Satisfaction with Supervision and Member Job Satisfaction in Leader-Member Exchange: An Empirical Study in the Restaurant Industry

Abstract

Executive Summary The Leader-Member Exchange (LMX) Model and Minnesota Job Satisfaction Questionnaire (MSQ) were used to determine member satisfaction with the supervisor and member job satisfaction in the high-turnover restaurant industry. Results demonstrate that six out of 12 LMX measures were significant in determining member satisfaction with the supervisor and explained 88.2 % of the variance. Seven MSQ measures out of 20 were significant in determining member job satisfaction and explained 79.4 % of the variance. Additionally, overall linkage between satisfaction with the supervisor and member job satisfaction was examined. As a result, satisfaction with the supervisor alone determines more than 50% of the variance in the member job satisfaction. Introduction Over the past decade, the concept of leader-member exchange within the business environment has become a widely researched and debated topic (Harris, Harris, & Eplion, 2007; Liang, Ling, & Hsieh, 2007; Greguras, 2006; Levy & Hall, 2006). The quality of the leader-member exchange, or LMX, in the workplace can often affect the entire structure and success of the organization at hand. LMX has been conceptualized as the one-on-one relationship between a leader and a subordinate. Leaders often treat their subordinates differently, creating a relationship that affects their overall job satisfaction and commitment to the organization. Leader-member exchange theory attempts to understand the quality of each relationship and its effects on organizational outcomes over time (Lussier & Achua, 2004). The understanding of these relationships is extremely important because an overwhelming number of Americans have become increasingly dissatisfied with their current work positions. In the United States, 77% of employees are unhappy with their jobs (Lussier & Achua, 2004) According to Williams (2002), the number one reason people leave organizations is that they are being treated poorly by their bosses. Another research study found that those who remain in their jobs, working for poor bosses, have lower job and life satisfaction, lower commitment, higher conflict between work and family, and psychological distress (Tepper, 2000). This statement in itself suggests the need for more research and study within the realm of LMX and employee job satisfaction. While the concept of leader-member exchange has been studied in-depth by many researchers, few studies have come to conclusive and consistent results regarding its impact on employees, their job satisfaction, and turnover. Turnover experts, both academic and practitioner, have asserted that supervision plays a meaningful role in employee turnover decisions (Morrow, Suzuki, Crum, Ruben, & Pautsch, 2005). With this thought in mind, it is easy to see how supervisory relationships can cause employees to lose commitment to or satisfaction with their job. Morrow et al. (2005) state that, according to the LMX theory, the relationship between a supervisor and an employee develops as a result of work-related exchanges between the two individuals. These relationships can be characterized as high in quality or good (i.e., reflecting trust, respect, and loyalty) or low in quality or bad (i.e., reflecting mistrust, low respect, and a lack of loyalty). This is the underlying assumption of this study. We hypothesize that the relationships formed between management and employees, and the quality of the leader-member exchange relationships formed, have a direct effect on an employee's job satisfaction within the restaurant industry. The ultimate aim of this study is to create a stronger bond between the LMX relationship and employee job satisfaction within a high-turnover environment, specifically the restaurant industry. Leader-Member Exchange and Satisfaction with the Supervision Leader-Member Exchange The leader-member exchange theory has been under close scrutiny of many researchers in recent years, with many studies investigating the impact and powers delegated within the different variables of LMX theory. …