how do you demonstrate to your management that you are leading your team?

We came across this question one of the social networking websites. We will look at this question from two perspectives: Project Manager & Team Manager.

Project Manager

Per PRINCE2 PM is responsible for managing the project on a day to day basis. His reports to Project Board or in other words Project Board controls help PB to make sure that project is on the track, so theoretically Team Management which is not the core objective or approach of the project but a granular aspect will be visible by default in the controls set up for the Project Board. PM would try to handle team level activities without taking them to the project board unless he foresees things going beyond his tolerances. 

Team Manager

Per PRINCE2 if everything is going good PM would have visibility on Team performance based on checkpoint reports. PM would evaluate planned vs achieved. This would enable him to evaluate performance. Individual teams may have specific well defined procedures for evaluating performance. 

In general If this question comes for a person who is not expected to perform this role then this would have to be reported by the next inline Manager as performance review or the contribution should be significant enough that it is noticed. If the management expects you to lead a team then there would be multiple controls in place to measure the performance.