Interpersonal Exchange Relationship

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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
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Low quality LMX members are seen as “hired hands” with lower status and high LMX members as high status indicated by terms such as “cadre”. (Dansereau et al., 1975). The issue often raised is that whether leaders should or should not differentiate among their members. Different views have been expressed for and against the contention. Severe differentiation may lead members likely to become demotivated and developing generalized reciprocity may lead to demotivation and performance may suffer. Differentiation is a necessary evil for organizational effectiveness. Personality similarity, demographic similarity and overall perceptions of similarity are related to LMX but its viewed that differentiation among members strictly based on similarity may result in unintended negative consequences for the leader. Sparrowe, Raymond T. Liden, Robert C Liden…show more content…
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
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