EFFECTS OF TRANSFORMATIONAL LEADERSHIP STYLE ON EMPLOYEES’ PERFORMANCE IN SMALL AND MEDIUM-SIZE ENTERPRISES OF GHANA

Abstract

This study examines the effects of transformational leadership styles on the employee's performance in the SMEs in Ghana. A cross- sectional survey design and explanatory design was used to gather data from the personnel of hundred (100) SME in Ghana. Five hundred (500) workers from 100 SMES in Ghana were sampled. The instrument used in this study was structured questionnaire. The quantitative method was used. Descriptive statistic and multiple linear regressions were employed to analyze the data. The finding revealed that inspirational motivation had the highest-level enhancing employee performance in SMEs in Ghana. This is followed by individualized consideration, idealized influence, and intellectual stimulation, respectively. The study findings revealed that idealized influence, inspirational motivation, individualized consideration had a positive coefficient and a statistically significant influence on the performance of employees in the SMEs in Ghana. However, intellectual stimulation had a positive coefficient but did not have a statistically significant result. The study contributes that transformational leadership components are the fundamental to employee performances in the SMEs in Ghana.