View/Open

commitment. It is evident that committed employees increase the profit of the business
(Kamakura et al., 2002).
Second, since higher LMX agreement predicts greater supervisor-subordinate
relationship, management could use LMX agreement scores as a criterion, as part of
supervisor’s performance appraisal. LMX agreement could provide details to the
management in terms of supervisors’ team building capabilities. It could be established
that, since LMX agreement fosters better supervisor-subordinate relationship, it
enhances better team atmosphere in the organisation, which is important in the
hospitality industry. For example, Brotherton and Wood (2008) believe that day to day
hospitality operations are accomplished in teams.
Third, LMX agreement scores could be perceived by the management as a form of
feedback, since it gathers information from multiple sources (supervisors and
subordinates) similar to 360 o degree feedback. Atkins and Wood(2002) describe 360 o
feedback as a multi-source feedback gathered from individuals of the employee’s
immediate circle (e.g. supervisors, subordinates and colleagues). As a result LMX
agreement scores may help management in planning and executing organisational
tasks constructively.
Fourth, LMX agreement can assist management to reduce supervisors diluting
information. Since LMX agreement focuses on LMX perceptions of both supervisors
and subordinates, there is a possibility of the management directly approaching
subordinates. Therefore this enhances better communication levels between
subordinates and management, thereby reducing the power of middle managers or
supervisors.
102