Relationship Between Leadership Style, Work Engagement, Performance Management System and Impact for Productivity Employee

Authors

  • Adhiya Mizvi Universitas Sriwijaya, Palembang, Indonesia
  • Dana Farhana Universitas Sriwijaya, Palembang, Indonesia
  • Luk Luk Fuadah Universitas Sriwijaya, Palembang, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v7i2.5705

Keywords:

Leadership Style, Work Engagement, Performance Management System, Employee Productivity, Systematic Literature Review

Abstract

This study presents a systematic literature review that explores the complex relationships between leadership style, work engagement, performance management systems (PMS), and employee productivity. Guided by the PRISMA protocol, a total of 57 peer-reviewed articles published between 2020 and 2025 in Scopus-indexed journals (Q1–Q4) and SINTA-indexed journals (Level 2–4) were analyzed. The findings indicate that transformational leadership consistently exerts the strongest positive influence on work engagement and employee productivity, whereas laissez-faire leadership demonstrates negative effects. Work engagement emerges as a key mediating variable that translates leadership influence into productive work behaviors. PMS functions as an organizational infrastructure that moderates and, in some cases, mediates the leadership–performance relationship, with adaptive and fair systems producing superior outcomes. The integration of leadership, work engagement, and PMS generates a synergistic effect that contributes to sustained and measurable productivity improvements. This review contributes to the literature by offering a comprehensive integrative framework for understanding the interconnected role of leadership, engagement, and PMS, while also providing theoretical insights and practical implications for enhancing organizational effectiveness.

References

Alamanda, S., Setiawan, M., & Irawanto, D. W. (2022). Leadership Styles on Employee Performance With Work Satisfaction and Organizational Commitment As Intervening Variables. Jurnal Aplikasi Manajemen, 20(1), 34–42. https://doi.org/10.21776/ub.jam.2022.020.01.04.

Almulaiki, W. A. (2023). The Impact of Performance Management on Employee Performance. Saudi Journal of Business and Management Studies, 8(02), 22–27. https://doi.org/10.36348/sjbms.2023.v08i02.002.

Awan, S. H., Habib, N., Akhtar, C. S., & Naveed, S. (2020). Effectiveness of Performance Management System for Employee Performance Through Engagement. SAGE Open, 10(4), 1–10. https://doi.org/10.1177/2158244020969383.

Badru, A. F., Karadas, G., Olugbade, O. A., & Hassanie, S. (2024). Can employees’ trust their supervisor? The role of high-performance work systems and stewardship climate on employee voice. Heliyon, 10(19). https://doi.org/10.1016/j.heliyon.2024.e37795.

Bakker, A. B., Hetland, J., Olsen, O. K., & Espevik, R. (2023). Daily transformational leadership: A source of inspiration for follower performance? European Management Journal, 41(5), 700–708. https://doi.org/10.1016/j.emj.2022.04.004

Basuki, H. (2022). Pengaruh Gaya Kepemimpinan Terhadap Kinerja Pegawai ( Studi pada Fakultas Ilmu Sosial dan Politik Universitas Islam Balitar ) The Effect of Leadership Style on Employee Performance ( Study at The Faculty of Social and Political Science of Balitar Islamic. Translitera, 11(2), 62–66. https://doi.org/10.35457/translitera.v11i2.2455.

Bauwens, R., Audenaert, M., & Decramer, A. (2024). Performance management systems, innovative work behavior and the role of transformational leadership: an experimental approach. Journal of Organizational Effectiveness, 11(1), 178–195. https://doi.org/10.1108/JOEPP-03-2022-0066

Cosa, M., & Torelli, R. (2024). Digital Transformation and Flexible Performance Management: A Systematic Literature Review of the Evolution of Performance Measurement Systems. Global Journal of Flexible Systems Management, 25(3), 445–466. https://doi.org/10.1007/s40171-024-00409-9

De Araújo, M. L., Caldas, L. S., Barreto, B. S., Menezes, P. P. M., Silvério, J. C. Dos S., Rodrigues, L. C., Serrano, A. L. M., Neumann, C., & Mendes, N. (2024). How to Evaluate the Effectiveness of Performance Management Systems? An Overview of the Literature and a Proposed Integrative Model. Administrative Sciences, 14 (6), 1–17. https://doi.org/10.3390/admsci14060117

Donkor, F., Dongmei, Z., & Sekyere, I. (2021). The Mediating Effects of Organizational Commitment on Leadership Styles and Employee Performance in SOEs in Ghana: A Structural Equation Modeling Analysis. SAGE Open, 11(2). https://doi.org/10.1177/21582440211008894

Ehrnrooth, M., Koveshnikov, A., Wechtler, H., & Hauff, S. (2023). High performance work system and transformational leadership: Revisiting and questioning their implications for health-related wellbeing. Frontiers in Psychology, 14(February). https://doi.org/10.3389/fpsyg.2023.1072065

Etomes, S. E., Endeley, M. N., Aluko, F. R., & Molua, E. L. (2024). Transformational leadership for sustainable productivity in higher education institutions of Cameroon. Higher Education, 90(2), 521–543. https://doi.org/10.1007/s10734-024-01334-7

Fakhri, M., Pradana, M., Syarifuddin, S., & Suhendra, Y. (2020). Leadership Style and its Impact on Employee Performance at Indonesian National Electricity Company. The Open Psychology Journal, 13(1), 321–325. https://doi.org/10.2174/1874350102013010321

Gemeda, H. K., & Lee, J. (2020a). Leadership styles, work engagement and outcomes among information and communications technology professionals: A cross-national study. Heliyon, 6(4). https://doi.org/10.1016/j.heliyon.2020.e03699

Gemeda, H. K., & Lee, J. (2020b). Leadership styles, work engagement and outcomes among information and communications technology professionals: A cross-national study. Heliyon, 6(4). https://doi.org/10.1016/j.heliyon.2020.e03699

Greenberg, J. (1987). A taxonomy of organizational justice theories. Academy of Management Review, 12(1), 9–22. https://doi.org/10.5465/amr.1987.4306437

Greenberg, J. (1990). Organizational justice: Yesterday, today, and tomorrow. Journal of Management, 16(2), 399–432. https://doi.org/10.1177/014920639001600208

Gutu, I., Agheorghiesei, D. T., & Tugui, A. (2022). Leadership and Work Engagement Effectiveness within the Technology Era. Sustainability (Switzerland), 14(18). https://doi.org/10.3390/su141811408

Gutu, I., Agheorghiesei, D. T., & Tugui, A. (2023). Assessment of a Workforce Sustainability Tool through Leadership and Digitalization. International Journal of Environmental Research and Public Health, 20(2). https://doi.org/10.3390/ijerph20021360

Hajiali, I., Kessi, A. M. F., Budiandriani, B., Prihatin, E., Sufri, M. M., & Sudirman, A. (2022). Determination of Work Motivation, Leadership Style, Employee Competence on Job Satisfaction and Employee Performance. Golden Ratio of Human Resource Management, 2(1), 57–69. https://doi.org/10.52970/grhrm.v2i1.160

Harefa, T., Santoso, R. A., & Fuadah, L. L. (2024). Literature Review of Performance Management Systems and Their Impact on Employee Performance. International Journal of Economics, Accounting, and Management, 1(4), 251–259. https://doi.org/10.60076/ijeam.v1i4.892

Hristov, I., Camilli, R., & Mechelli, A. (2022). Cognitive biases in implementing a performance management system: behavioral strategy for supporting managers’ decision-making processes. Management Research Review, 45(9). https://doi.org/10.1108/MRR-11-2021-0777

Huang, Q., Wang, L., Huang, H., Tang, H., Liu, J., & Chen, C. (2025a). Transformational leadership, psychological empowerment, work engagement and intensive care nurses’ job performance: a cross-sectional study using structural equation modeling. BMC Nursing, 24(1), 1025. https://doi.org/10.1186/s12912-025-03685-7

Huang, Q., Wang, L., Huang, H., Tang, H., Liu, J., & Chen, C. (2025b). Transformational leadership, psychological empowerment, work engagement and intensive care nurses’ job performance: a cross-sectional study using structural equation modeling. BMC Nursing, 24(1), 1025. https://doi.org/10.1186/s12912-025-03685-7

Jiatong, W., Wang, Z., Alam, M., Murad, M., Gul, F., & Gill, S. A. (2022). The Impact of Transformational Leadership on Affective Organizational Commitment and Job Performance: The Mediating Role of Employee Engagement. Frontiers in Psychology, 13(April), 1–12. https://doi.org/10.3389/fpsyg.2022.831060

Jufrizen, J., Harahap, D. S., & Khair, H. (2024). Leader-Member Exchange and Employee Performance: Mediating Roles of Work Engagement and Job Satisfaction. Journal of Economics, Business, & Accountancy Ventura, 26(3), 306–322. https://doi.org/10.14414/jebav.v26i3.3591

Karim, D. N., Hossain, M. M., Chowdhury, S. P., Karim, R. Al, Rahman, M. H. A., & Rahman, M. S. (2024). Linking performance appraisal fairness and performance feedback to bankers’ extra-role customer service behavior: A serial multiple mediation model. Social Sciences and Humanities Open, 10, 100956. https://doi.org/10.1016/j.ssaho.2024.100956

Katili, P. B., Wibowo, W., & Akbar, M. (2021). The Effects of Leaderships Styles, Work-Life Balance, and Employee Engagement on Employee Performance. Quantitative Economics and Management Studies, 2(3), 199–205. https://doi.org/10.35877/454ri.qems319

Kelder, J. A., Crawford, J., Al Naabi, I., & To, L. (2025). Enhancing digital productivity and capability in higher education through authentic leader behaviors: A cross-cultural structural equation model. Education and Information Technologies, 30(12), 17751–17767. https://doi.org/10.1007/s10639-025-13422-x

Khassawneh, O., & Elrehail, H. (2022). The Effect of Participative Leadership Style on Employees’ Performance: The Contingent Role of Institutional Theory. Administrative Sciences, 12(4). https://doi.org/10.3390/admsci12040195

Lameque, I. Do C., Velez, M. J. P., & Botelho, C. M. D. A. (2023). Purposes of Performance Appraisal: A Systematic Review and Agenda for Future Research. International Journal of Professional Business Review, 8(7), e02274. https://doi.org/10.26668/businessreview/2023.v8i7.2274

Laura, N., & Sasmitha, G. (2022). The Effect of Leadership and Organizational Culture on Employee Performance With Job Engagement as A Mediation Variable. JENIUS (Jurnal Ilmiah Manajemen Sumber Daya Manusia), 6(1), 100. https://doi.org/10.32493/jjsdm.v6i1.24136

Lee, C. C., Yeh, W. C., Yu, Z., & Lin, X. C. (2023). The relationships between leader emotional intelligence, transformational leadership, and transactional leadership and job performance: A mediator model of trust. Heliyon, 9(8), e18007. https://doi.org/10.1016/j.heliyon.2023.e18007

Li, Z., Yang, C., Yang, Z., & Zhao, Y. (2024). The impact of middle managers’ digital leadership on employee work engagement. Frontiers in Psychology, 15(March), 1–13. https://doi.org/10.3389/fpsyg.2024.1368442

Lupenza, E. J., Kilima, F. T., & Kumburu, N. P. (2024a). Performance appraisal mechanism and employee productivity in public hospitals in Mbeya – Tanzania: the mediating roles of working environment and management style. LBS Journal of Management & Research, 23(1), 27–42. https://doi.org/10.1108/lbsjmr-04-2024-0026

Lupenza, E. J., Kilima, F. T., & Kumburu, N. P. (2024b). Performance appraisal mechanism and employee productivity in public hospitals in Mbeya – Tanzania: the mediating roles of working environment and management style. LBS Journal of Management & Research, 23(1), 27–42. https://doi.org/10.1108/lbsjmr-04-2024-0026

Malibari, M. A., & Bajaba, S. (2022). Entrepreneurial leadership and employees’ innovative behavior: A sequential mediation analysis of innovation climate and employees’ intellectual agility. Journal of Innovation and Knowledge, 7(4), 100255. https://doi.org/10.1016/j.jik.2022.100255

Marbun, T., Sobandi, A., & Risali, R. P. A. (2024). Performance Management System in Industry: A Systematic Literature Review. International Journal of Science and Society, 6(2), 350–361. https://doi.org/10.54783/ijsoc.v6i2.1146

Maseke, B. F., Karungu Unengu, V., & Haufiku, T. (2021). Effectiveness of Performance Management System on Employee Performance. International Journal of Management and Commerce Innovations, 9(February), 440–452. https://doi.org/10.1016/j.jik.2022.100255

Meng, F., Xu, Y., Liu, Y., Zhang, G., Tong, Y., & Lin, R. (2022). Linkages Between Transformational Leadership, Work Meaningfulness and Work Engagement: A Multilevel Cross-Sectional Study. Psychology Research and Behavior Management, 15, 367–380. https://doi.org/10.2147/PRBM.S344624

Mollah, M. A., Ibrahim, Masud, A. Al, & Chowdhury, M. S. (2024). How does digital leadership boost competitive performance? The role of digital culture, affective commitment, and strategic agility. Heliyon, 10(23), 1–14. https://doi.org/10.1016/j.heliyon.2024.e40839

Mudannayake, B., Bhanugopan, R., & Frances Maley, J. (2024). Unlocking team excellence: The transformative power of work engagement, career commitment, and role innovation Amidst conflict. Heliyon, 10(7), e27259. https://doi.org/10.1016/j.heliyon.2024.e27259

Muktamar, A., & A, N. (2025). Leadership Styles and Work Engagement: A Systematic Literature Review on Effective Leadership Practices | Management Studies and Business Journal (productivity). Productivity: Management Studies Dan Business Journal, 1(1), 1505–1524. https://doi.org/10.62207/egz2z305

Ndlovu, S., van Wyk, N. C., & Leech, R. (2024). Professional nurses’ perspectives of an ideal performance management process. Health SA Gesondheid, 29, 1–10. https://doi.org/10.4102/hsag.v29i0.2595

Paais, M., & Pattiruhu, J. R. (2020). Effect of Motivation, Leadership, and Organizational Culture on Satisfaction and Employee Performance. Journal of Asian Finance, Economics and Business, 7(8), 577–588. https://doi.org/10.13106/JAFEB.2020.VOL7.NO8.577

Pahos, N., & Galanaki, E. (2022). Performance Effects of High Performance Work Systems on Committed, Long-Term Employees: A Multilevel Study. Frontiers in Psychology, 13(March). https://doi.org/10.3389/fpsyg.2022.825397

Putri, D. K. A., & Hartono, A. (2023). Training, Leadership Style, and Work Environment on Employee Performance: the Role of Work Motivation. Jurnal Fokus Manajemen Bisnis, 13(2), 198–216. https://doi.org/10.12928/fokus.v13i2.8889

Qalati, S. A., Zafar, Z., Fan, M., Limón, M. L. S., & Khaskheli, M. B. (2022). Employee performance under transformational leadership and organizational citizenship behavior: A mediated model. Heliyon, 8(11). https://doi.org/10.1016/j.heliyon.2022.e11374

Ribeiro, M. F., Costa, C. G. Da, & Ramos, F. R. (2024). Exploring Purpose-Driven Leadership: Theoretical Foundations, Mechanisms, and Impacts in Organizational Context. Administrative Sciences, 14(7). https://doi.org/10.3390/admsci14070148

Saif, N., Amelia, Goh, G. G. G., Rubin, A., Shaheen, I., & Murtaza, M. (2024a). Influence of transformational leadership on innovative work behavior and task performance of individuals: The mediating role of knowledge sharing. Heliyon, 10(11), e32280. https://doi.org/10.1016/j.heliyon.2024.e32280

Saif, N., Amelia, Goh, G. G. G., Rubin, A., Shaheen, I., & Murtaza, M. (2024b). Influence of transformational leadership on innovative work behavior and task performance of individuals: The mediating role of knowledge sharing. Heliyon, 10(11), e32280. https://doi.org/10.1016/j.heliyon.2024.e32280

Sanosra, A., Hakim, A. R., Cahyono, D., Qomariah, N., & Thamrin, M. (2022). Role of Knowledge Sharing and Leadership Style in Improving Employee Performance With Work Culture As an Intervening Variable. Jurnal Aplikasi Manajemen, 20(4). https://doi.org/10.21776/ub.jam.2022.020.04.14

Santosa, I. S., Purwanto, E. A., Sumaryono, S., & Utomo, P. P. (2025). The role of leadership styles in shaping work engagement: Mapping multi-sectoral trends through bibliometric and systematic review. Social Sciences and Humanities Open, 12(June), 101757. https://doi.org/10.1016/j.ssaho.2025.101757

Shi, L., Veldhoven, M. Van, Kooij, D., Voorde, K. Van De, & Murray, M. K. (2023). High-performance work systems and individual performance: a longitudinal study of the differential roles of happiness and health well-being. Frontiers in Psychology, 14(January). https://doi.org/10.3389/fpsyg.2023.1261564

Sinisterra, L., Peñalver, J., & Salanova, M. (2024). Connecting the organizational incomes and outcomes: a systematic review of the relationship between talent management, employee engagement, and turnover intention. Frontiers in Psychology, 15. https://doi.org/10.3389/fpsyg.2024.1439127

Siraj, N., & Hágen, I. (2023a). Performance management system and its role for employee performance: Evidence from Ethiopian SMEs. Heliyon, 9(11). https://doi.org/10.1016/j.heliyon.2023.e21819

Siraj, N., & Hágen, I. (2023b). Performance management system and its role for employee performance: Evidence from Ethiopian SMEs. Heliyon, 9(11). https://doi.org/10.1016/j.heliyon.2023.e21819

Stankevičiūtė, Ž., & Savanevičienė, A. (2021). Linkage between leaders’ behaviour in performance management, organisational justice and work engagement in public sector. Economies, 9(1). https://doi.org/10.3390/economies9010015

Thanh, N. H., & Quang, N. Van. (2022). Transformational, Transactional, Laissez-faire Leadership Styles and Employee Engagement: Evidence From Vietnam’s Public Sector. SAGE Open, 12(2). https://doi.org/10.1177/21582440221094606

Tran, Y. T., Chau, T. H. P., & Pham, Q. T. (2025). Transformational leadership and firm performance: The mediating roles of innovation capacity and management accounting systems usage. Sustainable Futures, 10(June), 100988. https://doi.org/10.1016/j.sftr.2025.100988

Vuong, T. D. N., & Nguyen, L. T. (2022). The Key Strategies for Measuring Employee Performance in Companies: A Systematic Review. Sustainability, 14(21), 14017. https://doi.org/10.3390/su142114017.

Wang, J., Woerkom, M. Van, Breevaart, K., Bakker, A. B., & Xu, S. (2023). Strengths-based leadership and employee work engagement: A multi-source study. Journal of Vocational Behavior, 142(June 2022), 103859. https://doi.org/10.1016/j.jvb.2023.103859

Yao, C. L., & Wang, L. Y. (2024). Corporate sustainable development performance through top management team’s transactive memory system and organizational resilience: A moderated mediation analysis. Heliyon, 10(3), e24674. https://doi.org/10.1016/j.heliyon.2024.e24674

Downloads

Published

2025-12-26

How to Cite

Mizvi, A., Farhana, D., & Fuadah, L. L. (2025). Relationship Between Leadership Style, Work Engagement, Performance Management System and Impact for Productivity Employee. Dinasti International Journal of Education Management and Social Science, 7(2), 2081–2085. https://doi.org/10.38035/dijemss.v7i2.5705