The role of situational leadership in small business management among Pietermaritzburg Chamber of Business members.

Abstract

Leaders within South African organisations and corporations are faced with challenges such as over-management and under-leadership. While management is about coping with complexity, leadership is about coping with change. In the actual business environment, foremost changes are progressively necessary for business survival and effective competition. In fact, the effective leadership is measured by organisational effectiveness. However, by displaying an effective leadership, leaders are called not only to influence subordinates but also enable them to achieve the organisational goals. Therefore, the effective leadership will not be focused on supremacy but on the organisational achievement. This requires an important and permanent participation and consultation of all team members. The present research study is focused on the analysis of the role of situational leadership in the context of small business management. The main purpose of this research is to examine and to critically evaluate the use of different situational leadership styles in the management of small businesses. This study has sought to review leader obligations and the evolution of these leadership styles in small business management. The study has intended to provide the fundamental empirical evaluation of the role played by situational leadership in small business management. The sample for the present research has been identified from within the Pietermaritzburg Chamber of Business (PCB). A random sample has been drawn from the SMEs within the membership, using standard sampling techniques and methodologies. The population was consisting of small businesses that are members of the PCB. The findings of this research have shown the positive impact that a situational leadership model has in small business management. In fact, small business owners and leaders will be inspired to understand the managerial role of the appropriateness behavioural style in the contextual business situations. Also, the study recommended that owners and leaders of small business should ameliorate leader sovereignty and follower skills, as these often interact in predicting poor follower performance and attitudinal responses. In addition, the present study has provided the tools necessary for small business owners, to guide the improvement and effectiveness of personal leadership.