The Effect of Leader-Member Exchange on Turnover Intention at the Lokha Ubud Hotel

Abstract

The relationship of superiors with subordinates if not managed properly, can reduce the level of job satisfaction and commitment that eventually led to them with draw from the workplace. This study aims to explain the influence of leader-member exchange on turnover intention and role of job satisfaction and organizational commitment in mediating the relationship. This study uses 84 samples of The Lokha Ubud employees with sampling technique that is proportionate stratified random sampling. The sample size is determined by the Slovin formula. The data obtained were analyzed by descriptive analysis and PLS. The results of the study found that leader-member exchange had a negative and significant effect on turnover intention. Job satisfaction is found to have a negative and significant influence on turnover intention. Organizational commitment was also found to have a negative and significant influence on turnover intention. Furthermore, job satisfaction and organizational commitment are able to mediate partially on the influence of leader-member exchange on turnover intention. The implications of this study that in order to improve the quality of leader-member exchange, superiors need to manage relationships with employees and foster a sense of love in subordinates to his supervisor