The study of how human use space to communicate is termed as Proxemics. In an organizational setting, this behavior has been found to be culturally conditioned and thus may differentially affect the degree of mutual influence and obligation between superiors and subordinates. The hypothesis that differential informal interactional levels and dining arrangements would have different effects on the perceptions of leader-member exchange quality was tested with a sample of employees (N=142) from organizations across India. We have discussed the results and their implications in the present study.