Abstract

People’s relationships with their organization and their managers have significant effects on their work and their workplace attitudes. In this paper we look at the relationship between perceived organizational support (POS), leader member exchange (LMX), and risk taking. Workers with high levels of POS and LMX have more organizational commitment, have lower absenteeism and turnover rates, and exhibit more citizenship behaviour. We hypothesize that the higher the level of POS and LMX the more likely a person will be to take constructive versus destructive risk. Constructive risk is defined as risk involved in innovation and creativity, and is therefore desirable for organizations. This paper also looks at the links between Perceived Organizational Support and Leader Member Exchange, and at which of these factors is more influential on risk taking. This will allow organizations to best allocate their time and energy on initiatives linked to raising POS and LMX to get the highest return. This paper reflects initial findings of three separate studies looking at POS, LMX and risk taking.

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