The pressure to perform: Supervisor bottom-line mentality and its diverging effects on employee performance

Background Supervisor bottom-line mentality (BLM) emphasizes organizational goals, sometimes at the expense of employee well-being. Previous studies, adopting social exchange theory, have shown conflicting results regarding the impact of supervisor BLM on employee performance. Objective This study draws from cognitive appraisal theory to explore the psychological process linking supervisor’s BLM to employees’ performance. Methods Survey data were gathered from supervisor–employee pairs across 245 service organizations. Data was analyzed using AMOS 26. Results Supervisors’ BLM provoked employees’ performance pressure (PP), which in turn influenced their appraisals. Specifically, PP was positively associated with both threat appraisal (TA) ( B = .39, p < .01) and challenge appraisal (CA) ( B = .19, p < .01). A serial mediation analysis demonstrated contrasting pathways: PP and TA together diminished task performance as rated by direct supervisors, while PP and CA enhanced it. A moderated serial mediation analysis further revealed that the strength of these serial mediations was influenced by competence uncertainty, with the model for TA ( R 2 = .10) and CA ( R 2 = .39) both reaching significance. Conclusion our study contributes to the literature on the impact of leadership BLM on employee performance, expanding beyond the exclusive use of social exchange theory in previous research.