Leader Member Exchange Theory

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The ever increasing challenges of growing businesses in the competitive market environment require multinational organizations to think ahead of the competition and to get the best performance by its employees. While more and more innovation is being introduced both in products and in services to the end consumers, the level of engagement of employees in the whole value chain is extremely critical for the success of an organization. The challenging competitive market environment requires the business leaders to be highly demanding to ensure the quality and swift delivery of results by their employees. Several organizational researches proved that the high employee engagement is of supreme importance to the organization in improving the productivity…show more content…
The leader-member exchange mode is primarily descriptive than prescriptive (Yukl and Van Fleet, 1992). The Leader-member exchange relationships decide whether the subordinates play the role of an in-group or an out-group member based on the relationship with their supervisors. The relationship developed in this manner tends to be quick and stable over a period of time (Liden, Wayne, & Stillwell, 1993). Leader-member exchange relationships that are high in quality lead to higher supervisor support to subordinates, greater job satisfaction and performance by employees with lower attrition rate (Bauer & Green, 1996; Liden & Graen, 1980). "A class of behaviors employed by a person to make himself / herself more attractive to another" is defined as ingratiation (Wortman & Linsenmeier, 1977: 134). Leader-member exchange relationships literature suggests that upward influence behaviors such as ingratiation have been demonstrated by subordinates to improve the relationships with the supervisors (Wayne & Ferris, 1990; Wayne & Green, 1993). It is also postulated that personal characteristics influence the leader-member exchange relationships (Dienesch & Liden, 1986); disabilities as personal characteristics interact with…show more content…
It also provides the principles and objectives for implementing the global plan of action in all the WHO member states, (Workers ' health: global plan of action (2008-2017), WHO 2013). Employees’ positive and negative emotions directly have the relationship between perceived supervisor support and cynicism and psychological hardiness and cynicism amidst organizational crisis, (Michael S. Cole, Heike Bruch and Bernd Vogel, 2006)

From the meta-analysis of 500 studies, there is a very strong relationship between job satisfaction of the employees and the mental and physical health of the employees. In particular, it is strongly correlated to the mental health of the employees, specifically burnout, lowered self-esteem, anxiety and depression. (E. B. Faragher, M. Cass and C. L. Cooper, Feb 2005). Employee well-being significantly influences the organizations’ performance and sustainability by impacting the costs related to employees’ health and health care (Danna, K and Griffin, R.W,
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