Abstract:
This study investigated how a Positive Work Environment is influenced by Authentic Leadership, Employee Wellbeing and Meaningful Work in the context of SMEs in Kampala District. The study objectives were to: 1) examine the relationship between authentic leadership and positive work environment of SMEs 2) assess the relationship between meaningful work and positive work environment of SMEs 3) examine the relationship between employee wellbeing and positive work environment of SMEs 4) study the factor structure of authentic leadership, wellbeing, meaningful work and positive work environments of SMEs. The study took place in selected Small and Medium Enterprises from selected Manufacturing, Trade and Service sectors in Kampala District. A mixed-methods approach was employed, incorporating both qualitative interviews and quantitative surveys and the study population was 108,455 (SMEs) with a sample size of 382 was used. The qualitative phase involved semi-structured interviews with employees in SMEs to gain insights into their understanding and practice of the study variables. The quantitative phase utilized a survey questionnaire to collect data from a sample of SME employees to measure their perceptions of Authentic Leadership, Employee Wellbeing, Meaningful Work, and Positive Work Environment. Only 320 surveys were returned yielding an 83.7% response rate (320/382*100) which guaranteed high quality research outcomes. The findings indicate that; there is a positive relationship between Authentic Leadership and Positive Work Environment (r=.347**, p < 0.01), there is a positive relationship between Authentic Leadership and Meaningful Work (r=.524**, p < 0.01) and a positive relationship between Meaningful Work and Positive Work Environment (r=.303**, p < 0.01), there is a positive relationship between Employee Wellbeing and Meaningful Work (r=.110*, p < 0.05). Regarding the goodness of fit for the model, the Adjusted R-square of .255 and the F-statistic for the overall model of 37.305 is statistically significant (p=0.000). This research contributes to the literature on Authentic Leadership, Employee Wellbeing, Meaningful Work, and Positive Work Environment focusing specifically on Small and Medium Enterprises. The findings provide valuable insights on SMEs seeking to enhance the positivity of a work environment through the cultivation of authentic leadership practices, improving the wellbeing of employees and making work meaningful to employees. Based on the findings the study recommends that; SMEs in Kampala District should endorse excellent leadership practices, improve wellness of employees to yield great meaning of work for all stakeholders involved thus creating a Positive Work environment.
