Home About IUP Magazines Journals Books Amicus Archives
     
A Guided Tour | Recommend | Links | Subscriber Services | Feedback | Subscribe Online
 
The IUP Journal of Business Strategy :
An Investigation of the Differential Impact of Supervisor and Subordinate-Rated Leader-Member Exchange on Career Outcomes
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 
 

Using a sample of 229 employees and their 109 immediate supervisors from 63 organizations in Northern Malaysia, we tested the hypothesis that the quality of Leader-Member Exchange (LMX) would have differential impact on career outcomes depending on whether it was rated by the supervisor or the subordinate. As expected, we found that the employees' perceptions of the quality of exchanges differed from those of their supervisors. Interestingly, supervisor-rated LMX significantly predicted salary progression and promotability, whereas subordinate-rated LMX significantly predicted career satisfaction. The results also revealed that supervisor-rated LMX and subordinate-rated LMX did not interact significantly to impact career outcomes. Rather, they singly and distinctively contributed to career outcomes, thereby suggesting the salience of their independent effects. Implications of the findings in the light of potential limitations are discussed.

In the past 25 years or so, substantial research has been done to understand the nature of exchanges in employee-supervisor relationships, now known as Leader-Member Exchange (LMX) theory (Graen et al., 1982; and Graen et al., 1982). The mountain of research has shown that LMX is related to a number of important work outcomes such as organizational commitment (Gagnon and Michael, 2004; Martin et al., 2005; and Schyns et al., 2005); job satisfaction and work-related well-being (Martin et al., 2005; Harris and Kacmar, 2006; and Breland et al., 2007); individual performance and extra-role behaviors (Scriesheim et al., 1999; and Hackett and Lapierre, 2004); delegation and occupational self-efficacy (Schyns et al., 2005); turnover intentions, supervisory ratings of job performance and promotions (Liden and Maslyn, 1998).

While the breadth of LMX research has been remarkable, studies in this domain still suffer from one obvious limitation. With a few exceptions (e.g., Schriesheim et al., 1998; Bhal and Ansari, 2000; and Paglis and Green, 2002), researchers mostly tend to measure the quality of LMX from the subordinate's perspective alone, and as a result might not have provided a comprehensive examination of the impact of LMX, particularly on career outcomes. Seeking a remedy for these literary deficiencies, we advance a model that aims to investigate the differential effects of supervisor and subordinate ratings of LMX on career outcomes.

Specifically, our study is a follow-up to the research on LMX and career outcomes and contributes to these literatures in several ways: (a) LMX ratings were obtained from the employees and their supervisors to compare the possibly different perspectives, (b) career outcomes too were conceptualized as a multidimensional construct, and as such contrasting the effect of supervisor and subordinate-rated LMX on different outcome dimensions, and (c) most studies on LMX have been conducted in the western setting and add to the literature by testing the differential impact of LMX in the Malaysian context, thus providing some empirical cross-cultural validity to leadership theory.

 
 
 

Differential Impact of Supervisor and Subordinate-Rated Leader, Leader-Member Exchange, LMX, employees' perceptions, salary progression and promotability, supervisor-rated LMX, organizational commitment, subordinate-rated LMX, empirical cross-cultural validity, employee-supervisor relationships.