Sustainability of Employee Performance and Leadership Styles Valor: A Double Dynamic Approach

Abstract

The growing need for continued leadership performances remains integral to the expected performances of several organizations, including Small and Medium Enterprises (SMEs), which are enormously impacted by the several leadership approaches adopted by the leaders.Consequently, this study investigates the impact of leadership styles and the sustainability of SMEs' employee performance in Nigeria.The specific objectives entail the impact of transactional leadership style (TSL) on the sustainability of employee performance of SMEs in Nigeria and the evaluation of the impact of laissez-faire leadershipstyle (LFL) on the sustainability of employee performance of SMEs in Nigeria.81 questionnaires were distributed to the 81 respondents for this study, of which a 100 percent response rate was achieved, while descriptive and inferential statistics were employed for this study's analysis.The outcomes show that the topmost TSL factors include an emphasis on adhering to rules, monitoring performance, and providing feedback and rewards for achieving targets, while LFL encompasses trusting the team to manage tasks, the often unavailability of the leader, and the encouragement of autonomy.It equally denotes that the top factors of employee performance entail adequacy of training and equipment, opportunities for professional growth, and clear guidance from the supervisor.This study concluded that with an R Square of .871,there is about 87% impact of TSL and LFL on the EEP, denoting that TSL and LFL are negative and positive predictors of EPP, respectively.The practical implications of these findings for leaders in SMEs are significant.The study recommended that leaders should not solely focus on rules and procedures but also recognize and reward employees' efforts and achievements, especially when taking calculated risks.It also emphasizes that leaders should offer more direction and support, particularly in situations that involve risk-taking, including setting clear expectations, providing necessary resources, and being available for consultation when needed.