HR practices, organizational climate and employee outcomes: evaluating social exchange relationships in local government

Abstract

This paper reports the findings of a study conducted on UK local government workers in which the effects of social and negative exchanges on work-related attitudes and behaviours were assessed. HR practices and organizational climate were used as measures of social exchange. Negative exchanges were based on measures capturing non-supportive management practice and unfair treatment. The findings suggest that, consistent with social exchange theory, positive exchanges lead to enhanced worker attitude and behaviour, with negative exchanges leading to increased work-related stress, reduced motivation and a greater propensity to quit. Negative exchanges, however, did not result in reduced discretionary behaviour. Disaggregating the exchange practices revealed equitable rewards and organizational morale had consistent effects on worker attitudes and behaviours, with team working, employee involvement and trust in managers having significant effects on employee motivation. The implications of these findings are considered in the concluding section of the paper.