Leadership and outcomes of performance appraisal processes

The extent to which transactional and transformational leadership practices are related to the attitudinal and rated performance outcomes of a performance appraisal process was examined in this study involving 256 managers in a large business organization. Results indicated that only aspects of transformational leadership were related to performance appraisal scores. However, the contingent reward factor of transactional leadership, as well as all factors of transformational leadership, were related to satisfaction with performance appraisal processes. Management‐by‐exception was associated with lower satisfaction. Conclusions were drawn regarding the need for active transactional and transformational leadership in the performance appraisal process.