The Leader–Follower Relationship and Follower Performance

Abstract

IntroductionSuccess today's globally competitive environment prompts organizations to maximize employee performance. This becomes a shared responsibility between leadership and management, as well as human resource management (HRM) whose primary responsibility is performance management: the identification, measurement, and development of human performance organizations. Organizations expend time, energy, and money on performance management initiatives for the purpose of influencing employee behavior for the benefit of the organization. From a performance management perspective, managers provide feedback and coaching to workers and offer recommendations for improving individual performance, which often includes identifying key behaviors to incorporate or avoid, and competencies to further develop.Statement and significance of the problemIf employees are a source of competitive advantage for organizations, their effective management may be a key differentiator for organizational success. This advantage is contingent upon the level of employee performance, which may be influenced by multiple factors. Determining which factors contribute to improving employee outcomes may allow organizations to institute practices that stimulate employee results. Research suggests one potential source of influence to employee performance is the quality of the Leader-Follower relationship. Despite research that suggests the quality of the dyadic relations correlates to individual performance (Bauer, Erdogan, Liden, and Wayne, 2006), performance management initiatives typically target the individual and not the Leader-Follower dyad. While this common approach may align to the overall purpose of performance management, it may not sufficiently stimulate individual performance to subsequently impact organizational performance. For organizations operating a highly competitive global environment, this could prove to be a point of distinction between competitors.Exchange theories of leadershipThe quid pro quo concept of exchange has been broadly captured by the exchange theories which remain grounded interaction theory but promulgate the concept of mutual and reciprocal exchange of something of value. With Path-goal, employees exchange effectiveness and productivity order to attain personal goals. Social exchange theory implies an obligation between parties, specifically expectations between the leader and his or her team. Though inter- or intragroup interaction dominated the focus of early research, a more deliberate focus on dyadic relationships eventually evolved. Vertical-dyad linkage (VDL) theory suggests leaders develop differentiated relationships with their followers resulting in group and out group status (Dansereau, Graen, and Haga, 1975). The development of these relationships is not arbitrary; rather, it is based on the degree of mutual influence or exchange. Graen and several ofhis colleagues extended the VDL theory into leader-member exchange (LMX) theory, a common lens through which the Leader-Follower relationship is currently explored (Bauer et al., 2006; Dunegan, Duchon, and Uhl-Bien, 1992; Gerstner and Day 1997; Scandura and Graen, 1984). LMX theory asserts that when leaders and followers develop mature relationships, both parties benefit. Unlike prior theories, LMX is concerned with the dyadic relationship between the leader and follower and assumes that leaders form differentiated relationships with each of the followers. LMX is more prescriptive than descriptive which suggests one benefit to the leader is greater leadership effectiveness (Graen and Uhl-Bien, 1995). LMX theory has enjoyed greater operationalization than the earlier theories, generating a number of measurement instruments specifically designed to measure the Leader-Follower relationship. As a result, much of the research included this systematic review is based upon research that relies on LMX theory.Purpose of studyThe purpose of this study is to assess the influence of dyadic relationship quality (DRQ) on individual worker performance and to determine how other variables contribute to this relationship. …