E-leadership, Psychological Contract and Real-time Performance Management: Remotely Working Professionals

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Abstract

Using the model of E- Leadership in Virtual teams (Avolio et al.), this paper examines impact of Psychological Contract, mediated by E-leadership, on Real-time Performance Management of Remotely working professionals. Following a quantitative research method, data was collected from 57 remotely working professional across the world. Significant positive relationships were found among Leadership Effectiveness of E-leaders, Relational Psychological Contract and Efficiency of RPM. The results confirm the interaction of the given variables in Avolio's Model of E-leadership, highlighting technological aspects of human interactions and ways to optimise them. The results underline several important managerial implications for effective leadership, fulfilling psychological contract and effective performance management, of a type of workforce that is only virtually available.

Key words: e-leadership, Psychological Contract, Real-time Performance Management, Remote Work, Virtual Teams

Technology has influenced all aspects of our lives today, especially evident in the organizations. Not only has technology influenced jobs and operations, but also organisational structure, processes, group dynamics and individuals' behaviours at work place. Among such changes is E-leadership and Real-time Performance Management (RPM), further impacts other aspects of relationships in the organisation.

E-leadership

Avolio et al. defined e-leadership as "a social influence process mediated by AIT (Advanced Information Technology) to produce a change in attitudes, feelings, thinking, behaviour, and/or performance with individuals, groups, and/or organisations" (617). E-leadership is also called online leadership and virtual leadership, where leaders and followers interact virtually from remote locations, using media such as intranet portals, emails, video conferencing, social media and the like.

The concept relies on the Socio-technical systems approach to organisations that highlight the interaction between people and technology in workplace. Avolio and Kahai identified four factors that have contributed to the emergence of e-leadership, namely, change in access information and media, greater workforce connectivity, ease in reaching others and lasting proof of (indelible) communication.

The European Commission identified the skills needed for effective e-leadership divided into three main categories (eleadership Skills triangle) (15)

1. Strategic leadership: Forecasting needs for information, understanding customer needs, solution orientation, communication, creativity, independent learner, team leading, internationalisation (cultures)

2. Digital savvy: Big data analytics and tools, cloud computing and visualisation, mobile app design and development, complex business systems, web development and tools, IT architecture, security skills, ERP systems and social media