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Vol:5, Issue:18 2019 pp.668-676
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THE EFFECT OF LEADER-MEMBER EXCHANGE OF MEDICAL
REPRESENTATIVES ON JOB SATISFACTION: THE CASE OF KONYA Dr. Rabia YILMAZ
Financial Consultancy Office, Konya/Turkey
Article Arrival Date : 01.08.2019 Article Published Date : 24.09.2019 Article Type : Research Article
Doi Number : http://dx.doi.org/10.31589/JOSHAS.147
Reference : Yılmaz, R. (2019). “The Effect Of Leader-Member Exchange Of Medical Representatives On Job Satisfaction: The Case Of Konya”, Journal Of Social, Humanities and Administrative Sciences, 5(18): 668-676
ABSTRACT
Today, it raises the importance of employees due to the fact that the competition changes direction and becomes more service-oriented than in the past. In this sense, development of bilateral relations with each employee and acting according to the employees for today's leaders increases the subordinate and superior interaction positively. As a result of this interaction, employees do their jobs more readily, enjoy much more and want to spend more time at their work. In this sense, the job satisfaction of the employees increases and in this case, organization’s success and competitiveness reach a better level.
The main purpose of the study is to determine the effect of the leader-member exchange of medical representatives on job satisfaction. The questionnaire technique was used and data were obtained from 104 employees. In the first part of the study, the concepts of leader-member exchange and job satisfaction and their relations with each other were discussed. In the second part, the effects of leader-member exchange and its dimensions on job satisfaction and its sub-dimensions were examined. The analyses were performed with SPSS 18.0 and AMOS 18.0 programs. Validity, reliability, factor analysis, correlation and regression analyses were used in the study. According to the analysis, it was found that leader-member exchange had a significant and positive effect on job satisfaction. It was also found that affect, contribution and professional respect dimensions had a significant and positive effect on intrinsic job satisfaction. In addition to this, it was found that the dimensions of loyalty, contribution and professional respect had a significant and positive effect on extrinsic job satisfaction.
Key Words: Leader-Member Exchange, Job Satisfaction, Medical Representatives. 1. INTRODUCTION
The leader-member exchange theory focuses on the exchange between managers and employees. This theory is related to that the manager has a different social exchange with every single employee and behaves all the employees differently. Behaviour of the managers according to the personal status of each employee provides the employees to be more satisfied with their job. This satisfaction covers all feelings felt by employees about their job. Only the employees having positive emotions towards the organization may have positive thoughts about it. As a result of this, employees can provide more benefits for organization.
The main purpose of this study is to reveal the effect of leader-member exchange levels of medical representatives in Konya on job satisfaction. In addition, because of the low number of studies on both the concepts of leader-member exchange and job satisfaction, it was desired to contribute to the
literature especially for the service sector. The Study is of importance especially for the profession of medical representation and for the pharmaceutical industry.
2. CONCEPTUAL FRAMEWORK 2.1. Leader-Member Exchange
While classical leadership theories advocated before leader-member exchange theory focused on standardized subordinate and superior relationships, Dansereau et al. (1975) argued that there might be different relationships between leader and subordinates. This theory is related to the leader different exhibiting styles of leadership by considering the developing relations between the different employees (Karcıoğlu & Kahya 2011: 339). Development of different bilateral relationships by the leader with each employee and influence of these relationships on the leader and employee behaviours forms the basis of the leader-member exchange theory (Van Breukelen et al., 2006: 297). In other words, according to the theory of leader-member exchange theory, the relations between leader and employees are not homogeneous. The relationships established be the leader with each employee are different. Accordingly, the behaviour and attitude of the leader towards each employee would be different. In this case, the behaviour of the leader is not unilateral either. This situation affects the behaviours of employees towards the leader (Scandura & Pellegrini, 2008: 101). With this theory, a strong exchange between leader and employees based on mutual respect and trust develops.
Leader-member exchange consists of four dimensions. These are affect, loyalty, contribution and professional respect. The dimension of affect is the mutual relationships between leader and employees based on interpersonal values and personal emotions rather than professional values in respect to job. The dimension of loyalty is related to the level of loyalty of leaders and employees to each other. In this case, leaders protect the employees endeavouring for common purposes more than others. In this direction, employees make more endeavours against this attitude. The dimension of contribution is the situation in which the leaders and employees positively perceive the activities shown mutually in order to achieve certain goals. The dimension of professional respect is related to the perception of the employees of organization that their superiors are professional in their duties within the organization or within the fields outside the organization (Liden & Maslyn, 1998: 50; Kaşlı, 2009: 43). In other words, it is about to what extent employees perceive how professional their superiors are.
2.2. Job Satisfaction
First, Hackman and Oldham (1975) referred to the concept of job satisfaction. Job satisfaction is defined as all the emotions felt by employees about their work (Makanjee et al., 2006: 120). In other words, job satisfaction is related to the satisfaction of employees towards the tasks which they perform. Job satisfaction is the positive emotional state that emerges when the employee feels pleasure as a result of job and work experiences (Shrivastava & Purang, 2009: 65). In this sense, it is the comparison of the gains obtained to requested to be obtained by employees and the emotional reaction to their jobs according to the situation. In this direction, job satisfaction is related to the feeling created by meeting the expectations of employees (Testa, 2001: 227). As a result, job satisfaction is not created only by meeting the expectations of the employees. It also relates to the values that employees attach importance. In this direction, it is also related to the degree to which employees want feelings and values created by these values.
Job satisfaction consists of two dimensions. These are intrinsic job satisfaction and extrinsic job satisfaction. Intrinsic job satisfaction is related to the central or intrinsic aspects of employees' tasks in the organization. These can be listed as the ability of the employee’s ability to use his talents, the level of responsibility, their ability to help other employees, freedom, and self-accomplishment. Extrinsic job satisfaction is related to the extrinsic aspects of employees' tasks in the organization These can be listed as working conditions, salary, promotion, form of management, organization policies and practices in the organization (Landy & Conte, 2010: 414).
2.3. Relationship Between Leader-Member Exchange and Job Satisfaction
The theory of leader-member exchange is about different treatment each superior towards each subordinate. If the manager has a good exchange with his employee, then the employee responds him positively. In this direction, high quality relationship between the manager and the employee affects the degree of satisfaction the employee from the job. Employees who have positive job satisfaction enjoy the works much more and want to spend more time at work. As a result, satisfied employees’ quality of work, their loyalty to the organization and their job performance increases. This situation affects the efficiency, productivity and performance of the organization. As a result, together with these gains of organization, its success and competitiveness will also increase.
When we look from different standpoint, a series of expectations related to the workplace must be met in order to make employees satisfy with their jobs. Managers who meet these expectations can establish stronger relationships with their employees. This creates a balance within the organization and enables the parties to establish mutual relations beyond the classical understanding of the manager and employee. In this case, a manager who knows the desires and needs of the employee and who can empathize with the employee will win the approval of the employee. In any case, this is reflected in the organization and creates positive results for it.
3. RESEARCH METHOD
3.1. Purpose and Scope of the Study
The main purpose of the study is to examine the effect of leader-member exchange of medical representatives working in Konya on job satisfaction. In addition with this study, it was intended to contribute to the managers and literature.
3.2. Universe and Sample of the Study
The universe of the study consists of medical representatives working in Konya. The sample of the study consisted of 104 randomly selected employees from pharmaceutical companies operating in Konya.
3.3. Data Collection Method
Face to face questionnaire technique was used in the study. In addition, a questionnaire with some deficient data from 105 questionnaires was not included in the analysis. Analysis has been continued to performed be with 104 questionnaires.
3.4. Scales of the Study
In the first part of the study, demographic data consisting of 5 questions were included. In the second part, 12-item leader-member exchange scale developed by Liden and Maslyn (1998) was used. In the third part, 18-item job satisfaction scale developed by Van Den Broeck (2010) was used. The scales were taken as 5-point Likert scale.
3.5. Conceptual Model and Hypothesis of the Study
In this study, the effect of leader-member exchange on job satisfaction was examined and the conceptual models and hypotheses that form the basis of the study are given below.
The hypotheses of the study are as follows:
H1: Leader-member exchange has a significant and positive effect on job satisfaction. H2: Affect dimension has a significant and positive effect on intrinsic job satisfaction. H3: Affect dimension has a significant and positive effect on extrinsic job satisfaction. H4: Loyalty dimension has a significant and positive effect on intrinsic job satisfaction. H5: Loyalty dimension has a significant and positive effect on extrinsic job satisfaction. H6: Contribution dimension has a significant and positive effect on intrinsic job satisfaction. H7: Contribution dimension has a significant and positive effect on extrinsic job satisfaction.
H8: Professional Respect dimension has a significant and positive effect on intrinsic job satisfaction. H9: Professional Respect dimension has a significant and positive effect on extrinsic job satisfaction. 4. FINDINGS AND DISCUSSION
4.1. Demographic Findings
Demographic findings are presented in Table 1. Table 1. Demographical Characteristics of Participants
DEMOGRAPHIC INF. N % DEMOGRAPHIC INF. N %
GENDER MARITAL STATUS
Male 85 81,8 Married 81 77,9
Female 19 18,2 Single 23 22,1
EDUCATIONAL STATUS EDUCATIONAL STATUS (Continue)
High School 4 3,8 Bachelor’s Degree 86 83
College 7 6,6 Master /PhD 7 6,6
AGE WORKING PERIOD
21-25 years old 11 10,6 Less than 1 year 15 14,4
26-30 years old 60 57,7 Between 1 -3 years 34 32,7
31-40 years old 21 20,2 Between 4-6 years 35 33,7
41-45 years old 9 8,6 Between 7-9 years 15 14,4
45 years old or above 3 2,9 10 years or above 5 4,8
According to the Table 1, %81,8 (85) of the respondents were male and %18,2 (19) of them were male. %77,9 (81) of the respondents were married and %22,7 (23) of them were single. In addition, %10,6 (11) of the respondents were between 21-25 years , %57,7 (60) of them between 26-30 years old, %20,2 (21) of them between 31-40 years old, %8,6 (9) of them between 41-45 years old and %2,9 (3) of them were 45 years old and above. %3,8 (4) of the respondents were high school graduate, %6,6 (7) of them were college graduate, %83 (86) of them were bachelor and %6,6 (7) of them were Master's and Ph.D. Graduates. Finally, 14,4% (15) of the respondents have been working less than 1 year, 32,7 % (34) of them between 1-3 years, 33,7 % (35) of them between 4-6 years, 14,4 % (15) of them between 7-9 years and 4,8 % (5) of them working for 10 years or above. 4.2. Analysis of Research
4.2.1. Validity and Reliability Analysis
Varimax rotation method and principles components analysis were used in the validity and reliability analyses made for the study. The analyses are presented in Table 2.
Table 2. The Validity and Reliability Analysis related to Leader-Member Exchange and Job Satisfaction LEADER-MEMBER EXCHANGE
Factors Eigenvalue Cronbach’s Alpha Factor Exp. (%) Factor Loading (Min.-Max.)
Affect 1,845 0,721 24,266 0,587-0,716
Loyalty 2,365 0,773 29,054 0,711-0,757
Contribution 2,537 0,822 27,169 0,673-0,765
Professional Respct 2,548 0,837 30,179 0,703-0,815
Leader-Member Exchange(Ex. Tot. Var.=%51,131; p=0,000; α=0,884;KMO = 0,784 ; Bartlett’s Sph. 2= 825,167)
JOB SATISFACTION
Factors Eigenvalue Cronbach’s Alpha (%) Factor Exp. Factor Loading (Min.-Max.) Intrinsic Job
Satisfaction 2,314 0,812 29,527 0,738-0,846
Extrinsic Job
Satisfaction 2,168 0,763 27,382 0,698-0,814
Job Satisfaction(Ex. Tot. Var.=%50,216; p=0,000; α=0,842; KMO = 0,774 ; Bartlett’s Sph. 2= 814,235)
In Table 2, KMO value related to leader-member exchange is 0,784 and Bartlett test value is 825,167. This variable is also at (p= 0,000 <0,05) significance value. KMO value related to job satisfaction is 0,774 and Bartlett test value is 814,235. This variable is also at (p= 0,000 <0,05) significance value. In this sense, it can be said that the data group came from the multivariate normal distribution. In addition to this, the general reliability coefficient for leader-member exchange is 0,884 and the total variance explained is 51,131%.
The general reliability coefficient for job satisfaction is 0,842 and the total variance explained is 50,216%. Accordingly, reliability coefficients are over 0,70. This situation is acceptable for the social sciences. In addition to this, the total variance explained is also acceptable for the field of social sciences.
In the scale of leader-member exchange, all eigenvalues were greater than 1 and grouped under four dimensions as in the original scale. In the job satisfaction scale, the eigenvalues were greater than 1 and were grouped under two dimensions as in the original scale. In addition, factor loadings of leader-member exchange and job satisfaction variables are above 0,40. This situation is acceptable for the social sciences. Finally, the goodness of fit values are given to reaffirm the factor structures in Table 3.
Table 3. Confirmatory Factor Analysis
Scales X2/df GFI AGFI CFI IFI RMSEA
Leader-Member Exchange 3,444 0,91 0,86 0,96 0,93 0,07
Job Satisfaction 3,253 0,90 0,88 0,95 0,92 0,07
In Table 3, the goodness of fit values were examined through the Lisrel 8.80 program. It was found that the models of the leader-member exchange scale (ΔX2/df =3,444; p<0,001; GFI= 0,91; AGFI= 0,86; CFI= 0,96; IFI= 0,93; RMSEA= 0,07) and job satisfaction scale (ΔX2/df= 3,253; p<0,001; GFI= 0,90; AGFI= 0,88; CFI= 0,95; IFI= 0,92; RMSEA= 0,07) provided goodness-of-fit.
4.2.2. Descriptive Statistics and Correlation Analysis Related to the Variables
In this part descriptive statistics related to variables and relationships between variables were analysed and presented in Table 4.
Table 4. Descriptive Statistics and Correlation Analysis Table for Leader-Member Exchange and Job Satisfaction Scales X̄ S.D. 1 2 3 4 5 6 7 8 1. Leader-Member Exchange (G) 3,73 0,97 1,000 2. Affect 2,43 0,91 0,232** 1,000 3. Loyalty 3,84 0,73 0,462** 0,337** 1,000 4. Contribution 3,80 0,74 0,286** 0,264** 0,352** 1,000 5. Professional Respect 3,57 0,83 0,384** 0,321** 0,226** 0,246** 1,000 6. Job Satisfaction (G) 3,68 0,94 0,312** ,216** 0,345** 0,386** 0,357** 1,000 7. Intrinsic Job Satisfaction 3,69 0,81 0,291 ** 0,326** 0,88 0,318** 0,225** 0,244** 1,000 8. Extrinsic Job Satisfaction 3,74 0,76 0,314 ** 0,92 0,347** 0,404** 0,327** 0,292** 0,382** 1,000
**Values are significant at 0,01 (**p < ,01) level.
As seen in Table 4, all dimensions are above the general mean of 2,5. According to the mean and standard deviations, the highest value belongs to the dimension of loyalty (2,33) and the lowest value belongs to the dimension of affect (2,63). According to the correlation analysis, there has been a positive, significant and moderate relationship between the dimensions of affect and intrinsic job satisfaction (r = 0,326; p = 0,000). In addition, there is no correlation between the dimension of loyalty and intrinsic job satisfaction (r = 0,88; p> 0,000). There was a positive, significant and low level relationship between the dimension of contribution (r =, 0,318; p = 0,000), professional respect and intrinsic job satisfaction (r = 0,225; p = 0,000). In addition to them, there is no relationship between the dimension of affect and extrinsic job satisfaction (r = 0,92 ; p> 0 ,000). There has also been a positive, significant and moderate relationship between the loyalty dimension (r = 0,347; p = 0,000), the contribution dimension (r = 0,404; p =, 000), the professional respect dimension (r = 0,327; p = 0,000) and extrinsic job satisfaction.
4.2.3. Regression Analysis
In Table 5, the effect of leader-member exchange and its sub-dimensions on job satisfaction and its sub-dimensions have been examined.
Table 5. Regression Analysis Related to the Effect of Leader-Member Exchange and its Sub-Dimensions on Job Satisfaction and its Sub-Dimensions
Model Dependent Variable Independent Variable T P
1 Job Satisfaction Conts. 1,214 2,982 0,000
Leader-Member Exchange 0,184 2,159 0,000 F= 32,637; Model (P)= 0,000 ; R2=0,431; Adj.R2= 0,442
Model Dependent Variable Independent Variable T P
2 Intrinsic Job Satisfaction
Conts. 0,961 2,979 0,000 Affect 0,205 2,152 0,001 Loyalty 0,332 1,833 0,070 Contribution 0,235 2,798 0,006 Professional Respect 0,286 2,396 0,016 F= 30,473; Model (P)= 0,000 ; R2=0,424; Adj.R2= 0,418
Model Dependent Variable Independent Variable T P
3 Extrinsic Job Satisfaction
Conts. 1,117 2,986 0,001 Affect. 0,199 1,747 0,072 Loyalty 0,261 2,415 0,002 Contribution 0,286 3,296 0,001 Professional Respect 0,174 2,294 0,002 F= 30,554 ; Model (P)= 0,000 ; R2= 0,413; Adj.R2= 0,398
In Table 5, it was found the corrected R2= 0,442 related to the effect of leader-member exchange on job satisfaction. In this direction, leader-member exchange explains 44,2% of job satisfaction. In
addition to this, F = 32,637 and sig = 0,000 indicate that the relationship between the variables is significant. As a result, H1 hypothesis was accepted.
It was found the corrected R2= 0,418 related to the effect of leader-member exchange sub-dimensions on intrinsic job satisfaction In this direction, leader-member exchange sub-dimensions explain 41,8% of intrinsic job satisfaction. In addition, F = 30,473 and sig = 0,000 indicate that the relationship between the variables is significant. In addition, the affect dimension (ß = 0,205, p = 0,001), contribution dimension (ß = 0,235, p = 0,006) and professional respect dimension (ß = 0,286, p = 0,016) have a significant and positive effect on intrinsic job satisfaction. Consequently, the hypotheses H2, H6 and H8 were accepted.
In addition, the corrected R2 = 0,398 was found related to the effect of leader-member exchange sub-dimensions on extrinsic job satisfaction. In this direction, leader-member exchange sub-sub-dimensions explain 39,8% of extrinsic job satisfaction. In addition to them, F = 30,554 and sig = 0,000 indicate that the relationship between the variables is significant. In addition, loyalty dimension (ß = 0,261, p = 0,002), contribution dimension (ß = 0,286, p = 0,001) and professional respect dimension (ß = 0,174, p = 0,002) had a significant and positive effect on extrinsic job satisfaction. However, affect dimension (ß = 0,199, p = 0,072> 0,000) has no significant effect on extrinsic job satisfaction. Consequently, H5, H7 and H9 hypotheses were accepted.
5. CONCLUSION AND RECOMMENDATIONS
Unlike classical leadership theories, the leader-member exchange theory suggests the exchange between the two should be focused on, rather than just on leaders or employees. However, in this case, job satisfaction levels of managers and employees may increase. Job satisfaction is directly related to the emotions and experiences of the employee. In this direction, it is very important to know which situations affect employees' thoughts about their job and why they have different feelings about it. As a result, organizations having good interaction between managers and employees can achieve real success.
The main purpose of the study is to determine the effect of the leader-member exchange of medical representatives on job satisfaction. This study was applied to 104 medical representatives. The study is important since it explains the relationship between the level of leader-member exchange and job satisfaction in Konya city.
According to the analysis results; leader-member exchange has a significant and positive effect on job satisfaction. In addition, it was found that the dimensions of affect, contribution and professional respect had a significant and positive effect on intrinsic job satisfaction. In addition to this, it was found that the dimensions of loyalty, contribution and professional respect had a significant and positive effect on extrinsic job satisfaction.
When we examine the analysis results in more detail, it was found that the leader-member exchange has a significant and positive effect on job satisfaction. This situation may be due to an increase in the job satisfaction of the employees if the manager and employees have a positive relationship. The dimension of affect has a significant and positive effect on intrinsic job satisfaction. This may be related to the fact that the employee considers his manager closer to him rather than any superior-subordinate relationship and in this case, the feelings of the employee emerging increase intrinsic job satisfaction towards his job. The dimension of contribution has a significant and positive effect on intrinsic job satisfaction. This situation may be related to the fact that the employee feels more belonging to the organization and finds intrinsic satisfaction by doing works excepting those outside the job descriptions for the organization and for his manager. The dimension of professional respect has a significant and positive effect on intrinsic job satisfaction. This situation may be related to the reflection of the admiration of employees to their managers on their intrinsic satisfaction.
In addition to this, the dimension of loyalty has a significant and positive effect on extrinsic job satisfaction. This may be related to the extrinsic satisfaction of employees, together with their thought that their superiors will protect them, especially when they are subjected to injustice in financial matters. The dimension of contribution has a significant and positive effect on extrinsic job satisfaction. This situation may be related to the fact that the employee will benefit more from the organization with extra endeavour for his work and, as a result, will increase extrinsic satisfaction. The dimension of professional respect has a significant and positive effect on extrinsic job satisfaction. This situation may be related to the providing extrinsic job satisfaction together with that the employee thinks that his manager’s professional skills are very well and, in this case, the extrinsic gains will be given to him fairly.
In recent years, important and similar studies performed related the concepts of the subject are as follows; in Eryilmaz (2019) study titled “The Moderating Role of Political Skill in the Relationships Between Social Power, Leader-Member Exchange and Job Satisfaction: A Research in Banking Sector” is examined the relationship between leader and member exchange and job satisfaction among 389 banking sector employees. According to the results of the study found by the author, the variables of leader- member exchange and job satisfaction are linked to each other by a positive relationship. In Lie and Park (2018) study titled “Leader–Member Exchange, Sales Performance, Job Satisfaction, and Organizational Commitment Affect Turnover Intention” is examined the relationship between leader-member exchange and job satisfaction on 228 sales representatives. According to the results found, leader-member exchange has a significant and positive effect on job satisfaction. In Ergün (2018) study titled “Effects of Leader Support on Leader-Member Exchange and Job Satisfaction” is examined the relationship between leader-member exchange and job satisfaction on 338 employees in 72 manufacturing organization each having more than 50 employees in the East Marmara Region. According to the results of the research, the leader-member exchange and job satisfaction variables are linked to each other with a positive relationship. In Matic et al. (2017) study titled “The Role of Psychological Ownership in the Relationship between Leader-Member Exchange and Job Satisfaction” is examined the relationship between leader-member Exchange and job satisfaction on 442 employees working in a furniture organization in Italy. According to the results, leader-member exchange has a significant and positive effect on job satisfaction. In Harris et al. (2009) study titled “Leader–Member Exchange and Empowerment: Direct and Interactive Effects on Job Satisfaction, Turnover Intentions and Performance” is examined the relationship between leader-member exchange and job satisfaction on two different samples of 158 and 244 employees, who were employed in different organizations. According to the results found in the study, the leader-member exchange has a significant and positive effect on job satisfaction. As a result, it was found similarities between the studies mentioned above and our study.
This study contributes to the literature as it is a research examining the level of leader-member exchange and job satisfaction of medical representatives in Konya. In future studies, it could be suggested to investigate the relationship between the concept of leader-member exchange and other concepts that will affect employees' attitudes related to the organizations. As a result of the study, important information was obtained about understanding to what extent the job satisfaction of employees who think that the level of leader-member exchange is positive in the organization increased. In this sense, important information revealed to be used in order to increase the job satisfaction of the employees. In this respect, the study has presented important findings to the researchers about to what extent high the level of leader-member exchange in the organization increased the job satisfaction of the employees.
During the stage of study, there have been some limitations generally related to the procedures of medical representatives. The sample was also limited to medical representatives working in Konya city. As a result, it might be suggested to carry out different studies on employees working in different pharmaceutical companies throughout the country in future studies.
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