Journal of Business Paradigms (Dec 2016)
STRUCTURAL EQUATION MODELING BASED ON THE RELATIONSHIP OF ELEMENTS OF THE SYSTEM MODEL OF BUSINESS PERFORMANCE CONNECTED TO THE QUALITY OF LIFE IN SMALL AND MEDIUM ENTERPRISES FROM THE ASPECT OF LEADERSHIP
Abstract
The productivity and quality of life and work in SMEs affect all employees equally. Thus, the proper distribution of employee time in the production process or provision of services in SMEs yields good firm productivity. Serbia finds itself within such a so-called “transition”, there are many layoffs in all spheres of society, including SMEs, and this directly leads to deterioration of the quality of the workforce and the quality of employees' lives. Disssatisfaction is great; those who manage to keep their jobs fear for their personal income, which is not a large sum and which is often late. Internal and external motivation is low. Those who are unemployed or who were discharged fear whether they will find a job. The brain drain to other countries, in all types of professions, is great. This leads to a direct impact on the development and performance of the currently active SMEs in Serbia, which should be the backbone of economic development. Business performance measures the real impact of SMEs. Therefore, it is necessary to identify as soon as possible concrete measures to improve the living and working conditions of employees, including in SMEs, which means that they should look for possible models to improve business performance and the quality of life for those employed in SMEs. Structural equation modelling based on the connection of the elements of the systematic model of business performance as related to the quality of life in small and medium-sized enterprises in terms of leadership emerged from the research that has been partially addressed in the doctoral dissertation of the first author in collaboration with the Centre for the quality of study at the Faculty of Engineering, University of Kragujevac. Research demonstrates one approach to the problem of business performance related to the quality of life in small and medium-sized enterprises to quantify and thus monitor and predict possible solutions
