EFFECT OF AUTOCRATIC AND TRANSFORMATIONAL LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE

This study examined the effect of autocratic and transformational leadership styles on employee performance in Small and Medium Enterprises (SMEs) in Nigeria. The research was motivated by the need to understand how different leadership approaches shape employee behavior, motivation, satisfaction, and performance, given the critical role of leadership in sustaining productivity in SMEs. A descriptive research design was employed, using structured questionnaires administered to a purposive sample of 85 employees in selected SMEs. Descriptive statistics (frequency, percentages, mean, and standard deviation) were used to analyze demographic data, leadership perceptions, job satisfaction, and performance indicators. Inferential statistics (t-tests) were applied to test the stated hypotheses on the impact of autocratic and transformational leadership on employee performance. Findings from the demographic analysis indicated that the workforce was dominated by males (71.2%) and younger respondents aged 26–35 years (36.0%). Most respondents were single (70.4%) and held a B.Sc degree (53.6%). In terms of work experience, the majority had between 5–10 years (53.6%), suggesting that the workforce was relatively young but experienced. The descriptive analysis of leadership styles revealed that respondents accepted the influence of both autocratic and transformational leadership. Autocratic leadership was associated with confidence, vision, and control, while transformational leadership was linked with corrective intervention, motivation, and performance rewards. Job satisfaction analysis showed moderate acceptance, with employees appreciating working conditions but expressing limited motivation and recognition. Employee performance analysis indicated positive outcomes, particularly in teamwork and initiative, though training and capacity building emerged as areas for improvement. The hypothesis testing revealed that both autocratic and transformational leadership styles had a statistically significant impact on employee performance (p = 0.000). Autocratic leadership was shown to enhance task completion and compliance, while transformational leadership improved motivation, commitment, and growth. This confirms that leadership style plays a central role in shaping employee outcomes in SMEs. The study concludes that leadership is a critical determinant of employee performance in SMEs in Nigeria.