Topic: Organizational Culture, Leader-Member Exchange, and Job Performance
Author(s), Title and Publication
Joo, B.-K. (2012). Leader–Member Exchange Quality and In-Role Job Performance: The Moderating Role of Learning Organization Culture. Journal of Leadership & Organizational Studies, 19(1), 25-34.
Summary
This study examined the influence of the leader-member exchange relationship (LMX) on in-role job performance and the moderating effect of organizational learning culture. In-role job performance was assessed based on activities related to tasks, duties, and responsibilities outlined in job descriptions. LMX quality is the quality of the interpersonal exchange relationship between an employee and the supervisor. A “learning organizational culture” facilitates employee learning and continuously changes itself to reflect the new knowledge and insights.
Employees in five companies in one of the largest Korean conglomerates participated in this study; 164 matched supervisor-employee pairs were surveyed regarding in-role job performance, LMX quality (i.e., mutual respect for each other’s capabilities, reciprocal trust, sense of obligation to one another), and learning culture (i.e., continuous learning, embedded system, strategic leadership, dialogue and inquiry, team learning, and empowerment).
The study demonstrated that employees exhibited higher job performance when they perceived higher LMX quality or better exchange relationships with their supervisors. In addition, although no dimension of learning organization culture was directly related to job performance, an embedded learning system and strategic leadership had significant moderating effects on the relationship between LMX quality and in-role job performance. The moderating role of an embedded system suggested that without appropriate systems to support learning, job performance is unlikely to be enhanced despite the leader’s support. The effect of strategic leadership indicated that employees guided by a strategic leader might perform better at their jobs, even if they perceived a low quality of exchange relationships with that leader. For employees with low strategic leadership, the effect of LMX was greater.
Implications for Practice
Organizations might improve employees’ job performance by building a learning organization system. Strategic leaders who can model and support learning at individual, team, and organization levels are crucial to creating a learning culture. So, too, are open communication systems and the retention and transfer of knowledge in the organization. . Organizations with open communication allow employees to express their opinions and support questioning and feedback.
Location of Article
The article is available online at: http://jlo.sagepub.com/content/early/2011/09/21/1548051811422233.abstract (free abstract, purchase full article)
