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Journal : Golden Ratio of Human Resource Management

Leader-Member Exchange and Organisational Performance: A Review of Communication, Biases, and Personality Challenges Willie, Michael Mncedisi
Golden Ratio of Human Resource Management Vol. 5 No. 1 (2025): August - February
Publisher : Manunggal Halim Jaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52970/grhrm.v5i1.697

Abstract

This study investigated how high-quality Leader-Member Exchange (LMX) relationships influence organizational performance, focusing on open communication, personal biases, and personality clashes in shaping these relationships and their outcomes. An empirical literature review was conducted by searching databases such as JSTOR, PubMed, and Google Scholar for articles related to LMX theory, communication, biases, and personality clashes. Peer-reviewed articles from recent decades were reviewed through abstracts and full texts, with the thematic analysis used to synthesize the findings. High-quality LMX relationships, characterized by trust, mutual respect, and open communication, significantly enhance organizational performance. These relationships lead to greater job satisfaction, team member engagement, and productivity, as well as support Organisational Citizenship Behaviours (OCB) and proactive behaviors, fostering innovation and collaboration. However, personal biases, the underutilization of skilled personnel, failure to recognize potential talent, and inadequate succession planning were identified as factors that could hinder effective communication and overall organizational performance. Organizations should improve LMX relationships by enhancing communication, addressing biases through targeted training, and implementing strategic talent management. Recognizing and developing potential talent, aligning roles with skills, and establishing clear succession plans are essential for optimizing leader-subordinate interactions and boosting organizational performance. This study provides a detailed review of how high-quality LMX relationships affect organizational performance. It emphasizes the importance of communication and addressing biases and personality clashes to enhance leadership effectiveness and organizational success.
Enhancing Culture and Retention through an Expanded Leader-Member Exchange Theory: A Focus on Commitment and Fairness Willie, Michael Mncedisi
Golden Ratio of Human Resource Management Vol. 5 No. 2 (2025): March - July
Publisher : Manunggal Halim Jaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52970/grhrm.v5i2.705

Abstract

This study investigates the implications of the high-quality Leader-Member Exchange (LMX) model on the dynamics of leader-follower relationships. It critically examines the model's limitations in addressing behavior, fairness, and mutual responsibilities within changing organizational contexts. A thorough literature review was conducted to analyze the relationship between LMX theory and its effects on key organizational outcomes, such as employee commitment, retention, and organizational culture. The result of this study states that the enhanced high-quality Leader-Member Exchange (LMX) model emphasizes the critical role of reciprocal obligations between leaders and employees in fostering affective, continuance, and normative commitment—key factors for improving employee retention. It also underscores the importance of cultivating an organizational culture that aligns with employee values, enhancing job satisfaction and reducing turnover. Strengthened high-quality LMX relationships ultimately contribute to sustainable organizational success. Practical Implications of this study state that organizations and scholars can apply the proposed model to improve leadership practices by fostering equitable, supportive, and robust LMX interactions. Addressing potential inequities and promoting inclusivity within the workplace can further enhance employee retention and satisfaction. This study advances the existing body of knowledge by introducing a conceptual model derived from literature. It demonstrates how mutual respect, friendships, and reciprocal responsibilities are precursors to employee commitment. The findings provide actionable insights for practitioners and policymakers to foster positive leader-member relationships and implement more effective and inclusive organizational structures.