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The Mediating Effect of Leader-Member Exchange on the Relationship between Psychological Contract Breach and Employees Responses
Abstract
The purpose of this study is to investigate the relationship between Psychological Contract Breach (PCB) and employee's responses through the mediating mechanism of leader-member exchange (LMX). Globally, workplace leadership, employers, and employee’s relationship are crucial phenomena to explore. This study explores the impact of the psychological contract breach on employees' active and passive responses through the mediating role of leader-member exchange. Moreover, present study tested these tri-phenomena via a self-administered questionnaire of 250 employees from different organizations. In this regard, present study applied structure equation modeling to evaluate the defined relationship. Furthermore, an employee with high leader-member exchange was less likely to respond to psychological contract breach with exit and voice than the employees with the low leader-member exchange. This study recommends to policy makers, owners and decision makers that leader could play an important role during breach of psychological contract
Authors
Dr. Anwar Hussain
Assistant Professor, HOD, Lahore Business School, University of Lahore Sargodha campus, Pakistan
Dr. Bilal Anwar
Assistant Professor, Department of Business Administration, University of Sahiwal, Pakistan
