POSITIVE LEADER-MEMBER EXCHANGE (LMX) AND ORGANIZATIONAL COMMITMENT IN THE RETAIL SECTOR OF MALAYSIA

Abstract

With the intensified competition within retail sector and recent retrenchments, managements were facing problem to retain valued employees and let star performers feel committed to the organization. 400 employees who working in the retail sector of Malaysia were investigated in this research. The results of research showed that the LMX can be viewed as a whole which has positive relationship with organizational commitment. However, only two factors have significant correlation, which are professional respect and contribution, and affect and loyalty were not significant. In fact, professional respect was the most important predictor, and then it should be contribution. In addition, the results of research showed that the generational cohorts did not moderate the relationship between organizational commitment and LMX, there has similar level of organizational commitment between Gen-X and Gen-Y, though Gen-Y showed a higher level of normative commitment.