LEADER-MEMBER EXCHANGE (LMX) RELATIONSHIP AND HIGH EMPLOYEE TURNOVER

Oghiadomhe, Michael (2022) LEADER-MEMBER EXCHANGE (LMX) RELATIONSHIP AND HIGH EMPLOYEE TURNOVER. Doctor of Business Administration thesis, University of Liverpool.

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Abstract

The Problem of high employee turnover rate has been of important concern to management of enterprises and academics for decades. Yet, not much is resolved about the underlying cause(s) and effects of this phenomenon especially in Nigeria. Our company, Enterprise Foundation Nigeria Limited (EFNL) has been experiencing high rate of employee turnover which preliminary investigation reveals is caused, amongst others, by the lack of high level inter-personal relationships between supervisors and subordinates. This has negatively impacted the stimulation of interest in collaborating towards the actualization of the common goals as enshrined in the corporate vision and mission of the organization. Against this backdrop, this study investigates the causes of high employee turnover rate and the role that Leader Member Exchange (LMX) relationship play in accentuating or ameliorating the problem. In doing this, I make use of the four dimensions of LMX relationships via the adoption of an Action Research Qualitative Methodology based on data collected from flexible semi-structured and open-ended interviews. These interviews are done via a face-to-face chat, but in rare situations where the interviewees were not immediately available, telephone conversation was adopted in executing the process. Aside note taking, with the permission of interviewees, the face-to-face interviews were recorded to ensure that no part of the interviewee’s response and body language was ignored or unacknowledged. Data for this study were collected from 20 employees of EFNL. There were two action research (AR) cycles, and the results from both cycles (AR cycle 1 and AR cycle 2), indicated that all the factors identified in the literature reviewed except Job Security, strongly impact employee turnover intention. This exempt factor is however peculiar to EFNL because of its policy of non-termination of employee appointment, except on obvious breach of codes of engagement. The study also shows that there are other factors which are not found in literature, but affect employee exit intentions. These other factors (which are external in nature) can be said to be peculiar and relative to Nigerian economy and other underdeveloped economies. These factors include: unemployment rate (labour market); level of poverty in the society (low per capita income); high level of dependents; family background; and level of education (low literacy level) etc. The four dimensions of LMX were found to also strongly influence employee turnover intent via loyalty and dedication to the organization, though the degree of impact varies, while some are mild, others are intense. These findings significantly add to existing body of knowledge, and imply that LMX relationships have a major role to play in enhancing employee loyalty and dedication which in turn improve employee marginal contribution towards organization’s corporate goals. Hence, it is concluded that the creation of higher levels of LMX relationships between employees and management is important in reducing employee turnover rate.

Item Type:	Thesis (Doctor of Business Administration)
Divisions:	Faculty of Humanities and Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	13 May 2022 19:04
Last Modified:	18 Jan 2023 21:05
DOI:	10.17638/03152792
Supervisors:	Rostron, Ali
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3152792