The quality of the LMX relationship, the currency of exchange, and emotions at work

Leader-member exchange (LMX) is a theory of leadership that specifically focuses on the quality of the relationship between a manager and his/her subordinates. Previous research has shown the link between LMX quality and employee attitudes and behaviours at work. However, to the authors' knowledge, research is yet to specifically investigate the link between LMX quality and employee emotions. Also little understood are the social exchanges that lead to and maintain LMX quality ("currencies of exchange" in LMX theory). We introduce the notion of currency of exchange quality - whether the currency is present to a good enough extent or not (either in absence or excess) - and theoretically link this to employee emotions.
A field study was designed and conducted to investigate the links. The study supported the propositions that high LMX relationships with good enough currency quality resulted in more positive employee emotions; low LMX with an absence of currency quality resulted in more negative emotions; and low LMX with an excess of currency quality resulted in mixed emotions. An unexpected finding was that high LMX was also associated with excess currency quality and mixed emotions. The affective evaluations and discrete emotions experienced varied according to the currency and its quality.