Effect of Leader-Member Exchange on Perceived Organizational Support

Human Resources are the most important assets of any organizations. Further, to achieve competitive advantages through human resources, leadership can be named as the most effective factors in this concern. Furthermore, leaders’ style, action, motivation, ethics, etc. can determine whether leadership is effective or not. The relationships between Leaders and subordinates shape LMX theory which states that leaders establish different relationships with different followers. These relationships will have many outcomes both for employees and organizations. In this study, the authors investigate the relationship between LMX and Perceived Organizational Support. 1500 employees of Iran Insurance Organization in Tehran, capital of Iran, have been selected as statistical population of this study. Based on Krejcie & Morgan (1970) table, the minimum number of sample size was determined as 306 people. After distributing 350 questionnaires among respondent, 310 usable questionnaires were returned. The results of the current study show that the selected organizations enjoy an appropriate level of LMX which has a significant positive effect on employees’ perception about organizational support.