The role of reaction to feedback in the relationship between performance management, job satisfaction and the leader–member exchange (LMX)

Abstract

Purpose: Due to the importance of performance management in any organizational structure, the present study aims to analyze the mediating role of an employee's reaction to the employee's supervisor' feedback on the impact of the performance management system on job satisfaction and supervisor–employee relationship. Design/methodology/approach: A quantitative study was conducted, with data collected by questionnaire, where 1815 workers from a customer service company in Portugal participated and with the data analyzed using structural equation model. Findings: Three effects were observed in this study: first, the importance of performance management on the reaction to feedback and on the supervisor–employee relationship; second, reaction to feedback fully mediated the effect of performance management on job satisfaction and third, reaction to feedback partially mediated the effect of the performance management on the supervisor–employee relationship. Originality/value: Despite the growing interest in research on performance management, this study suggests that there are still some areas in need of additional research attention, namely on the important role that adequate feedback to the employee on his/her performance can have. Implications for research on performance management are developed.