024, using a Systematic Literature Review (SLR) approach to examine the relationship between leadership and employee job satisfaction, with a focus on banking organizations, particularly Bank Mandiri.
The reviewed articles, sourced from databases like Scopus.
ScienceDirect, and Garuda, include quantitative, qualitative, and mixed-methods studies, providing a robust foundation for understanding leadership dynamics in organizational contexts.
The findings are organized thematically to address the core research questions, highlighting key patterns and variations in the literature.
The Relationship Between Leadership and Job Satisfaction A consistent finding across the 30 reviewed articles is that effective leadership styles positively influence employee job satisfaction in various organizational settings, including banking.
Transformational leadership, characterized by inspiring vision, intellectual stimulation, and individualized consideration, emerged as a dominant style linked to higher job satisfaction.
For instance.
Magasi et al.
and Rahmawati et al.
found that transformational leadership in a national private bank increased job satisfaction by fostering employee empowerment and a supportive work culture.
Similarly.
Hilton et al.
reported that transformational leadership enhances job satisfaction by promoting a sense of purpose and recognition among employees.
Participative leadership, which emphasizes employee involvement in decision-making, also showed a positive correlation with job satisfaction, particularly in fostering loyalty and commitment (Mutmainnah & Cahyadi, 2.
These findings indicate that leadership styles that prioritize employee engagement and motivation are critical for enhancing satisfaction.
In contrast, authoritarian or directive leadership styles were frequently associated with lower job satisfaction.
Studies such as Fatahuddin and Tanuwijaya .
noted that authoritarian leadership in Bank MandiriAos SME and Micro Risk Group reduced employee satisfaction due to limited autonomy and lack of involvement in decision-making.
This was corroborated by Alfredo et al.
, who found that overly controlling leadership styles in Bank Mandiri diminished employeesAo sense of ownership and motivation.
However, some studies reported mixed results.
For example.
Mwesigwa et al.
observed that in academic settings, directive leadership occasionally improved job satisfaction when employees preferred clear guidance under high-pressure conditions.
This variation suggests that the effectiveness of leadership styles on job satisfaction may depend on contextual factors, such as organizational culture or employee expectations.
The reviewed articles also highlighted the role of other leadership styles, such as transactional leadership, which relies on rewards and punishments.
Kusuma and Prasetyo .
found that transactional leadership in banking institutions Annisa Findarty Exploring the Relationship Between Leadership and Job Satisfaction of Bank Mandiri Employees maintained moderate job satisfaction by ensuring clear expectations and rewards but lacked the inspirational impact of transformational leadership.
Anom et al.
further noted that transformational leadership mediated the relationship between job satisfaction and performance in banking, suggesting a stronger influence compared to transactional approaches.
These findings collectively underscore that leadership styles emphasizing empowerment and engagement are more effective in fostering job satisfaction, particularly in dynamic and competitive environments like Determinants of the Relationship between Leadership and Job Satisfaction Several factors were identified as determinants that strengthen or weaken the relationship between leadership and job satisfaction across the 30 articles reviewed.
Open organizational communication emerged as a critical factor.
Sari and Nugroho .
found that leaders who clearly communicated organizational goals and were receptive to employee feedback fostered a positive work climate, significantly enhancing job satisfaction in government banks.
Similarly.
Idris et al.
reported that transparent communication in Bank MandiriAos Palembang branch improved employee morale and satisfaction.
Recognition and rewards also played a pivotal role.
According to Kundu et al.
and Aljumah .
, leadership styles that provide verbal and material recognition for employee achievements significantly boost job satisfaction by fulfilling intrinsic and extrinsic needs.
This was echoed by Ramadhania and Sukarno .
, who found that recognition programs at Bank MandiriAos Kupang branch increased employee satisfaction by reinforcing a sense of value and contribution.
Employee involvement in decision-making was another key determinant.
Mutmainnah and Cahyadi .
noted that participative leadership in banking settings enhanced job satisfaction by giving employees a sense of ownership and This aligns with Sulistio and Darmastuti .
, who found that employee empowerment through delegated authority increased satisfaction by fostering trust and collaboration.
However, some studies highlighted challenges.
For instance.
Lestari .
observed that in highly hierarchical banking structures, participative leadership was less effective if not supported by a collaborative culture, leading to inconsistent satisfaction levels.
Situational leadership, which adapts to team needs and job conditions, was also found to enhance satisfaction.
Wijayati et .
reported that leaders who adjusted their style to suit employee maturity and task demands fostered higher job satisfaction, particularly in innovative banking Work-life balance and organizational culture further moderated the leadershipjob satisfaction relationship.
Rizqulloh and Kuncoro .
found that leaders who supported work-life balance initiatives, such as flexible schedules, significantly increased job satisfaction in banking employees.
Paramita et al.
highlighted that a collaborative organizational culture at Bank Mandiri amplified the positive effects of leadership on satisfaction.
However, some studies noted variations.
For example.
Lukman and Prijono .
found that in Bank MandiriAos Ujung Menteng branch, a rigid work culture occasionally undermined leadership efforts to enhance satisfaction, indicating the importance of cultural alignment.
These determinants Arthatama Journal of Business Management and Accounting Vol.
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collectively highlight the multifaceted nature of the leadership-job satisfaction relationship, with communication, recognition, involvement, and culture playing critical roles.
Implications in the Context of Bank Mandiri The findings from the 30 articles provide significant implications for Bank Mandiri, a leading bank with a complex organizational structure and highperformance demands.
Transformational and participative leadership styles were consistently linked to higher job satisfaction among Bank Mandiri employees.
For example.
Idris et al.
found that transformational leadership in Bank MandiriAos Palembang branch fostered a positive work environment, reducing stress and enhancing satisfaction.
Similarly.
Anom et al.
reported that transformational leadership mediated job satisfaction and performance in banking, suggesting its applicability to Bank MandiriAos diverse workforce.
These styles create a sense of purpose and involvement, crucial for maintaining employee morale in a competitive Authoritarian leadership, however, was found to have negative implications.
Fatahuddin and Tanuwijaya .
and Aisyah .
noted that directive leadership in Bank MandiriAos SME and Micro Risk Group reduced satisfaction due to limited employee autonomy.
This was supported by Alfredo et al.
, who found that controlling leadership styles decreased motivation in Bank MandiriAos Palembang In contrast, participative leadership fostered a collaborative environment.
Utami and Dewi .
reported that involving employees in decision-making at Bank MandiriAos Mandiri University Group increased satisfaction and loyalty.
These findings suggest that Bank Mandiri should prioritize leadership styles that promote engagement and empowerment to address its unique challenges, such as digital transformation and interbank competition.
Work-life balance and organizational culture also emerged as critical factors.
Ramadhania and Sukarno .
found that leadership support for work-life balance at Bank MandiriAos Kupang branch significantly enhanced job satisfaction by reducing work-related stress.
Paramita et al.
emphasized that a strong organizational culture at Bank Mandiri, characterized by collaboration and commitment, supported leadership efforts to improve satisfaction.
However, variations were noted.
For instance.
Lukman and Prijono .
found that in some branches, rigid cultural norms limited the effectiveness of participative leadership, suggesting the need for cultural reforms to maximize satisfaction.
These findings highlight the importance of aligning leadership practices with Bank MandiriAos organizational context to foster a motivated and satisfied workforce.
Discussion The findings from the 30 reviewed articles highlight a robust positive relationship between transformational and participative leadership styles and employee job satisfaction, particularly in banking contexts like Bank Mandiri.
According to Hilton et al.
, transformational leadership fosters job satisfaction by inspiring employees and aligning their personal goals with organizational objectives, which resonates with HerzbergAos Two-Factor Theory that emphasizes Annisa Findarty Exploring the Relationship Between Leadership and Job Satisfaction of Bank Mandiri Employees motivators like achievement and recognition.
This aligns with Anom et al.
who found that transformational leadership mediates job satisfaction and performance in Indonesian banking, suggesting that leaders who provide individualized consideration and intellectual stimulation create a sense of purpose among employees.
The consistency of these findings across diverse settings, including Bank Mandiri, underscores the universal appeal of transformational leadership in enhancing employee morale and commitment.
However, the limited effectiveness of authoritarian leadership, as noted by Fatahuddin and Tanuwijaya .
, indicates that overly directive approaches may suppress employee autonomy, leading to dissatisfaction in high-pressure environments like banking.
The role of determinants such as communication, recognition, and employee involvement further enrich the understanding of this relationship.
According to Widyo et al.
, empowering leadership, which includes open communication and delegated authority, significantly enhances job satisfaction by fostering trust and This is particularly relevant for Bank Mandiri, where complex organizational structures demand clear communication to align employees with strategic goals.
In contrast.
Mwesigwa et al.
found that directive leadership can enhance satisfaction in settings where employees prefer structured guidance, such as in academic institutions, highlighting a contextual dependency.
This contradiction suggests that leadership effectiveness depends on organizational culture and employee expectations, which may vary across Bank MandiriAos branches.
For instance.
Lukman and Prijono .
noted that rigid cultural norms in some Bank Mandiri branches limited the impact of participative leadership, indicating the need for cultural alignment to maximize satisfaction.
Work-life balance and organizational culture emerged as critical moderators in the leadership-job satisfaction dynamic.
According to Rizqulloh and Kuncoro .
, leaders who support work-life balance initiatives, such as flexible schedules, significantly enhance job satisfaction by reducing stress, a finding echoed in Bank MandiriAos Kupang branch by Ramadhania and Sukarno .
This aligns with PathGoal Theory, which posits that leaders should remove obstacles to employee wellbeing to enhance satisfaction.
However, the reliance on secondary data in this SLR limits the ability to capture nuanced, branch-specific dynamics at Bank Mandiri, as primary data could reveal variations in leadership practices across regions.
Additionally, the predominance of studies focusing on transformational leadership may introduce bias, as other styles like laissez-faire leadership were underexplored in the reviewed literature.
These limitations highlight the need for future research to incorporate primary data and diverse leadership styles to provide a more comprehensive understanding.
The implications of these findings are significant for both theory and practice.
Theoretically, this study reinforces the applicability of transformational leadership and HerzbergAos Two-Factor Theory in modern banking contexts, contributing to the literature on leadershipAos role in employee well-being.
It also highlights the need for further exploration of contextual factors, such as cultural differences across banking branches, as suggested by Wijayati et al.
, who emphasized the role of change leadership in dynamic environments.
Practically.
Bank Mandiri should prioritize leadership training programs that emphasize transformational and participative Arthatama Journal of Business Management and Accounting Vol.
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approaches, focusing on skills like empathetic communication and employee Such training could address the high-pressure demands of digital transformation and competition, as noted by Idris et al.
Additionally, fostering a collaborative organizational culture and supporting work-life balance initiatives can amplify the positive effects of leadership on job satisfaction.
These strategies can enhance employee retention and productivity, positioning Bank Mandiri as a leader in humane and progressive human resource management in IndonesiaAos banking sector.
Conclusion This systematic review of 30 articles confirms a significant positive relationship between leadership styles and employee job satisfaction in banking organizations, with a particular emphasis on Bank Mandiri.
Transformational and participative leadership styles consistently enhance satisfaction by fostering open communication, employee involvement, and a supportive work environment.
These styles create motivated and loyal work teams, essential for addressing the complex dynamics and high-performance demands of large-scale banks.
Effective leadership, characterized by empathy and clear direction, is crucial for maintaining employee well-being and organizational success in competitive and rapidly evolving industries.
This study offers practical implications for Bank Mandiri, suggesting the adoption of targeted leadership training programs that emphasize transformational and participative approaches to enhance employee satisfaction and retention.
However, the reliance on secondary data limits the ability to capture branch-specific dynamics or unique cultural factors within Bank Mandiri, and the focus on transformational leadership may overlook other stylesAo potential.
Future research should conduct empirical studies within Bank Mandiri to explore primary data and examine additional leadership approaches, such as laissez-faire or servant leadership, to provide a more comprehensive understanding of their impact on job satisfaction.
References