Fostering societal impact and job satisfaction: the role of performance management and leader-member exchange

Performance management (PM) can alienate employees from experiencing societal impact. This is problematic since societal impact influences employees' job satisfaction. To avoid such unintended effects, we investigate two conditions under which PM could instead benefit the societal impact and job satisfaction of employees: consistency and leader-member exchange. Results show consistent PM fosters job satisfaction, mediated by societal impact and moderated by leader-member exchange. Public organizations should streamline expectations communicated through PM and constructive leader relationships could reinforce this process. By examining the conditions under which PM can avoid unintended effects on employees, we add to the debate on PM effectiveness.