From time immemorial, the role of leaders in ensuring excellent organizational performance can not be over emphasized. The need for adequate motivation, suitable working environment, compensation and efficient communication between employers and employees are important to promoting excellent organization performance. Though studies on motivation and leadership role amongst employees are well studied in urban centers in developed countries, less could be said of rural centers in developing countries like Nigeria. Therefore, it was important to evaluate leadership and organizational performance in small- scale industries in Aba, Abia state, Nigeria. The evaluation was done through use of questionnaires with questions tailored towards determining: the relationship between leadership and organizational performance, pattern of leadership and the extent it has affected organizational performance, the factors responsible for worker’s low performance and how leadership style has affected labor management relations and productivity in three selected small scale industries in the study area. After analyzing the result with Chi-square, it was concluded that to attain the objectives of small-scale industries in Aba, Abia state Nigeria, it was necessary that leadership recognizes the needs of the workers, employ appropriate motivational tool such as promotion of staff based on merit and skills, provide suitable working environment and provide an appropriate leadership style that will encourage free flow of information among employer, superior officers and other employees.