Determinants of Leader-Subordinate Exchange Relationships

Abstract

This study assessed the value of the concept "noncontractual social exchange" (NSE) as a dimension describing leader behavior. Results of an experiment using an in-basket memo device showed that subordinate competence best pre dicted the intentions of such behavior by a sample of working adults: Subjects were more likely to initiate NSE with highly competent subordinates. This discrimination was more pronounced when the situation contained stress in the form of pressure for effective task outcomes. Results also showed that low-LPC (task-oriented) leaders showed greater variation in NSE as a function of subor dinate competence and task stress, as well as a generally lower level of NSE, than high-LPC (relationship-ariented) leaders. Implications are noted for selecting, training, and organizational support of leaders.

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