Effects of leader-member exchange and organizational culture on work engagement and employee performance

Abstract

The objectives of this study are: (1) To determine whether the Leader-Member Exchange (LMX) and organizational culture can improve employee performance, (2) To conduct further research on employee performance by elaborating and analyzing variables that can affect work engagement, among others: members of the leadership and organizational culture. This research was conducted at a Telecommunication Company in Makassar, South Sulawesi with a sample size of 93 people. The analysis model used to determine the influence between variables was a structural model with the Partial Least Square (PLS) approach. In this study it was found that 1. LMX had no significant effect on job involvement. 2. LMX had no significant effect on worker performance. 3. Organizational culture had a significant effect on work engagement. 4. Organizational culture had a significant effect on employee performance, 5. Work management had no significant effect on employee performance. Leaders need to build high-level LMX relationships, equip workers with skills, increase employee professionalism and provide opportunities for employees, help solve the difficulties they face related to assigned tasks and make employees as friends so that they can increase their engagement and performance.

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