Assessing the Impact of Guanxi and LMX On Job Performance in Ghana: The Mediating Role of Employee E

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Why are some leaders able to engage employees better than others? According to the State of the Global report in 2017 on employee engagement,85% of employees were actively disengaged or not engaged at their place of work.This is a clear indication that being at the workplace doesn’t imply an employee is significantly contributing to the organization’s growth and productivity.The report further expatiates that out of five employees,at least about four of them are less motivated to be industrious and well engaged at their workplace.Such finding is alarming;hence,many researchers have shown interest in investigating the issue from different perspectives.Out of their diverse perspectives are some research gaps identified to be carried out by other researchers.It is to this effect that this research was centered on assessing the impact of guanxi and LMX on the job performance of both the private and public sectors of Ghana.It further considered the mediating and moderating role of employee engagement and power distance,respectively.Using the following theories(LMX theory,Role Theory,and Social Exchange Theory)as a yardstick,this study’s main objective was to ascertain the relationship between leaders and subordinates(both LMX and guanxi)on employee’s job performance.In that regard,employee engagement was used to test the mediating influence on the mentioned variables.Though both SSG and LMX are firmly rooted in nurturing the relationship between two or more individuals/groups,they are not entirely the same.One of their main differences is the limit of their relationships: LMX relationships are mostly limited to the workplace,while guanxi goes beyond the working environment – it even cuts across the family and friends of the parties involved.Also,LMX is more of relationship-biased(mainly for the benefit of the organization),while guanxi is mostly relationship-oriented(seeks to benefit the individual beyond the organization).Comparatively,guanxi has a long-term social commitment,and it plays a vital role among the established relationships than LMX.Lastly,guanxi reveals a stronger bond,concern,and sense of belonging than LMX.In all,530 questionnaires were gathered.This included four(4)different organizations within the private sector and three(3)organizations within the public sector of Ghana.The technique used to collect the needed data was the non-probability sampling method,precisely,convenience sampling.In gathering the data,the researcher electronically distributed a self-administered questionnaire to solicit the respondents’ candid opinions.The main instrument used for the data analysis was Smart-PLS 3.2.8.Besides,SPSS 26 was used to analyze the descriptive statistics of the demographic characteristics.From the findings,it was revealed that there was a significant positive relationship between the dyad relationship(either LMX or guanxi)and the performance of employees.Also,employee engagement partially mediated the relationship between both LMX and guanxi on employees’ job performance.More so,high power-distance significantly moderated or facilitated the relationship between employee engagement and job performance.However,it must be noted that,unlike LMX,guanxi had a significant but negative relationship with employee engagement.Hence,given the eight(8)hypotheses formulated for of this research,seven(7)of them were accepted,while one(1)was rejected.This study’s findings revealed that Ghana is a relational-based country that cherishes relationships either at or outside the work premise.The results,both LMX(Western context)and guanxi(Chinese context),had a positive relationship with employee performance.That’s irrespective of the context;whether Asian,Western,or African,relationships at the workplace are paramount to all.And so,as employers hire workers,they indirectly start new relationships.This unveils that human relational skills are highly imperative for the success of an organization.More so,this research figured out that when there is a proper connection within the workplace – either vertically with employers or horizontally among employees,it can improve their job performance.Thus,such connection and emotional attachment make an employee feel well belonged to the organization.This sense of belongingness is able to spur them on to be well engaged(physically,intellectually,and emotionally)in their job.Hence,they are more determined to serve in the best interest of their organization.On the moderation effect of high-power distance,it was realized that due to the high uncertainty avoidance of Ghanaians,it was easier for employees to follow the leadings of a high-power distance leader.The following were realized on the rejected hypothesis(guanxi having a negative relationship with employee engagement).The leading cause was attributed to the misunderstanding of the concept of guanxi in the context of Ghana.To some Ghanaians,guanxi is solely about "Whom you know," and since it’s hard for the one you know to turn you down,many people end up abusing such a relationship – they take it for granted.Thus,due to the relationship between employers and employees,especially those outside the workplace,two main problems may erupt.To the employees,mostly,they take their relationship with their leaders for granted and become less engaged at the workplace.While to the employers,it may affect their ability to be fair,firm,and even bold enough to take critical decisions against such employees,especially when they go wrong.Therefore,by unraveling such awareness,this research seeks to guide employers on how best to build a relationship with their subordinates without compromising justice or being firm.Another reason for the negative relationship was attributed to the form of guanxi in the Ghanaian society.Recommendations and referrals serve as the primary form of guanxi in the Ghanaian business community.Though employers take into consideration the resume of others,it is much easier to be employed if a proposed employee is directly or indirectly familiar with the employer.Hence,mostly during the process of recruitment,a worker is likely to recommend his or her friend to fill a vacant position in his or her place,should the need arise.Although this can be helpful,the likely effects are that it can easily affect the perception,behavior,and impression of both the employer and employee.Also,the general pattern in which management makes decisions was a contributing factor.In that when the HR makes decisions based on their personal relationships with employees,it indirectly affects the perception and behavior of employees.To put it another way,employees’ interpretations of guanxi procedures regarding HR guidelines or standards for decision-making may indirectly affect their behaviour at the workplace.Thus,due to the emotional attachment of some subordinates with their management,it makes them feel they should be given much preferential treatment.This means that to reverse the adverse effects of guanxi on employee engagement,management should be firm when making decisions.On a theoretical level,this study provides empirical support to the LMX theory by demonstrating that the relationship between leaders and their subordinates plays a critical role in their employees’ performance.Thus,how leaders use their available resources such as their influence,time,and their general attitude help them form diverse relationships with their subordinates.This directly influences the performance of their employees.Also,this research shows that in employers attempt to hire a workforce,they indirectly start new relationships.These factors clearly confirm that the LMX theory is highly vital for the survival of any organization.Regarding the social exchange theory,this research affirms the theory by revealing how the relationship between employers and their employees influences their reciprocity level.That’s a win-win outcome is achieved when there is a mutually beneficial relationship at the workplace.It supports the theory by revealing that the development of a dyad relationship is not biased – it helps both(leaders and subordinates)and,in the end,the whole organization.This research provided enough empirical evidence to buttress this principle of the role theory.In that when roles and expectations are clearly specified,it enhances the performance of employees.Lastly,this study fills the research gap by considering the effect of the relationship between leaders and their subordinates on performance within the private and public sector of a given country,in this case,Ghana.Also,this study is first in measuring the concept of guanxi within organizations of Ghana and even Africa at large.This means it paves ways for other researchers to find more about the impact of guanxi in their organizations,not only within African but also within the Western context.On a practical level,the following implications were revealed.Firstly,organizations should create a more conducive environment where employees can develop a better rapport among themselves and with their employers.Secondly,employers should do their best to nurture a better rapport with their subordinates,especially those who have a key influence on other employees’ behavior.Thirdly,leadership by example should be encouraged in both the private and public sectors of Ghana and even beyond.More so,it shows that employees prefer a type of leadership in which the leader preserves social cohesion and takes into account ties with subordinates.Furthermore,leaders are admonished to direct their workers and give them the needed opportunities as they evolve to take on new tasks,positions,and responsibilities.This is because employees want to feel respected and challenged in their jobs.With such given opportunities,it makes them feel trusted and much engaged at their workplace.Lastly,employers should pay attention to their employees’ rapport,particularly relationships outside the work premises.In terms of the originality of the study,it’s the first to measure the concept of guanxi within the organizations of the private and public sectors of Ghana and even Africa at large.This research is also unique in terms of the sector(both public and private)used to generalize its results for Ghana.Lastly,this research also embraces different organizations from diverse industries.In a nutshell,this research divulges that a leader’s ability to build and encourage meaningful relationships at the workplace will significantly impact the engagement and performance of their employees.
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