The Role of Leader-Member Exchange in the Performance Appraisal Process

Abstract

Performance appraisal (PA) feedback research suggests that agreement of others' performance feedback with one's own views strongly determines feedback reactions, yet inconsistent results of feedback interventions motivate a search for additional influences. The authors propose that supervisor-subordinate exchange relationships create a social context that substantially influences the PA discussion and feedback reactions. Key mediating variables in this process are employee voice during the PA session and justice judgments. Structural equation modeling analyses of longitudinal data support our model. Exchange relationship showed strong, mediated effects on feedback reactions, whereas performance rating discrepancies had minimal unique effects.