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23 Cards in this Set

  • Front
  • Back

Leader Member Exchange Theory

deviates from prior theories by focusing on the interactions between leaders and followers




the dyadic relationship between leaders and followers is the focal point of the leadership process.




considers differences that might exist between the leader and each of the leader's followers

LMX differentiates because...

before, leadership was looked at as "something leaders do towards all followers"- an average leadership style.




LMX considers differences between each individual follower

Early LMX studies: Vertical Dyad Linkage (VLD)

first to introduce exchange perspective to study of leadership.




focuses on the series of vertical linkages leaders formed with each of their followers




found 2 general types of linkages: in-group and out-group.

in-group linkages

expanded/negotiated role responsibilities:


-mutual trust, respect, liking, and reciprocal influence.


-more info sharing, influence, confidence, and concern from leader


-more dependable, high involved, & more communicative than out-group


-leaders & followers do "extra" things for each other

out-group linkages

formal employment contract marked by formal communication based on job descriptions




-leaders and followers are less compatible


-usually just come to work, do their job, and go home

in-group/out-group status based on:

A. how well they work together


B. how followers involved themselves in expanding their role responsibilities with the leader


C. negotiations in performing activities beyond the formal job description

Later LMX Studies

LMX theory related to organizational effectiveness resulting in positive outcomes for leaders, followers, groups, and organizations

High-quality relationships result in:

*less employee turnover


*more positive performance evaluations


*higher frequency of promotions


*greater organizational commitment


*more desirable work assignments


*better job attitudes


*more attention and support from the leader


*greater participation


*faster career progress

Leadership Making

leadership approach that emphasizes that the leader should develop high-quality exchanges with ALL followers




used LMX research to understand how these exchanges can be used to "make leadership"

3 Phases of Leadership Making:

Phase 1: Stranger


Phase 2: Acquaintance


Phase 3: Partnership

Phase 1 of Leadership Making: Stranger

interactions are generally rule bound: rely on contractual relationships




relate within prescribed organizational roles




experience lower-quality relationships




follower has self-interested motives instead of focusing on the good of the group.

Phase 2 of Leadership Making: Acquaintance

begins with an offer by a leader/follower for improved career-oriented social exchanges: testing period for both the leader and follower.




shift from formalized interactions to new ways of relating




relationship quality improves: more trust and respect




start to shift focus from self-interest to group goals

Phase 3 of Leadership Making: Partnership

tested relationship found to be dependable marked by high-quality exchanges- depend on each other for favors




high degree of mutual trust, respect, obligation, and reciprocity towards each other




highly developed patterns of relating that produce positive outcomes for the leader, follower, and organization

During the testing period of Phase 2 of Leadership Making, both followers and leaders ultimately look for:

performance

Summary of Phase 1: Stranger

roles are scripted


influences are one-way


exchanges are low-quality


interests are self-serving.

Summary of Phase 2: Acquaintance

roles are tested


influences are mixed


exchanges are medium-quality


interests are self-serving and other.

Summary of Phase 3: Partnership

roles are negotiated


influences are reciprocal


exchanges are high-quality


interests are for the group.

how the LMX Theory works:

based on the dyadic relationship the leader forms with each individual follower




works in 2 ways; it is both descriptive and prescriptive

LMX "descriptively"..

important to recognize the existence of in-groups and out-groups and understand their differences




working with in-group allows more effective and efficient functioning because both followers and leaders go beyond their prescribed roles




out-group members avoid extra-role activities and only work within their prescribed roles- nothing more!

LMX "prescriptively"..

leaders should create special (in-group type) relationships with ALL followers




leaders should look beyond their own work unit and create high-quality partnerships with people throughout the organization




followers can understand the factors that leaders look for in developing high-quality relationships

LMX Theory in application:

directs managers to assess their leadership from a relationship perspective




can be used by management/leadership at all levels and in different types of organizations




can be used to explain how individuals create leadership networks

Strengths of the LMX Theory:

1. strong descriptive theory


2. unique: only leadership approach that focuses on the dyadic relationship


3. emphasizes the importance of communication in leadership


4. alerts leaders to potential biases


5. large body of research linking LMX to organizational effectiveness

Criticisms of LMX Theory:

1. runs counter to basic human values of fairness


2. theory not fully developed


3. not adequately explained contextual factors that may impact LMX relationships


4. questionable methods for measuring LMX