A dynamic system of job performance with goals and leadership changes as shocks

Abstract

Two consistent predictors of salesperson job performance include goals and leadership. Much of the research related to these domains, however, has two limitations. First, it is removed from an understanding of how effects operate when performance is viewed as a dynamic system, or a construct with inherent feedback loops and a tendency to ebb and flow over time. Second, it focuses on leadership behaviors rather than leadership changes (i.e., experiencing a change in one’s supervisor), even though employees in today’s workforce often experience the event of having a leader replaced. We extend this literature by establishing and testing a theory of performance system dynamics such that key principles of dynamics regarding performance over time are integrated and tested. Moreover, these two predictors, salesperson goals and leadership changes, are represented as exogenous inputs or shocks. Repeated measures data on sales employees obtained over six months provide evidence of performance system dynamics, reflecting not only patterns of consistency but also responses to external forces. Findings also reveal that company-assigned goals (i.e., quotas) are a significant predictor of effort and performance beyond the employees’ typical behavior and nullify any potential negative impact of leadership changes. The paper concludes with implications for both research and practice.