Nourishing the Potential Pipeline: The Role of Supervisors’ Performance Management Skills in Career Outcomes of Future Leaders

Abstract

Supervisors are the linking pin between the organization and its employees, and therefore play an important role for organizational performance and success. Prior literature often considers the link between supervisors and employee performance in their current job. However, the attention is shifting towards potential management, and supervisors are increasingly responsible for the development of their employees’ potential and the guidance to a successful future career in the organization. Hence, this study provides the first empirical evidence on the role of the supervisor in employee potential development and retention. Using a theory-based measure of performance management skills, I demonstrate that employees of supervisors who are high in performance management skills have (1) a higher likelihood of promotion, (2) better performance in their new job upon promotion, and (3) are more likely to stay with the organization.