Relationship of leader behaviour that affects employee (Essay Sample)

RELATIONSHIP OF LEADER BEHAVIOR THAT AFFECTS EMPLOYEE’S PERFORMANCE Abstract Although behavioral approaches to understanding leadership declined following a peak in the 1950s (e.g. Likert, 1961; Stogdill, 1950), they remain a critical element in the leadership literature ( Judge et al., 2004; Podsakoff et al., 2006). In particular, leader reward behaviors are central to many contemporary leadership theories, such as the path-goal model of leadership (House, 1996) and transactional leadership (Bass, 1985).This attention is warranted because meta-analytic evidence suggests that leader reward behaviors are significant determinants of subordinate perceptions, attitudes, and task performance (e.g. Lowe et al., 1996; Judge and Piccolo, 2004; Podsakoff et al.,2006). For example, results of a comprehensive meta-analytic review conducted by Podsakoff et al. (2006) suggested that leader contingent reward behaviors are positively related to subordinate commitment, job satisfaction, and task and citizenship performance, and negatively related to turnover intentions. However, explanations for why these relationships exist remain untested, which led Podsakoff et al. (2006) to cite the examination of mediators as a priority for future research. In response to this call, we provide an initial test of subordinates’ perceptions of justice and morale as mediators of the effects of leader reward behaviors on three important outcomes: task performance, organizational citizenship behavior (OCB), and turnover intentions. Follower cognition and affect play a central role in the impact of leadership behaviors on follower outcomes (Lord and Brown, 2004; Shamir et al., 1993). The manner in which leaders administer rewards to followers affects the latter’s cognitive processes and subsequent attitudes and behaviors (Podsakoff et al., 2006). There is, however, a need for rese arch that identifies the intervening cognition and affect that mediate the effects of leader reward allocation on follower attitudes and behaviors, and the order in which the mediators occur (Podsakoff et al., 2006). An understanding of how and why leader reward behaviors affect subordinate work performance is vital to understanding the leadership process. Such an understanding will also prove invaluable if certain conditions must be met (e.g. rewards must be perceived as fair) in order for leader reward behaviors to elicit their desired effects from subordinates. Leader reward behavior Leader reward behaviors are important determinants of employee attitudes, perceptions, and behaviors. It is not surprising, then, that leader reward behaviors are central to leadership theories like path-goal (House, 1996) and transactional leadership (Bass, 1985) theories. Path-goal theory posits that rewarding employee performance, along with clarifying paths toward goals and removing obstacles to performance, is beneficial for employees. Specifically, these behaviors increase employees’ performance, satisfaction, and motivation (House, 19 71). Reward behaviors are also central to transactional leadership as one subtype of transactional leadership –contingent reward – involves an exchange between supervisors and subordinates wherein leaders provide an explanation of reward contingencies, offer incentives, and provide rewards in exchange for good employee performance. Leader reward behavior both clarifies expectations of employees and also recognizes achievement and progress toward goals. Clarifying expectations is critical because it helps employees form specific and time-bound performance goals, which are necessary to achieve optimal performance (Locke and Latham, 1990). Frequently rewarding high performers may motivate them to maintain their level of performance and work hard to meet more difficult performance goals, and recognizing progress toward goals may motivate employees to devote more effort toward attaining their goals. Although research has shown that contingent reward behavior is positively related to followers’ commitment, satisfaction, and performance (Lowe et al., 1996), it has yet to be established how and why leader reward behaviors impact performance. In the following s...