Effect of Leadership on Staff Commitment in SMEs

This research study focuses on analyzing the effect of leadership on staff commitment in Small and Medium-sized Enterprises (SMEs). It explores the role of leadership in SMEs, its impact on employee motivation and satisfaction, and the relationship between leadership and factors affecting employee commitment. The study aims to provide insights into how effective leadership can enhance employee commitment in SMEs.

Agreement with Dissertation’s instruction,
title and purpose
1

Contents
CHAPTER-1 INTRODUCTION.....................................................................................................3
CHAPTER-2 LITERATURE REVIEW.........................................................................................7
CHAPTER 3- RESEARCH METHODOLOGY...........................................................................11
CHAPTER 4- DISCUSSION AND DATA ANALYSIS..............................................................15
CHAPTER 5- CONCLUSIONS AND RECOMMENDATIONS................................................53
REFERENCES..............................................................................................................................59
2

CHAPTER-1 INTRODUCTION
Topic
Effect that leadership has on staffs' commitment to SME
Background
Leadership is based on the subject on the discussion within human society, based on the
quantum of research work, which mainly carried out by investigator or philosophers. Leadership
is important phenomena that applicable in both SME (Small medium) Size scale enterprises.
Hence, the study of leadership cannot be identified as new phenomenon but some studies on the
leadership from 20th century was mainly about systematic levels, building up from simply
studying the different traits, characteristics of leader. In study conducted by Daniëls,
Hondeghem & Dochy (2019) to examine the concept of leadership as skill or knowledge of
phenomenal people. Sometimes, it can be considered the trait theory on the basis of successful
leadership and establish the historical connection dating back to 20th century. Leadership plays
vital role in success of an organization. It is extremely important for SME’s to have an effective
leadership in order to continuously move forwards in the path of success. SME’s contribute in
enhancing overall economy of a country (Krajcsák, 2019). But one of the main problems faced
by SME’s is high employee turnover which is mainly because of poor leadership. that there are
various challenged faced by SME so that implementing the leadership roles to improve the
overall business operation and function. It is important for developing core competencies and
effectiveness of leadership at certain levels, define the mobilizing goals and ensuring the proper
objective. Effective leadership can not only help in reducing employee turnover but can also help
in enhancing satisfaction and motivational level of employees. This research paper will focus
upon effect that leadership has on commitment of employees of SME.
3

Aim
To analyse effect that leadership has on staffs' commitment to Small and Medium sized
Enterprise (SMEs) in Accra Ghana West Africa
Objective
 To analyse role played by leadership in small and medium sized Enterprise
 To identify ways in which leadership impact motivational and satisfaction level of employees
 To evaluate effect that leadership has on commitment of staff members of SME.
 To analyse relationship between leadership and factors affecting employees commitment.
Research questions
 What is the role of leadership in small and medium sized Enterprise?
 What are the ways in which ways in which leadership impact motivational and satisfaction
level of employees?
 What are the main effects of that leadership have on commitment of staff members of SME?
 How leadership and factors affecting employee’s commitment are related?
4

Significance
SME plays a vital role in enhancement of overall economy of a country. Success of a
SME completely depends upon its employees, their commitment and performance within the
organization. This research is important to be carried out in order to identify ways in which
leadership can enhance overall commitment of employees working within n SME. It is important
to be carried out because SME not only help in increasing economy of a country but also helps in
creating new jobs. If a SME cannot perform well in the market in which they operate it will
impact commitment of their employees towards the company and will also result in lowering of
job opportunities within the organization (Agha, Nwekpa & Eze, 2017). This is majorly because
performance of a SME is directly associated with overall performance of their employees.
In additional, Significance of research is to understand the concept of leadership that
applicable in SMEs. In this way, investigator have gained more knowledge about the concept
which is always supports for implementing suitable strategies. In this research study, it provide
the brief idea about the both positive as well as negative aspect of leadership towards employee’s
commitment within SMEs. As identified that SMEs face problem because it is very difficult for
establishing the business in competitive marketplace. At that time, leadership style, skill and
approaches helps for motivating the staff members towards organizational goals. Therefore, they
can perform a better way to improve their ability and committed towards business.
Limitations of the study
In order to collect primary information a questionnaire was prepared and sent through
email to all the respondents to be filled. Due to this reliability and validity of data was
compromised. Due to current pandemic situation it was difficult to conduct one to one interview.
It was one of the main limitations of this study. But collection of data though questionnaire
helped in conducting quantitative analysis of the data in order to achieve main aim and
objectives and reach to the conclusion of the study.
Study Outline
In order to achieve main aim of the research following structure will be followed:
5

 Chapter 1- Introduction: in this chapter main research topic will be introduced, background
of the study will be provided followed by main, objectives and research questions of the
study.
 Chapter 2- Literature review: In this problem area will be identified by conducting a
literature review of past researches that has been done in this area.
 Chapter 3- Methodology: in this chapter research methods that has been selected for data
collection, sampling, analysis, design and many more will be identified.
 Chapter 4- Discussion and Data Analysis: in this section analysis of primary data collected
from the respondents will be done.
 Chapter 5- Conclusions and Recommendations: in this chapter, conclusion of whose research
study will be provided with further recommendations.
6

CHAPTER-2 LITERATURE REVIEW
2.0 Introduction
Literature review is an important for a research project as it helps in analysis of secondary data
about the research topic from varied sources. It majorly helped in development of base of
research. In this research study, the primary aim at providing the overall idea about the research
topic or subject. By using pre-existing theories, investigator has gained the more knowledge on
the subject under discussion to summarise, contrast and compare the current literature on
leadership. Furthermore, identifying the effect that leadership has on staff member’s
commitment towards small and medium scale enterprises.
2.1 Leadership
According to Alvesson and Einola (2019) Leadership is based on the concept that help
for identifying the interaction between subordinates and their supervisors, which always
influencing the specific goal and objective. A great leader has an ability to provide the right
direction of their staff member in organization. It helps for organization to increase overall
production and sales in global marketplace. Hence, the authors further noted that since leaders
are becoming predominant decision makers and also required for SME enterprise to find the
suitable candidate for maintaining overall business processes. Different leaders have different
leadership styles and perspective. Different perspective and capability of leaders helps them in
resolving issues occurring within an organization in different ways and helps in maintaining
positive culture and environment within the organization. It is important for organizations to
have effective leaders who are capable enough to enhance performance, capability and
commitment of their employees so that overall performance of the organization can be enhanced.
Further, Chan (2019) argue that leadership implies influencing the employee towards
organizational performance, which automatically improve in step by step manner. It can possible
when Human resource department adopt the suitable training strategies so that employee can
improve their skills and gain more knowledge.
7

2.2 Leadership in Small and medium Enterprise
According to Belitski & Liversage (2019) Small and Medium enterprises plays important
role in the nation’s economy and its current social wellbeing. When implementing the leadership
within Small and medium enterprises, which plays important role in term of growth and
development of organization. The reason is that when leader can use their leadership style to
implement suitable plan, making important business decision. In this way, it can be understand
that leadership create wide impression on the crucial enterprise result or outcome. It can also be
said that leadership plays a vital role in a small and medium sized enterprise because leaders of
SME are one of the main reason behind success or failure of SME organization’s.
Soomro, Shah & Mangi (2019) said that leadership become more essential part of Small
and medium enterprise that develop and lead adaptive analysis to new or changing situations. To
drive the success of SME depend upon the leadership that mainly recognised as key elements. In
some situation, SME show as insufficient and weak leadership skills due to factor causes failure
of organization. For that main reason, SME needs to guide their organization through leadership
during economic crisis situation or condition. This will help for avoiding the firm failure
condition and further maintain the overall performance of organization in proper manner. A right
leadership behaviour is one of important element that help for put some contribution to gain
more achievement and also improve failure of enterprise. Small and medium sized Enterprises
face various kinds of issues or barriers while moving forward in the path of success. Effective
leaders of SME help the organization in overcoming those issues or barriers and achieve success.
Kocherbaeva, Samaibekova& Isabaeva (2019) argue Nowadays, SME firms have a
global position in marketplace. In this view, leader has setting the suitable approaches to
eliminate the problem or issue in context of diversified workforce. In order to create an effective
ethical environment where each and every employee can enjoy their working environment.
2.3 Leadership effect on the staff commitment to Small and medium enterprise
As per Vuong & et.al. (2020) leadership effect on the staff commitment within Small and
medium enterprise, when employee face job dissatisfaction, they may leave the organization
8

because of depressing environment. Since, leadership style may directly affect on the satisfaction
level of employee, which will eventually increase to job commitment. Successful leader within
SME have a acknowledge the work of staff members, they can provide the better services as role
models of motivation, inspiration and encouragement towards tasks. In this way, it will be
pleasing and develop safe functioning environment or culture. Afterwards, it can be identified
the effect of leadership styles and employee job commitment, positive relationship between staff
members and leader. As a result, it may develop positive impact on the employee job
commitment.
Jing & Bergsteiner (2020) said that impact of formal leadership on the staff members
regarding the organizational commitment in both positive as well as negative aspect. Therefore,
it can be predicted in the form of intellectual simulation which are getting more autonomy as
base line. The effect of leadership in the commitment of employee towards SME enterprise,
which having a fluid and adaptable way to deal with work processes in proper manner.
Sometimes, it may increase the issue or problem when leader can formulate the suitable plan for
business process improvement. At some point, employees are not completely satisfied with the
decision of leader. In this way, it will be increasing the conflict among employee and leader. It is
directly affecting on the overall SME enterprises in context of growth and development.
2.4 Factors that affect staff commitment
There are various kinds of factors that affect overall commitment of staff members to an
organization. Commitment of an employee for an organization helps them to remain faithful and
loyal or the company and further help them to focus upon providing excellent results to the
company. According to the view of Diamantidis & Chatzoglou, (2019) there are various kinds of
factors that are required to be focused upon by companies in order to ensure commitment of staff
members. These factors are divided into two categories: organizational factors and individual
factors. Organizational factors that impact staff commitment are: working environment, salary,
company success, training and development, leadership, management style and many more. Out
of all of these factors, working environment is one of the most important factors that can directly
9

impact overall commitment of staff members. It affects engagement of employees in work, their
overall performance. If working environment of company is positive then it can help in
providing career growth opportunities to employees which further helps in motivating them and
remain committed towards the organization. Other than this, provision of good salary and wages
also motivate employees to work with more dedication and remain loyal towards the
organization. Other than this training and development opportunities help an individual to bring
improvement within their current skills, knowledge which not only helps them in bringing
improvement within their performance but also help in increasing opportunities for then to grow
and succeed within their careers. Diamantidis & Chatzoglou, (2019) further explains that other
than organizational factors, there are some individual factors as well because of which
commitment of employees is also impacted. Some of the main personal factors are: personal
advancement opportunities, past job experience, increased stress level, fulfilment of personal
needs, job security and many more. Out of all of these factors job security, past job experience of
employees, fulfilment of personal needs are most important factors that can directly impact
commitment of employees to the organization. If staff is being paid good salary such that all of
their personal needs can be fulfilled and if employees have job security then it can help them in
remaining committed to the organization. But many times, there are some other personal factors
such as stress level of employees due to excess work load can directly impact their loyalty and
commitment towards organization.
2.5 Relationship between leadership and factors affecting employee’s commitment working in a
SME-375
As per the view of Ling, Guo & Chen, (2018) says that, there is a strong relationship
between leadership and commitment of employees towards organization. Adoption of
appropriate leadership style by leaders of an organization is extremely important as it directly
impact commitment of employees towards organization. Leadership plays an important role in a
SME because leaders are those who provide correct direction to company to achieve their pre-
defined goals and objectives, and also help them in moving forward towards path of success.
10

They are responsible for enhancing motivational and satisfaction level of employees as well.
Ling, Guo & Chen, (2018) says that leaders are the main face of a company a committed leader
who is committed in bringing desired changes within the organization, reduce fear and anxiety of
employees, enhance their morale and confidence level of employees which eventually help in
bringing improvement within their overall performance. If leaders of an organization positively
and dedicatedly focus upon enhancing morale, confidence of staff members, reduce their anxiety
and fear then it can help in strengthening relationship between leaders and commitment of
employees. i.e. effective leadership style adopted by leaders can help in enhancing motivation,
satisfaction and commitment level of employees towards the organization. Leaders of SME are
responsible for ensuring that employees dedicatedly work for the organization and remain
committed towards the company. For this, leaders need to focus upon maintaining a positive
working environment and culture, motivate employees, bring positive changes within the
organization so that staff members remain committed towards the company. Employees will feel
more satisfied if their leaders think about their welfare. It is one of the main responsibility of
leaders to develop and maintain a positive working environment so that employees feel
encouraged and dedicatedly work within organization.
CHAPTER 3- RESEARCH METHODOLOGY
It is simply the procedure or techniques used to identify, select, process and analyse information
about the topic (Dodds & Hess, 2020). It is useful for allows the investigator to critically
evaluate the study’s overall reliability as well as validity. Research methodology is considered as
philosophical framework within research conducted or foundation upon which research is based.
Research method
Research method is defined as careful consideration of study regarding the particular
concern or problem through techniques. These are considered as procedures for collecting,
analysing the relevant data of topic or subject (Dodds and Hess, 2020). Basically, research
method can be categorised into two different types: Qualitative and Quantitative research
method.
11

The researcher has chosen the Quantitative research method based on the numerical
aspects. It is carrying out the use of large number of statistical information for generating
accurate result or outcome. Quantitative method emphasize the objective measurements,
statistical mathematical, numerical analysis of data collected through questionnaires, survey. In
order to manipulate the pre-existing data with the help of computation techniques.
Research approach
It is defined the procedure, plan that consist of different steps of broad assumptions to
detailed method in data collection, interpretation and analysis. Research approach is becoming
useful for addressing the research problem in order to identify the answer (Shahar and et.al.,
2019). Research approach can be divided into different groups: deductive, inductive and
Abductive research approaches. These are considered as important approaches, which may
applicable in the research analysis processes according to requirement.
The Scholar has chosen Deductive research approach and concerned with developing a
hypotheses, based on the existing theory. Typically, it is useful for designing the research
strategy to test hypothesis (Shahar and et.al., 2019). Another word, Deductive means reasoning
from the specific way to link with different theory. In quantitative method, it can be used the
Deductive approach by Researcher to establish the relationship between variables and concepts.
Through this approach, the possibilities of measure the different quantitatively concepts in
proper manner. Moreover, researcher can easily generalize research finding to certain extent.
Research design
Research design refer to the entire strategy that can select for integrating with different
components of study in both logical as well as coherent ways (Shahar and et.al., 2019). It
ensuring that effectively address the research problem, constitutes the blueprint for collection,
measurement and analysis of relevant data. Research design can be divided into different ways:
exploratory and conclusion
Investigator has chosen conclusive research design that implies, applied to generate
accurate finding. This is consider as most useful for scholar to reach the appropriate conclusions,
12

decision-making. In the research study, it can be identified the research objective and data
requirement through design. Conclusive is basically provide the brief overview of verifying and
quantifying the numerical findings. Main reason is to consider conclusive research design that
involves quantitative method of data gathering, analysis. In context of quantitative method,
conclusive design help for providing the accurate result or outcome.
Research Philosophy
It is a belief about the way in which data or information about the phenomenon that
should be collected, analysed and used. It is one of important concept in development of research
where researcher can consider assumptions (Bell & et.al., 2020). Sometimes, Assumption is
based on the perceived as preliminary statement. By using research philosophy, investigator
deals with the knowledge, source and nature. The research philosophy can be divided into
different types: Positivism, pragmatism, intepretivism.
The researcher has chosen positivism philosophy that adhere to review factual knowledge
gained through different observation. In this study, the significant role of researcher has been
collected limited data and interpretation (Shahar and et.al., 2019). Study help for finding the
result or outcome from different observable as well as quantifiable technique. In some situation,
positivism depend on the quantity observation that increase to the statistical analyses. In this
way, it can be determined that Positivism philosophy help for investigator to build the
understanding towards research topic or subject.
Data collection method
It is based on the process of collecting, gathering and measuring the information on
variables as per interest. It help for established the systematic fashion that enables one to answer
of different research questions (Shahar and et.al., 2019). Sometimes, it helpful for test hypothesis
and evaluate the accurate result or outcome. Data collection methods are divided into different
groups: Primary and secondary.
Typically, researcher has chosen primary data collection method using structured
questionnaires through emails. Sometimes, Scholar is mainly focused on the different journals,
13

article or website that provide the more information related to the topic. The SME that are in
focus on the study “Ghana”. Primary data collection method has been performed through
Questionnaires, identifying opinion or view point of employees.
Data analysis
It is a process of inspecting, cleaning, transforming and modelling the data with goal of
discovering useful information (Trimmer, 2020). In this research study, Researcher has
considered the research Statistical analysis by using SPSS platform version 2.2. It enabled to test
hypothesis variable of relationship between commitments of staff members, leaderships. The
demographic data will be analysed by using Descriptive statistics as tool in IBM SPSS.
Sampling
It can be explained as specific principle that mainly used to select appropriate participant
within research stud. There are large number of population to be included in research study,
rightly noted that population of interest are too large. At that time, Researcher has chosen simple
random technique to assign the particular task of each members on the basis of their
performance. The Sample Size is 30 employees of from two SME companies.
Ethical Considerations
It is mainly specified as one of important aspect of research study in order to maintain the
good relationship between research participants (Shahar and et.al., 2019). Typically, Researcher
can used the different principles related to ethical considerations.
 Each and every participants should be protected the sensitive information during research
analysis process.
 Always maintain the loyalty, trust and respect of each members (Benfell, 2020).
 It should be maintained the privacy and protection of research participants in proper
manner.
 Any type of misleading information handled by researcher during primary data analysis.
 It obtained the full consent from different participants and give more preferences.
14

 Researcher need to consider authenticate sources for gathering accurate information and
data.
CHAPTER 4- DISCUSSION AND DATA ANALYSIS
Statistics
Yourworkingenvi
ronmenteffectof
willingnesstostay
withorganization
managergoesbe
yondselfinterestf
orthegoodofgrou
p
managementorg
anizationpromot
eemployeescare
erdevelopment
TDplayroleindeci
siontostaywithor
ganization
N Valid 15 15 15 15
Missing 0 0 0 0
Mean 3.0000 3.6667 3.2667 3.7333
Median 3.0000 4.0000 4.0000 4.0000
Std. Deviation 1.30931 1.44749 1.53375 1.33452
Percentiles
25 2.0000 2.0000 2.0000 2.0000
50 3.0000 4.0000 4.0000 4.0000
75 4.0000 5.0000 5.0000 5.0000
Statistics
Highersalariesandb
onusesmotivate
Morerespectandles
spressuremotivate
willeavecompanyfor
betteroffersomewhe
reelse
Jobsatisfactionmoti
vatesyou
N Valid 15 15 15 15
Missing 0 0 0 0
Mean 4.2000 2.6000 3.7333 3.4667
Median 4.0000 2.0000 4.0000 4.0000
Std. Deviation .94112 .98561 1.27988 1.50555
Percentiles
25 4.0000 2.0000 3.0000 2.0000
50 4.0000 2.0000 4.0000 4.0000
75 5.0000 3.0000 5.0000 5.0000
15

Statistics
Goodsalaryandworkingcondition
shasbeensecret
Managersuggestsnewwaysllook
inghowtocompleteassignments
N Valid 15 15
Missing 0 0
Mean 3.8000 2.6000
Median 4.0000 2.0000
Std. Deviation 1.32017 1.40408
Percentiles
25 3.0000 1.0000
50 4.0000 2.0000
75 5.0000 4.0000
Statistics
leadershipoffirm
provideeducatio
nalseminarfroml
eaving
relationshipwiths
uperioraffectcom
mitmenttoorgani
zation
leaderrepresents
interestandneed
sgroupwellinhigh
erhierarchy
stayifeverythingi
ncompanyisperf
ectbutarenothap
pywithleadership
describeyourma
nagerleadership
whatwillitbe
N Valid 15 15 15 15 15
Missing 0 0 0 0 0
Mean 3.8667 3.9333 2.4667 2.5333 3.7333
Median 4.0000 4.0000 2.0000 2.0000 4.0000
Std. Deviation 1.18723 1.22280 1.35576 1.24595 1.38701
Variance 1.410 1.495 1.838 1.552 1.924
Frequency Table
16

Yourworkingenvironmenteffectofwillingnesstostaywithorganization
Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 2 13.3 13.3 13.3
2.00 4 26.7 26.7 40.0
3.00 3 20.0 20.0 60.0
4.00 4 26.7 26.7 86.7
5.00 2 13.3 13.3 100.0
Total 15 100.0 100.0
Interpretation- it can be stated that out of 15, 4 disagree and 4 agree that working environment
effect willingness to stay with organization. 2 strongly agree and 2 strongly disagreed with it.
Thus, working environment play vital role in retaining of staff.
17

managergoesbeyondselfinterestforthegoodofgroup
Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 2 13.3 13.3 13.3
2.00 2 13.3 13.3 26.7
4.00 6 40.0 40.0 66.7
5.00 5 33.3 33.3 100.0
Total 15 100.0 100.0
18

Interpretation- from table it is analysed that 6 agree and 5 strongly agree that manager goes
beyond self interest for good of team. But only 1or 2 staff denied with this statement. Thus,
manager help team to reach goals in deadline.
managementorganizationpromoteemployeescareerdevelopment
19

Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 3 20.0 20.0 20.0
2.00 2 13.3 13.3 33.3
3.00 2 13.3 13.3 46.7
4.00 4 26.7 26.7 73.3
5.00 4 26.7 26.7 100.0
Total 15 100.0 100.0
Interpretation- It is stated that 4 staff agree and 4 strongly agree that management of organization
promote employee career development. However, 2 disagree and 3 strongly disagreed with it.
So, in both companies staff is given training to enhance their skills and knowledge. They are
given various opportunity as well.
20

TDplayroleindecisiontostaywithorganization
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 1 6.7 6.7 6.7
2.00 3 20.0 20.0 26.7
4.00 6 40.0 40.0 66.7
5.00 5 33.3 33.3 100.0
21

Total 15 100.0 100.0
Interpretation- from table it is stated that 6 agree and 5 strongly agreed T&D play crucial role in
staying in company. This is because staff learn and gain new skills which help in improving their
efficiency.
22

Highersalariesandbonusesmotivate
Frequency Percent Valid Percent Cumulative
Percent
Valid
2.00 1 6.7 6.7 6.7
3.00 2 13.3 13.3 20.0
4.00 5 33.3 33.3 53.3
5.00 7 46.7 46.7 100.0
Total 15 100.0 100.0
Interpretation- in this it can be analysed that 7 strongly agree and 5 agree that high salary and
bonus motivate staff to stay. With that their needs are fulfilled in effective way. Moreover, salary
is important element to encourage staff.
23

Morerespectandlesspressuremotivate
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 1 6.7 6.7 6.7
2.00 7 46.7 46.7 53.3
3.00 5 33.3 33.3 86.7
4.00 1 6.7 6.7 93.3
5.00 1 6.7 6.7 100.0
24

Total 15 100.0 100.0
Interpretation- it is found that 7 disagree with statement that more respect and less pressure
motivate them. However, 5 remained neutral in this. So, it is stated that there are other elements
as well which is considered by staff.
25

willeavecompanyforbetteroffersomewhereelse
Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 1 6.7 6.7 6.7
2.00 2 13.3 13.3 20.0
3.00 2 13.3 13.3 33.3
4.00 5 33.3 33.3 66.7
5.00 5 33.3 33.3 100.0
Total 15 100.0 100.0
Interpretation- here, 5 employees agree and 5 strongly agree that if they get better offer than they
will work somewhere else. Thus, staff look for growth opportunity in their career. Hence, they
get better offer, salary etc. which help in their career development.
Jobsatisfactionmotivatesyou
Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 2 13.3 13.3 13.3
2.00 3 20.0 20.0 33.3
3.00 1 6.7 6.7 40.0
4.00 4 26.7 26.7 66.7
5.00 5 33.3 33.3 100.0
Total 15 100.0 100.0
Interpretation- out of 15, 4 agree and 5 strongly agree that job satisfaction encourage them to
work each day. With that they are ensured about job security as well.
26

Goodsalaryandworkingconditionshasbeensecret
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 1 6.7 6.7 6.7
2.00 2 13.3 13.3 20.0
3.00 2 13.3 13.3 33.3
4.00 4 26.7 26.7 60.0
27

5.00 6 40.0 40.0 100.0
Total 15 100.0 100.0
Interpretation- from table it is stated that 4 agree and 6 strongly agree that good salary and
working condition has led to stay for long term. with salary their needs are fulfilled and positive
environment encourage them to work in team.
28

Managersuggestsnewwaysllookinghowtocompleteassignments
Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 4 26.7 26.7 26.7
2.00 4 26.7 26.7 53.3
3.00 3 20.0 20.0 73.3
4.00 2 13.3 13.3 86.7
5.00 2 13.3 13.3 100.0
Total 15 100.0 100.0
Interpretation- it can be said that 4 staff in each disagree and strongly disagree that manager in
firm suggest new way to finish tasks. They do not support and guide to work in effective way.
Moreover, no new ideas are implemented by manager
29

leadershipoffirmprovideeducationalseminarfromleaving
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 1 6.7 6.7 6.7
2.00 1 6.7 6.7 13.3
30

3.00 2 13.3 13.3 26.7
4.00 6 40.0 40.0 66.7
5.00 5 33.3 33.3 100.0
Total 15 100.0 100.0
Interpretation- the table shows that 6 agree and 5 strongly agree that leader for firm must provide
education seminar to staff. This will be useful in learning new skills and applying them. Besides
that, it will enhance their efficiency as well.
31

relationshipwithsuperioraffectcommitmenttoorganization
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 1 6.7 6.7 6.7
2.00 1 6.7 6.7 13.3
3.00 2 13.3 13.3 26.7
4.00 5 33.3 33.3 60.0
5.00 6 40.0 40.0 100.0
32

Total 15 100.0 100.0
Interpretation- it is analysed that out of 15, 5 agree and 6 strongly agree that relation with
supervisor affect commitment. They do not get support from them in completion of task. In
addition, it also leads to conflicts and impacting overall culture.
33

leaderrepresentsinterestandneedsgroupwellinhigherhierarchy
Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 4 26.7 26.7 26.7
2.00 5 33.3 33.3 60.0
3.00 3 20.0 20.0 80.0
4.00 1 6.7 6.7 86.7
5.00 2 13.3 13.3 100.0
Total 15 100.0 100.0
Interpretation- by interpreting table it is stated that strongly disagree and 5 disagree that leader
do not represent needs of group. Due to it their needs are not fulfilled. Also, it results in
demotivation and affect culture
34

stayifeverythingincompanyisperfectbutarenothappywithleadership
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 2 13.3 13.3 13.3
2.00 8 53.3 53.3 66.7
3.00 2 13.3 13.3 80.0
4.00 1 6.7 6.7 86.7
5.00 2 13.3 13.3 100.0
35

Total 15 100.0 100.0
Interpretation – by analysing data it is said that 8 disagree and 2 strongly disagree with it. the
staff will also consider other factors as well along with leadership. The factors are salary, culture,
T&D, etc.
36

describeyourmanagerleadershipwhatwillitbe
Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 1 6.7 6.7 6.7
2.00 2 13.3 13.3 20.0
3.00 3 20.0 20.0 40.0
4.00 4 26.7 26.7 66.7
5.00 4 26.7 26.7 93.3
6.00 1 6.7 6.7 100.0
Total 15 100.0 100.0
Interpretation – it is stated that 4 staff said oligarchic and 4 said other leadership style is
followed. So, it has enabled in effective working as well.
37

38

Statistics
goodworkingenvi
ronmentplayrolei
nretainingemplo
yees
managementoffir
mdrivePEStopro
moteemployeec
areerdevelopme
nt
Bonusesandday
soffaremotivatio
nofsubordinatest
oworkwithcompa
ny
highunemploym
entrateinaccragh
anahasresultedi
nlowlabourturno
ver
Goodsalaryhasb
eensecretofstayi
ngwithcompanya
lltheseyears
N Valid 10 10 10 10 10
Missing 5 5 5 5 5
Mean 3.1000 3.4000 3.8000 3.9000 3.8000
Median 3.0000 4.0000 4.0000 4.0000 4.0000
Std. Deviation 1.28668 1.57762 1.22927 1.19722 1.22927
Variance 1.656 2.489 1.511 1.433 1.511
Statistics
Goodworkingenvironmenti
ssecretofstayingwithcomp
anyalltheseyears
Youwanttocontinueworkin
gwithcompanybecauseyou
aresatisfied
staffcontinueworkifeverythi
ngisgoodbutnothappywithl
eadership
N Valid 10 10 10
Missing 5 5 5
Mean 3.1000 3.8000 3.3000
Median 3.5000 4.0000 4.0000
Std. Deviation 1.52388 1.13529 1.49443
Variance 2.322 1.289 2.233
Frequency Table
goodworkingenvironmentplayroleinretainingemployees
39

Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 1 6.7 10.0 10.0
2.00 2 13.3 20.0 30.0
3.00 4 26.7 40.0 70.0
4.00 1 6.7 10.0 80.0
5.00 2 13.3 20.0 100.0
Total 10 66.7 100.0
Interpretation- from table it is said that 4 managers remain neutral 2 agree and 2 strongly
disagree that environment play vital role in retaining of staff. So, it is important to maintain it so
that positive culture is maintained.
40

managementoffirmdrivePEStopromoteemployeecareerdevelopment
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 2 13.3 20.0 20.0
2.00 1 6.7 10.0 30.0
3.00 1 6.7 10.0 40.0
4.00 3 20.0 30.0 70.0
41

5.00 3 20.0 30.0 100.0
Total 10 66.7 100.0
Interpretation- It is said that 3 manager agree and 3 strongly agree that PES promote staff career.
They learn and gain new skills. Also, staff learn and gain new skills.
42

Bonusesanddaysoffaremotivationofsubordinatestoworkwithcompany
Frequency Percent Valid Percent Cumulative
Percent
Valid
2.00 2 13.3 20.0 20.0
3.00 2 13.3 20.0 40.0
4.00 2 13.3 20.0 60.0
5.00 4 26.7 40.0 100.0
Total 10 66.7 100.0
Interpretation- it can be analysed that 4 managers strongly agreed and 2 agree that bonus and day
off motivate subordinate. They get relief from stress and work load and spend time with family.
From data interpretation, it can be identified the opinion or view point of managers because they
have been sharing their idea on the basis of experience. It means that give more importance to
their view point towards the concept.
43

highunemploymentrateinaccraghanahasresultedinlowlabourturnover
Frequency Percent Valid Percent Cumulative
Percent
Valid 2.00 2 13.3 20.0 20.0
3.00 1 6.7 10.0 30.0
4.00 3 20.0 30.0 60.0
5.00 4 26.7 40.0 100.0
44

Total 10 66.7 100.0
Interpretation- here, 4 managers strongly agreed and 3 agree that unemployment rate is reason
for low turnover. The staff stay with one particular firm for long time as there are no jobs
available.
45

Goodsalaryhasbeensecretofstayingwithcompanyalltheseyears
Frequency Percent Valid Percent Cumulative
Percent
Valid
2.00 2 13.3 20.0 20.0
3.00 2 13.3 20.0 40.0
4.00 2 13.3 20.0 60.0
5.00 4 26.7 40.0 100.0
Total 10 66.7 100.0
Interpretation- from table it is said that 4 strongly agree and 2 agree that good salary is secret of
stay in firm. they get highly paid and their needs are fulfilled as well.
46

Goodworkingenvironmentissecretofstayingwithcompanyalltheseyears
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 2 13.3 20.0 20.0
2.00 2 13.3 20.0 40.0
3.00 1 6.7 10.0 50.0
4.00 3 20.0 30.0 80.0
5.00 2 13.3 20.0 100.0
47

Total 10 66.7 100.0
Interpretation- from table it is said that 2 strongly agree and 3 agree that good environment has
led to stay in firm. the manager has developed strong relation with staff. Also, they get respect
from staff and work with diversified people.
48

Youwanttocontinueworkingwithcompanybecauseyouaresatisfied
Frequency Percent Valid Percent Cumulative
Percent
Valid 2.00 2 13.3 20.0 20.0
3.00 1 6.7 10.0 30.0
4.00 4 26.7 40.0 70.0
5.00 3 20.0 30.0 100.0
49

Total 10 66.7 100.0
Interpretation- here, 4 managers agreed and 3 strongly agreed that they continue to work if they
are satisfied. It means good salary, culture, T&D, etc. are fulfilled by firm.
50

staffcontinueworkifeverythingisgoodbutnothappywithleadership
Frequency Percent Valid Percent Cumulative
Percent
Valid
1.00 2 13.3 20.0 20.0
2.00 1 6.7 10.0 30.0
3.00 1 6.7 10.0 40.0
4.00 4 26.7 40.0 80.0
5.00 2 13.3 20.0 100.0
Total 10 66.7 100.0
Interpretation – from table it is stated that 4 managers agree staff work if everything is good but
they are not happy with leadership. However, 2 managers strongly disagreed with it.
51

Interview
Here, interview of 5 employees were taken in which most of them said that working
environment effect on willingness of staff. Also, they agreed with it. Moreover, it can be
analysed that most staff strongly agreed that manager does not goes beyond self interest. They
only do it when their interest is also included in it. Furthermore, manager get high bonus as well.
so, it leads to conflict between them. This affect culture as well. Many staff said that
52

organization promote development but to limited access. In 6 months one seminar is conducted.
So, it does not improve their skills and knowledge. There is no proper training given. However,
many staff said T&D play vital role as they learn varied skills from that. Hence, it directly
impact on their decision to stay. Likewise, high salary and bonus also encourage them to stay in
firm. There are many other factors as well which is considered by them. It includes relationship
with superior, needs, T&D, salary, etc. so, most staff agreed with this as well.
As per analysis, it has been gathered a lot of information or data about the relevant leadership,
which directly affecting on the employee commitment within Small and medium size enterprises
in global marketplace.
The discussion have been completed on the basis of interpretation of data or information by
using SPSS tool or platform. It is one of the most common approach that investigator use in this
study for generating accurate result or outcome. Through this tool, it has been focused on the
respondent as employee for identifying their opinion or view point as per their experience.
Afterwards, it has been gathered a large data in the form of numerical value so that it become
easier for calculating the accurate output.
When consideration of two SMEs to interact with their staff members and also record their
answer in both positive as well as negative aspect. Therefore, it help for researcher to consider
appropriate input and then generate output in proper manner. In additional, It also considered that
improve own understanding towards research topic but it mainly depend upon the practical as
well as theoretical approach. In this study, investigator have majorly focused on the practical
aspect to use SPSS while performing the numerical operations in step by step manner.
CHAPTER 5- CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusion
From above discussion, it has concluded that leadership skills have positive effect on
SME’s. Therefore, leaders who have an effective skill for improving the overall performance of
53

organization. Sometimes, SME can perform better way to handle the different business
operations such as communication, risk management, financial planning and negotiation.
Through this study, it has been examined the leadership style that positively affect SMEs
enterprise management. A charismatic leader who is establishing the better communication with
different stakeholders, who fosters unity a workplace and delegate’s employee commitment
towards SMEs. Afterwards, it also analysed the different ethics in leadership that effect on staff
commitment towards SMEs enterprise. It may include ethical behaviour but not limited to leader
observe or adhere business policies and procedures.
As per analysis, it has identified that Leadership concept help for identifying the
interaction between subordinates and their supervisors, which is always inspiring or motivating
the staff members towards their goal and achievement. Through study, it has concluded the
importance of leadership that effect on the staff commitment in SMEs. Whenever a great leader
has an ability to provide the right direction of their staff members. Indirectly, it helps for SMEs
to increase the overall production and sales in global marketplace.
The study has been examined the leadership effect on the staff commitment within Small
and medium enterprise, when employee face job dissatisfaction, they may leave the organization
because of depressing environment. Since, leadership style may directly affecting on the
satisfaction level of employee, which will eventually increase to job commitment. In this way, it
has summarised that leadership plays important role within staff member commitment towards
SMEs. it has been increasing the opportunities for SMEs to enhance the importance of
organization in global marketplace.
Moreover, the study has been described about the different of factors that are mainly used
by SMEs in order to ensure employees commitment. Basically, involves organizational factors
and individual factors. Organizational factors are impacting on the staff commitment in context
of salary, training development and leadership style. These are considered as important aspect of
SMEs to enhance the overall business need or requirement. It may support for achieving the
desirable goal and objective. On the other hand, Individual factors can be identified in context of
54

personal advancement opportunities, past job experience and increased stress level, fulfilment of
personal needs, job security. In this way, it has concluded that organizational as well as
individual factors, which always inspire or motivate the staff commitment in order to improve
job satisfaction of employee in SMEs.
Further this research study findings also indicate that SMEs management should consider
the effective personality of different managers. It is one of the important factor which can bring
an effective organizational commitment among staff members in SMEs. Through different
leadership styles represent a continuum between real worlds. Afterwards, Each and every staff
member’s commitment towards work, innovation behaviour, emotionally intelligence,
performance and their ability to work within team. This study provide the brief information
about the leadership that applicable within SMEs so as staff members always commitment
towards organizational goal and objective. Through this study, it can be determine the influence
of leadership and their effect on Staff commitment. The Quantitative research provide the better
predictability and insight effect of leadership on the employee commitment. It is also indicated
that Manager perform the significant role as top management of SMEs. This research study
extends better contribution to the different managerial implication and theoretical implication,
which may explain the impact of leadership on the staff members commitment within SMEs.
5.2 Recommendations
In this study, it has found that leadership effect on the staff commitment towards SMEs.
That’s why, it has recommends that different small business enterprises leader to enhance their
leadership in order to improve entire performance of organization. This will be ensuring that
leadership is appropriate or enhance the overall business in both financial as well as non-
financial. In this way, it is important for understanding the importance of leadership within
organization.
The study is also recommends that SMEs leaders need to adapt the better ethical practices
in their business operation and function. It can improve the overall performance of enterprises in
proper manner. Ethical behaviour includes as important to observe the opinion, view point of
55

staff members towards SMEs. Furthermore, Staff members adhering to SMEs policies,
procedures, exhibiting integrity, honesty and records openness to the scrutiny.
Small and Medium sized Enterprise play an important role in the economy development,
which including creation of employment with majority of Ghana being employee by small,
medium enterprises. The entire performance of business is considered as critical part in context
of growth and development (Daniëls, Hondeghem & Dochy, 2019). The study has found that
leadership will contribute to the business activities while enhancing the performance. In this
study, recommends that different business development partners, government initiative towards
leadership training to their staff members so that they can improve own skill and gain more
knowledge. Within small and medium enterprises, conducting the suitable training session where
each and every members participate in proper manner. This can be done by government so that
easily reached with SME in rural areas or place.
An effective leadership training always influencing the staff members to identify their own
strength, weakness that help for improving in proper manner. During training, it should cover all
personal leadership, financial management and other record keeping.
In above conclusion, it can be said that leadership affected the positively to employee job
satisfaction level whereas developing the ability or capability. This finding will indicate that
leadership style inspire employees of SMEs should have been understanding the need or
requirement of business. If staff member implement the different tasks effectively, they will
attain their targets successfully (Daniëls, Hondeghem & Dochy, 2019).. It allows the staff
members to assume their efficient job thus, making them as satisfied with their roles in SMEs.
Additionally, the flow of leadership style effect will enhance the employee’s commitment which
will grow the business reputation, brand.
In view of finding the study, the following recommendations that would be helpful to the
selected SMEs in Africa. To examine the challenges faced by staff members, especially in area
of leadership style. Secondly, Aside from the seniority, qualification of employees that should be
56

provided the rewarded more on the basis of performance and their positive commitment towards
SMEs.
Since this research work has been shown that performance related pay staff members to
improve job satisfaction level. It is strongly recommended that employee’s salaries based on
their own leadership skills, knowledge and other essential parameters.
5.3 Limitation of the work
The research study was limited by different factors that affected through procedure of
researcher and ensure them specific goal, objective. Another limitation was leadership
measurement that are limited in term of leadership styles, ethics and skills (Daniëls, Hondeghem
& Dochy, 2019).. As considered the five important factors, which is basically used to understand
the overall business tasks. However, leadership has different aspect which include traits,
practices of leadership.
In this research project, it may have considered the limited variables in context of
leadership while dependent variables also limited towards staff commitment within SMEs. In
spite the fact that leadership within SMEs will affected by different factors. it involves resources,
strategies. This was not only affected the entire business performance by economic environment
in Accra Ghana West Africa.
The project was used the primary data alone to make finding and reach to conclusion.
During research analysis, primary data may suffer from accuracy concern where it cannot be
verified appropriate information in proper manner. Moreover, relevant data tends to the
subjected, since it reflects on the opinion, view point of decision makers. Researcher was
addressed the challenge or issue in designing of research question and difficult to decide the
proper object as possible.
The study was determined the limited to SMEs in Accra Ghana West Africa, that’s why,
researcher have faced the difficulties in Africa. Small enterprise firms within a specific
geographical location that usually share common features, characteristics but which differ from
57

one location to another. As per studying, it have limited ability to recognize or generalize the
appropriate findings.
5.4 Implications of work for future research
Further study is suggested on the effective relationship between the staff members in SMEs.
It should be considered the different measurement variables that could be used to identify the
SME leadership and their effect on the employee commitment. For this research study,
leadership measurement was limited to analyse the different ethics, styles and skills (Daniëls,
Hondeghem & Dochy, 2019).. At that time, it could include appropriate traits, structure and
ability to make the better decisions. Employee commitment can also be measured with the help
different factors that affect on the overall job satisfaction level of staff members. Sometimes,
different factors are influencing to achieve their desirable goal and objective.
A similar research study is also recommended where measuring the effect of leadership
on staff commitment within SMEs by secondary data. It will improve the reliability of
information or data that mainly obtained, allows confirmation of this study on the basis of
finding. The relevant data to leadership that can be collected or gathered over five years.
Typically, consideration of leadership style on the basis of measurement by using variables. It
can be done on the annual basis which enabled to the comparison of data analysis in proper
manner.
The research study was limited to SME in Africa so that further suggested on the effect of
leadership on the staff commitment within SMEs into different regions, countries. In this way,
researcher will enable to generalise the overall study findings in proper manner. Moreover,
organizations within a certain geographical location that mainly shared the most common
features, characteristic which different from one location to another.
58

REFERENCES
Books and Journals
Agha, N. C., Nwekpa, K. C., & Eze, O. R. (2017). Impact of ethical leadership on employee
commitment in Nigeria-a study of Innoson Technical and Industrial Company Limited
Enugu, Nigeria. International Journal of Development and Management Review. 12(1).
202-214.
Alvesson, M. and Einola, K., 2019. Warning for excessive positivity: Authentic leadership and
other traps in leadership studies. The Leadership Quarterly. 30(4). pp.383-395.
Belitski, M., & Liversage, B. (2019). E-Leadership in small and medium-sized enterprises in the
developing world. Technology Innovation Management Review. 9(1). 64-74.
Bell, S. & et.al., 2020. Working with Aboriginal young people in sexual health research: a peer
research methodology in remote Australia. Qualitative Health Research.
p.1049732320961348.
Benfell, A. (2020). Modeling functional requirements using tacit knowledge: a design science
research methodology informed approach. Requirements Engineering, 1-18.
Chan, S. C. (2019). Participative leadership and job satisfaction. Leadership & Organization
Development Journal.
Daniëls, E., Hondeghem, A., & Dochy, F. (2019). A review on leadership and leadership
development in educational settings. Educational research review. 27. 110-125.
Diamantidis, A. D., & Chatzoglou, P. (2019). Factors affecting employee performance: an
empirical approach. International Journal of Productivity and Performance
Management.
Dodds, S. & Hess, A.C., (2020). Adapting research methodology during COVID-19: lessons for
transformative service research. Journal of Service Management.
Dodds, S. and Hess, A.C., 2020. Adapting research methodology during COVID-19: lessons for
transformative service research. Journal of Service Management.
Jing, F.F., Avery, G.C. & Bergsteiner, H., (2020). Leadership variables and business
performance: Mediating and interaction effects. Journal of Leadership &
Organizational Studies. 27(1). pp.80-97.
Kocherbaeva, A., Samaibekova, Z., & Isabaeva, K. (2019, October). Leadership and leaders in
successful small and medium enterprises. In 4th International Conference on Social,
Business, and Academic Leadership (ICSBAL 2019). Atlantis Press.
Krajcsák, Z. (2019). Leadership strategies for enhancing employee commitment in
TQM. Journal of Management Development.
Ling, B., Guo, Y., & Chen, D. (2018). Change leadership and employees’ commitment to
change. Journal of Personnel Psychology.
Shahar, S.M., Ma’arif, M.Y., Yusof, M.F.H. and Satar, N.S.M., 2019, September. Research
Methodology Trending in Evolutionary Computing. In International Conference on
Computational Collective Intelligence (pp. 474-485). Springer, Cham.
59

Soomro, B. A., Shah, N., & Mangi, S. (2019). Factors affecting the entrepreneurial leadership in
small-and medium-sized enterprises (SMEs) of Pakistan. World Journal of
Entrepreneurship, Management and Sustainable Development.
Trimmer, K. (2020). Skilling up: evaluation of a design-based research methodology. The
Australian Educational Researcher. 47(2). 357-375.
Vuong, B.N. & et.al., (2020). An Empirical Assessment of Organizational Commitment and Job
Performance: Vietnam Small and Medium-Sized Enterprises. Journal of Asian Finance,
Economics and Business. 7(6). pp.277-286.
60