Abstract
This chapter focuses on the use of leader-member exchange (LMX) theory in HRM research. Considering the relationship between managers and employees, LMX theory can explain differences between how people are managed at work. By distinguishing between high- and low-quality LMX exchanges, and economic and social HRM exchanges, HRM scholars can understand why some employees perceive more or less HRM practices and express higher or lower levels of job satisfaction, commitment or performance. This chapter presents ways in which HRM and LMX combine to affect employees, and ends with the development of a research agenda for the use of LMX theory in HRM research.
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