leader-member exchange theory aged 3153. good leaders develop through a never-ending process of...
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Leader-Member Leader-Member Exchange TheoryExchange Theory
AGED 3153AGED 3153
Good leaders develop through a never-ending process of self-study, education, training, and experience.
~ Manual on military leadership
OverviewOverview
LMX Theory Approach PerspectiveLMX Theory Approach Perspective Early StudiesEarly Studies Later StudiesLater Studies Phases in Leadership MakingPhases in Leadership Making How Does the LMX Approach Work?How Does the LMX Approach Work?
LMX Theory Approach LMX Theory Approach DescriptionDescription
Focuses on Focuses on interactions interactions between leaders between leaders and followersand followers
First described in 1975 by Dansereau, First described in 1975 by Dansereau, Graen and Haga, and Graen and CashmanGraen and Haga, and Graen and Cashman
Changed the idea that followers are a Changed the idea that followers are a group and looks at followers as group and looks at followers as individualsindividuals
LMX theoryLMX theory
Conceptualizes leadership as a process centered in the interactions between leaders and followers
Dyadic relationship is focal point of leadership process
Dyadic Dyadic RelationshipRelationship
LLLL
SSSS
Dyadic RelationshipDyadic Relationship
TheTheVerticalVerticalDyadDyad
Vertical DyadsVertical Dyads– Focused on the nature of the vertical
linkages leaders formed with each of their followers leader forms unique relationship with each
subordinate
Early StudiesEarly Studies
LinkagesLinkages
In-group/out-group status based on:In-group/out-group status based on:– how subordinates involve themselves in
expanding their role responsibilities with the leader
– how well subordinate works with the leader – how well the leader works with the
subordinate Becoming part of the in-group involves
subordinate negotiations in performing activities beyond the formal job description
VDL DescribedVDL Described
1.1. Willing to do moreWilling to do more
2.2. Demo. Demo. innovativeness innovativeness
3.3. Get more Get more responsibilityresponsibility
4.4. More opportunitiesMore opportunities
5.5. Get time/support Get time/support from leaderfrom leader
1.1. Operate strict to Operate strict to prescribed rolesprescribed roles
2.2. Do only what is Do only what is requiredrequired
3.3. Get fair treatment but Get fair treatment but no special attentionno special attention
4.4. Get standard benefitsGet standard benefits
LinkagesLinkages
LLLL
SSSS
LLLL
SSSS
In-In-GroupGroup
+3+3 +3+3 +3+3 +3+3
LLLL
SSSS
LLLL
SSSS
Out-Out-GroupGroup
+0+0 +0+0 +0+0 +0+0
+3 is high-quality relationship
0 is stranger
Later StudiesLater Studies Addressed how LMX theory was related to Addressed how LMX theory was related to
organizational effectiveness– Related to positive outcomes for leaders, followers,
groups and the organization
Researchers (Graen & Uhl-Bien, 1995) found Researchers (Graen & Uhl-Bien, 1995) found that that high-qualityhigh-quality leader-member exchanges leader-member exchanges resulted in:resulted 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
Current StudiesCurrent Studies
Focus on how leader-member exchanges Focus on how leader-member exchanges can be used for can be used for leadership makingleadership making– Emphasizes high-quality exchanges with all
subordinates Leaders create networks of partnerships
throughout the organization benefits organizational and personal goals/progress
Occurs over time through 3 phases Stranger Acquaintance Mature partner
Phase 1Phase 1Graen & Uhl-Bien (1995)Graen & Uhl-Bien (1995)
• Interactions rule bound
• Rely on contractual relationships
• Relate to each other within prescribed organizational roles
• Experience lower quality exchanges
• Subordinate motives directed toward self-interest
PhasePhase 22Graen & Uhl-Bien (1995)Graen & Uhl-Bien (1995)
• Offer by leader/subordinate for improved career-oriented social exchanges
• Testing period of taking on new roles and leader providing new challenges
• Shift from formalized interactions to new ways of relating
• Quality of exchanges improve along with greater trust and respect
• Less focus on self-interest, more on goals of the group
Phase 3Phase 3Graen & Uhl-Bien (1995)Graen & Uhl-Bien (1995)
• High-quality LMX exchanges
• High degree of mutual trust, respect, and obligation toward one another
• Tested relationship that is dependable
• High degree of reciprocity
• May depend on each other for special assistance
• Highly developed patterns of relating that produce positive outcomes
Phases of Leadership Phases of Leadership MakingMaking
How Does the LMX How Does the LMX Theory Approach Theory Approach
Work?Work?
LMX Theory ApproachLMX Theory Approach
Describes Describes leadershipleadership
Essential to recognize existence of in-groups & out-groups– how goals are
accomplished – Relevant behavior
differences
Prescribes Prescribes leadershipleadership– Best understood within
leadership making modelleadership making model – Leaders should:
create special relationships with all subordinates
treat every subordinate equally
nurture high-quality exchanges with all subordinates
focus on ways to build trust
What are strengths What are strengths of LMX theory of LMX theory approach?approach?
What are weaknesses What are weaknesses of LMX theory of LMX theory approach?approach?
How do we apply the How do we apply the LMX theory LMX theory approach?approach?