Quantifying the Relationship Between Likert’s Management Styles and Employee Performance: An Empirical Analysis of Bank Employees in Haripur, Pakistan

Abstract

This study assesses how employee performance in the banking industry in Haripur, Pakistan, is affected by Likert's four management styles: exploitative, benevolent, consultative, and participative. A quantitative survey of 155 bank employees, including managers and staff, was conducted to assess the connections between leadership styles and key performance indicators, including work satisfaction, productivity, and intention to leave. The data demonstrates that participatory management yields the best performance outcomes, but exploitative authoritative leadership negatively impacts productivity and morale. The findings provide useful guidance for financial institutions hoping to optimize their leadership strategies in Pakistan's competitive financial sector.