1 Journal of Applied Psychology Copyright 2002 by the American Psychological Association, Inc. 2002, Vol. 87, No. 3, /02/$5.00 DOI: // The Role of Fair Treatment and Rewards in Perceptions of Organizational Support and Leader Member Exchange Sandy J. Wayne University of Illinois at Chicago Lynn M. Shore and William H. Bommer Georgia State University Lois E. Tetrick University of Houston This study examined a model of the antecedents and consequences of perceived organizational support (POS) and leader member exchange (LMX). It was predicted that organizational justice (procedural and distributive justice) and organizational practices that provide recognition to the employee (feelings of inclusion and recognition from upper management) would influence POS. For LMX, it was predicted that leader reward (distributive justice and contingent rewards) and punishment behavior would be important antecedents. Results based on a sample of 211 employee supervisor dyads indicated that organizational justice, inclusion, and recognition were related to POS and contingent rewards were related to LMX. In terms of consequences, POS was related to employee commitment and organizational citizenship behavior, whereas LMX predicted performance ratings. Social exchange theory (Blau, 1964) has recently been applied in organizational settings to provide a basis for understanding the roles that organizations and managers play in creating feelings of employee obligation and pro-organizational behaviors such as performance and citizenship. Two streams of research applying social exchange theory in organizations have developed separately: leader member exchange (LMX; Graen & Cashman, 1975; Graen & Scandura, 1987; Liden, Sparrowe, & Wayne, 1997) and perceived organizational support (POS; Eisenberger, Fasolo, & Davis-LaMastro, 1990; Eisenberger, Huntington, Hutchison, & Sowa, 1986). LMX focuses on the quality of exchange between the employee and the manager and is based on the degree of emotional support and exchange of valued resources. In contrast, POS focuses on the exchange relationship between the employee and the organization. It has been conceptualized as employees general perception of the degree to which the organization values their Sandy J. Wayne, Department of Managerial Studies, University of Illinois at Chicago; Lynn M. Shore, Department of Management and W. T. Beebe Institute of Personnel and Employment Relations, Georgia State University; William H. Bommer, Department of Management, Georgia State University; Lois E. Tetrick, Department of Psychology, University of Houston. This study was funded by grants from the Center for Human Resource Management (CHRM) at the University of Illinois at Chicago and Urbana Champaign campuses and the Society for Human Resource Management (SHRM) Foundation. The interpretations, conclusions, and recommendations, however, are ours and do not necessarily represent those of the CHRM or the SHRM Foundation. Correspondence concerning this article should be addressed to Sandy J. Wayne, Department of Managerial Studies, Mail Code 243, University of Illinois at Chicago, 601 South Morgan Street, Chicago, Illinois contribution and cares about their well-being; in other words, the employer s commitment to the employee (Eisenberger et al., 1986). Because LMX and POS are both based on social exchange theory, the question has been raised as to whether they are conceptually distinct. Recent studies integrating these literatures have found that POS and LMX are distinct and that they are differentially related to employee attitudes and behaviors (Masterson, Lewis, Goldman, & Taylor, 2000; Settoon, Bennett, & Liden, 1996; Wayne, Shore, & Liden, 1997). One key component of social exchange theory that is incorporated in POS and LMX research is the norm of reciprocity, which suggests that individuals who are treated favorably by others feel a sense of obligation to respond positively or return the favorable treatment in some manner (Blau, 1964; Gouldner, 1960). Surprisingly few studies have empirically examined what forms of treatment create a sense of obligation or indebtedness in employee organization (i.e., POS; Shore & Shore, 1995) and employee supervisor (i.e., LMX) relationships (Sparrowe & Liden, 1997). Theory on POS and LMX suggests that fair treatment and favorable rewards may influence these exchanges (Liden et al., 1997; Shore & Shore, 1995). One purpose of this study is to examine specific types of treatment and rewards that are related to POS and LMX and, thus, determine whether these exchanges have unique and common antecedents. In addition to what creates a sense of obligation in employee organization and employee supervisor relationships, there is the question of whether and how employees reciprocate for favorable treatment. On the basis of the norm of reciprocity, employees who are treated favorably by others feel a sense of indebtedness to the exchange partner and are motivated to repay the partner (Blau, 1964; Gouldner, 1960; Greenberg, 1980). Thus, employees who perceive a high level of organizational support or who have a high-quality exchange with their supervisor feel a sense of indebt- 590
2 RESEARCH REPORTS 591 edness and reciprocate in terms of attitudes and behaviors that benefit the exchange partner. Because the exchange partners differ for POS and LMX, the attitudes and behaviors that fulfill the sense of obligation for these exchange relationships tend to be different (Masterson et al., 2000; Settoon et al., 1996; Wayne et al., 1997). As an extension of this research, a second purpose of this study is to examine the extent to which POS and LMX are related to citizenship behavior and differentially related to employee commitment and performance rating. The model of POS and LMX tested in this study is shown in Figure 1. We focus on what creates a sense of obligation in employee organization and employee supervisor relationships by examining antecedents of POS and LMX. By focusing on what types of treatment and rewards are related to POS and LMX, we contribute to the limited research devoted to identifying antecedents of these exchange relationships. On the basis of the norm of reciprocity from social exchange theory, we explore how employees reciprocate for favorable treatment by investigating the relation between POS and LMX and employee attitudes and behaviors. This study contributes to an emerging literature on the social exchange process by incorporating multiple referents (both the leader and the organization). Model Development and Hypotheses Antecedents of POS and LMX One aspect of treatment that may be relevant to both POS and LMX is organizational justice, or fairness. With respect to POS, Shore and Shore (1995) argued that both distributive and procedural justice should contribute to POS. POS theory supports this view by suggesting that (a) treatment by the organization contributes to employee perceptions of organizational motives underlying such treatment and (b) positive discretionary activities by the organization that benefit the employee are interpreted by employees as evidence that the organization cares about the employee s well-being (Eisenberger et al., 1986, 1990). Justice perceptions may well be one aspect of an employee s evaluation of discretionary actions taken by the organization that is indicative of the degree of organizational support (Moorman, Blakely, & Niehoff, 1998). Initial empirical support has been found for the relation between justice and POS. Fasolo (1995) found that both distributive and procedural justice dimensions of performance appraisals explained unique variance in POS when the other type of justice (either procedural or distributive) was controlled for. Masterson et al. (2000) and Moorman et al. (1998) found that POS mediated the Figure 1. Hypothesized model. H hypothesis; POS perceived organizational support; LMX leader member exchange; OCB organizational citizenship behavior.
3 592 RESEARCH REPORTS relationship between procedural justice and outcomes. Therefore, we expect procedural and distributive justice to be positively related to POS. Hypothesis 1. Procedural justice is positively related to POS. Hypothesis 2. Distributive justice is positively related to POS. We propose that subordinate perceptions of distributive justice but not procedural justice are related to LMX. Although employees are likely to perceive the fairness of procedures as primarily based on organizational policies over which the supervisor has little control, the supervisor and the organization are likely to be perceived as jointly responsible for the distributive fairness of outcomes. Masterson et al. (2000) found some support for this contention, as procedural justice was related to POS but not LMX. However, they did not examine distributive justice in their model. Thus, we expect distributive justice to be related to LMX because subordinates are reluctant to maintain a high-quality exchange with supervisors who they feel do not allocate rewards fairly. Hypothesis 3. Distributive justice is positively related to LMX. In addition to fairness, rewards have been discussed in relation to POS and LMX, but in different ways. The POS literature argues that discretionary rewards that imply investment by the organization in the employee or that are interpreted by the employee as symbolic of appreciation and recognition contribute to POS (Eisenberger, Cummings, Armeli, & Lynch, 1997; Shore & Shore, 1995). In contrast, the leadership literature discusses leader reward behavior. In general, employees respond more positively to supervisors who administer rewards on the basis of performance (contingent reward behavior; Podsakoff, Todor, Grover, & Huber, 1984). With respect to POS, a number of studies have examined the relation between human resource practices and POS, with the view that discretionary practices that imply employer commitment should lead to perceptions of organizational support (M. W. Allen, 1992; Eisenberger et al., 1986; Guzzo, Noonan, & Elron, 1994; Tetrick, Shore, & Malatesta, 1997). In this study, we examine two sets of discretionary practices, inclusion and recognition, as antecedents of POS. Opportunities to be involved in important decision-making processes in the organization and to receive privileged communication from management, which we refer to as inclusion, contribute to employee perceptions that they are trusted to serve the organization s best interests. Social exchange relationships are based on trust (Blau, 1964), so practices that imply trust in the employee should be associated with POS. Positive recognition and visibility to top management are important discretionary rewards that are likely to be given to a small group of employees. Recognition implies that the employee has a bright future with the organization and also that the employer cares about and values the employee (Shore & Shore, 1995; Wayne et al., 1997). Consistent with this view, Buchanan (1974) found that organizational recognition of contributions was associated with greater affective commitment. Furthermore, M. W. Allen (1992) found that perceived quality and sincerity of communication from top management predicted POS. Thus, we expect that employees who have received more recognition from and visibility to top management than their peers will perceive higher levels of organizational support. Hypothesis 4. Inclusion is positively related to POS. Hypothesis 5. Recognition is positively related to POS. As noted, rewards, and leader reward behavior in particular, have played a dominant role in leadership research. Graen and Uhl-Bien (1995) noted that LMX has a transactional component based on equitable social exchange. A primary means by which supervisors can fulfill this social exchange is to exhibit contingent reward behavior toward an employee. Podsakoff et al. (1984) asserted that leaders who administer rewards and punishments contingently will be more effective than leaders who administer them noncontingently, or not at all (p. 23). Podsakoff and his colleagues have found noncontingent punishment to be associated with employee dissatisfaction (Podsakoff et al., 1984), decreased employee performance (Podsakoff et al., 1984), and reduced levels of certain organizational citizenship behaviors (Podsakoff, Mac- Kenzie, & Fetter, 1993). It is likely that supervisors who subject employees to noncontingent punishment also cause harm to the exchange relationship with the employee by eroding trust in the manager. Thus, we expect contingent rewards to be positively related and noncontingent punishment to be negatively related to LMX. Hypothesis 6. Supervisor-contingent rewards are positively related to LMX. Hypothesis 7. Noncontingent punishment is negatively related to LMX. Reciprocal Nature of POS and LMX Although we have argued that POS and LMX are conceptually distinct, we expect that they are reciprocally related. Employees who have been well supported by the organization over a period of time, as assessed by POS, are more likely to desire and accept a high-quality exchange with their supervisor. Furthermore, a supervisor is more likely to engage in behaviors that contribute to a high-quality exchange with employees who are successful, as represented by having been supported by the organization over a period of time. There is also reason to expect that LMX may influence POS. Because leaders tend to allocate more rewards to employees with whom they have high-quality exchanges, over time LMX may influence employees perceptions of organizational support. The reciprocal relationship between POS and LMX was empirically supported by Wayne et al. (1997). Hypothesis 8. There is a positive and reciprocal relationship between POS and LMX. Consequences of POS and LMX Empirical evidence supports the view that the social exchange relationship underlying POS creates feelings of obligation to support the organization through both attitudes such as affective commitment (Eisenberger et al., 1990; Guzzo et al., 1994; Randall, Cropanzano, Bormann, & Birjulin, 1994; Settoon et al., 1996; Shore & Tetrick, 1991; Shore & Wayne, 1993; Tetrick & Sinclair, 1994; Wayne et al., 1997) and behaviors such as organizational citizenship behavior (OCB; Masterson et al., 2000; Moorman et al., 1998; Wayne et al., 1997) and safety communication (Hof-
4 RESEARCH REPORTS 593 mann & Morgeson, 1999). In an attempt to replicate prior research, we examine POS as a predictor of commitment and OCB. Hypothesis 9. POS is positively related to employee commitment. Hypothesis 10. POS is positively related to OCB. From a social exchange perspective, a high-quality exchange may create a sense of obligation on the part of the subordinate to reciprocate in terms of behaviors valued by the supervisor. Consistent with this perspective, high-quality exchanges tend to be associated with employee behavior that benefits the supervisor and goes beyond the formal job duties (Liden & Graen, 1980). Subordinates may engage in OCB and perform at a high level to reciprocate for rewards and support provided by the supervisor, thus maintaining a balanced or equitable social exchange with the supervisor. A number of field studies have found support for the relation between LMX and OCB (Settoon et al., 1996; Wayne & Green, 1993; Wayne et al., 1997) and strong support for the relation between LMX and performance ratings (e.g., Howell & Hall-Merenda, 1999; Liden & Graen, 1980; Settoon et al., 1996; Wayne et al., 1997). Hypothesis 11. LMX is positively related to OCB. Hypothesis 12. LMX is positively related to in-role performance ratings. Even though a large majority of the research on OCB has focused on its antecedents, a growing amount of literature has recognized the positive consequences that accrue to individuals who engage in OCB. A number of studies suggest that OCB has a significant impact on employee performance appraisals (T. D. Allen & Rush, 1998; Avila, Fern, & Mann, 1988; MacKenzie, Podsakoff, & Fetter, 1991, 1993; Werner, 1994). In fact, in two experimental studies (T. D. Allen & Rush, 1998; Werner, 1994), researchers manipulated task performance and OCB to assess whether employee OCB influences managers ratings of employee performance. Both studies found support for the view that supervisors value OCB and thus use it in their performance appraisals. Although the empirical research primarily focuses on OCB s effects on overall performance evaluations, it is quite likely that the image-enhancing role of OCB (Bolino, 1999) also impacts supervisors ratings of in-role performance. Hypothesis 13. OCB is positively related to manager-rated employee in-role performance. Control Variables Consistent with Wayne et al. (1997), we included organizational tenure as a control variable for POS and dyad tenure as a control variable for LMX. Organizational tenure and dyad tenure, representing the duration of each exchange relationship, have been positively related to POS and LMX, respectively. Alternative Models As a challenge to our hypotheses regarding the uniqueness of the proposed antecedents of POS and LMX, we examine in our tests of alternative models whether the paths that are not included in the model (e.g., a path from procedural justice to LMX) are nonsignificant. For the outcomes of POS and LMX, we contend that employees reciprocate in terms of behaviors that are valued by the particular exchange partner. Our alternative models examine whether the paths from POS to in-role performance and from LMX to commitment are nonsignificant. Sample Method Participants were 211 employees and their direct supervisors from two metal fabricating plants that are subsidiaries of a Fortune 500 company. A total of 294 employees completed surveys, representing a 90.7% employee response rate. Thirty-one supervisors completed performance ratings, resulting in matched surveys for 211 of the 294 respondents (71.8% of those who participated in the employee survey). On average, supervisors evaluated 10 employees (range 1 to 30 employees). Of the 211 employees in the sample, 85% were men, the average tenure was 3.07 years (SD 3.15), and the average dyad tenure was 1.52 years (SD 1.86). The average employee was 36 years old (SD 9.94) and had (SD 1.75) years of education. Procedure The data were collected on site, during work hours and in the presence of one of us. The participants were provided with a letter describing the study s purpose and ensuring the confidentiality of their responses. Measures Unless noted, all responses were made on a 7-point scale ranging from 1 strongly disagree to 7 strongly agree. Procedural justice. Procedural justice was measured with Niehoff and Moorman s (1993) six-item scale (.88). The items assess whether work-related decisions are based on the gathering of accurate and unbiased information, employee voice, and an appeals process. Distributive justice. Price and Mueller s (1986) six-item Distributive Justice Index was used (.92). The items assess the extent to which employees have been fairly rewarded given their job responsibilities, experience, effort, good performance, education and training, and stresses and strains of the job. Inclusion. We developed four items on which respondents indicated how well their company fulfilled its obligations to them. The items are making important decisions in your company, implications of decisions are discussed with you, being asked for your opinions on important issues, and receiving privileged communication from management being in the loop. The response scale ranged from 1 not at all fulfilled to 5 very highly fulfilled (.90). Recognition. We developed three items on which respondents were asked to compare themselves with others with about the same tenure at the company and indicate how much of the following they had received: visibility to upper management, personal attention from management, and recognition from upper level management. The response scale ranged from 1 much less to 5 much more (.87). Contingent rewards. A five-item scale developed by Podsakoff, Todor, and Skov (1982;.90) was used, on which employees rated the degree to which they received contingent rewards from their immediate supervisor. A sample item is My supervisor personally compliments me when I do outstanding work. Noncontingent punishment. Podsakoff et al. s (1982) four-item scale was used; it follows the same format as the contingent reward measure (.79). An example item is My supervisor frequently punishes me without my knowing why.
5 594 RESEARCH REPORTS Tenure. Organizational tenure was reported by employees as the number of years they had been employed with the company. For dyad tenure, employees reported the number of years they had worked with their direct supervisor. POS. The nine-item, shortened version of the Survey of Perceived Organizational Support (Eisenberger et al., 1986, 1990) was used (.92). LMX. Seven items reported by Scandura and Graen (1984) were used to measure LMX (.89) and were modified to use a 7-point (1 strongly disagree to 7 strongly agree) scale. Commitment. Meyer, Allen, and Smith s (1993) six-item measure of affective commitment was used (.82). OCB. Employees direct supervisor completed the four-item Altruism subscale of Podsakoff and MacKenzie s (1989) OCB scale (.83). Performance rating. The four-item in-role performance scale asked supervisors to rate the degree to which subordinates met the formal requirements of their job (.85; Williams & Anderson, 1991). Results Table 1 shows the means, standard deviations, and intercorrelations among the variables. Before testing the hypothesized model, we first examined the measurement model, as recommended by Anderson and Gerbing s (1988) two-step approach. For the measurement and structural models, the analyses were conducted with LISREL 8.30 (Jöreskog & Sörbom, 1993). All analyses used the covariance matrix and maximum likelihood estimation. Measurement Model Except for the tenure variables, we created two indicators for each latent construct in the model. Items were randomly assigned to item parcels, and then the items for each item parcel were averaged. The use of item parcels rather than individual items as manifest indicators of the latent constructs allowed us to maintain an adequate sample-size-to-parameter ratio (Bentler & Chou, 1988; Russell, Kahn, Spoth, & Altmaier, 1998). For each latent construct, we set the path from the latent construct to one of the indicators equal to 1 to scale the latent variable (Bollen, 1989). For the tenure variables, we used single indicators and assumed that they were measured without error. The measurement model provided an acceptable fit to the data when we considered all of the fit statistics, 2 (176, N 211) , p.01; goodness of fit index (GFI).92; adjusted goodness of fit index (AGFI).86; root-mean-square error of approximation (RMSEA).04; normed fit index (NFI).94; comparative fit index (CFI).98; parsimony normed fit index (PNFI).60. All of the estimated parameters were statistically significant ( p.05). Hypothesized Model The hypothesized model provided a good fit to the data on the basis of the fit statistics, 2 (209, N 211) , p.01; GFI.91; AGFI.87; RMSEA.03; NFI.93; CFI.98; PNFI.71. Standardized parameter estimates for this model are shown in Figure 2. Procedural justice, distributive justice, inclusion, and recognition were significantly related to POS. Organizational tenure was not significantly related to POS. Contingent rewards and dyad tenure were significantly related to LMX. The paths from distributive justice to LMX and from noncontingent Table 1 Means, Standard Deviations, and Correlations Variable M SD Procedural justice (.88) 2. Distributive justice ** (.92) 3. Inclusion **.55** (.90) 4. Recognition **.44**.60** (.87) 5. Organizational tenure Supervisor-contingent rewards **.41**.34**.26**.07 (.90) 7. Noncontingent punishment **.27**.15*.20**.08.60** (.79) 8. Dyad tenure **.11.24**.20**.45** POS **.69**.72**.62**.06.42**.29**.20** (.92) 10. LMX **.48**.44**.39**.01.77**.51**.22**.51** (.89) 11. Commitment **.56**.58**.57**.09.29**.19**.21**.75**.41** (.82) 12. OCB *.13.17*.19** **.22**.20**.18* (.83) 13. Performance rating **.21**.16*.19**.11.22**.18*.10.27**.31**.17*.71** (.85) Note. N 211. Values in parentheses represent the reliability (Cronbach s alpha) for the scale. POS perceived organizational support; LMX leader member exchange; OCB organizational citizenship behavior. * p.05. ** p.01.
6 RESEARCH REPORTS 595 Figure 2. Maximum likelihood estimates for the hypothesized model. POS perceived organizational support; LMX leader member exchange; OCB organizational citizenship behavior. *p.05. **p.01. punishment to LMX were not significant. In terms of the reciprocal relationship between POS and LMX, the path from POS to LMX was significant, but the path from LMX to POS was not significant. In predicting the outcomes, POS was significantly related to commitment and OCB. LMX was significantly related to performance but not to OCB. Consistent with prior research, the path from OCB to performance was significant. The amount of variance explained for the endogenous variables was 81% for POS, 77% for LMX, 71% for commitment, 8% for OCB, and 73% for performance. Alternative Models Alternative Model 1 consisted of the addition of a path from procedural justice to LMX. As shown in Table 2, the difference in chi-square between Alternative Model 1 and the hypothesized Table 2 Chi-Square Difference Test for the Alternative Models Model Paths added to hypothesized model 2 df 2 df Hypothesized ** 209 Alternative 1 Procedural justice to LMX ** Alternative 2 Inclusion to LMX and recognition to LMX ** Alternative 3 Supervisor-contingent rewards to POS and noncontingent punishment to POS ** Alternative 4 POS to performance rating and LMX to commitment ** Note. N 211 for all analyses. LMX leader member exchange; POS perceived organizational support. ** p.01.
7 596 RESEARCH REPORTS model was not significant, 2 (1, N 211) 0.02, ns. This indicates that the additional path from procedural justice to LMX was not significant; thus, procedural justice was not a common antecedent to both POS and LMX. For Alternative Model 2, paths were added from inclusion to LMX and from recognition to LMX. The difference in chi-square between Alternative Model 2 and the hypothesized model was not significant, 2 (2, N 211) 1.30, ns, which again does not support the common antecedents thesis. Alternative Model 3 included the addition of paths from contingent rewards to POS and from noncontingent punishment to POS. The difference in chi-square between Alternative Model 3 and the hypothesized model again was not significant, 2 (2, N 211) 2.49, ns. Alternative Model 4 included the addition of paths from POS to performance and from LMX to commitment. The difference in chi-square between Alternative Model 4 and the hypothesized model was not significant, 2 (2, N 211) 0.27, ns. Overall, none of the additional paths included in the alternative models were significant, and the parsimonious fit indices indicated that the hypothesized model was slightly more parsimonious (PNFI.71) compared with the alternative models (PNFI for all alternative models.70). Therefore, these results provide additional support for the hypothesized model. Discussion This research investigates two aspects of social exchange theory as applied to POS and LMX. First, by focusing on antecedents of POS and LMX, we explored what creates a sense of obligation in employee organization and employee supervisor relationships. Second, by investigating the relation between POS and LMX and employee attitudes and behaviors, we examined how employees reciprocate for favorable treatment. Our study suggests that POS and LMX have distinct antecedents and outcomes, as has prior research (Settoon et al., 1996; Wayne et al., 1997). However, our study explores a new set of antecedents by focusing on the effect of fair treatment and favorable rewards on POS and LMX. In terms of the antecedents, we found that (a) procedural and distributive justice were antecedent to POS but not to LMX, (b) top management actions, in the form of inclusion and recognition, were antecedent to POS but not to LMX, and (c) contingent rewards were antecedent to LMX but not to POS. In terms of outcomes, POS was related to commitment and OCB, whereas LMX was related to in-role performance. Even though we found support for the distinctiveness of POS and LMX, we found that POS was related to LMX. However, consistent with the findings of Masterson et al. (2000), the reverse path from LMX to POS was not significant. This finding is contrary to Wayne et al. (1997), who found support for the reciprocal relationship between POS and LMX. These mixed results suggest that organizational context may play a role in determining whether LMX influences POS. For example, in organizations in which supervisors rather than upper management have wide control over numerous discretionary rewards, LMX may impact perceptions of organizational support. Future research is needed to explore this contention. In terms of the results for fairness, procedural and distributive justice were significantly related to POS. As did Fasolo (1995), we found that procedural justice was more strongly related than was distributive justice to POS. Eisenberger et al. s (1986) conceptualization of POS may help to explain this finding. They argued that actions taken by the organization in relation to the employee must be viewed as discretionary and as reflective of positive evaluations by the organization for POS to be enhanced (Eisenberger et al., 1997). Employees are likely to assume that greater discretion is possible in procedures than in outcomes (Shore & Shore, 1995). When work-related decisions are based on accurate and unbiased information and when employee voice mechanisms are in place (i.e., procedural justice), this communicates concern for employee well-being, which clearly influences POS. Although it is possible for organizations to have fair procedures for all employees, many valued outcomes are competitive (e.g., not everyone who is qualified can get promoted), so organizations may not be able to provide adequate support for employees through such outcomes. Thus, our results suggest that organizations that want to enhance perceptions of support may do so more effectively by establishing fair procedures. It is surprising that distributive justice was related to POS but not LMX. Perhaps participants viewed decision outcomes as primarily influenced by factors outside of the supervisor s control and, thus, as representative of organizational support. The relationship between distributive justice and both POS and LMX should be evaluated in follow-up studies to determine whether the same pattern occurs in other types of organizations. Compared with many other types of organizations, the manufacturing organization that participated in this study may be more likely to have established rules and procedures that contribute to employee justice perceptions as being organizationally based rather than supervisor based. Additional support was found for the argument that discretionary rewards that are symbolic of trust and recognition are related to POS (Eisenberger et al., 1997; Shore & Shore, 1995). In particular, inclusion and recognition by top management were related to POS. This suggests that if management wants to increase perceptions of support, they need to use rewards that enhance feelings of trust and provide recognition. We found that contingent rewards were a significant antecedent of LMX. This is consistent with a large body of research suggesting the importance of contingent rewards for leadership effectiveness (Graen & Cashman, 1975; Graen & Scandura, 1987; Graen & Uhl-Bien, 1995; Podsakoff et al., 1984). However, noncontingent punishment was not found to be a significant predictor in the hypothesized model, though it did have a significant zero-order correlation with LMX. Perhaps the relevant portions of contingent rewards and noncontingent punishment were redundant with one another in relation to LMX, as they were highly correlated. In terms of the outcomes, POS was positively related to employee commitment and OCB. It is surprising that POS but not LMX was related to OCB. Past research has suggested that LMX but not POS was related to OCB (Settoon et al., 1996) or that both were related to OCB (Wayne et al., 1997). One potential reason that LMX was not associated with OCB in this study is the operationalization of OCB used. Organ s (1988) conceptualization of OCB includes five dimensions of OCB and altruism is only one of these dimensions. Thus, a more supervisor-focused form of OCB (i.e., sportsmanship) might be more likely to be associated with LMX than the more organizationally focused form we used (i.e., altruism; Masterson et al., 2000).
8 RESEARCH REPORTS 597 Consistent with past research (Settoon et al., 1996; Wayne et al., 1997), our results support the view that LMX, and not POS, contributes to in-role performance. This pattern of results suggests that employees view in-role performance as the fulfillment of the exchange relationship with the supervisor rather than with the organization. These results highlight the criticality of good supervisor employee relationships for enhancing job performance. This study contributes to the literature in several ways. First, the pattern of antecedents and outcomes provides additional support for the distinctiveness of POS and LMX. This pattern also suggests the value of both forms of social exchange for contributing uniquely to important outcomes. Second, our results provide strong support for the conceptualization of POS as a form of social exchange (Eisenberger et al., 1986) in which discretionary treatment leads to POS. However, we add to this literature by showing that POS is influenced by social comparison processes (distributive justice and recognition), fulfillment of organizational obligations pertaining to inclusion, and procedural justice. In light of the relatively few studies that have been published on antecedents of POS, these findings are important. Of particular note is the finding that POS influenced LMX but that LMX did not influence POS. This finding is consistent with Masterson et al. (2000) but not consistent with Wayne et al. (1997), and it needs to be explored in future studies to determine what factors may influence the reciprocity of these relationships. Organizational leaders need to be aware that perceptions of support influence LMX and that both forms of exchange influence employee attitudes and behaviors. There are a number of limitations of this study. The crosssectional design did not allow us to test causal relationships among antecedents and outcomes. Future research tracking changes in POS and LMX over time would strengthen our ability to make causal inferences. Another limitation is the use of self-report data for the antecedents of POS and LMX. On the other hand, confirmatory factor analyses showed that the antecedent variables and POS and LMX were distinct. The fact that this study was conducted in a single organization limits the generalizability of the results to other organizations. Finally, because some of the variables were measured from the same source, such as OCB and performance rating, common method variance may be an explanation for some of the results. In summary, this study provides further support for the view that POS and LMX are related but distinct social exchange processes. POS appears to be influenced by variables that communicate organizational value and trust in the employee, whereas LMX is related to supervisor reward behavior. 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