Session11_LD11_LMX

7/29/2019 Session11_LD11_LMX

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Leadership

Northouse, 5th edition

Session11Leader-Member Exchange Theory


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LMX Theory Description

LMX Theory Perspective

Early Studies

Later Studies Phases in Leadership Making

How Does the LMX Approach Work?

Overview


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Definition

Leader-member exchange (LMX) theory: conceptualizes leadership as aprocess

that is centered on the interactionsbetween aleader and subordinates

Some theories focus on leaders: trait approach, skills approach and style approach

Other theories focus on the follower and thecontext: situational leadership, contingency theory, and path-

goal theory.


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Dimensions of Leadership

LMX theory makes the dyadic relationshipbetween leaders and followers the focal point

of the leadership process


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LMX Theory Description

Development -LMX theory first described byDansereau, Graen, & Haga (1975), Graen &Cashman (1975), and Graen (1976)

Revisions-Theory has undergone a number ofrevisions since its inception and continues tointerest researchers

Assumption-LMX theory challenges theassumption that leaders treat followers in acollective way, as a group. LMX - Directed attention to the differences that might

exist between the leader and each of his/her followers

Perspective


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Early Studies

The

Vertical

Dyad

First studies of

LMX calledVertical DyadLinkage (VDL) Focus on the vertical

linkages leaders

formed with each oftheir followers

Leaders relationshipto a work unitviewed as a seriesof vertical dyads

Vertical

Dyads


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Early Studies

Leaders work unit as a whole was viewed as aseries of vertical dyads; leader forms uniquerelationship with each subordinate


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Early Studies, contd.

In-group/out-group statusbased on

How well subordinate works with the leader and howwell the leader works with the subordinate

Whether subordinates involve themselves in expandingtheir role responsibilities with the leader

Whether subordinates negotiate to perform activitiesbeyond the formal job description


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S Subordinate

In-GroupOut-Group

Leader

SS

SS

S

S

S

S S

S

S

S

In-Group more information,influence, confidence& concern fromLeader

more dependable,highly involved &communicative thanout-group

Out-Group less compatible withLeader usually just come towork, do their job & go

home

In-Group & Out-Group Subordinates


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Later Studies (Graen & Uhl-Bien, 1995)

Researchers found that high-qualityleader-member exchanges 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


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Later Studies, cont.

Perceived high-qualityleader-memberexchange is positively related to feelings

of energy in employees.(Atwater & Carmeli, 2009)

High-qualityleader member exchangeappears to compensate for the drawbacks

of not being empowered.

(Harris et al., 2009)


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Leadership Making(Graen & Uhl-Bien, 1995)

A prescriptive approach to leadershipthat emphasizes that a leader shoulddevelop high-quality exchanges with all

of her or his subordinates, rather thanjust a few.

Three phases of leadership making

which develops over time:(a) stranger phase(b) acquaintance phase(c) mature partnership phase


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Phases in Leadership MakingGraen & Uhl-Bien (1995)

Scripted

One WayLow Quality

Self


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Leadership MakingGraen & Uhl-Bien (1995)

Stranger

Interactions within the leader-subordinate dyad are

generally rule bound

Rely on contractual relationships

Relate to each other within prescribed

organizational roles

Experience lower quality exchanges

Motives of subordinate directed toward self-interest

rather than good of the group

Phase 1


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Leadership MakingGraen & Uhl-Bien (1995)

Mature Partnership Marked by high-quality leader-member exchanges

Experience high degree of mutual trust, respect, and

obligation toward each other Tested relationship and found it dependable

High degree of reciprocity between leaders and subordinates

May depend on each other for favors and special assistance

Highly developed patterns of relating that produce positiveoutcomes for both themselves & the organization

Phase 3

Partnerships are transformationalmoving beyond self-interest to accomplish greater good of the team & organization


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LMX Outcomes for Employees(Harris, Wheeler & Kacmar, 2009)

Benefits of High LMX

- preferential treatment- increased job-related

communication

- ample access tosupervisors

- increasedperformance-related

feedback

Disadvantages ofLow LMX

- limited trust andsupport fromsupervisors

- few benefitsoutside theemploymentcontract


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How Does the LMX TheoryApproach Work?

Focus of LMX Theory

Strengths

Criticisms

Application


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Best understood within the Leadership Making Model(Graen & Uhl-Bien)

Leader forms special relationships with all subordinates

Leader should offer each subordinate an opportunity for

new roles/responsibilities

Leader should nurture high-quality exchanges with all

subordinates

Rather than concentrating on differences, leader focuses

on ways to build trust & respect with all subordinates

resulting in entire work group becoming an in-group

Prescriptively:

How does LMXtheory work?


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Strengths

LMX theoryvalidatesour experience of how peoplewithin organizations relate to each other and the leader.

LMX theory is the only leadership approach that makes

thedyadic relationshipthe centerpiece of theleadership process.

LMX theory directs our attention tothe importance of

communicationinleadership.Solidresearch foundation on how the practice of LMX

theory is related to positive organizational outcomes.


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Criticisms

Inadvertently supports the development ofprivileged groups in the workplace; appearsunfair and discriminatory

The basic theoretical ideasof LMX are not fullydeveloped How are high-quality leader-member exchanges

created? What are the means to achieve building trust, respect,

and obligation? What are the guidelines?

Because ofvarious scales and levels ofanalysis, measurement of leader-memberexchanges is being questioned


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Application

Applicable to all levels of management anddifferent types of organizations

Directs managers to assess theirleadership from a relationship perspective

Sensitizes managers to how in-groups andout-groups develop within their work unit

Can be used to explain how individuals

create leadership networks throughout anorganization

Can be applied in different types oforganizations volunteer, business,education and government settings


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Exercise 1

Complete the LMX 7 Questionnaireindividually and share your results in smallgroups.

Compile a master list showing what rangesof scores on the questionnaire were mostcommonly reported as each group reports itsresults in a large-group discussion.

Discuss your views on the accuracy of yourown scores and to explain the scoresmeaning as related to their own leader-member exchanges.


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Exercise 2

LMX theory says leadership is building

relations with followers, either closely or

more superficially. Can you give apersonal example of each?

Session11_LD11_LMX

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