Treat me better, but is it really better? Applying a resource perspective to understanding leader-member exchange (LMX), LMX differentiation, and work stress.

Abstract

The leader-member exchange (LMX) literature proposes that leaders tend to differentiate the quality of relationships among their followers, but it remains unclear how individual LMX and LMX differentiation (i.e., the degree to which followers' LMX quality with the same leader varies within a team) may jointly shape follower well-being such as work stress. Drawing from a resource perspective, we hypothesize that LMX differentiation reduces the beneficial effect of LMX on work stress via decreasing perceived distributive justice. Work stress is further hypothesized to mediate the relationship between LMX and employees' proactive behavior and prosocial behavior. Three empirical studies were conducted to test the hypothesized model. Study 1 surveyed a sample of 1,181 employees nested in 120 teams from a Chinese insurance firm across three time points; Study 2 manipulated both LMX and LMX differentiation in a vignette-based experiment using 140 full-time employees in the United States; and Study 3 surveyed 440 full-time employees in the United States across three time points. Results provided converging evidence for our hypothesized model and suggest that one's relationship with their leader-both on its own and in relation to others' relationships with the same leader-may serve as an important source for their psychological well-being (or lack thereof). Theoretical and practical implications were discussed along with limitations and future directions. (PsycInfo Database Record (c) 2022 APA, all rights reserved).