Abstract

This paper offers new insights into the human resources (HR)-organizational performance (OP) link through focusing on line manager-employee exchanges (LMX). It highlights line managers’ capabilities to make choices that influence organizational outcomes. Indeed, HR competences are shifting to line managers. Thus, the role of line managers is essential in interpreting and communicating signals. A model that relates LMX, management values (MV), HR policies, and OP is tested, using data from a survey which was carried out with line managers and employees of the Portuguese Air Force. The results suggest that line managers who carry out HR actions are essential in the structure. Line managers’ decisions are responsible for exchanges between line managers and employees. These exchanges bring some of the individual effects. As future research, an empirical and theoretical model for examining the relationship among MV, LMX, and HR policies and also their contributions in predicting OP needs to be further explored.