THE IMPACT OF LEADER MEMBER EXCHANGE RELATIONSHIP ON EMPLOYEE JOB PERFORMANCE IN BANKING SECTOR IN AMPARA DISTRICT :

Abstract

'fhis rescarch explores the impact of the Leader-Mcmbcr Exchange (LMX) rclationship on crnployee job perfonnancc, with a specific focus on the mediating rolc of organizational oulture within thc banking scctor in thc Ampara Distriot, Sri Lanka. In thc cumcnt compctitivc banking cnvironrncnt, cflcctivc lcaclcrship ancl a strong organizatronal oulture havc beoome essontial factors for cnhancing errploycc cngagcment and pcrlormancc. Although past studies havc cxamincd LMX and organi zational culturc scparatcly, limitcd rescarch exists on how these factors intcraot to influcncc cmploycc pcrformance, particularly in thc Sri Lankan banking context. This study addrcsscs this gap by investigating whether a positive organizational culture strengthens the rclationship betwccn high-quality LMX and improved job performance' A quantitative rcsearch <lcsign was adoptcd, using struoturcd qucstionnaires distributed to a sample of 260 employees from various banks operating in the Ampara District. The study tests four key hypotheses cxamining the direct and mcdiating cffccts alnong LMX, organizational culturc, and job pcrlonnancc. Statistical analyscs, including oorrolation, rcgrcssiou, and modiation tcsting, arc used to analyze thc data and validatc thc rcscarch framework' T'hc fin4ings of this study are cxpected to offcr valuablc praotical recommendations for bank managcrs to dcvolop strongcr leadcr-mcmber relationships and nurturc supporlive organizational cultures that cncourage cmployccs to perfonn at thcir br:st. I3y applying the insights gaincd from this rcscarch, banks can <icsign cffcctive leadership training programs, implement policies that promote a positive work culturc, and ultimately improvc cmployec satisfaction and produc;tivity. 'l'his study contributcs not only to acaclcmic literaturc but also providcs actionablc stratcgics for banking institutions ancl policymakcrs to sustain growth and maintain compctitivencss in thc dynamic finanoial scotor of Sri Lanka. Kcywords: I-cadcr-Mcmbcr llxchangc, Organizational Culturc, l,lmployce Job Performance, Banking Scctor, Ampara District, Sri Lanka, Leadcrship