THE ROLE OF LEADERSHIP BEHAVIOR IN THE EFFECTIVENESS OF SMALL AND MEDIUM ENTERPISES IN THE REGION OF POLOG
Keywords:
effectiveness in organization, effective leadership, transformational and transactional stylesAbstract
Small and medium enterprises play an important role in the economic growth and development through their active role as innovators and main agents of changes in the market. Every organization's main goal is to function effectively. The effective functioning of the organization is related to science, technology and human resources. Numerous studies have proven that the growth and development of any organization depends on effective leadership, mainly on leadership style. Therefore, it is important to understand the right leadership style that is needed according to the work environment and different situations. Our research considers the impact of transformational leadership style (idealized influence, inspirational motivation, intellectual stimulation and individual consideration) and the transactive leadership style (Management by expectation active (MBE-A), management by expectation passive (MBE-P), and Laissez Fair style (LF). A perfect leadership style ensures a good organizational climate, motivates and evaluates employees, offers opportunities for career development, ensures that employees have the necessary resources to be successful in their roles, increases their reliability by influences that the workers use their full potential and abilities to achieve a better performance, productivity, profitability and higher quality, as these are the main parameters that increase the effectiveness of the organization.
The purpose of this study is to analyze the relationship between leadership behavior and effectiveness in small and medium-sized enterprises in the Polog region. For collecting the data, we did the survey of 75 employees thought the MLQ questionnaire with the main focus in evaluating the style. The SPSS program was used to process the data collected, through Cronbach Alpha test, to evaluate the reliability of variables and to minimize the eventual errors that can occur. The analysis of leadership behavior is based on the transformational and transactive style which are independent variables and the elements of effectiveness as dependent variables. The study reveals that there is a positive relationship between the transformational style of the leader and the effectiveness in the organization and a positive relationship between transactive style and the effectiveness in the organization which has impact in SME’s performance.
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