The Role of Authentic Leadership in Shaping Performance Feedback Reactions: The Mediating Role of Trust in Leader

Abstract

In this study we attempted to explore the effect of authentic leadership on followers’ feedback reactions in the performance appraisal context using trust in leader as the mediating variable. We collected data from a sample of 183 employees working in the information technology sector of Pakistan using a self-administered questionnaire, employing a cross-sectional study design with convenience sampling technique. The study provided empirical evidence about the effect of authentic leadership on performance feedback reactions and the associated mediating mechanism. It drew on authentic leadership theory and investigated why such a leadership style was important in making the performance appraisal process successful and effective. As hypothesized, authentic leadership significantly predicted perceived feedback accuracy and utility (two feedback reactions in performance appraisal). Our findings confirmed that there was a significant mediating effect of trust in leaders between authentic leadership and performance feedback reactions. The inferences drawn based on the results suggested that raters’ authenticity in performance appraisal context creates a trusting situation and leads to ratees’ perception of feedback accuracy and utility.