Factor Influencing Employee Performance: The Role of Leader-Member Exchange and Job Satisfaction

Abstract

The purpose of this paper is to examine the process through which leader-member exchange (LMX) is related to followers’ job performance. Integrating the literature on LMX theory and resource theories, the authors hypothesized that the positive relationship between LMX and employee job performance is sequentially mediated by job satisfaction. In conducting this research the data is collected by using questionnaires distributed to 108 employees of PT BPR Malang, by using Path Analysis.  The research result showed that leader-member exchange has a direct effect on employee performance. Job satisfaction mediates the effect of LMX to employee performance. Leader-member exchange can shape the subordinate mindset to be always responsible for their work. It underlies the employee performance to commit to workload.