ABSTRACT

 

The viability of any organization begins from the fundamental leadership approach or principle adopted. Studies have shown that leadership approach could be a contributing factor to the success or failure of any institution. The purpose of this research was to examine the leadership approach in the small scale industries in Ghana. Transformational, Transactional and Laissez-fair forms are the three types of leadership styles reviewed in this study while employee dedication was also considered in the literature to give the understanding of employee involvement in organizational settings.

 

Two basic phases of approaches were used in collecting data from participants. The first phase involves an interview with the leaders in Data Bank Financial Service Limited. Secondly, a multifactor leadership questionnaire model was administered to the employees. The sample was 15 employees and 5 leaders were chosen as participants for the survey.

 

The result of the study reveals that the three leadership styles play an important role in an organization but the transformational leadership approach has a positive impact on both the firm and employees. The anticipated outcome of the research identified that transformational leadership will have positive influence and create good relationship with the subordinates. Furthermore, it was recognized that the transformational leadership approach was more suitable in enhancing performance in small scale businesses than the laissez-fair and transactional leadership approaches. With this approach the organization can take advantage as an approach for leaders to use in day to day relations with workers in developing suitable approaches. This can be done through organizing regular seminars, training and coaching programs to foster employee involvement in organizational activities. This is believed to auger well for a continuance and satiability production achieving set aims and objectives in small scale industries.

 

 

1.                 INTRODUCTION

 

Many organizations across the globe are facing dramatic modifications coupled with the increase in the demand for products and services of high quality. According to Kanter (1995), today’s world is more challenging, unstable and disorganized than before. The success of any business is dependent on the fundamental transformation principle being adopted. Today’s turbulent competitive environment requires a strategic leadership approach and employee dedication. This can certainly be useful to all firms and most importantly to small and medium enterprises.

 

Many researchers suggest that leadership effectiveness brings about employee enhancement on their job performance. One important issue in the organizational setting referred to as the leadership approach is an underlying concept understood by organizations across the globe today. Considering the activities associated with leadership, it has become the basic propelling mechanism for effective functioning in industries in the world. The characteristics of leadership constitutes the impact of the method been used and the end result. As such, the method is recognized by the leader and supportive groups which is the employee’s behaviour, characteristics, perception and attribution from the circumstance in which the impacting method is transpired (James, K. and Collins, J. 2008).

 

It is a requirement by firms to hire skilled, dedicated and capable employees forming an effective group to achieve the aim and objectives of the firm in order to succeed in the business environment. This involves an individual psychological state which will connect employees to the organization. Apparently, it is employees’ dedication which will be greatly influenced by the relationship that exists between colleagues and their leaders.

 

Leadership among others is a vital issue which in the corporate environment is least understood concept. The record of leadership spans through many patterns and a large body of knowledge. Considering it as a general activity, the fundamental pivot of every functional and effective firm is the leadership approach. The status of any leadership style can be associated with its influencing procedure and end results. This can then be viewed from leaders and followers characteristics, attribution, disposition and the circumstance in which the process of influencing transpired. Hersey and Blanchard (1984) suggest that the moral reason of leadership is to build an empowered individual that lead to moral outcomes that are attained through moral ways.

 

Leadership approach is an initiative processes that a leader carries out or contributes in ensuring that unexpected activities are done progressively in an organization. Hence, leadership in organizational view is associated to an individual who is chosen by the organization or the founder to up a role of activities of the organization having followers and maintaining amicable work place relationship. ( Bass and Avolio, 1993)

 

According to Allen and Meyer (1990), employee dedication is defined as an emotional and mental state that binds a person to the organization. Among many institutions, there is a rising dedication gap expanding division between what is expected of a worker to execute and meeting the employer’s expectation. There are various rationales behind the downward employee dedication at work places. One of this can be attributed to management’s failure to ensure that employees hired are managed in a way that keeps them motivated and hence dedicated throughout. In other words to ensure a culture of dedication amongst employees. From this view point there will be stability and fairness with value as to how employees are managed within the hierarchy of the firm.

 

A successful business requires competent, skilled and dedicated workers as valuable assets to excel in achieving its goals. Disregarding the aforementioned requirements by managers can cause the failure of the organization and also lead to greater consequences. Supervisors and leaders need to ensure and manage the employee behavior in a way that strengthens employee dedication. Hunt and Morgan (1994) stated that the initial step to building employee dedication is to first enhance the quality of management.

 

It is noticeable that there is an influence of interaction through the dedication exhibited by employees among their counterparts and also their immediate and senior managers. Commitment is a constant process and requires leaders and employers to establish means of improving employee’s existence at workplace (Avolio and Bhatia, 2004). Thus, the dedication of capable employees is significant to the success of the firm.