The Relationship Between Leader-Member Exchange And Employee Turnover Intention:Survey From Djibouti

High quality of leader-member exchange is an important factor in the well being of an organization as well as for it employees.Informal observation of LMX suggests that leaders don't always act the same to all their subordinates.The quality of the relationship can be reflected through the degree of support,obligation,respect,mutual trust,and loyalty.When employees don't receive any of those recited above,it has been demonstrated that the subordinates are given enough reasons to resign.Based on the theories used in the literature,this study develops a research model in order to explain the relationship between leader-member exchange and turnover intention.The objective of this research is to investigate the effect of leader member exchange(LMX)quality relationship on employee turnover intention and use psychological empowerment and organizational commitment as mediating variables to see whether they have an effect on turnover intention as well.A cross-sectional approach helped to gather the data,the survey was conducted within two banks in Djibouti(East Africa bank and Salaam African bank)and the sample of this research consists of of 216 employees.The independent variable is LMX and the dependent variable is employee turnover.We used psychological empowerment and organizational commitment as the mediating variable.The study makes the hypothesis that leader member exchange will negatively relate to employee turnover intention.The hypothesis of this study was tested using the correlation analysis and hierarchical regression analysis.The author found that low quality of LMX relationship is negatively associated with higher turnover intention.The study also indicated that psychological empowerment mediated the relationship between the LMX and employee turnover intention.Nevertheless,it was demonstrated that organizational commitment doesn't mediate between the dependent and independent variable.Lessons and implications for leader-member exchange and employee turnover intention in the banking sector were presented.