LMX and OCB: Examining Leadership Relationships and Performance

This report delves into the Leader-Member Exchange (LMX) theory, exploring its significance in fostering successful leadership and organizational outcomes. It examines how the quality of the relationship between leaders and subordinates, regardless of rank, influences job satisfaction, Organizational Citizenship Behavior (OCB), and overall organizational performance. The report highlights the importance of mutual beneficial interactions and the delegation of responsibilities. It also discusses the two dimensions of OCB: conscientiousness and altruism, and their connection to LMX. Furthermore, the report analyzes the relationship between LMX and OCB, presenting a theoretical framework with variables like subordinate LMX and superior LMX, and detailing LMX antecedents such as personal, interpersonal, and behavioral factors. The report concludes by emphasizing the impact of LMX differentiation on both individual and organizational levels, providing insights into the dynamics of leadership and its effect on employee behavior and performance.

Leader- Member Exchange LMX Relationship with Organization Citizenship
Behavior OCB
LMX theory has been studied throughout the world extensively and it has been found that success is
bound with the relationship of leaders or CEO’s with their followers or sub-ordinates. This relationship
should be kept at friendly level irrespective of the sub-ordinate’s or follower’s rank. Besides success
leader’s relationship with followers also affects job satisfaction, OCB and overall output of the
organization.
LMX theory like all the other leadership theories LMX theory does not only deals with leader’s attributes
and qualities that can lead an organization to success rather it accentuates the effects and growth of
dyadic terms between the subordinates and their boss or leader. In simple words we can say that the
essence of leadership success is that how a leader approaches towards its subordinates and the
response of followers towards the actions and orders of their leader. The base on which the relationship
is developed are of major importance for the success of any organization. Any team’s functionality
depends upon the level of social exchange created between the leader and their followers. It is
suggested that the relationship should be developed through mutual beneficial altercation.
Leaders have a long list of tasks to perform and obviously they cannot perform each work by themselves
so eventually their responsibilities are to be transferred to their subordinates. Now the behavioral
approach of the leader towards his followers is usually differentiated within the work unit and other
groups. There is always a list of trusted personnel along with the leader to whom he or she can delegate
his work and this list is based on pure trust basis. Now the difference between the performance and
response of different personnel is explained through this LMX theory.
High quality LMX relationship supports a friendly and compassionate interaction between the leader and
the subordinates. A leader’s continuous support, positive feedback and confidence in his followers are
the trademarks that yields maximum potential from the subordinates. Antecedent of such LMX
relationship has been studied since decades and before we move to give a thorough description of this
theory let us discuss the connection of LMX with OCB.
Organization Citizen Behavior (OCB)
From the term OCB we mean the attempts to excel the performance of any organization by
implementing the social network support and eliminating all the factors that can revoke the
effectiveness and performance of the organization. Under OCB we can estimate the fluctuations in
individual behavior and analyze all the factors that can create changes in the overall behavior of the
personnel. OCB also describes what kind of feedback or actions shown by the leader or boss can affect
the employers or follower’s behavior in an organization.
Two Different Dimensions of OCB
According to the theories given by Smith at el. (1983), there are two different dimensions of OCB and
these are mentioned below;
1- Conscientiousness

2- Altruism
Conscientiousness
Employers who are considered practicing this kind of OCB approach are taken as the personnel who
have maximum awareness about their responsibilities. Who show ample interest in the work
assigned to them and are the ones who are the most punctual and deliver 100% attendance. The
leaders and boss have ultimate trust on such kind of employers and have great expectations from
such personnel. These kind of followers are always in time and are the rule followers.
Besides work performance these employees show civic virtues and keep them confined within the
political environment of the organization. Sportsmanship is another attribute that can affect the
performance of not only the particular employee but his colleagues as well. These kind of employees
are always in the favor of whatever is in organization’s interest and negate all such activities that are
against the organization’s interest.
Altruism
Altruism is referred as the helping behavior. In more elaborated meaning we can say that altruism is
willingness of an employee to assist his fellow workers in any kind of function they are performing.
They help others by providing such solutions that can provide ease of work for the colleagues.
Sharing the work load, showing extreme courtesy to the fellow mates and keeping patience as an
integral part of their working principle.
Altruism also covers on work training to the employees and helping out the fellow workers in issuing
the particular equipment and machinery etc. that is required to complete the assigned project with
in specified time period.
Relationship between LMX and OCB

The relationship between LMX and OCB is very clear and essential for the prosperity of any organization.
LMX emphasizes on the necessity of managers to improve relationship with employers through effective
and motivational communication. A healthy relationship with LMX can interpret the exact meaning of
OCB within an organization. Liden and Maslyn proposed a LMX model in 1998 which stands upon the
following four pillars; Faithfulness
 Influence
 Self- respect of employers
 Role or contribution
The following table will distinguish the role of self-respect or self-esteem in both LMX and OCB terms.
Self-Esteem and LMX Self- Esteem and OCB
 Increase in LMX will elevate the self-
esteem in employees.
 If the conduct of higher authorities is
cooperative and appreciating, the output
given by sub-ordinates will certainly raise
a lot.
 OCB says that if a sub-ordinate believes
that he is the best choice for this
particular job and capable of doing it will
raise his self-esteem in long run.
 This is a long term process where an
employee came to get aware of his
strengths and weak points after lot of toil
and experiences.

 Through LMX implementation, the self-
confidence of employees raises a lot.
 Providing other incentives is also a good
way of motivating and developing self-
esteem in employees.
 But under OCB theory self-esteem is not
directly connected to high output from
an employee. (wener, 1973)
Theoretical Framework
According to the theoretical framework of connection between LMX and OCB, different variables were
attached to elaborate their relationship. These variables are sub-ordinate LMX and superior LMX where
sub-ordinate LMX is taken as moderating variable with two distinct dimensions, work responsibilities
and loyalty with work while self-esteem is marked is mediator variable. Sub-ordinate LMX shows a good
effect on OCB because the employees are often over-burdened due to excessive work load from the
officers but their loyalty and emotional attachment with the work motivate them to complete the task
assigned to them within time.
The above model shows that superior LMX also adds to the overall performance of employees and has
good relationship with OCB as well. Superior LMX plays an important role in task performance by
personnel as effective and inspirational communication leads to better output by the employees. The
superior LMX demands that sub-ordinates should be trained in such a way that can clarify their vision,
mission and prepare them for their journey to success.
Antecedents of LMX
Different variables are taken as antecedents of LMX and their consequences have been studied so far.
One can adapt several ways to evaluate the quality of LMX antecedents. The variables can be classified
as,

 Personal
 Interpersonal
 Behavioral
Under the personal traits, we mean the impact of personal values and behaviors on overall performance
of an employee. While personality differences, values dissimilarity and perception about someone can
be taken under interpersonal variables. From the name behavioral it becomes clear that the influence of
personnel or leader’s behavior on the output or productivity will be studied under this variable.
Besides the above mentioned variables to check antecedents of LMX, some secondary variables also
matter a lot like difference or similarity between the education, attitude, personality, back ground and
social status of employee and leader.
Further categories of variables that can be discussed as antecedents of LMX are as mentioned below, Demographic
 Follower’s Personality Traits
 Leader’s Personality
 Employee Behavior
 Leader Behavior (all will be discussed in complete dissertation)
 Dyadic Similarity
Research has proved that a friendly and motivating communication can only be achieved through high
quality LMX while those at low quality LMX finds it difficult to communicate effectively with the
followers. Similarly direct authority and a rigid behavior is experienced at a work premises where low-
quality LMX is practiced.

From the above model we can see that how certain antecedents of LMX derive their respective
outcomes. The antecedents are given at individual as well as organizational level. Here under individual
level the behavior of both leader and sub-ordinate is discussed while the impact of organizational
structure, HR practices and leadership style on the desired outcomes are shown. The LMX differentiation
will yield outcomes at individual as well as organizational level. (more will be discussed in complete
dissertation).