The relationship between leadership factors and performance appraisal satisfaction among R&D engineers

Leadership is key to successful performance appraisal implementation. However, research on the relationship between leadership styles and performance appraisal is understudied, especially in the context of Malaysian electrical and electronic (E&E) industry. The purpose of this study is to investigate the relationship between leadership styles and performance appraisal satisfaction among research and development (R&D) engineers of E&E industry in Bayan Lepas Free Industrial Zone. The research model of this study was developed based on transactional leadership, transformational leadership, and leader-member exchange leadership models. This quantitative study employed self-administered questionnaire to collect data and proportionate stratified random sampling technique to select respondents among R&D engineers. Multiple regression and structural equation modelling approaches were used to test 331 responses collected. The results reveal that leadership styles are related to performance appraisal satisfaction. Specifically, leader-member exchange leadership style has the strongest relationship with performance appraisal satisfaction, followed by transformational leadership and transactional leadership. This study contributes to the performance management and leadership literatures by providing a better understanding of how can organizations improve performance appraisal satisfaction in the context of R&D engineers through leadership styles. Managers are recommended to practice appropriate leadership styles when dealing with their engineers to satisfy them with performance appraisal implementation.