Leader-member exchange (LMX) theory examines the relationship and role processes between a leader and individual followers. The theory is based on the understanding that leaders establish individual and mutually exchanged relationships with those in a subordination position. A leader typically has one major prevailing style of leadership, but most don't treat all followers the same way (Thomas, 2003). This empirical study was conducted in a multinational semiconductor industry in Bayan Lepas Free Industrial Zone in Penang, Malaysia. The independent variable was LMX with four sub-scales: Affect, loyalty, contribution and professional respect. The dependent variable was job satisfaction with two subscales: Intrinsic and extrinsic. This research uses a multidimensional approach and seeks to identify which of the subscales in LMX have a higher relation with satisfaction of employees in their job.
