The Effect of Leader-Member Exchange Theory on Organizational Change: The Case of Ethiopian Roads Administration
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Date
2022-10
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Addis Ababa University
Abstract
Leadership is rather a complicated concept that have been evolving for years and challenging organizations in selecting a suiting style. Organizational change is deemed unavoidable for any organization irrespective of their missions and visions. As change implementation success depends on many factors, one is the human relations aspect between employees, particularly among leaders and their followers. This study intends to examine the existence of Leader-Member-Exchange theory, the possible effect and the extent of Leader Member Exchange influence on organizational change implementation in the Ethiopian Roads Administration. As s data collection tool, the study used list of questionnaire inquiries directed to a sample of the employees of the target institution. The collected data is then analyzed to acquire descriptive, correlational and causative information to answer the research questions, draw conclusions and produce recommendations. Consequently, it is found that portion of the leader-follower relations in the Ethiopian Roads Administration, in differing degree, as Leader-Member-Exchange with and the sample employees believe that LMX would have positively influenced the success rate of organizational change. Thus, it is concluded that there is an effect generated by LMX type leadership on implementation of organizational change in the target institution and it can be predicted that the change success rate based on the level of LMX leadership in ERA to a confidence level of 85% using a developed model from the collected data. As a result, the management of the target institution is advised to acknowledge Leader-Member-Exchange theory as a contemporary leadership concept and thus, are recommended to create enabling conditions so as to promote the same. Moreover, whenever the Ethiopian Roads Administration aims to launch a certain organizational change programme it is advisable to assess the quality of Leader-Member-Exchange as such relation quality determines the success rate of the change success to a degree equaling 85%. Lastly, the target organization is advised to use prediction models prepared through this study and other similar ones prior to implementing organizational change.
Keywords: Leader-Member Exchange, Leader-Member Exchange Multidimensional, Organizational Change