Proceedings of 21st International Business Research Conference 10 - 11 June, 2013, Ryerson University, Toronto, Canada, ISBN: 978-1-922069-25-2 Intervening Role of Social Exchange Perceptions between Perceived Organizational Politics and Employee Morale Mahmood A. Bodla and Rizwan Qaiser Danish Political model of organizations have been discussed from different perspectives over the last few decades but these studies are inconclusive and fragmented for their implications and practicality. Exchange relationships of employees with their organizations have an impact on employees’ level of morale specifically in politicized organizations. This study is an attempt to establish the intermediary role that these perceptions of exchange relationship plays in the relationship between perceived organizational politics and morale of employees. As a part of a large study, the data were collected through self-administered questionnaires distributed to part time management students who work in different organizations during day time and take their classes in evening. Participation in this survey was voluntary and overall 2000 questionnaires were distributed. In all, 1163 useable responses were received for response rate of 58%. Through regression analysis and structural equation modeling, it was found that about 70% of the total effect was mediated by social exchange perceptions in the relationship of perceptions of organizational politics and morale of the employees. The implications of this study are discussed in final section of this paper along with its limitations. Future research agenda is also discussed. Keywords: Political Behavior, Morale, Social Exchange, Perceptions, Organization, Politics ____________________________________________________________________ Dr. Mahmood A. Bodla, Director, COMSATS Institute of Information Technology, Lahore, Pakistan. E-mail: director@ciitlahore.edu.pk Rizwan Qaiser Danish, Assistant Professor Hailey College of Commerce, University of the Punjab, Lahore, Pakistan, PhD Scholar, COMSATS Institute of Information Technology, Lahore, Pakistan. E-mail: rdanish2000@yahoo.co.uk