Outcomes of Perceptions of Organizational Politics from A Social Exchange Perspective

Abstract

Deriving from social exchange theory, this research aims to understand the outcomes and mechanisms of perceptions of organizational politics (POP). Specifically, we assert that POP distorts the social exchange processes between employees and their organizations, resulting in emotional exhaustion and then increased turnover intention. We further suggest that quality leader-member exchanges (LMX) can offset disrupted exchanges with organizations due to perceived politics and alleviate POP’s effects on exhaustion and turnover. Moreover, we hypothesize that if employees’ social exchanges with their organizations and leaders are both off-balance, then high perceived job alternatives indicating the odds of having a more balanced employment relationship somewhere else would exacerbate the adverse effect of POP on turnover intention. Hypotheses were tested with data collected with a 3-year time-lagged study design from 63 staff working in a healthcare institution. Regression analysis results showed that POP in the first year escalates emotional exhaustion in the second year, which in turn increases the turnover intention in the third year. Moreover, the negative outcomes of POP were found to hold up only when LMX is low, but not when it is high. Lastly, POP’s negative outcomes are more pronounced when LMX is low and perceived job alternatives are high. This research contributes to the literature by clarifying the pathways and the mechanisms by which POP’s effects unfold from a social exchange perspective. Furthermore, adopting a time-lagged study design, this research adds to the accumulated knowledge by demonstrating that adverse consequences of POP persist over an extended period.

Keywords

• perceptions of organizational politics
• emotional exhaustion
• turnover intention
• leader-member exchange relationship
• perceived job alternatives