Due to changes in business environment as a result of globalization and rapid technological and socio-economic development supply, conditions for business success are also changing. Increasing the efficiency and quality of work has a very important role. Therefore we investigated the management and motivation in small wood industry companies in Slovenia. The survey method was to verify the frequency of lead-managerial and boss leadership method. We also determined to which motivational factors leaders are focusing in motivating employees. We found out that the lead-managerial leadership method is used more often than boss leadership one. According to the historical research we can conclude that the use of lead-management leadership is increasing. When studying motivation, we used several motivational theories and compare them to each other. It was found out that leaders in small wood industry companies are focusing in motivating employees primarily on satisfying their basic living needs (survival, security, etc.). The potential in leadership for more successful business is in reduction of the use of boss leadership method elements, while in motivating it is necessary to pay attention to more effective satisfaction also of other demands to increase employee satisfaction and motivation.
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