The days of annual performance appraisals are slowly coming to an end, in favor of more productive and functional methods. Consistent, frequent appraisals and feedback are increasingly being utilized by management as a performance management tactic. In doing so, they are able to gain integral insight into the mindset of their employees, as well as monitor their metrics and overall performance more closely. While this is simply one method of performance management, it’s success has outlined the importance of leadership ability and style on the performance management process, as well as individual and organizational performance.
Over the years, many different leaderships styles have been touted as most effective, and it changes as the culture of the country or area does. The most prominent style today is engaging leadership, a form of leadership in which inclusion and respect are foremost values, and both individual and team development are a focus (Metcalf et al., p587, 2008). Engaging leadership works to develop a joint vision and promote organizational culture, two factors that are imperative to assisting organizational performance and success. Studies have shown that engaging leadership increases job satisfaction, motivation, organizational commitment, and individual performance (Metcalf, p.588, 2008). Further, these metrics are predictors of organizational performance, in terms of productivity and profitability (Metcalf, p.587, 2008).
This comes as no surprise, as employees who feel respected and valued are likely to believe in the vision of their leader and organization. If they believe in the vision of the organization, they are more committed and motivated to perform well to assist in obtaining these goals. Employee engagement is highly indicative of positive business metrics, and thus if a leader is focused on maintaining engagement, they will likely be directly responsible for and linked to performance management.
This commitment to the organizational strategies is one factor in particular that has the ability to drastically affect individual and organizational outcomes. The behavior of the individual affects other members, and and those who perceive their leadership and organization to be successful will be more committed to their strategies. For example, if an organization values innovation and individual development, and their leaders do not have performance management methods that align with this value, the satisfaction and performance of their employees will decrease. However if a leader chooses instead to generate opportunities for growth, offers training and development, and fosters an environment in which they are able to make suggestions or come up with new ideas, they will be more involved in and committed to organizational goals.
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