Leader Member Exchange and Employee Outcomes: Role of Trust

Authors

  • Muhammad Naveed Institute of Business Management, Karachi, Pakistan

Abstract

Employees are important assets for the organization. The performance of the organization depends upon a committed and satisfied workforce. Leader member exchange (LMX) is an interactive process and it promotes interaction within the leaders and members of an organization. Employees with high quality relationships tend to be more satisfied and committed. This study has examined the association between LMX, job satisfaction and organizational commitment. Additionally, it has also examined the moderating role of trust on LMX and employee outcomes i.e. job satisfaction, organizational commitmentand turnover intentions. The data for the study was collected from 151 employees of private banks in Karachi based on questionnaires adapted from earlier studies. The results show that LMX and employee outcomes i.e. organizational commitment, job satisfaction are positively correlated, while LMX has a negative association with turnover intentions. Moreover, trust also mediates job satisfaction, organizational commitment and turnover intentions. This study was restricted to banking sector in Karachi. Future studies may extend the developed conceptual framework in other cities and domains.Keywords: Job satisfaction, organizational commitment, turnover intentions, leader member exchange.

References

Al-Aameri, A. S. (2000). Job satisfaction and organizational commitment for nurses. Saudi

Medical Journal, 21(6), 531-535.

Almeer, A. (1995). The relationship between job stress, organizational commitment,

performance, job satisfaction, and demographic factors. Journal of Public

Administration, 35(2), 207-249.

Bao, Y., & Li, C. (2019). From moral leadership to positive work behaviors: the mediating

roles of value congruence and leader-member exchange. Frontiers of Business Research

in China, 13(6), 1-18.

Bowler, W. M., Paul, J. B., & Halbesleben, J. R. (2019). LMX and Attributions of Organizational

Citizenship Behavior Motives: When is Citizenship Perceived as Brownnosing?. Journal of

Business and Psychology, 34(2), 139-152.

Bozeman, D. P., & Perrewé, P. L. (2001). The effect of item content overlap on Organizational

Commitment Questionnaire–turnover cognitions relationships. Journal of Applied

Psychology, 86(1), 161-173.

Brayfield, A. H., & Rothe, H. F. (1951). An index of job satisfaction. Journal of Applied Psychology,

(5), 307-311.

Bryman, A. (2015). Social Research Methods. New York: Oxford University Press.

Bryman, A., & Bell, E. (2015). Business Research Methods. New York: Oxford University Press.

Davis, W. D., & Gardner, W. L. (2004). Perceptions of politics and organizational cynicism: An

attributional and leader–member exchange perspective. The Leadership Quarterly, 15(4),

-465.

Dionne, S. D., Yammarino, F. J., Atwater, L. E., & James, L. R. (2002). Neutralizing substitutes

for leadership theory: Leadership effects and common-source bias. Journal of Applied

Psychology, 87(3), 454.

Dulebohn, J. H., Bommer, W. H., Liden, R. C., Brouer, R. L., & Ferris, G. R. (2012). A meta-analysis

of antecedents and consequences of leader-member exchange: Integrating the past

with an eye toward the future. Journal of Management, 38(6), 1715-1759.

Gerstner, C. R., & Day, D. V. (1997). Meta-Analytic review of leader–member exchange theory:

Correlates and construct issues. Journal of Applied Psychology, 82(6), 827.

Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates

of employee turnover: Update, moderator tests, and research implications for the next

millennium. Journal of Management, 26(3), 463-488.

Hair Junior, J. F. (2012). An assessment of the use of partial least squares structural equation

modeling in market research. Journal of the Academic Marketing. Sciences, 409 (3), 414-

Hofmans, J., Dóci, E., Solinger, O. N., Choi, W., & Judge, T. A. (2019). Capturing the dynamics

of leader–follower interactions: Stalemates and future theoretical progress. Journal of

Organizational Behavior, 40(3), 382-385.

Kim, H., & Yukl, G. (1995). Relationships of managerial effectiveness and advancement to

self-reported and subordinate-reported leadership behaviors from the multiple-linkage

mode. The Leadership Quarterly, 6(3), 361-377.

Kong, M., Xu, H., Zhou, A., & Yuan, Y. (2019). Implicit followership theory to employee creativity:

The roles of leader–member exchange, self-efficacy and intrinsic motivation. Journal of

Management and Organization, 25(1), 81-95.

Lee, J. (2005). Effects of leadership and leader-member exchange on commitment. Leadership

& organization Development Journal, 26(8), 655-672.

Ilies, R., Nahrgang, J. D., & Morgeson, F. P. (2007). Leader-member exchange and citizenship

behaviors: A meta-analysis. Journal of Applied Psychology, 92(1), 269-277.

Liden, R. C., Sparrowe, R. T., & Wayne, S. J. (1997). Leader-member exchange theory: The past

and potential for the future. Research in Personnel and Human Resources Management, 15,

-120.

Loi, R., Chan, K. W., & Lam, L. W. (2014). Leader–member exchange, organizational

identification, and job satisfaction: A social identity perspective. Journal of Occupational

and Organizational Psychology, 87(1), 42-61

Loi, R., Mao, Y., & Ngo, H. Y. (2009). Linking leaderâ€member exchange and employee

work outcomes: The moderating role of organizational social and economic

exchange. Management and Organization Review, 5(3), 401-422.

Lunaâ€Arocas, R., & Camps, J. (2012). A matter of learning: How human resources affect

organizational performance. British Journal of Management, 23(1), 1-21.

Masterson, S. S., Lewis, K., Goldman, B. M., & Taylor, M. S. (2000). Integrating justice and

social exchange: The differing effects of fair procedures and treatment on work

relationships. Academy of Management Journal, 43(4), 738-748.

Mathieu, J. E., & Zajac, D. M. (1990). A review and meta-analysis of the antecedents, correlates,

and consequences of organizational commitment. Psychological Bulletin, 108(2), 171-183

Organ, D. W., & Ryan, K. (1995). A metaâ€analytic review of attitudinal and dispositional

predictors of organizational citizenship behaviour. Personnel Psychology, 48(4), 775-802.

Pichler, S., Livingston, B., Yu, A., Varma, A., Budhwar, P., & Shukla, A. (2019). Nationality

diversity and leader–Member exchange at multiple levels of analysis: Test of a cross-level

model. Equality, Diversity and Inclusion: An International Journal, 38(1), 20-39.

Porter, L. W., Steers, R. M., Mowday, R. T., & Boulian, P. V. (1974). Organizational commitment,

job satisfaction, and turnover among psychiatric technicians. Journal of Applied

Psychology, 59(5), 603-609.

Riaz, A., & Ramay, M. (2010). Antecedents of job satisfaction: A study of telecom

sector. Perspectives of Innovations, Economics and Business, 4(1), 66-74.

Riketta, M., & Van Dick, R. (2005). Foci of attachment in organizations: A meta-analytic

comparison of the strength and correlates of workgroup versus organizational

identification and commitment. Journal of Vocational Behaviour, 67(3), 490-510.

Robbins, S. P., & Judge, T. A. (2003). Organizational Behavior Prentice Hall. Rowold J, Heinitz

K (2007). Transformational and charismatic leadership: Assessing the convergent, divergent

and criterion validity of the MLQ and the CKS. Leadership. Quarterly, 18(2), 121-133.

Robinson, S. L. (1996). Trust and breach of the psychological contract. Administrative Science

Quarterly, 41(4), 777-780.

Saeed, B. B., Afsar, B., Cheema, S., & Javed, F. (2019). Leader-member exchange and innovative

work behavior: The role of creative process engagement, core self-evaluation, and

domain knowledge. European Journal of Innovation Management, 22(1), 105-124.

Sager, J. K., Yi, J., & Futrell, C. M. (1998). A model depicting salespeople’s perceptions. Journal

of Personal Selling & Sales Management, 18(3), 1-22.

Scandura, T. A., Graen, G. B., & Novak, M. A. (1986). When managers decide not to

decide autocratically: An investigation of leader–member exchange and decision

influence. Journal of Applied Psychology, 71(4), 579-584.

Sin, H. P., Nahrgang, J. D., & Morgeson, F. P. (2009). Understanding why they don’t see eye to

eye: An examination of leader–member exchange (LMX) agreement. Journal of Applied

Psychology, 94(4), 1048-1057.

Sparrowe, R. T., & Liden, R. C. (2005). Two routes to influence: Integrating leader-member

exchange and social network perspectives. Administrative Science Quarterly, 50(4), 505-

Spector, P. E. (1997). Job Satisfaction: Application, Assessment, Causes, and Consequences.

California: Sage Publications.

Tangirala, S., Green, S. G., & Ramanujam, R. (2007). In the shadow of the boss’s boss:

Effects of supervisors’ upward exchange relationships on employees. Journal of Applied

Psychology, 92(2), 309-320.

Trevor, C. O. (2001). Interactions among actual ease-of-movement determinants and

job satisfaction in the prediction of voluntary turnover. Academy of Management

Journal, 44(4), 621-638

Wong, S. I., & Berntzen, M. N. (2019). Transformational leadership and leader–member

exchange in distributed teams: The roles of electronic dependence and team task

interdependence. Computers in Human Behaviour, 92, 381-392.

Downloads

Published

2019-06-17

Issue

Vol. 14 No. 1 (2019): Market Forces Research Journal Volume 14 No 1

Section

Articles

License

  1. Copyright of all the submissions to the Market Forces will remain to the contributors.
  2. Anyone is allowed to distribute, remix, tweak, and build upon his/her work, even commercially, as long as it is credited/cited to the original contributors of the Market Forces.