Is LMX a Potential Stressor? – The Moderating Role of Leader Integrity

Prof. Kenneth S. K. Law
Ph.D., University of Iowa
Professor of Management,
Department of Management,
The Chinese University of Hong Kong

Seminar

LMX theory describes the relationship between supervisors and subordinates and indicates that supervisors tend to develop different forms of exchange relationships with their subordinates. Subordinates in high-quality LMX relationships with their supervisors work with a high level of trust and emotional support and may receive several advantages, including favors, rewards, and increased communication with their supervisors. We propose that leaders with low moral integrity may set the form and scope of exchange too broadly to an extent that is detrimental to their followers. Based on Blaus exchange theory and Demerouti et al.s' job demands and job resources model of burnout, we argue that leaders with low moral integrity would abuse their relationship with in-group members with high job demands and fewer job resources, resulting in higher likelihood of burnout by these followers.