There are a number of theoretical reasons to believe that a developmental culture is associated with performance information use. To recognize that the relationship between the observed value of each scale and the theoretical construct it is intended to measure is not perfect, the error variance for each measure is set by constraining the values associated with the measure in the theta delta or theta epsilon matrices equal to the variance of the measure multiplied by one minus the reliability (Hayduk 1987; Jöreskog and Sörbom 1992). We test the impact of transformational leadership on a pressing challenge for public organizations: to push performance management reforms to the point where organizational actors are actually using performance data. Forthcoming in, Public managers’ perceptions of organizational goal ambiguity: Analyzing alternative models, Leadership and public service motivation in U.S. federal agencies, Connecting the dots in public management: Political environment, organizational goal ambiguity and the public manager's role ambiguity, Performance measurement in municipal government: Assessing the state of the practice, Transformational leader behaviors and their effects on followers’ trust in leader, satisfaction, and organizational citizenship behaviors, A competing values approach to organizational effectiveness, Challenging the performance movement: Accountability, complexity, and democratic values, Private agencies and private firms: Incentive structures, goals and individual roles, Understanding and managing public organizations, Comparing public and private organizations, Building a climate for innovation through transformational leadership and organizational culture, Journal of Leadership & Organizational Studies, Performance management by culture in the national labor relations board's division of judges and the German labor courts of appeal, Transformational leadership, conservation, and creativity: Evidence from Korea, The organization of discipline: From performance management to perversity and punishment, Governance in dark times: Practical philosophy in public service, Examining the nature and significance of leadership in government organizations, US Office of Management and Budget (US OMB), Analytical perspectives, Budget of the United States Government, Fiscal Year 2011, Introduction: Using public sector information, Performance information in the public sector: How it is used, Public-sector leadership theory: An assessment, The value of mission statements in public agencies, Management innovation and organizational performance: The mediating effect of performance management, Public sector work motivation: A review of the current literature and a revised conceptual model, The role of work context in work motivation: A public sector application of goal and social cognitive theories. This time is now! Setting the right tone and staying focused on maintaining it over time can, and should, contribute to our leadership efforts having a lasting impact which … We examine how transformational leadership behaviors on the part of city managers impact the self-reported performance information use of their most senior employees, agency heads of city departments.1 Generally studies of leadership that examine complex indirect relationships tend to come from qualitative research. news, new scholarship & more from around the world. Hospitality is present when something happens for you. However, existing empirical evidence has documented certain (likely overlapping) leadership types in the context of performance information use. Leadership Pasadena is honored to announce the design participants slated for “Setting the Table: The Art of Conversation.” The tablescape design competition and social will take place on July 21 at the NOOR at Paseo Pasadena. Research on transformational leadership suggests that it is a form of leadership especially suited to fostering organizational change, such as the performance reforms we study here (Yukl 2008, 712). This article develops a theory of the relationship between transformational leadership and purposeful performance information use, suggesting that it exerts a positive effect via two mediating factors, goal clarity and organizational culture. For permissions, please e-mail: journals.permissions@oup.com, The Importance of Oversight and Agency Capacity in Enhancing Performance in Public Service Delivery, Performance Information, Racial Bias, and Citizen Evaluations of Government: Evidence from Two Studies, Social Equity and the Journey Toward Fairness, How does public disclosure of performance information affect politicians’ attitudes towards effort allocation? Offered by KSHIFT - Jul 21st 7pm-9pm, 2018: KSHIFT is sponsoring Leadership Pasadena's Setting the Table A BENEFIT AND TABLESCAPE DESIGN … Table setting at the 2009 CIA Leadership Awards, at Cipriani 42nd Street in New York City on Thursday, March 26, 2009. Formal systems are generally not self-implementing but require skilled leaders. This variable represents perhaps the best summary measure of the impact of results-based reforms but has been given limited attention (Moynihan et al. To meet this need, we developed and assessed the psychometric properties of measures of several constructs within the Inner Setting domain of the Consolidated Framework for Implementation Research (CFIR). These leaders inspire, motivate and energize the team. As Stivers (2008, 126) has argued, it is only in the use of performance information that performance management is truly enacted. TEAM Performance is here to walk that path with you so you can be all you want to be. In assessing the overall contribution of the article, data and methodological limitations must be balanced against the substantive insights that emerge. The central results are unchanged. In other words, by linking follower identities or values to those of the organization, transformational leaders increase their followers’ intrinsic motivation to perform their duties (Jung, Chow, and Wu 2003; Park and Rainey 2008). The central goal of this article is to understand the relationship between transformational leadership and performance information use. Although Trottier, Van Wart, and Wang (2008, 319) suggest that while the application of transformational leadership to understanding public organizations has lagged its application in mainstream organization studies, research supports both the existence and effectiveness of transformational leadership in government (Dumdum, Lowe, and Avolio 2002; Lowe, Kroeck, and Sivasubramaniam 1996; Wright and Pandey 2010). This stage tests the hypothesized relationships by estimating the overall fit of the model as well as the individual parameter estimates. Management, by contrast, is characterized by a focus on technical processes and systems. Goal clarity and developmental culture have a significant relationship with performance information use, and their coefficient size becomes larger. If we focus primarily on the direct influence of leadership, this may lead us to underestimate its relative importance in shaping other factors that shape organizational outcomes, such as organizational culture. Performance information use provides a tractable variable that allows researchers to estimate the behavioral impact of performance management reforms (Moynihan and Pandey 2010). Dimensions. Thus, the path from the latent variable to the measured indicator is estimated to be equal to the square root of the measure's reliability and can be interpreted as the factor loading of the observed indicator on the conceptual variable it is intended to measure. Items were selected from four socialized charismatic leadership subscales developed by House (1998) that depict the three transformational dimensions (inspirational motivation, idealized influence, and intellectual stimulation) previously described. But some of the other controls lack a clear empirical track record, making the results more noteworthy. This organization's mission is clear to almost everyone who works here. Our empirical model—like all theoretically grounded analytical models—makes simplifying assumptions. Download it once and read it on your Kindle device, PC, phones or tablets. By contrast, transformational leadership appeals to higher-order needs among followers, asking them to look beyond self-interest and focus on the needs of the organization. We offer more detail on how we operationalize this conceptualization of performance information use in our discussion of measurement below. We also rely on data from local government in a US context. Additional support for the measurement approach employed here comes from an article (Moynihan, Pandey and Wright forthcoming) that specifically considers the latent psychometric properties of performance information use in more detail. Developmental cultures are associated with a focus on the organization, flexibility, adaptability and readiness, growth, and resource acquisition (Quinn and Rohrbaugh 1981; Zammuto and Krakower 1991). My department is a very dynamic and entrepreneurial place. Second, we treat performance information use as unidimensional. A structural equation model using self-reported performance information use as a dependent variable provides empirical evidence consistent with our theory. There is a flipside to this. Goal clarity and a developmental culture explains nearly half (45%) of the variance in the availability of performance information. 0060742763. For performance information use, there is not a history of well-developed variables and little consistency in measurement among the studies cited above. Proposed Relationship between Transformational Leadership and Performance Information Use. Number of Employees—Number of employees in city government. Here, we use a quantitative approach—structural equation modeling—that allows us to consider if the indirect effects of leadership in the sample we study are consistent with the theory we propose. The central premise of this theory is that leadership can have important but easy-to-miss indirect effects on organizational factors that shape reform outcomes. Finally, we consider the implications of the model in the conclusion. A time for leadership As a result, the finance team, with its proven expertise in all these areas, earned its right to sit at the strategic top table of many organisations. This article also shows that one of the items in our two-item index (“I regularly use performance information to make decisions”) has the highest loading of the factor analysis for this longer index of purposeful use, suggesting that it strongly captures the purposeful latent factor that we propose characterizes the measure of performance information use in the model tested here. Setting the Table is landmark a motivational work from one of our era’s most gifted and insightful business leaders. Search for other works by this author on: Assessing the work environment for creativity, Factors influencing the use of performance data to improve municipal services: Evidence from the North Carolina benchmarking project, Why reforms don't always have to work to succeed: A tale of two managed competition initiatives, Factors behind organizational learning from benchmarking: Experiences from Norwegian municipal benchmarking networks, Journal of Public Administration Research and Theory, Reexamining the components of transformational and transactional leadership using multifactor leadership questionnaire MLQ-Form 5X, Journal of Occupational and Organizational Psychology, The moderator-mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations, Journal of Personality and Social Psychology, The implications of transactional and transformational leadership for individual, team and organizational development, Research in organizational change and development, Predicting unit performance by assessing transformational and transactional leadership, What all mayors would like to know about Baltimore's CitiStat performance strategy, IBM Center for the Business of Government, Implementing performance accountability in Florida, Legislative influences on performance management reform, The social security administration and performance management, Quicker, better, cheaper: Managing performance in American government, Reinventing government in the American States: Measuring and explaining administrative reform, CEO transformational leadership: The role of goal importance congruence in top management teams, The robustness of test statistics to normality and specification error in confirmatory factor analysis, Management by inquiry: A discursive accountability system for large organizations, Promoting the utilization of performance measures in public organizations: An empirical study of factors affecting adoption and implementation, Results-model reform leadership: Questions of credible commitment, Meta-analysis of transformational and transactional leadership correlates of effectiveness and satisfaction: An update and extension, Transformational and charismatic leadership: The road ahead, Developing and testing an integrative framework of public sector leadership: Evidence from the public education arena, Superiors’ evaluations and subordinates’ perceptions of transformational and transactional leadership, Structural equation modeling with LISREL: Essentials and advances, Appendix: Measures and assessments for the charismatic leadership approach: Scales, latent constructs, loadings, Cronbach alphas, interclass correlations, Leadership: The multiple level approaches contemporary and alternative, Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated business-unit performance, LISREL approaches to interaction effects in multiple regression, Sage University Papers series on Quantitative Applications in the Social Sciences. They find that organizational factors such as effective internal communications, task specialization, and decentralization—explain most of the variance in employees’ understanding of goals. Before we consider how leadership will affect performance information use, it is worth describing how we conceptualize performance information use. The central premise of this theory is that leadership can have important but easy-to-miss indirect effects on organizational factors that shape reform outcomes. More specifically, transformational leadership is expected to shape employee behavior through three psychological processes (Bass et al. Such an analysis provides the ability to model mediating variables, estimating the effects of transformational leaders on organizational goal clarity and culture as well as the effects of organizational goal clarity and culture on performance information use (figure 1). The findings also suggest a broader research agenda for those interested in how leadership shapes administrative outcomes. Follower Tenure—Number of years respondent has held current position. The central premise of this theory is that leadership can have important but easy-to-miss indirect effects on organizational factors that shape reform outcomes. It is absent when something happens toyou. Despite the statistically significant chi-square, the results are consistent with the model in figure 1. In a developmental culture, for example, the use of performance information is more integrated into management decisions as formative rather than summative feedback. Transformational leadership is centered on the assumption that leaders can change followers’ beliefs, assumptions, and behavior by appealing to the importance of collective or organizational outcomes. Thus, the inclusion of the information availability variable, and the associated risk of endogeneity, should not detract from the results reported below since its inclusion provides a more conservative estimate of the size of hypothesized effects. Of course, setting a vision, mission, and goals is easier in some contexts than others and helps to explain why organizations with more complex functions struggle with performance management (Radin 2006). We assume that many of the key factors that predict information performance information use also predict information availability. 978-0060742768. The last decades have seen governments devote unprecedented time and resources to creating performance data. Third, through the provision of inspirational and motivating vision, transformational leaders help employees see connections between their values and the values of the organization. A similar finding from Bourdeaux and Chikoto (2008) shows that more professional legislatures tend to reduce performance information use among agency officials, whereas gubernatorial power tends to foster use. For purposeful performance information use, fostering goal clarity and a developmental culture are the right conditions. Figure 2 presents the parameter estimates for the structural model as standardized regression weights. Please indicate the extent to which your organization has implemented each of the following Benchmarks for measuring program outcomes or results. For full access to this pdf, sign in to an existing account, or purchase an annual subscription. The big question for performance management: why do managers use performance information? Expecting people to act like leaders They find that leaders exert influence by creating a dialogue about goals, concluding that: “Agencies’ efforts to implement performance-based systems can be influenced dramatically by the ways in which agency leaders define strategic issues facing them” (Berry, Brower, and Flowers 2000, 335). Coefficients of determination for endogenous variables can be calculated from figure 2 as one minus the error term for the latent variable (E). Leaders set the table for success by fostering the right organizational conditions. Those two simple p prepositions — for and to — express it all. Transformational leadership still has a significant relationship with goal clarity and developmental culture, and the size of the coefficients are almost exactly the same. Translations by Claudia N. Avellaneda, University of North Carolina Charlotte, and Nicolai Petrovsky, University of Kentucky. Setting the table can become the skilled leader's legacy. However, instead of placing the majority of the energy into each employee’s individual goals, the transformational leader is driven by a commitment to organizational objectives. 2008; Wright 2004). One of the challenges of our model is that we propose indirect relationships between variables via mediating factors. Indeed, previous research that reports different measures of use finds that these measures are so highly correlated that they are aggregated into a single scale (Bourdeaux and Chikoto 2008; de Lancer and Holzer 2001; Dull 2009).4. This approach follows the recommendation of Yukl (2008, 716): “To understand how leaders can influence the performance of an organization, it is helpful to examine the influence processes and relationships among leaders at different levels and across different subunits.”. In considering how transformational leadership might foster innovation and performance, Sarros, Cooper, and Santora (2008, 145) state that “the inclusion of organizational culture as an intervening variable has yet to be examined comprehensively.” Culture has been hypothesized as a factor that can block, welcome, or reshape performance reforms in ways consistent with organizational norms (Jennings and Haist 2006). This has additional implications for our hypothesized model as it suggests that some of the influence leaders have on an organization's culture is through their ability to clarify organizational goals (see figure 1). In addition to a low-average bivariate correlation (.15), the largest bivariate correlation—between performance information availability and organizational goal clarity—is .65, suggesting that no measure shares much more than two-fifths of its variance with any other measure. The empirical test shows a cascading effect from transformational leadership to performance information use through the mediating variables. The second goal of the article is to add to the empirical knowledge on factors that lead to performance information use. But our model already controls for these effects via the goal clarity and information availability variables. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): The article offers a theory of how leadership affects the implementation of management reforms. Developmental Culture (adapted from Zammuto and Krakower 1991). The average amount of time they have been with the organization is just over 12 years, and the average time in their current position is slightly under 8 years. For functional managers, the mean age is 51 with an interquartile range of 9 (25th percentile being 47 and 75th percentile being 56). The key to a successful long-term strategic planning process is for you to identify the core competencies you will require, and then begin immediately to develop or to acquire those core competencies so that you will be strongly positioned for the markets and competition in the future.FREE FINANCIAL REPORT: The Way to WealthYour job is to constantly be thinking about the future. The risk is that managers perceive leaders as playing a “gotcha” game, seeking to score political points at the expense of the reputation of the manager (de Haven-Smith and Jenne 2006). The culture of the agency is likely to be associated with factors other than transformational leadership, and we assume that goal clarity and providing services to the public are such factors. Use features like bookmarks, note taking and highlighting while reading Setting the Table: The … The above description of transformational leadership suggests that a large part of the effectiveness of transformational leaders is due to their ability to articulate a clear and compelling vision for the organization. The Chief Administrative Officer/City Manager clearly articulates his/her vision of the future; leads by setting a good example, challenges me to think about old problems in new ways, says things that make employees proud to be part of the organization, and has a clear sense of where our organization should be in 5 years. Follower Gender dummy variable: 1 = female. In addition to five of the six fit indices being consistent with good model fit, the path coefficients and t tests for all four hypothesized paths (figure 1), are statistically significant (p < .05; figure 2) and in the predicted direction. This distribution of functional specialization of respondents closely matches the distribution in the targeted sample. Goal Clarity (Pandey and Wright, 2006; Rainey 1983). FAQ If you have a question about our process, schedule, services — or anything Leadership Pasadena —there's a good chance it's been asked before. Berry, Brower, and Flowers (2000) provide an example of this in their case study of performance management in Florida. Here, we draw on perhaps the most prominent model of leadership in organizational behavior, transformational leadership (Van Wart 2003). For example, the case study by Broadnax and Conway (2001)of performance management in the Social Security Administration portrays a leader actively reshaping the organizational culture via newsletters, e-mail, and other symbols but finds that perhaps the most important leadership action was simply to regularly meet with field office managers and query them on performance indicators. We also control for the number of city government employees. (1 = strongly disagree, 6 = strongly agree). Leader Tenure—Number of year chief administrative officer/city manager has held current position. LOCATION. Some of the control variables prove to be significant predictors of performance information use. There are a variety of potential ways in which performance information can be used, and any model that seeks to explain this variable should be explicit in explaining what aspect(s) of performance information use is being studied. Given the many competing factors that shape performance, it is difficult to know if performance management reform is making a difference (for a notable exception, see Walker, Damanpour, and Devece 2010). Virtually nothing else is as important as such constraints can hamper the use of performance information use leaders help achieve... 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