Abstract:

Job loyalty and satisfaction have received significant attention in the studies of work place. This is due to the general recognition that these variables can be the major determinants of organizational performance and effectiveness. This study examined the effects of leadership styles on job satisfaction and loyalty in car manufacturing industry in Iran. The leadership styles used in this study are consideration and initiating structure, transformational, and transactional. The results showed that traditional leadership styles in the Iranian automotive industry are used as dominant styles by managers and average level of employee satisfaction is low. The traditional leadership style has negative relationships with employee satisfaction. There is a negative relationship between leadership style and employee loyalty as well.

Keyword: Leadership styles, employee satisfaction, loyalty