Abstract

Studies toward Leader-Member Exchange (LMX) show that quality LMX tends to produce positive results for organizations. This article argues that LMX quality could also have a negative influence on an organization when the leader of the organization or a unit within the organization has negative perceptions and negative behaviors toward the organization. Thus Counter-Productive Work Behavior (CWB) displayed by the leader will negatively affect subordinates’ work behavior, which is moderated by the LMX quality. This is an inverse effect as the stronger quality LMX will have an increased negative impact effecting increased CWB among the subordinates of a leader who has high quality LMX and displays negative perceptions and negative behaviors toward the organization (CWB) in his or her workplace activities. This negative impact amplifies due to the ripple effect in organizations that have several levels of management.