The Impact of Leader-Member Exchange Towards Subordinate’s Job Satisfaction in Bank X

Abstract

Job satisfaction is defined as a content emotional state resulting of values and facilitations through employee's working experience. It is an important concept to study due to it's impacts towards employees and the organization as a whole. In the working place, employees are categorized into leaders and subordinates. The relationship between leaders and subordinates can be explained through a concept called leader-member exchange, and was found to have impact towards subordinate's job satisfaction. This research is purposed to understand the impact of leader-member exchange towards subordinate's job satisfaction at Bank X. The participants include 149 pairs of leader-subordinate and was reached through purposive sampling. As a result, we found that there is a direct impact of leader-member exchange towards subordinate's job satisfaction, and is correlated towards job satisfaction's dimensions as follows: (a) social extrinsic rewards (0.282, p<0.01); (b) intrinsic rewards (0.237, p<0.01); dan (c) organizational extrinsic rewards (0.217, 0<0.01). Other than that, the descriptive results indicate that the level of leader member exchange and subordinate's job satisfaction are considered high. Discussions and insights are also discussed in the last chapter of this paper.