Leader Member Exchance (LMX) and employee performance in property management agencies in Uganda. A case study of Knight Frank Uganda ltd

Abstract

The study examined the effectiveness of leader member exchange and employee performance in Knight Frank Uganda Ltd, Uganda. It was guided by three objectives i) To examine the relationship between social job resources and employee performance in Knight Frank Uganda Ltd, ii) to assess the relationship between structural job resources and employee performance in Knight Frank Uganda Ltd, iii) To examine the relationship between leadership style and employee performance in Knight Frank Uganda Ltd. The study adopted a descriptive research design; the data was categorised under both qualitative and quantitative approaches. The study population was 90 and a sample size of 73 respondents of which only 71 participated presenting a response rate of 97.3%. All the 71 respondents filled and returned questionnaires; among these only 10 respondents were given interview guides and they all participated. Results revealed that the most effective contributor to employee performance is structural job resources (R Square of 0.796), followed by social job resources (R Square of 0.513) and the least contributor is leadership style (Adjusted R Square of .013). The test also revealed that Knight Frank Uganda Ltd practice of leader member exchange has a statistically significant positive relationship with employee performance since all p values were below the alpha of 0.05 and as such the null hypothesis was rejected. In conclusion the study notes that the quality of relationship between employee (subordinate) and an employer (supervisor) is better understand by leader member exchange theory which supports that leader do not interact with subordinates uniformly because supervisors have limited resources and time. In recommendation, the study suggested that company should provide formalized leadership development training for supervisors to better position them in how to effectively manage work relations with employees. Additionally, LMX relationships should be shared with supervisors within the company in a formalized capacity; this will enhance on the employee job satisfactions levels and ultimately employee performance.