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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,
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.