Business Leadership in SMEs and its Effectiveness in Work Performance

Abstract

Business leadership in small and medium-sized businesses (SMEs) is essential to guarantee commercial success, optimal working conditions, as well as the impact it generates on work performance; This can be achieved by applying tactics such as leadership training, effective communication, active participation, clear setting of expectations, promoting a positive work environment, recognizing and valuing employee effort, monitoring and evaluating performance. Job satisfaction surveys also represent a valuable tool to improve the work environment in SMEs. It is essential to emphasize that business leadership must adapt to the specific needs and peculiarities of each organization to be truly effective so that the organization's collaborators identify with it, since leadership, business culture, human resources management and other factors can influence how SMEs manage and optimize the performance of their employees. The objective of the study was to determine the relationship between efficient business leadership in SMEs and the work performance of employees. The methodology used was descriptive and field and a hermeneutic method. It is concluded that communication within SMEs is the main axis to carry out all the objectives and goals set. Additionally, that the results of performance evaluations and the use of said information are timely for decision making.