Impact of Subordinate’s Perception of Leader Member Exchange on performance: Moderating role of Social Powers

Abstract

The current study intends to clarify the role of Leader-member exchange at work place. The study aims on two objectives. Firstly, the study focused on impact of perceived quality relationship of subordinate’s leader member exchange with their supervisor/manager on performance proxies such as affective commitment, organizational citizenship behavior, intention to leave and mastery orientation. Secondly, it examines the moderating role of perceived social powers (Positives and negatives) in LMX and performance proxies’ relationship. The study has opted quantitative approach, by collecting questionnaires from cellular Mobile companies licensed under Pakistan Telecommunication Authority and different Textile companies listed on All Pakistan Textile Mills Association. The data of 295 was collected from middle managers. The paper provides empirical insight on how positive and negative social powers moderates the relationship between LMX and Performance proxies. Social powers have shown to moderate the relationship between LMX and performance proxies. Firstly, as it was a cross sectional study, the biasness could have cause to change some of the relationships. Secondly, the study has focused on two of the sectors. Therefore, the proposed hypotheses are encouraged to be tested in different sectors. The current has concluded implications for the manager, who needs to focus on LMX to improve employee performance at work place. Leaders/Managers/supervisors need to understand which social powers have positive impact on LMX and performance. This would help them to improve their satisfaction level and keep them more motivated at workplace, thus they will less likely to leave the organizations.