scholarly journals Autocratic, Democratic, Transformational and Charismatic Leadership Styles and Contingency of Different Performance Outcomes in SMEs

2021 ◽  
Vol 6 (1) ◽  
pp. 391-407
Author(s):  
Dr. Zafar Iqbal ◽  
Dr. Amna Niazi ◽  
Dr. Hamid Hassan

We analyze four different leadership styles from multiple dimensions to find out the suitability of these styles for the leaders working in Pakistani small and medium enterprises (SMEs). Theoretically, it is an additional perspective in the debate on effectiveness of different leadership styles in different environments for different purposes. It starts with analyzing contemporary theories of leadership and their derivative styles. Next, it discusses the major aspects of organizational environment coming from the broader culture of a country. Subsequently, it tries to provide a more balanced view in the debate on cause and effect of leadership styles and their effectiveness in specific organizational culture. In the empirical analyses the study analyzes the productivity, acceptance and sustainable success of different leadership styles in the organizations working in Pakistan. The data is collected both from business leaders and their relevant followers. The findings of study explains that outputs when measured in terms quantity shows better results for autocratic leadership style while democratic leadership style give better results when measured in terms of quality. Similarly, willingness of followers to continue and their inspirations beyond the formal organizational structure are higher for charismatic and participative leadership styles.

Author(s):  
S.E. Donny Sita ◽  
N.A. Mohd. Nor

Earlier notions of leadership opined that leadership can be found in one's genes that determine how an individual behaves and reacts to his/her surrounding (Bass, 1985). That is, a leader can still be detected in a group of people although nobody may be appointed to lead at the outset. In the past, an individual became a leader through inheritance of a rank or the throne in a country or in an institution. However, the temperament or characteristic of an individual determine whether one can lead or not. A leader acts as a conflict contributor, a resolver or peacemaker, and a punisher (King et al., 2009). Besides being dominant over the rest of the group members, a leader needs to influence the followers too with his/her leadership style. The leadership style of a leader depends on the attitude of him/her to influencing followers in the organisation. The modern era indicates that an uncertainty or complex situations are not uncommon. In a context of a small and medium enterprises (SMEs), turbulences arising in an enterprise require an effective leader to sustain a strong sense of opportunity for all followers. Such participation allows followers to share opinions, make better decisions and control the resources. In fact, followers and the leader cannot be separated. Likewise, leadership runs in tandem with development. Development occurs as leadership pushes it (Banyai, 2009). Hence, without proper leadership to lead the followers, it would be rather difficult to reach the mutual goals of the enterprise (Poskas & Messer, 2015). Also, a good leadership through guidance and effective communication enables followers to improve themselves. Hence, to conduct a relevant systematic review, the current paper is guided by the following main research question: how are leadership styles practiced among leaders in the context of small and medium enterprises? The focus of this paper is on the leaders of small and medium enterprises where followers are working together towards achieving the mutual goals of the enterprise. Keywords: leader; leadership style; PRISMA; small and medium enterprises; systematic literature review


2017 ◽  
Vol 9 (2(J)) ◽  
pp. 104-113
Author(s):  
Obey Dzomonda ◽  
Olawale Fatoki ◽  
Olabanji Oni

The critical role Small and Medium Enterprises play in the economic prosperity of nations cannot be understated. SMEs actively contribute towards economic growth and development through their active role as innovators and agents for change. The authors of this paper believe that leadership styles exercised by SME owners have a bearing on the innovative ability of SMEs. Hence, this paper aimed at investigating the impact of leadership styles on the entrepreneurial orientation of SMEs in Polokwane Municipality. A quantitative research method was used and 103 SMEs participated in the survey. The random sampling technique was used. Self-administered questionnaires were utilised to collect data in a survey. Data analysis included descriptive statistics, Pearson’s correlation and regression analysis. Reliability of the data collection instruments was measured using the Cronbach’s alpha. The results indicated that the SMEs display average levels of entrepreneurial orientation. In addition, the results showed that SMEs display average levels of leadership styles inclined towards transformational leadership style. Furthermore, the results showed a significant positive relationship between the independent variables: leadership styles with the dependent variable (EO) of SMEs. SMEs were recommended to provide flexible leadership styles that will make EO to flourish in their businesses. Furthermore, the policy makers and relevant authorities were recommended to devise and implement a consortium of strategies and policies that can increase the level of entrepreneurial orientation among SMEs in South Africa.


Author(s):  
Deogratias Bugandwa Mungu Akonkwa ◽  
Elie Lunanga ◽  
Joseph Bahati Mukulu ◽  
Toussaint Ciza Bugandwa ◽  
Elizabeth Furaha Mwaza

In this paper, we provide new empirical evidence to the relationships between leadership styles (LS) and organizational performance, introducing gender as moderator variable. Data have been collected in two Congolese towns (Bukavu and Goma); an African post-conflict region dominated by very small family businesses that have not received enough attention. Combining exploratory factor analysis with a multivariate regression we found three main results. First, both leadership and performance are confirmed to be multidimensional. LS comprised participative/democratic leadership, and autocratic/directive leadership, while performance has three dimensions: employee efficiency/productivity, effectiveness, and customer satisfaction/retention. Second, the autocratic leadership is the more adopted both by men and women, with a slight non-significant difference for men. Although democratic leadership is underscored, it appears to be more adopted by women with significant difference. Third, controlling for other variables, only participative/democratic leadership styles have positive impact on SMEs’ performance, while autocratic leadership does not influence it. This implies that, in the growing competition facing SMEs, managers should adopt leadership style that allows their employees to internalize the firm’s objectives and to be committed. Also, our research confirms that women have much to give in managing enterprises, as they appear to be stronger in leadership styles, which have more impact on main dimensions of firms’ performance. Moreover, our results suggest new avenues for deeper research about leadership styles in family-owned enterprises.


Author(s):  
Sharon Esther Anak Donny Sita ◽  
Nor Ashikin Mohd Nor

Objective - The purpose of this paper is to conduct a systematic review of the leadership style practiced by leaders in small and medium-sized enterprises. Methodology/Technique - Following the protocol guidance known as the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) flowchart, a total of six articles were reviewed and analysed after meeting inclusion criteria and being deemed relevant to the goals of this paper. Findings - The results of the study suggested that the leadership styles of leaders in the context of small and medium enterprises are based on the following elements: 1) the background of an organization; 2) the characteristics of the leader; 3) the relationship between leader and followers; and 4) the position of the followers. Novelty - This paper contributes to the knowledge on leadership style in general, specifically in the context of small and medium-sized enterprises. Type of Paper - Review. Keywords: Leader; leadership style; PRISMA; small and medium-sized enterprises; systematic literature review. JEL Classification: L20, L29.


2014 ◽  
Vol 12 (1) ◽  
pp. 890-898
Author(s):  
Rabindranath S. Ramcharan ◽  
Sanjana Brijball Parumasur

This study assesses first line supervisors’ perceptions of the effectiveness of leadership in managing the change process. This is analyzed in terms of employee’s perceptions of the effectiveness of leadership communication, ability to motivate staff and to effectively manage change. The prevailing leadership styles are also assessed. The study was undertaken in a municipal fire and emergency services division in KwaZulu-Natal, South Africa and the population comprises of 60 first line supervisors from which a sample of 52 employees was drawn using the systematic sampling technique. Data was collected using an established questionnaire that was modified for the purposes of this study. The psychometric properties of the questionnaire (validity and reliability) were assessed using Factor Analysis and Cronbach’s Coefficient Alpha respectively. Data was analyzed using descriptive and inferential statistics. The results indicate that first line supervisors believe that the leadership of the organization is able to effectively manage change though improvement is needed in terms of their ability to motivate employees and communicate effectively. The dominant leadership style is autocratic leadership followed by impoverished leadership styles which explains the lower concern for motivation and communication that surfaced in this organization. The study also found that only team/participative leadership style correlates significantly with leaders’ potential to motivate employees, communicate and manage change respectively. Recommendations are made to enhance leadership effectiveness


2017 ◽  
Vol 9 (2) ◽  
pp. 104
Author(s):  
Obey Dzomonda ◽  
Olawale Fatoki ◽  
Olabanji Oni

The critical role Small and Medium Enterprises play in the economic prosperity of nations cannot be understated. SMEs actively contribute towards economic growth and development through their active role as innovators and agents for change. The authors of this paper believe that leadership styles exercised by SME owners have a bearing on the innovative ability of SMEs. Hence, this paper aimed at investigating the impact of leadership styles on the entrepreneurial orientation of SMEs in Polokwane Municipality. A quantitative research method was used and 103 SMEs participated in the survey. The random sampling technique was used. Self-administered questionnaires were utilised to collect data in a survey. Data analysis included descriptive statistics, Pearson’s correlation and regression analysis. Reliability of the data collection instruments was measured using the Cronbach’s alpha. The results indicated that the SMEs display average levels of entrepreneurial orientation. In addition, the results showed that SMEs display average levels of leadership styles inclined towards transformational leadership style. Furthermore, the results showed a significant positive relationship between the independent variables: leadership styles with the dependent variable (EO) of SMEs. SMEs were recommended to provide flexible leadership styles that will make EO to flourish in their businesses. Furthermore, the policy makers and relevant authorities were recommended to devise and implement a consortium of strategies and policies that can increase the level of entrepreneurial orientation among SMEs in South Africa.


2019 ◽  
Author(s):  
Atif Saleem ◽  
Sarfraz Aslam ◽  
Junaid Rafiq ◽  
Prof. Congman Rao

<p>The study intentions were to examine the correlation and impact of the style of leadership of the principals on job performance of the teachers of secondary school in private sector in Lahore district, Pakistan. It is correlational study in terms of research design. The data was collected from 106 principals and 543 teachers of secondary schools in private sector in Lahore district through adapted instrument. The first tool of the instrument “Principal Leadership Style Questioner (PLSQ) had cronbach alphas of 0.834 for autocratic leadership sub-scale, 0.764 for democratic leadership sub-scale and 0.861 for laissez-faire leadership sub-scale. The Second tool of the instrument “Teacher Job Performance Questioner” (TJPQ) had Cronbach alpha of 0.816. The research question and hypotheses were tested by using percentage, multiple regression, Pearson correlation at the level of p<0.05 significance. The statistics attesting 57.3% variation in teachers’ job performance was due to mutual contribution of principals’ autocratic leadership, democratic leadership and laissez-faire leadership styles. The most commonly employed principals’ leadership style was autocratic leadership in secondary school in private sector in the district. It had statistically significant and strong positive impact on teachers’ performance in the studied area. Whereas reciprocal impact in case of laissez-faire. The principal suggestion was that the school principals should be trained to learn the mixture usage of autocratic and democratic leadership styles wisely in diverse situations and work settings in secondary schools in private sector in the district Lahore, Pakistan.</p>


2019 ◽  
Author(s):  
Atif Saleem ◽  
Sarfraz Aslam ◽  
Prof. Congman Rao ◽  
Junaid Rafiq

<p>The study intentions were to examine the correlation and impact of the style of leadership of the principals on job performance of the teachers of secondary school in private sector in Lahore district, Pakistan. It is correlational study in terms of research design. The data was collected from 106 principals and 543 teachers of secondary schools in private sector in Lahore district through adapted instrument. The first tool of the instrument “Principal Leadership Style Questioner (PLSQ) had cronbach alphas of 0.834 for autocratic leadership sub-scale, 0.764 for democratic leadership sub-scale and 0.861 for laissez-faire leadership sub-scale. The Second tool of the instrument “Teacher Job Performance Questioner” (TJPQ) had Cronbach alpha of 0.816. The research question and hypotheses were tested by using percentage, multiple regression, Pearson correlation at the level of p<0.05 significance. The statistics attesting 57.3% variation in teachers’ job performance was due to mutual contribution of principals’ autocratic leadership, democratic leadership and laissez-faire leadership styles. The most commonly employed principals’ leadership style was autocratic leadership in secondary school in private sector in the district. It had statistically significant and strong positive impact on teachers’ performance in the studied area. Whereas reciprocal impact in case of laissez-faire. The principal suggestion was that the school principals should be trained to learn the mixture usage of autocratic and democratic leadership styles wisely in diverse situations and work settings in secondary schools in private sector in the district Lahore, Pakistan.</p>


2019 ◽  
Author(s):  
Atif Saleem ◽  
Sarfraz Aslam ◽  
Prof. Congman Rao ◽  
Muhammad Junaid

<p>The study intentions were to examine the correlation and impact of the style of leadership of the principals on job performance of the teachers of secondary school in private sector in Lahore district, Pakistan. It is correlational study in terms of research design. The data was collected from 106 principals and 543 teachers of secondary schools in private sector in Lahore district through adapted instrument. The first tool of the instrument “Principal Leadership Style Questioner (PLSQ) had cronbach alphas of 0.834 for autocratic leadership sub-scale, 0.764 for democratic leadership sub-scale and 0.861 for laissez-faire leadership sub-scale. The Second tool of the instrument “Teacher Job Performance Questioner” (TJPQ) had Cronbach alpha of 0.816. The research question and hypotheses were tested by using percentage, multiple regression, Pearson correlation at the level of p<0.05 significance. The statistics attesting 57.3% variation in teachers’ job performance was due to mutual contribution of principals’ autocratic leadership, democratic leadership and laissez-faire leadership styles. The most commonly employed principals’ leadership style was autocratic leadership in secondary school in private sector in the district. It had statistically significant and strong positive impact on teachers’ performance in the studied area. Whereas reciprocal impact in case of laissez-faire. The principal suggestion was that the school principals should be trained to learn the mixture usage of autocratic and democratic leadership styles wisely in diverse situations and work settings in secondary schools in private sector in the district Lahore, Pakistan.</p>


2020 ◽  
Vol 39 (9/10) ◽  
pp. 963-987
Author(s):  
Ahmed Zakaria Abdullahi ◽  
Ebenezer Bugri Anarfo ◽  
Hod Anyigba

PurposeThe study investigates the effect of autocratic, democratic and transformational leadership styles on employees' organizational citizenship behavior (OCB). The study further examines the moderating role of leaders' emotional intelligence between leadership styles and OCB.Design/methodology/approachQuestionnaires were used to collect data from 618 small and medium-sized enterprises' (SMEs) employees in Ghana. For this study, both simple random and convenient sampling were adopted in selecting respondents. Regression was used to test the hypotheses in the research model using IBM–Statistical Package for the Social Sciences (SPSS).FindingsThe results show that democratic and transformational leadership styles both positively predicted the OCB of SME employees, although transformational leadership has a more significant influence. On the contrary, autocratic leadership style was found to have an insignificant relationship with OCB of SME employees when the interactive effect of the various leadership styles and emotional intelligence were introduced into the model. The results also show that whereas leaders' emotional intelligence positively moderate the relationship between autocratic leadership style and OCB, the relationships between democratic leadership style and OCB and between transformational leadership style and OCB are not significantly moderated by leaders' emotional intelligence.Research limitations/implicationsAn examination of other prominent leadership styles (for example, the transactional leadership style and the laissez faire leadership style) could be key areas for future research as it is a potential limitation of this study. Similarly, the use of a Western leadership instrument could also be a potential limitation in the Ghanaian context, although these instruments and scales may be applicable. Future studies could also consider a longitudinal approach to give a more holistic picture of the effect of the leadership styles on OCB.Practical implicationsIn general, the findings of the study support the idea that the autocratic leadership style affects SME employees' OCB both directly and indirectly through leaders' emotional intelligence. This study recommends that leaders of SMEs should focus on leadership styles that combine both result-oriented and people-centric behaviors to encourage SMEs' employees to engage in OCB.Originality/valueThis study provides firsthand information on the impact of autocratic leadership style, democratic leadership style and transformational leadership style on an employee's OCB from the Ghanaian SME perspective.


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