Trust and Self-Efficacy: Interlink Between LMX and Service Performance

Abstract

Leader Member Exchange represents relationship between immediate supervisor and subordinate. LMX, a dyadic relationship characterized by mutual trust, favor, respect. LMX categorize subordinates as in-group and out-group members. In-group members avail more access, resources, praise of supervisor, while as out-group members maintain distance and confine them to job contract, economic exchange. LMX has been linked to several job attitudes like job satisfaction, engagement, involvement, organizational commitment, and organizational citizenship behavior across different service sectors like health, hospitality. However, linkage of LMX with trust and self-efficacy is very scarce in management literature. Therefore, current study would study LMX in relation with trust, self-efficacy and service performance of employees across banking, insurance and postal service sectors of Kashmir region of the State of Jammu and Kashmir.

A sample consists of 150 respondents representing middle management, lower staff and customers. Survey method with techniques like Structured Questionnaires and face to face Interviews were for data collection purposes. SPSS data analysis tool was used to analyze data through techniques like mean, standard deviation, correlation and multiple regression analysis. The statistical coefficients revealed significant influence of LMX on trust, self-efficacy and service performance of employees. Also, trust and self-efficacy positively and significantly influence employee service performance. LMX quality act as cornerstone for establishment of mutual trust between supervisors and subordinates and increases self-efficacy of employees, thereby enhancing productivity and performance of employees leading to superior service quality and image of an organization.