ANALYZING THE EFFICACY OF TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP STYLES ON EMPLOYEE PERFORMANCE (WITH SPECIAL REFERENCE OF SMALL AND MEDIUM ENTERPRISE OF JAIPUR CITY)

Abstract

Purpose: This empirical study was conducted to analyze the employee’s performance of small and Medium Enterprises in relation to Transformational and Transactional leadership styles. Moreover it had map up the leadership styles of SME’s top managers via evaluating the opinion of subordinates regarding their manager’s style of leadership prevailing in the enterprise.

Design:  This study is explorative in nature and used a convenient sampling technique. The primary data was collected through the questionnaire from the sample size of 80 middle n junior level employees of the SME’s in Jaipur city. Different literature observations were also presented of each independent variable n its effect on the dependent variable to validate the research intention.

Findings: At the end it was concluded that there is an impact of Leadership styles and employee performance. Transactional leadership style had positive impact on workforce performance of SME’s rather than transformational.

Managerial Implications: After “Make in India” initiative, SMEs are also confronting with increased competitions where labor retention is becoming extremely imperative issue for survival. So, SME’s managers must foster a work environment that aids performance of every employee through a right manner of leadership style.

Scope for future work/ Limitations: This study is limited to SME’s of Jaipur city and the sample of the employees was examined in a spectrum of only two leadership styles, it can be expanded for future studies.