Leader-member exchanges and psychological contract: testing for interaction effects

Abstract

Purpose The purpose of this paper is to examine the interaction effects of leader-member exchange (LMX) dimensions and how they blend to affect psychological contract in the public service in Uganda. Design/methodology/approach The authors employ the structural equation model to test a conditional hypothesis. Findings It is indicated that the magnitude of effect of affect and professional respect on psychological contract is dependent upon perceived contribution, implying that the predictive power of affect and professional respect on psychological contract increases considerably when perceived contribution increases. Research limitations/implications Only a single-research methodological approach was employed. So, future research through interviews could be undertaken to triangulate the results. Furthermore, future research should be undertaken to examine the multiplicative effects studied in this paper across time. Practical implications In order to increase the perceptions of fulfillment of the psychological contract in the public service in Uganda, managers should always endeavor to identify a viable LMX mix that can add value to expectations that employee and employer have of each other. Originality/value This is the first study that focuses on testing the interactive effect of LMX dimensions on psychological contract in Uganda’s public service.

Influence of empowerment, psychological contract and employee engagement on voluntary turnover intentions

“…Halbesleben and Wheeler (2008) identified engagement and embeddedness as unique constructs that predict intention to leave. Studies by Bonilla (2018), Caesens et al (2016) and Kasekende (2017) found that engaged employees are less inclined towards turnover intention. In a recent work, Abela and Debono (2019) found lack of employee engagement to be one of the factors that could trigger intention to leave.…”

Leadership development trends and challenges in the twenty-first century: rethinking the priorities

“…Unlike the prominent leadership theories and approaches, the main idea of LMX theory is based on how the quality of this theory leads to positive outcomes (Graen and Uhl-Bien, 1995). It is noted that although research on LMX theory has focused since the 2000s on investigating new ways of integrating this theory with other approaches, theories, constructs and processes, such as psychological contract (Caldwell and Hasan, 2016;Kasekende, 2017), transformational leadership theory and organizational commitment (Keskes et al, 2018), and social exchange (Pearse, 2017), it is still used as a predictor of work outcomes (Biswas, 2016;Choy et al, 2016;Erks et al, 2017;Sumner-Armstrong et al, 2008). This contradicts Erdogan and Bauer's (2014) claim that the evolution of LMX theory can be divided into four stages: In the 1970s stage, the Vertical Dyad Linkage Theory was introduced in the mid-1970s; in the 1980s stage, the focus was switched to LMX with the first empirical tests of the LMX construct; in the 1990s stage, LMX theory was used as predictor of positive outcomes; and from 2000 till now, LMX theory is being investigated through its integration with other theories and variables and as a mediator or a moderator.…”

Fulfillment of the employee psychological contract in a healthcare system: Does it drive employee engagement and reduce turnover intention?

“…Employee behaviors are improved when companies deliver on extrinsic commitments (such as EAB) to employees (Lester & Kickul, 2001). When obligations are met, workers become more engaged and productive; moreover, engaged employees perform discretionary behaviors at no additional cost to the employer (Kasekende, 2017). Failure on the part of the company to fulfill the psychological contract results in reduced employee engagement.…”

“…Organizations whose employees are engaged "have greater profitability, shareholder returns, productivity, and customer satisfaction" (Memon et al, 2018, p. 408). Employees are motivated by receiving rewards, which in turn increases engagement and reduces turnover intention (Caesens et al, 2016;Kasekende, 2017). In one study, "sixty-six percent of highly engaged employees reported .…”

“…(2016) and of Kasekende (2017), which showed that employees are motivated by receiving rewards, which in turn increases engagement, and reduces turnover intention.…”