Gauging trust in the leader based on daily LMX Differentiation

The present diary study investigates how daily fluctuations in LMX differentiation (the differential treatment of employees in the same team by a leader in terms of relationship quality) is perceived by employees and how it... [ view full abstract ]

The present diary study investigates how daily fluctuations in LMX differentiation (the differential treatment of employees in the same team by a leader in terms of relationship quality) is perceived by employees and how it impacts trust. Specifically, it is proposed that high levels of LMX differentiation across days will be considered by employees to represent a lack of consistency and fairness on the part of the leader and thus negatively influence integrity trustworthiness perceptions. Further, it is proposed that the presence of a positive mood will significantly moderate this relationship, leading to more extreme trusting reactions. Participants were 47 employees from various organisations who completed an online diary survey for 10 consecutive days. Results lend support for the stated hypotheses as LMX differentiation was found to significantly influence integrity trustworthiness perceptions in a negative way and the relationship was stronger in the presence of positive mood. Theoretical implications of the findings are discussed.