A continuous performance management approach: Effects of daily performance management behaviors on leader-member exchange, next-day job attitudes, and job performance

Abstract

Building on the trend of performance management (PM) moving towards more frequent and the research gap for the effectiveness of the modern form of PM, we adopt an experience sampling method to study daily PM behaviors continuously for two weeks. Our theoretical model was tested using 906 observations from 97 full-time employees, providing initial evidence for daily PM's effectiveness in increasing employee next-day job attitudes and job performance. Moreover, we also revealed the relationship-based mechanism underlying the effects of daily PM. Specifically, our findings suggest that daily PM behaviors increase employee next-day job satisfaction, job engagement, and job performance because PM behaviors make employees perceive a higher leader-member exchange relationship. Importantly, we found the boundary conditions for PM behaviors in increasing this exchange relationship quality. The relationship was weaker when work stressors (i.e., workload and cognitive stressors) were high rather than low. We discuss theoretical and practical implications, limitations, and future research directions.