ARTICLE

LEADERSHIP DYNAMICS AND ORGANIZATIONAL PERFORMANCE THE CRITICAL ROLE OF EMPLOYEE MOTIVATION IN SMES

02 Pages : 13-22

http://dx.doi.org/10.31703/gmsr.2024(IX-II).02      10.31703/gmsr.2024(IX-II).02      Published : Jun 2024

Leadership Dynamics and Organizational Performance: The Critical Role of Employee Motivation in SMEs

    The purpose of this research is to analyze the impact of leadership as a management strategy on motivation and organizational performance in SMEs. Employing a quantitative research approach under the overall umbrellaof positivism, the study aimed at reaching managerial employees working in SMEs, despite their significance for the economy and constant management and motivation issues. The participants were 350 managerial professionals, forming a growing population to maximize statistical reliability. The primary method of data collection involved Likert scales in questionnaire surveys, while for the analysis (PLS-SEM), Smart PLS was used. This research established that there is a positive correlation between leadership behavior, organizational commitment, and organizational output in SMEs. The results of this study, therefore, stress the importance of leadership and motivation in boosting organizational performance and make a strong call to SMEs to track their efforts towards bettering these elements intheir operations to gain better performance results.

    Leadership Style, Employee Motivation, Organizational Performance, SME’s
    (1) Shahid Kalim Khan
    Assistant Professor, Department of Business Administration, Thal University Bhakkar, Punjab, Pakistan.
    (2) Aamir Sohail
    Lecturer, Department of Commerce, Thal University Bhakkar, Punjab, Pakistan.
    (3) Naqash Ali
    Department of Business Administration Thal University Bhakkar, Punjab, Pakistan.
  • Al Khajeh, E. H. (2018). Impact of leadership styles on organizational performance. Journal of Human Resources Management Research, 2018(2018), 1-10. https://doi.org/10.5281/zenodo.3766106 

  • Ammer, M. A., & Salim, A. S. (2024). Investment And Financing Decisions Impact On Financial Sustainability With Moderating Effect Of Corporate Governance Index: A Dynamic Panel Data Approach. International Journal of Economics and Finance Studies, 16(1), 62-82. https://doi.org/10.1108/JFRA-05-2023-0234 
  • Annisa, N. F. R., & Supriyanto, A. S. (2021). The influence of leadership style and work motivation on employee performance through job satisfaction (Case study on the department of transportation of Blitar City). The American Journal of Humanities and Social Sciences Research, 4(3), 355-362. 
  • Buwah, N., Ibrahima, I., Ernest, N., & Bie, E. (2024). Leadership Styles and Organisational Performance: Case of Small Businesses in Cameroon Size Businesses in Buea Municipality. International Journal of Small Business and Entrepreneurship Research, 12, 24-46. https://doi.org/10.37745/ijsber.2013/vol12n12446
  • Cherian, J., & Gaikar, V. (2020). Do leadership styles impact organizational performance in the UAE context? A study. 11, 23-32. 
  • Chowdhury, R. G. (2014). A study on the impact of leadership styles on employee motivation and commitment: An empirical study of selected organisations in corporate sector. Navi Mumbai: Padmashree Dr DY Patil University. 
  • Ebrahimi, P., Moosavi, S., & Chirani, E. (2016). Relationship between Leadership Styles and Organizational Performance by Considering Innovation in Manufacturing Companies of Guilan Province. Procedia - Social and Behavioral Sciences, 230. https://doi.org/10.1016/j.sbspro.2016.09.044 
  • Hurduzeu, R.-E. (2015). The impact of leadership on organizational performance. SEA–Practical Application of Science, 3(07), 289-293. 
  • Jawad, S., Khan, M., Ali, N., Saleem, A., & Baseeruddin, M. (2023). Exploring the Dynamics of Employee Performance: A Study on Creativity, Leadership, and Stressors in Karachi's Textile Industry. Research Journal for Societal Issues, 5, 190-211. https://doi.org/10.56976/rjsi.v5i3.154 
  • Jawad, S., Khan, M., Ali, N., Saleem, A., & Baseeruddin, M. (2023). Exploring the Dynamics of Employee Performance: A Study on Creativity, Leadership, and Stressors in Karachi's Textile Industry. Research Journal for Societal Issues, 5, 190-211. https://doi.org/10.56976/rjsi.v5i3.154 
  • Jiménez, M. (2018). Leadership Style, Organizational Performance, and Change Through the Lens of Emotional Intelligence. Foundations of Management, 10, 237-250. https://doi.org/10.2478/fman-2018-0018 
  • Khaliq, M., Usman, A., & Ahmed, A. (2021). Effect of leadership style on working culture and employees motivation. The Journal of Educational Paradigms, 3(1), 166-170. https://doi.org/10.47609/0301052021 
  • Lee, M. T., & Raschke, R. L. (2016). Understanding employee motivation and organizational performance: Arguments for a set-theoretic approach. Journal of Innovation & Knowledge, 1(3), 162-169. https://doi.org/10.1016/j.jik.2016.01.004 
  • Nizam, K., & Shah, F. M. (2015). Impact of employee motivation on organizational performance in oil and gas sector of Pakistan. International Journal of Managerial Studies and Research (IJMSR), 3(12), 7-15. 
  • Ojokuku, R., Odetayo, T., & Sajuyigbe, A. (2012). Impact of leadership style on organizational performance: a case study of Nigerian banks. American journal of business and management, 1(4), 202-207. https://doi.org/10.11634/216796061706212 
  • Orabi, T. G. A. (2016). The impact of transformational leadership style on organizational performance: Evidence from Jordan. International Journal of Human Resource Studies, 6(2), 89-102. https://doi.org/10.5296/ijhrs.v6i2.9427 
  • Paais, M., & Pattiruhu, J. (2020). Effect of Motivation, Leadership, and Organizational Culture on Satisfaction and Employee Performance. The Journal of Asian Finance, Economics and Business, 7, 577-588. https://doi.org/10.13106/jafeb.2020.vol7.no8.577 
  • Peter, K. (2021). Relationship between the leadership style and organizational performance in Hungary. Economic Annals-ХХI, 190, 128-135. https://doi.org/10.21003/ea.V190-12 
  • Priyashantha, K. G., & Win, K. (2016). The impact of leadership styles on employee performance: analysis of the intervening effect of employee retention to the relationship of leadership styles and employee performance.
  • Purwanto, A. (2022). The Role of Transformational Leadership and Organizational Citizenship Behavior on SMEs Employee Performance. 3, 365-383. https://doi.org/10.7777/jiemar.v2i3.139e 
  • Qomariah, N., Mardana, D. E., & Winahyu, P. (2021). Impact of leadership style, motivation and work environment on employee performance. Prosiding CELSciTech, 5, 15-23. 
  • Sabastian, R. A. (2021). The Influence of Leadership Style and Motivation on Employee Performance. Almana: Jurnal Manajemen Dan Bisnis, 5(1), 116-125.  https://doi.org/10.2991/aebmr.k.210121.019
  • Sulastiningtiyas, D., & Nilasari, B. M. (2018). The Effect Of Leadership Style, Work Environment, And Organizational Motivation On Employee Performance With Job Satisfaction As Variable Mediating. Business and Entrepreneurial Review, 18(2), 93-114. https://doi.org/10.25105/ber.v18i2.5310 
  • Suriyanti, S. (2020). The effect of leadership style, work motivation and organizational culture on employee performance mediated by job satisfaction. International Journal of Multicultural and Multireligious Understanding, 7(8), 642-557. https://doi.org/10.18415/ijmmu.v7i8.2007 
  • Suriyanti, S. (2020). The effect of leadership style, work motivation and organizational culture on employee performance mediated by job satisfaction. International Journal of Multicultural and Multireligious Understanding, 7(8), 642-557. https://doi.org/10.18415/ijmmu.v7i8.2007 
  • Wang, F.-J., Chich-Jen, S., & Mei-Ling, T. (2010). Effect of leadership style on organizational performance as viewed from human resource management strategy. African journal of business management, 4(18), 3924.  http://www.academicjournals.org/AJBM 
  • Wang, F.-J., Chich-Jen, S., & Mei-Ling, T. (2010). Effect of leadership style on organizational performance as viewed from human resource management strategy. African journal of business management, 4(18), 3924.  http://www.academicjournals.org/AJBM 
  • Widayanto, T., & Nugroho, S. (2022). The Influence Of Leadership, Organizational Culture, And Work Competence On Employee Performance Through Work Motivation. Jurnal Pamator : Jurnal Ilmiah Universitas Trunojoyo, 15, 218-234. https://doi.org/10.21107/pamator.v15i2.18807

Cite this article

    APA : Khan, S. K., Sohail, A., & Ali, N. (2024). Leadership Dynamics and Organizational Performance: The Critical Role of Employee Motivation in SMEs. Global Management Sciences Review, IX(II), 13-22. https://doi.org/10.31703/gmsr.2024(IX-II).02
    CHICAGO : Khan, Shahid Kalim, Aamir Sohail, and Naqash Ali. 2024. "Leadership Dynamics and Organizational Performance: The Critical Role of Employee Motivation in SMEs." Global Management Sciences Review, IX (II): 13-22 doi: 10.31703/gmsr.2024(IX-II).02
    HARVARD : KHAN, S. K., SOHAIL, A. & ALI, N. 2024. Leadership Dynamics and Organizational Performance: The Critical Role of Employee Motivation in SMEs. Global Management Sciences Review, IX, 13-22.
    MHRA : Khan, Shahid Kalim, Aamir Sohail, and Naqash Ali. 2024. "Leadership Dynamics and Organizational Performance: The Critical Role of Employee Motivation in SMEs." Global Management Sciences Review, IX: 13-22
    MLA : Khan, Shahid Kalim, Aamir Sohail, and Naqash Ali. "Leadership Dynamics and Organizational Performance: The Critical Role of Employee Motivation in SMEs." Global Management Sciences Review, IX.II (2024): 13-22 Print.
    OXFORD : Khan, Shahid Kalim, Sohail, Aamir, and Ali, Naqash (2024), "Leadership Dynamics and Organizational Performance: The Critical Role of Employee Motivation in SMEs", Global Management Sciences Review, IX (II), 13-22
    TURABIAN : Khan, Shahid Kalim, Aamir Sohail, and Naqash Ali. "Leadership Dynamics and Organizational Performance: The Critical Role of Employee Motivation in SMEs." Global Management Sciences Review IX, no. II (2024): 13-22. https://doi.org/10.31703/gmsr.2024(IX-II).02