Linkage between Leaders’ Behaviour in Performance Management, Organisational Justice and Work Engagement in Public Sector

Živilė Stankevičiūtė and Asta Savanevičienė
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Živilė Stankevičiūtė: School of Economics and Business, Kaunas University of Technology, Gedimino g. 50, LT-44249 Kaunas, Lithuania
Asta Savanevičienė: School of Economics and Business, Kaunas University of Technology, Gedimino g. 50, LT-44249 Kaunas, Lithuania

Economies, 2021, vol. 9, issue 1, 1-24

Abstract: In the last decade, leaders’ behaviour in performance management has been gaining increasing attention, arguing that it is beneficial in terms of improved employee attitudes, behaviour, and performance in the public sector. However, empirical support for such claim is still scant. Given the relevance of work engagement and organisational justice in the public sector and acknowledging a worldwide employee engagement crisis, the paper aims at revealing the linkage between leaders’ behaviour in performance management, organisational justice, and employee engagement in the public sector. In doing this, quantitative data were collected in a survey from employees working in the public sector in Lithuania (299 responses). The findings showed that goal setting and feedback had a significant and positive effect on employee engagement, supporting the theoretical notion that leaders’ behaviour in performance management was crucial in engaging people. As it was expected, goal setting and feedback had a positive effect on organisational justice; meanwhile, organisational justice significantly and positively predicted employee engagement. Turning to the mechanism by which leaders’ behaviour influences work engagement, it seems that organisational justice partly mediated the relationships between goal setting and employee engagement and fully mediated the relationships between feedback and work engagement. These findings affirm that public sector should strive for improving the leaders’ behaviour in performance management as it in turn might impact overall organisational performance.

Keywords: performance management; leaders’ behaviour; goal setting; feedback; work engagement; organisational justice; public sector (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2021
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