EXPLORING EMPLOYEE PERCEPTIONS OF LEADERSHIP AND MANAGEMENT PRACTICES IN SECOND-GENERATION FAMILY-OWNED BUSINESSES

Leadership and management practices play a pivotal role in shaping the success and sustainability of any organization, particularly family-owned businesses transitioning to second-generation leadership. Effective leadership inspires and motivates employees, aligns organizational goals with strategic actions, and fosters a culture of trust and collaboration. In second-generation family businesses, these practices become even more critical as leaders must navigate the complexities of balancing tradition with innovation. Family-owned businesses are a vital component of the global economy, particularly in regions like Gujarat, where entrepreneurial ventures are deeply rooted in tradition. The transition of leadership and management from the founding generation to the second generation introduces unique challenges and opportunities. This study explores employee perceptions of leadership and management practices in second-generation family-owned businesses in Gujarat. A sample size of 164 employees was surveyed to analyse their views on leadership effectiveness, management approaches, and the influence of demographic factors on these perceptions. The findings reveal insights into employee satisfaction, the alignment of leadership practices with modern business needs, and the role of inclusive management in fostering organizational success. This research contributes to the understanding of how second-generation family business leaders can optimize their practices to enhance employee engagement and business sustainability.