Page 1 of 8
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 01 Issue 11
December 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 676
Moderating Role of Performance Appraisal Politics on Transformational
Leadership and Job Performance: A Proposed Framework
Syed Mir Muhammad Shah; Dr. Kamal Bin Ab. Hamid2
syedmir@iba-suk.edu.pk ; abkamal@uum.edu.my
1University Utara Malaysia and Sukkur Institute of Business Administration, Pakistan
2University Utara Malaysia
Abstract
There is enormous literature available that
explains the effectiveness of leadership styles
over job performance. A large number of studies
also explain that how this relationship could be
improved further. To date, there have been
several studies explaining the nature and
influence of leadership styles over job
performance. Despite the huge literature on this
relationship, there is still a disagreement on
which leadership styles influences job
performance more effectively. In addition to
this, the literature provides confusing results on
the relationship between leadership styles and
job performance. This is true particularly with
regards to essential role of transformational
leadership in facilitating job performance.
Therefore, the present study proposes
performance appraisal politics as a moderating
variable on the relationship between
transformational leadership and job
performance.
Keywords: Transformational Leadership, Job
Performance, Performance Appraisal Politics,
Moderation, Conceptual Framework
1. INTRODUCTION
The past studies have witnessed that job
performance has remained the center of interest
for the researchers in the domain of human
resource management (Wall, Michie, Patterson,
Wood, Sheehan, Clegg, & West, 2004; Jamal,
2007; Imran, Arif, Chima & Azeem, 2014).The
performance of employees has always been
considered as the key towards the success of
organization and the job performance of
employees. It has remained the topic of interest
for the managers for every type of business and
its scope (Motowidlo & Scotter, 2004). In this
regard the researchers have paid great attention
to find out those factors that influence job
performance, influencing positively or
negatively (Muhammad, Nadeem & Ashfaq,
2011). The researchers have not yet been agreed
upon any single construct to measure job
performance nor concluded definite way to
gauge it. A study conducted by Tse and Chiu
(2014) on job performance on five Banks of
China has resulted differentiated outcomes of
job performance of line managers and
immediate subordinates.
Extensive literature on job performance has
highlighted upon employee performance and
other factors influencing it. Out of these studies
many studies have shown significant
relationship between job satisfaction and job
performance (Judge, Thoresen, & Bono, 2001;
Moynihan & Pandey, 2007). Other studies have
reported relationship of motivation and job
performance (Van Knippenberg, 2000;
Page 2 of 8
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 01 Issue 11
December 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 677
Halbesleben & Bowler, 2007) and other factors
that affect performance include gender
(Semadar, Robins, & Ferris, 2006) age (Ng &
Feldman, 2008) salary (Lemieux, Macleod, &
Parent, 2009), and stress (Hourani, Williams, &
Kress, 2006). A recent study conducted by Pahi,
& Hamid (2015) have determined positive
relationship between leadership and
commitment to service quality. The present
study outlined job performance as effectiveness
of individual behaviors that contribute to the
organizational objectives (McCloy, Campbell,
& Cudeck, 1994).
Wofford, Whittington, and Goodwin (2001),
Geyer and Steyrer (1998), Bass (1985) pointed
out in their studies that the leadership
concentrate on strengthening relations in
between managers and employees, they define
the expectations of their subordinates, explain
their roles and fulfill their requirements as they
seek expected level of performance. Referring
to past studies, scholars have found varied
relationship in between leadership styles and job
performance (i.e., positive, negative and no
relation). The studies conducted by (Rad &
Yarmohammadian, 2006), Voon, Ngui, and
Ayob (2011) and Dolatabadi and Safa (2010)
have found positive and significant relationship
between leadership styles and job performance.
Additionally, other studies resulted insignificant
and negative relationship between transactional
leadership styles and performance (Sheridan &
Vredenburgh, 1978; Geyer, & Steyrer, 1998;
MacKenzie, Podssakoff & Rich, 2001; Parry,
2003). Accordingly, Sheridan and Vredenburgh
(1978) and O'Reilly and Roberts (1978) that
there is no relationship between leadership
styles and job performance.
This situation of inconsistent results calls for
further attention towards the relationship
between leadership styles and job performance.
Particularly, present study proposes
performance appraisal politics as a moderating
variable on the relationship between
transformational leadership and job performance
drawing upon the guidelines of Barron and
Kenny (1986).
2. LITERATURE REVIEW
2.1 TRANSFORMATIONAL LEADERSHIP
AND JOB PERFORMANCE
According to Bass, Avolio, Jung, and Berson
(2003) followers are motivated and feel inspired
with the transactional leadership style. The key
elements of transformational leadership are
inspirational motivation and idealized influence
(Bass et al., 2003). The motivation determines
the thinking and innovativeness of the leaders
(Bass & Avolio, 1995). Literature also
emphasizes on the differences between
transformational and transactional leadership
(Burns, 1978). The transactional leadership
offers reciprocal gain by providing benefits to
employees on the basis of their performance.
Additionally, researchers have argued that the
effectiveness of transformational in comparison
to transactional leadership (Gardner & Stough,
2002). Moreover, studies have suggested that
transformational and transactional leadership
styles are entirely different than each other
(Lowe, Kroeck, & Sivasubramaniam, 1996).
Interestingly, researchers have suggested that
leaders could behave in both of the ways of
leadership. However, literature provides
empirical support to the notion that
transformational leadership is of more
importance than transactional (Dvir, Eden,
Avolio, & Shamir, 2002). Similarly, the work
of Bass et al. (2003) has supported the
effectiveness of transformational leadership
with regards to improving effectiveness as well
as efficiency. These researchers have further
Page 3 of 8
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 01 Issue 11
December 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 678
suggested that transformational leadership holds
greater potential than transactional.
On emphasizing the importance of
transformational leadership, researchers have
explained that it enhances individual motivation
(Glynn, 1996). This style of leadership also
helps individuals in organizations in bringing
innovativeness in the process, it also helps
individuals in adopting and accepting changes
that are positive (Hurley & Hult, 1998; Argyris
& Sochon, 1996). Additionally, the
transformational leaders promote learning
culture at organizational level (Hurley & Hult,
1998; Argyris & Sochon, 1996). The positive
aspect of transformational leadership lies in its
emphasis on controlling decisions rather than
relying on punishment mechanisms (Waldman,
Bass, & Yammarino, 1990). One could
conclude that this kind of leadership holds
positive influence over organizations and
specifically on the individuals in terms of
helping them to adopt change and developing
positive attitude towards learning new things. It
helps individuals to understand complexities of
real world problems associated with job
performance for improving overall
organizational effectiveness. Therefore, it
becomes essential to pay appropriate attention
towards this style of leadership.
2.2 PERFORMANCE APPRAISAL
POLITICS AS A MODERATING
VARIABLE
The term politics to express machinations in
appraisal performance, most notably was
initially used by Longenecker, Sims & Gioia,
(1987). They defined politics as conscious
attempts by individuals to get better or guard
their own conflicting interests when courses of
action are possible. The authors conducted a
qualitative survey on performance appraisal by
interviewing 60 executives. They found that the
evaluators had almost always political motives
in their mind when they did conduct
performance appraisals. Particularly, the
researchers provided documented proof that
evaluators use discretion and consider the
possible efficiency and consequences of their
remarks while rendering performance appraisal.
This was enlighten by Longenecker et al. (1987)
in their findings that raters often rate the
subordinates based on their own judgment and
they were not concerned to give accurate
ratings. Mostly the ratings were usually based
on these influences the inspiration of raters to
keep away from confrontations, that is regarded
as more efficient managers and acquire the
desired rewards for themselves or their
subordinates.
The politics with regards to performance
appraisals have been largely emphasized in the
literature (See for example Longenecker et al.,
1987). Further to this, the extent of influence of
politics over the assessment of employee
performance has been denoted in the work of
Tziner, Latham, Price, & Haccoun (1996). In
doing so, the researchers have made utmost
effort in explaining the critical influence of
organizational politics over evaluations of
employee performance. It is critically important
for organizations to appropriately evaluate
employee performance. However, this
assessment has largely been influenced badly
due to politics. Due to this fact, scholars have
given much attention to the leadership styles,
organizational politics and job performance in
the past research (Bass, 1985; Geyer & Steyrer,
1998; MacKenzie et al., 2001; Lowe et al.,
1996; Parry, 2003; Vigoda-Gadot, 2003;
Vigoda-Gadot, 2007), and the researchers have
come up with varying outcomes and found
inconsistent results. Organizational politics is
much studied in different perspectives such as
employees’ perception of politics as a general or
supervisors and subordinates perspectives and
its effects on performance.
