The Effects of Leadership Behaviors on Employee Satisfaction and Loyalty in the Hospitality Industry

Abstract

This study was designed to investigate the effects of leadership behaviors on employee loyalty through the mediation of employee satisfaction in the hospitality industry. Quantitative methodogy was applied with questionnaires directly distributed and answered by 352 targeted respondents working in hospitality industry in Ho Chi Minh City, specifically those who are employees of luxury hotels and restaurants. Despite the fact that all variables showed positive correlation with employee loyalty, only five factors, namely task oriented leadership, relations oriented leadership, change oriented leadership, charismatic leadership and autocratic leadership had significant influences on employee satisfaction and loyalty. Recommendations were provided for hospitality companies accordingly, with an emphasis on how to improve the five significant factors, including task oriented leadership, relation oriented leadership, change oriented leadership, and charismatic leadership behaviors in order to maintain high employee loyalty.