Interpersonal Exchange Model

Interpersonal exchange relationship is crucial in this process and the level of exchange is predictive of subsequent organizational phenomenon. Studies have established that members reporting high-quality relationship with their leaders assumed greater job responsibilities and contributed more to their units, as compared to the members reporting low-quality relationship.

Liden and Graen (1980) in their study on “Generalizability of the vertical dyad linkage model of leadership” has observed that based on the quality of LMX relationship when followers are rated as high performers, they assumed greater job responsibilities and contributed more to their units.

Dunegan, K. J., Uhl-Bien, M., & Duchon, D. (2002) in their study on “LMX and Subordinate

C., Erdogan, B., Wayne, S. J., & Sparrowe, R. T. (2006) in his study on Leader-member exchange, differentiation, and task interdependence: implications for individual and group performance claims that “LMX differentiation and individual performance were positively related for low LMX members, but not related for high LMX members”.(p.738). As per his research finding at group level the moderators such as the level of task interdependence and the median level of LMX within the group, influences the relationship between LMX differentiation and group performance. The association between LMX differentiation and group performance was significant and positive for groups high in task interdependence, but not significant when it’s low in task interdependence. The association between LMX differentiation and group performance was positive in groups with a low LMX median and not significant with a high LMX median. Increasing LMX differentiation has opposite effects for high and low LMX members at the individual level, even when controlling for LMX median. The higher LMX members tend to be rated higher than low LMX members on performance, however the difference in rated performance between high and low LMX members becomes increasingly smaller with increases in LMX

perceived organizational support (POS) and leader member exchange (LMX) on organizational commitment and turnover intention in public sector organization. Results of the study proved that both POS and LMX are positively associated with organizational commitment, and negatively associated with turnover intentions. POS & LMX are significant determinant of employees’ turnover intentions and organizational commitment has partial mediating effects on employees’ turnover intentions. This study demonstrates the significance of exchange relations at work and proves that turnover intentions can be reduced by increasing organizational commitment of