A mediation model of leaders’ favoritism
| Pages | 1330-1344 |
| Published date | 05 November 2018 |
| DOI | https://doi.org/10.1108/PR-10-2016-0283 |
| Date | 05 November 2018 |
| Author | Man-Ling Chang,Cheng-Feng Cheng |
| Subject Matter | HR & organizational behaviour,Global HRM |
A mediation model of
leaders’favoritism
Man-Ling Chang
Department of Business Administration, National Chung Hsing University,
Taichung, Taiwan, and
Cheng-Feng Cheng
Asia University, Taichung, Taiwan
Abstract
Purpose –The purpose of this paper is to develop a mediation model for understanding how favoritism, in
the context of the leader –member exchange (LMX) theory, influences subordinate-rated LMX via the
subordinates’perception of organizational justice.
Design/methodology/approach –The sample comprised 39 managers and 159 employees working in local
branches of banks in Taiwan. While the managers were asked to rate their LMX scores with all employees,
three to five employees were randomly selected to participate in a survey which included two phases with a
time lag of three months. Given the nested structure of the data, hierarchical linear modeling was used to
examine the mediation model.
Findings –The findings support the mediation model, indicating that LMX favoritism can significantly
influence subordinate-rated LMX by enhancing subordinates’justice perception.
Originality/value –The study contributes to the existing LMX research by showing that a superior’s LMX
favoritism may change subordinate-rated LMX over time.
Keywords Quantitative, Organizational justice, Leader –member exchange (LMX),
Hierarchical linear modeling (HLM), LMX favouritism
Paper type Research paper
Introduction
Leader –member exchange (LMX) theory, referring to the quality of relationships between
superiorsand subordinates, has been thefocus of considerable researchattention (Li and Liao,
2014). Its centralpremise is that superiors form differentrelationships with their subordinates
(Basu and Green, 1997). Based upon this differentiation in treatment, subordinates are
implicitly divided into in-groups and out-groups (Bolino and Turnley,2009). While in-groups
often receive morefavors and rewards from their superiors, out-groupsare at a disadvantage
in terms of resource distribution and privileges (Kang et al., 2011).
The literature highlightsLMX differentiation,which is defined as thedegree of variation in
LMX within a group, as a means of capturing superiors’different treatment of their
subordinates (Liden et al., 2006). High LMX differentiation is indicative of a broad range of
LMX withina group, whereas lowdifferentiationindicates greatersimilarity in LMX (Tseet al.,
2012). LMX differentiation is treated as a group-level concept and thus is only used to explore
employees’reactionstoward this group-levelphenomenon (Henderson et al., 2008; Li and Liao,
2014; Liao et al., 2010). However, LMX differentiation cannot help in identifying the effect of the
perception of an employee’s relative standing in LMX relationships within the group.
Recent research has advanced the idea of LMX operating at the individual-within-group
level; that is, comparing an employee’s LMX with that of their coworkers in a group
(e.g. relative LMX, or RLMX: Henderson et al., 2008 and Tse et al., 2012; LMX [dis]similarity
between coworkers: Tse et al., 2013; LMX social comparison, or LMXSC: Vidyarthi et al.,
2010). Utilizing subordinates’ratings of LMX (member LMX, or MLMX) within a group to
calculate an individual’s RLMX score, these studies conclude that the score determines the
subordinate’s job performance, citizenship behaviors, psychological contract fulfillment and
interpersonal relationships.
Personnel Review
Vol. 47 No. 7, 2018
pp. 1330-1344
© Emerald PublishingLimited
0048-3486
DOI 10.1108/PR-10-2016-0283
Received 22 October 2016
Revised 1 March 2018
16 April 2018
Accepted 21 April 2018
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