The Effect Of Leader-Member Exchange On Job Satisfaction

As one of the financial services, the bank shows its competitiveness depending on attitude of employees and quality of service; therefore, to improve job satisfaction of employees has become a key point in human resource management for banks. Previous studies of antecedents of job satisfaction mainly focused on the individual level and organizational level, but inquired less into an important situation factor-"the relationship between leaders and employees". This paper chose Leader-member Exchange (LMX) as the antecedent to explore the influence of the relationship between leaders and employees on job satisfaction. In addition, due to the differences between Western culture and Chinese culture, leadership and management organized by Chinese are different from those in the West, which makes it possible to find unique connotation of LMX in Chinese cultural situations. Thus the problem of how LMX affects job satisfaction in Chinese culture is worth further study. LMX theory is put forward based on the being of differences. In groups of differences, the social comparison process occurs and affects the justice recognition of employees; thus, LMX may affect job satisfaction of employees by affecting the recognition. Based on the above considerations, the paper chose banking as the research subject and made an empirical analysis of 610 copies of data collected in 30 banks to explore the influence of LMX on job satisfaction and the mediating effect of organizational justice, and further to reveal the impact process.The paper first reviewed studies related to LMX, organizational justice, job satisfaction and the relationship among the three concepts and drew a conclusion. Secondly, based on domestic and foreign research results, the paper analyzed the relationship among the three variables combined with Chinese cultural situations, established a theoretical model and proposed hypotheses. Finally, the paper used related analysis and regression analysis to make an empirical analysis of data collected.The empirical research showed that LMX has a significant positive impact on job satisfaction, and Organizational Justice plays a fully mediating role; that is, LMX of high quality improved employees’ organizational justice to further enhance job satisfaction. Meanwhile, the paper made a research of dimensions of the variables and found that in LMX, "Emotion" is the most relevant to organizational justice and job satisfaction; while in dimensions of organizational justice, "Interactional Justice" has the strongest relevance with LMX, but "Distributive justice" has the greatest relevance with job satisfaction. Based on the above analysis, the paper presented three suggestions:(1) Focus on the emotional needs of staff and build high-quality LMX relationship based on ability and trust; (2) Achieve fairness and justice in the distribution result, decision-making process and interaction; (3) Advocate human concept and build a more human organizational culture.