IMPACT OF LEADERSHIP STYLES ON EMPLOYEE PERFORMANCE SUSTAINABILITY IN SELECTED SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN NORTH-CENTRAL NIGERIA

Abstract

The importance of leadership to the expected growth and development of organisations cannot be emphasised owing to the attendant consequences of not having a leader that controls and pilots the affairs of the organisations. This study, the study investigates the impact of leadership styles and sustainability of employee performance of SMEs in Nigeria. The specific objectives entail evaluating the impact of autocratic leadership style (ATL) on the sustainability of employee performance of SMEs in Nigeria and investigating the impact of transformational leadership style (TMS) on the sustainability of employee performance (SEP) of SMEs in Nigeria. 81 questionnaires were distributed to the 81 respondents for this study, of which a 100 per cent response rate was achieved, while descriptive and inferential statistics were employed for this study’s analysis. The outcomes show that the topmost ATL factors include decisions without consultation, closely monitoring and controlling work and strict adherence to rules, while the TML have demonstrated confidence and optimism, encouraged innovation, and communicated a compelling vision as its topmost factor. It also shows that the adequacy of training and equipment, opportunities for professional growth and clear guidance from the supervisors are considered the topmost factors for the SEP. This study concluded that an R Square of .784 represents about 78% impact of ATL and TML on the SEP. At the same time, the regression denotes SEP = 2.137 - .349(ATL) + .913(TML), concluding that ATL is a negative predictor of SEP as TML is its negative predictor. This study recommended that there is a need for autocratic leaders to encourage more participative decision-making and seek regular feedback to improve employee satisfaction and performance, while transformational leaders should continue to foster innovation, vision, and individualised support to maintain high-performance levels