Effects of Leader Behavior on Employee Performance Business Essay (Essay Sample)

Effects of Leader Behavior on Employee Performance
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Effects of Leader Behavior on Employee Performance
Leader reward behaviors have pronounced effects on employee behavior and perceptions. Various leadership theories such as transactional leadership (Bass, 1985), and path-goal (House, 1996), utilize leader reward behaviors to develop their arguments. Rewards form a key part of fairness consideration on the part of the employee (Locke, and Latham, 1990). This research looks at the different thoughts on leader rewards and their effects on employee performance.
Path-goal theory of leader reward suggests that clarifying strategies for achieving organizational goals and objectives, together with the institution of proper employee appraisal systems lead to improved employee performance. Specifically, proper appraisal systems have a positive impact on employees’ satisfaction and motivation which in turn lead to improved performance. On the other hand, rewarding top performers motivates them to maintain their top performance through consistency (Walker, et. al 2013).