Testing the Effect of LMX and HR System Strength on Employee and Work Unit Outcomes

A single, large organization with a uniform set of HR practices, was used to test a model predicting that HR system strength (HRSS) and leader-member exchange (LMX) variables will predict employee perceptions of HR practices (HRPP), which in turn predict employee job satisfaction and work unit performance. The study findings suggest that HRSS and LMX are positively related to variance in job satisfaction and work unit performance, and that part of the variance is related to work unit supervisors charged with implementing HR practices. The proposed relationships were analyzed using structural equation modeling