The Effect of the Carrot and Stick Transactional Leadership style in Motivating Employees in SMEs

Maria Frangieh and Daniel Rusu
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Maria Frangieh: Bucharest University of Economic Studies
Daniel Rusu: Bucharest University of Economic Studies

REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, 2021, vol. 22, issue 2, 242-252

Abstract: Nowadays, where everything in the business world looks like collapsing, leaders stand out by efficiently exploiting resources, especially human capital. They acknowledge the vital role employees play in realizing objectives. They are also aware that, in order to get the best employee performance, they should identify the needs that motivate each one. Therefore, the purpose of the paper is to highlight the effects of the carrot and stick transactional leadership style on employee motivation. The quantitative approach was adopted. Primary and secondary data were used. Primary data was collected via a small survey conducted at three dairy manufacturing Lebanese SMEs, and was analyzed using SPSS. The reason behind selecting this sector was that its operating activities had not ceased during the financial crisis and the covid-19 lockdown. The survey depended on a small, structured, six-sections questionnaire sent to employees occupying managerial positions. In total, 15 questionnaires were sent. Only 12 were returned and analyzed. This article’s results claps hands to the theories in literature that indicate the existence of a positive relationship between the carrot and stick approach and motivation.

Keywords: Carrot and Stick Approach; Human Capital; Leadership; Motivation; SMEs; Strategy; Transactional Leadership. (search for similar items in EconPapers)
JEL-codes: M10 M12 M52 M54 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:rom:rmcimn:v:22:y:2021:i:2:p:242-252

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