How do I like thee? Let me appraise the ways

Abstract

AbstractThis study examined the effect of leader‐member exchange (LMX) on the relationship between employee performance (measured objectively) and the supervisor's rating of that performance. To date, no field study has tested whether high and low LMX members receive differential ratings based on their LMX relationship, beyond their actual performance. Data were collected from employees (directory assistants, cable technicians, and dispatch clerks) and their supervisors in a telephone company. The objective measures of performance which were available for these jobs were related to supervisory ratings of performance for high and low LMX employees. The results showed that poorly performing high LMX employees were given high performance ratings, regardless of their actual performance. The ratings of low LMX employees were consistent with their actual performance. The effect of LMX was more pronounced with more general task and relationship rating categories. Alternative explanations of the results, as well as the theoretical and practical implications for performance appraisal and LMX research, were discussed.