Influence of Leadership Styles on Job Satisfaction of Employees in Small and Medium Enterprises



This study investigated the influence of leadership styles with a view to determine if income and job status have significant relationship on job satisfaction of employees in Small and Medium Enterprises of South-West, Nigeria. The study was a survey research which employed ex-post facto design. A total number of 560 male and female respondents took part in the study, with a mean age of 39.9 and S.D (9.1).  Structured questionnaire format was used for data collection with (LBDQ) scales that were developed and designed to measure perceived leadership styles on job satisfaction. The study utilized both the descriptive and inferential statistics for data analysis. Specifically, the Statistical Package for Social Sciences (SPSS) version  20, computer software was employed for data analysis. The results revealed that employees who perceived their leaders as high on consideration leadership style reported more job satisfaction than employees who perceived their leaders as low on consideration (t (558) = 15.71, P<.001). Alternative hypothesis was accepted while the null hypothesis was rejected. Employees who perceived their leaders as high in initiating structure leadership style reported more of achievement motivation than employees who perceived their leaders as low in initiating structure leadership (t(558) = 2.97, P<.05). Therefore, the alternative hypothesis was accepted. The result also showed that job status of employees in SMEs significantly influenced job satisfaction (F(2,557) = 20.85, P<.001). The alternative hypothesis was accepted and finally, income status of employees significantly influenced achievement motivation in SMEs (F(5,554) = 35.84, P<.001 and the alternative hypothesis was accepted while the null hypothesis was rejected.  It is therefore concluded that there is no one best way to leadership but as situation arises.  However, the study revealed that high Consideration and Initiating Structure Leadership style will lead to achievement motivation and Job satisfaction.  However, insufficient education, inability to select qualified workers for the job, low income and job status all affect job satisfaction.  It is suggested that mentoring should be used as a means to develop and motivate employees towards entrepreneurship and intrapreneurship in order to achieve organizational sustainability and employee job satisfaction.

Key Words: Leadership style, Job Status, Income Status and Job Satisfaction

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