Leadership styles and quality of work life in SMEs

Abstract

Small and Medium Enterprises (SMEs) in India are currently facing the challenges of increased competitions. In such environment, labor retention is very important factor for competition and survival. In this context, appropriate leadership styles and Quality of Work Life (QWL) are very important factors for survival. Literature on QWL is limited to SMEs and several studies commonly correlated with only QWL dimensions but no study on QWL has association with Leadership styles. This empirical study is accomplished to predict QWL in relation to Transformational and Transactional leadership styles. The sample consists of 240 Mechanical Manufacturing SMEs in Bangalore, India. To draw the inference chi-square test, Pearson correlation and regression analysis was carried out for the collected data using Mini Tab14. The results indicate that 25% of SMEs have implemented good QWL, in 56.6% of SMEs have implemented Transformational leadership styles; QWL of SMEs has significant association with Leadership styles. QWL and Leadership styles of SMEs are independent of demographical factors of SMEs like age of the firms, size of the firms, and cost of the project. QWL dimensions like work environment, relation and cooperation, autonomy of work has a significant association with leadership style. For both transformational and transactional leadership style job satisfaction and job security has highest correlation coefficient. © 2015 Growing Science Ltd. All rights reserve