Causal inferences between leader reward behaviour and subordinate performance, absenteeism, and work satisfaction

A longitudinal field study, using corrected cross‐lag correlations, investigated the causal inference relationships between perceived leader reward behaviour and subordinate performance, absenteeism, and work satisfaction in a controller's department of a merchandising organization. The results revealed that: (a) perceived positive leader reward behaviour served as a source of causation for subordinate performance and work satisfaction; (b) perceived punitive leader behaviour acted as a source of causation for subordinate work dissatisfaction; and (c) subordinate performance and absenteeism served as sources of causation for perceived punitive leader behaviour. The results support the belief that perceived performance‐contingent rewards given by the leader can be a significant influence on subordinate attitudes and behaviour.