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Employee performance is a key asset for any organisation and its success. In small and medium enterprises, the employee performance is even more critical, and controlling it and further improving it can be a challenge. Continuous improvement initiatives can help with the employee performance as well as the senior management commitment. The focus of the present paper is the impact of the various leadership styles in sustaining and improving the employee performance in SMEs. A thorough literature review is presented focusing in reviewing the various types of leadership styles employed in SMEs in developing countries. A questionnaire is used for capturing the current state with regards the employee performance and the role of leadership in manufacturing SMEs in UAE.
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