The interaction between leader–member exchange and perceived job security in predicting employee altruism and work performance
Raymond Loi,
Hang-Yue Ngo,
Lingqing Zhang,
Victor P. Lau,
Corresponding Author
Raymond Loi
Faculty of Business Administration, University of Macau, Taipa, People's Republic of China
Dr Raymond Loi, Faculty of Business Administration, University of Macau, Avenida Padre Tomás Pereira, Taipa, Macau, People's Republic of China (e-mail: [email protected]).Search for more papers by this authorHang-Yue Ngo
Department of Management, The Chinese University of Hong Kong, Shatin, NT, People's Republic of China
Search for more papers by this authorLingqing Zhang
Department of Management, The Chinese University of Hong Kong, Shatin, NT, People's Republic of China
Search for more papers by this authorVictor P. Lau
Department of Management, The Chinese University of Hong Kong, Shatin, NT, People's Republic of China
Search for more papers by this authorRaymond Loi,
Hang-Yue Ngo,
Lingqing Zhang,
Victor P. Lau,
Corresponding Author
Raymond Loi
Faculty of Business Administration, University of Macau, Taipa, People's Republic of China
Dr Raymond Loi, Faculty of Business Administration, University of Macau, Avenida Padre Tomás Pereira, Taipa, Macau, People's Republic of China (e-mail: [email protected]).Search for more papers by this authorHang-Yue Ngo
Department of Management, The Chinese University of Hong Kong, Shatin, NT, People's Republic of China
Search for more papers by this authorLingqing Zhang
Department of Management, The Chinese University of Hong Kong, Shatin, NT, People's Republic of China
Search for more papers by this authorVictor P. Lau
Department of Management, The Chinese University of Hong Kong, Shatin, NT, People's Republic of China
Search for more papers by this authorAbstract
This study investigated the relationships among leader–member exchange (LMX), perceived job security, and employee performance. Drawing on the job demands–resources model and conservation of resources theory, we expected both LMX and perceived job security would affect employee altruism and work performance in a positive manner. In addition, LMX and perceived job security were expected to interact to predict the two outcome variables. The hypotheses were tested with a sample of 184 employees in a state-owned enterprise in China. Our results showed that LMX, but not perceived job security, was positively related to employee altruism and work performance. Additionally, the effect of LMX on altruism was stronger for employees perceiving less job security. The findings indicated that LMX as a job resource becomes more impactful to altruistic performance when employees feel less secure at work.
References
- Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park , CA : Sage Publications.
- Ang, S., Van Dyne, L., & Begley, T. M. (2003). The employment relationships of foreign workers versus local employees: A field study of organizational justice, job satisfaction, performance, and OCB. Journal of Organizational Behavior, 24, 561–583. doi:10.1002/job.202
- Ashford, S. J., Lee, C., & Bobko, P. (1989). Content, cause, and consequences of job insecurity: A theory-based measure and substantive test. Academy of Management Journal, 32, 803–829. doi:10.2307/256569
-
Bakker, A. B., &
Demerouti, E. (2007). The job demands–resources model: State of the art.
Journal of Managerial Psychology, 22, 309–328. doi:10.1108/02683940710733115
10.1108/02683940710733115 Google Scholar
- Bakker, A. B., Demerouti, E., & Verbeke, W. (2004). Using the job demands–resources model to predict burnout and performance. Human Resource Management, 43, 83–104. doi:10.1002/hrm.20004
- Bakker, A. B., Hakanen, J. J., Demerouti, E., & Xanthopoulou, D. (2007). Job resources boost work engagement, particularly when job demands are high. Journal of Educational Psychology, 99, 274–284. doi:10.1037/0022-0663.99.2.274
- Barnett, R. C., & Brennan, R. T. (1995). The relationship between job experiences and psychological distress: A structural equation approach. Journal of Organizational Behavior, 16, 259–276. doi:10.1002/job.4030160307
- Bolino, M., & Turnley, W. H. (2009). Relative deprivation among employees in lower quality leader–member exchange relationships. Leadership Quarterly, 20, 276–286. doi:10.1016/j.leaqua.2009.03.001
- Brislin, R. W. (1970). Back-translation for cross-cultural research. Journal of Cross-Cultural Psychology, 1, 185–216. doi:10.1177/135910457000100301
- Brockner, J., Grover, S., Reed, T. S., & DeWitt, R. L. (1992). Layoffs, job insecurity, and survivors' work effort: Evidence of an inverted-U relationship. Academy of Management Journal, 35, 413–425. doi:10.2307/256380
- Cavanaugh, M. A., Boswell, W. R., Roehling, M. V., & Boudreau, J. W. (2000). An empirical examination of self-reported work stress among US managers. Journal of Applied Psychology, 85, 65–74. doi:10.1037/0021-9010.85.1.65
- Chen, Z. X., Tsui, A. S., & Farh, J. L. (2002). Loyalty to supervisor versus organizational commitment: Relationships to employee performance in China. Journal of Occupational and Organizational Psychology, 75, 339–356. doi:10.1348/096317902320369749
- Cheng, G. H., & Chan, D. S. (2008). Who suffers more from job insecurity? A meta-analytic review. Applied Psychology: An International Review, 57, 272–303. doi:10.1111/j.1464-0597.2007.00312.x
- Chow, K. W., Fung, K. Y., & Ngo, H. Y. (1999). Job turnover in China: A case of Shanghai's manufacturing enterprises. Industrial Relations: A Journal of Economy and Society, 38, 482–503. doi:10.1111/0019-8676.00140
- Dansereau, F., Graen, G., & Haga, W. J. (1975). A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role making process. Organizational Behavior and Human Performance, 13, 46–78. doi:10.1016/0030-5073(75)90005-7
- Demerouti, E., Bakker, A. B., Nachreiner, F., & Schaufeli, W. B. (2001). The job demands–resources model of burnout. Journal of Applied Psychology, 86, 499–512. doi:10.1037/0021-9010.86.3.499
-
De Witte, H. (1999). Job insecurity and psychological well-being: Review of the literature and exploration of some unresolved issues.
European Journal of Work and Organizational Psychology, 8, 155–177. doi:10.1080/135943299398302
10.1080/135943299398302 Google Scholar
- De Witte, H., & Näswall, K. (2003). ‘Objective’ vs. ‘Subjective’ job insecurity: Consequences of temporary work for job satisfaction and organizational commitment in four European countries. Economic and Industrial Democracy, 24, 149–188. doi:10.1177/0143831X03024002002
-
Ding, D. Z., &
Warner, M. (2001). China's labour-management system reforms: Breaking the ‘Three Old Irons’ (1978–1999).
Asia Pacific Journal of Management, 18, 315–334. doi:10.1023/A:1010697711514
10.1023/A:1010697711514 Google Scholar
- Enders, C. K., & Tofighi, D. (2007). Centering predictor variables in cross-sectional multilevel models: A new look at an old issue. Psychological Methods, 12, 121–138. doi:10.1037/1082-989X.12.2.121
- Erdogan, B., & Liden, R. C. (2002). Social exchanges in the workplace: A review of recent developments and future research directions in leader–member exchange theory. In L. L. Neider & C. A. Schriesheim (Eds.), Leadership (pp. 65–114). Greenwich , CT : Information Age Publishing.
- Fried, Y., Slowik, L. H., Shperling, Z., Franz, C., Ben-David, H. A., Avital, N., … Yeverechyahu, U. (2003). The moderating effect of job security on the relation between role clarity and job performance: A longitudinal field study. Human Relations, 56, 787–805. doi:10.1177/00187267030567002
- Gerstner, C. R., & Day, D. V. (1997). Meta-analytic review of leader–member exchange theory: Correlates and construct issues. Journal of Applied Psychology, 82, 827–844. doi:10.1037/0021-9010.82.6.827
- Gong, Y., & Chang, S. (2008). Institutional antecedents and performance consequences of employment security and career advancement practices: Evidence from the People's Republic of China. Human Resource Management, 47, 33–48. doi:10.1002/hrm.20196
- Graen, G. B., & Uhl-Bien, M. (1995). Relationship-based approach to leadership: Development of leader–member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain perspective. Leadership Quarterly, 6, 219–247. doi:10.1016/1048-9843(95)90036-5
- Greenhalgh, L., & Rosenblatt, Z. (1984). Job insecurity: Toward conceptual clarity. Academy of Management Review, 9, 438–448. doi:10.2307/258284
- Harris, K. J., Wheeler, A. R., & Kacmar, K. M. (2009). Leader–member exchange and empowerment: Direct and interactive effects on job satisfaction, turnover intentions, and performance. Leadership Quarterly, 20, 371–382. doi:10.1016/j.leaqua.2009.03.006
- Hobfoll, S. E. (2001). The influence of culture, community, and the nested-self in the stress process: Advancing conservation of resources theory. Applied Psychology: An International Review., 50, 337–370. doi:10.1111/1464-0597.00062
- Hobfoll, S. E. (2002). Social and psychological resources and adaptation. Review of General Psychology, 6, 307–324. doi:10.1037/1089-2680.6.4.307
- Hoffman, B. J., Blair, C. A., Meriac, J. P., & Woehr, D. J. (2007). Expanding the criterion domain? A quantitative review of OCB literature. Journal of Applied Psychology, 92, 555–566. doi:10.1037/0021-9010.92.2.555
- Hofmann, D. A., & Gavin, M. B. (1998). Centering decisions in hierarchical linear models: Implications for research in organizations. Journal of Management, 24, 623–641.
- Hofmann, D. A., Griffin, M. A., & Gavin, M. B. (2000). The application of hierarchical linear modeling to organizational research. In K. Klein & S. W. J. Kozlowski (Eds.), Multilevel theory, research, and methods in organizations (pp. 467–511). San Francisco , CA : Jossey-Bass.
- Hu, L., & Bentler, P. M. (1998). Fit indices in covariance structure modeling: Sensitivity to underparameterized model misspecification. Psychological Methods, 3, 424–453. doi:10.1037/1082-989X.3.4.424
- Hui, C., Lee, C., & Rousseau, D. M. (2004). Employment relationships in China: Do workers relate to organization or to people Organization Science, 15, 232–240. doi:10.1287/orsc.1030.0050
- Ilies, R., Nahrgang, J. D., & Morgeson, F. P. (2007). Leader–member exchange and citizenship behaviors: A meta-analysis. Journal of Applied Psychology, 92, 269–277. doi:10.1037/0021-9010.92.1.269
- Jordan, P. J., Ashkanasy, N. M., & Hartel, C. E. J. (2002). Emotional intelligence as a moderator of emotional and behavioral reactions to job insecurity. Academy of Management Review, 27, 361–372. doi:10.2307/4134384
- Kamdar, D., & Van Dyne, L. (2007). The joint effects of personality and workplace social exchange relationships in predicting task performance and citizenship performance. Journal of Applied Psychology, 92, 1286–1298. doi:10.1037/0021-9010.92.5.1286
- King, J. E. (2000). White-collar reactions to job insecurity and the role of the psychological contract: Implications for human resource management. Human Resource Management, 39, 79–92. doi:10.1002/(SICI)1099-050X(200021)39:1<79::AID-HRM7>3.0.CO;2-A
- Kinnunen, U., Mauno, S., Natti, J., & Happonen, M. (2000). Organizational antecedents and outcomes of job insecurity: A longitudinal study in three organizations in Finland. Journal of Organizational Behavior, 21, 443–459. doi:10.1002/(SICI)1099-1379(200006)21:4 <443::AID-JOB24 > 3.0.CO;2-N
- Kraimer, M. L., Wayne, S. J., Liden, R. C., & Sparrowe, R. T. (2005). The role of job security in understanding the relationship between employees' perceptions of temporary workers and employees' performance. Journal of Applied Psychology, 90, 389–398. doi:10.1037/0021-9010.90.2.389
- Lam, S. S. K., Hui, C., & Law, K. S. (1999). Organizational citizenship behavior: Comparing perspectives of supervisors and subordinates across four international samples. Journal of Applied Psychology, 84, 594–601. doi:10.1037/0021-9010.84.4.594
- Lam, S. S. K., Schaubroeck, J., & Aryee, S. (2002). Relationship between organizational justice and employee work outcomes: A cross-national study. Journal of Organizational Behavior, 23, 1–18. doi:10.1002/job.131
- Law, K. S., Wang, H., & Hui, C. (2009). Currencies of exchange and global LMX: How they affect employee task performance and extra-role performance. Asia Pacific Journal of Management. doi:10.1007/s10490-009-9141-8
- Lee, C., Bobko, P., Ashford, S., Chen, Z. X., & Ren, X. (2008). Cross-cultural development of an abridged job insecurity measure. Journal of Organizational Behavior, 29, 373–390. doi:10.1002/job.513
- Lee, C., Bobko, P., & Chen, Z. X. (2006). Investigation of the multidimensional model of job insecurity in China and the USA. Applied Psychology: An International Review, 55, 512–540. doi:10.1111/j.1464-0597.2006.00233.x
- Lee, J., & Peccei, R. (2007). Perceived organizational support and affective commitment: The mediating role of organization-based self-esteem in the context of job insecurity. Journal of Organizational Behavior, 28, 661–685. doi:10.1002/job.431
- LePine, J. A., Erez, A., & Johnson, D. E. (2002). The nature and dimensionality of organizational citizenship behavior: A critical review and meta-analysis. Journal of Applied Psychology, 87, 52–65. doi:10.1037/0021-9010.87.1.52
- LePine, J. A., Podsakoff, N. P., & LePine, M. A. (2005). A meta-analytic test of the challenge stressor–hindrance stressor framework: An explanation for inconsistent relationships among stressors and performance. Academy of Management Journal, 48, 764–775. doi:10.2307/20159696
- Liden, R. C., Wayne, S. J., & Sparrowe, R. T. (2000). An examination of the mediating role of psychological empowerment on the relations between job, interpersonal relationships, and work outcomes. Journal of Applied Psychology, 85, 407–416. doi:10.1037/0021-9010.85.3.407
- Loi, R., Mao, Y., & Ngo, H. Y. (2009). Linking leader–member exchange and employee–organization exchange: An investigation in a foreign-invested enterprise in China. Management and Organization Review, 5, 401–422. doi:10.1111/j.1740-8784.2009.00149.x
- Organ, D. W. (1988). Organizational citizenship behavior: The good soldier syndrome. Lexington , MA : Lexington Book.
-
Podsakoff, P. M.,
MacKenzie, S. B.,
Moorman, R. H., &
Fetter, R. (1990). Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors.
Leadership Quarterly, 1, 107–142. doi:10.1016/1048-9843(90)90009-7
10.1016/1048-9843(90)90009-7 Google Scholar
- Podsakoff, P. M., MacKenzie, S. B., Paine, J. B., & Bachrach, D. G. (2000). Organizational citizenship behaviors: A critical review of the theoretical and empirical literature and suggestions for future research. Journal of Management, 26, 513–563. doi:10.1177/014920630002600307
- Probst, T. M. (2003). Development and validation of the job security index and the job security satisfaction scale: A classical test theory and IRT approach. Journal of Occupational and Organizational Psychology, 76, 451–467. doi:10.1348/096317903322591587
- Probst, T. M., Stewart, S. M., Gruys, M. L., & Tierney, B. W. (2007). Productivity, counterproductivity, and creativity: The ups and downs of job insecurity. Journal of Occupational and Organizational Psychology, 80, 479–497. doi:10.1348/096317906X159103
- Raudenbush, S. W., Bryk, A. S., Cheong, Y. F., Congdon, R. T., Jr. (2004). HLM 6: Hierarchical linear and nonlinear modeling. Chicago , IL : Scientific Software International.
- Scandura, T. A., & Graen, G. B. (1984). Moderating effects of initial leader–member exchange status on the effects of a leadership intervention. Journal of Applied Psychology, 69, 428–436. doi:10.1037/0021-9010.69.3.428
- Scandura, T. A., & Schriesheim, C. A. (1994). Leader–member exchange and supervisor career mentoring as complementary concepts in leadership research. Academy of Management Journal, 37, 1588–1602. doi:10.2307/256800
- Schriesheim, C. A., Castro, S. L., & Cogliser, C. C. (1999). Leader–member exchange (LMX) research: A comprehensive review of theory, measurement, and data-analytic practices. Leadership Quarterly, 10, 63–113. doi:10.1016/S1048-9843(99)80009-5
- Schriesheim, C. A., Castro, S. L., & Yammarino, F. J. (2000). Investigating contingencies: An examination of the impact of span of supervision and upward controllingness on leader–member exchange using traditional and multivariate within and between-entities analysis. Journal of Applied Psychology, 85, 659–677. doi:10.1037/0021-9010.85.5.659
- Smith, C. A., Organ, D. W., & Near, J. P. (1983). Organizational citizenship behavior: Its nature and antecedents. Journal of Applied Psychology, 68, 653–663. doi:10.1037/0021-9010.68.4.653
- Sparrowe, R. T., & Liden, R. C. (1997). Process and structure in leader–member exchange. Academy of Management Review, 22, 522–552. doi:10.2307/259332
- Staufenbiel, T., & König, C. J. (2010). A model for the effects of job insecurity on performance, turnover intention, and absenteeism. Journal of Occupational and Organizational Psychology, 83, 101–117. doi:10.1348/096317908X401912
- Sverke, M., Hellgren, J., & Näswall, K. (2002). No security: A meta-analysis and review of job insecurity and its consequences. Journal of Occupational Health Psychology, 7, 242–264. doi:10.1037/1076-8998.7.3.242
- Wallace, J. C., Edwards, B. D., Arnold, T., Frazier, M. L., & Finch, D. M. (2009). Work stressors, role-based performance, and the moderating influence of organizational support. Journal of Applied Psychology, 94, 254–262. doi:10.1037/a0013090
- Wayne, S. J., Shore, L. M., & Liden, R. C. (1997). Perceived organizational support and leader–member exchange: A social exchange perspective. Academy of Management Journal, 40, 82–111. doi:10.2307/257021
-
Wong, Y. T.,
Ngo, H. Y., &
Wong, C. S. (2003). Antecedents and outcomes of employees' trust in Chinese joint ventures.
Asia Pacific Journal of Management, 20, 481–499. doi:10.1023/A:1026391009543
10.1023/A:1026391009543 Google Scholar
- Wong, Y. T., Wong, C. S., Ngo, H. Y., & Lui, H. K. (2005). Different responses to job insecurity of Chinese workers in joint ventures and state-owned enterprises. Human Relations, 58, 1391–1418. doi:10.1177/0018726705060243
- Yukl, G. (2002). Leadership in organizations. Upper Saddle River , NJ : Prentice-Hall.
