The Impact of Leadership on the Motivation of Employees in Small and Medium-Sized Companies

Abstract

Leadership is a determining factor in the success of small and medium-sized enterprises (SMEs) and directly influences employee motivation, commitment, and productivity. However, many SME managers lack adequate leadership training or adopt styles that may not be effective in maintaining team motivation. Therefore, this study aims to analyse the impact of leadership on employee motivation in SMEs, identifying the most commonly adopted leadership styles and assessing their influence on organizational performance. The research is based on a quantitative and qualitative approach, using questionnaires administered to SME employees, complemented by a literature review on leadership and motivation theories, including transformational leadership, situational leadership, and motivation theories. The expected results point to the identification of the most effective leadership styles in promoting employee motivation and commitment. It also aims to contribute to the academic literature on people management in the context of SMEs and provide practical recommendations for managers who wish to optimize their leadership, improve organizational performance, and reduce talent turnover.