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Leader-Member Exchange Theory

Leader-Member Exchange Theory. AGED 3153. Good leaders develop through a never-ending process of self-study, education, training, and experience. ~ Manual on military leadership. Overview. LMX Theory Approach Perspective Early Studies Later Studies Phases in Leadership Making

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Leader-Member Exchange Theory

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  1. Leader-Member Exchange Theory AGED 3153

  2. Good leaders develop through a never-ending process of self-study, education, training, and experience. ~ Manual on military leadership

  3. Overview • LMX Theory Approach Perspective • Early Studies • Later Studies • Phases in Leadership Making • How Does the LMX Approach Work?

  4. LMX Theory Approach Description • Focuses on interactions between leaders and followers • First described in 1975 by Dansereau, Graen and Haga, and Graen and Cashman • Changed the idea that followers are a group and looks at followers as individuals

  5. LMX theory • Conceptualizes leadership as a process centered in the interactions between leaders and followers • Dyadic relationship is focal point of leadership process Dyadic Relationship

  6. L The Vertical Dyad Dyadic Relationship S Early Studies • Vertical Dyads • Focused on the nature of the vertical linkages leaders formed with each of their followers • leader forms unique relationship with each subordinate

  7. Linkages • 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

  8. Willing to do more Demo. innovativeness Get more responsibility More opportunities Get time/support from leader Operate strict to prescribed roles Do only what is required Get fair treatment but no special attention Get standard benefits VDL Described

  9. L L In- Group L L Out- Group +3 +3 +3 +3 +0 +0 +0 +0 S S S S Linkages +3 is high-quality relationship 0 is stranger

  10. Later Studies • 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 that high-quality leader-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

  11. Current Studies • Focus on how leader-member exchanges can be used for leadership 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

  12. Phase 1Graen & 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

  13. Phase2Graen & 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, moreon goals of • the group

  14. 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 Phase 3Graen & Uhl-Bien (1995)

  15. Phases of Leadership Making

  16. How Does the LMX Theory Approach Work?

  17. Describes leadership Essential to recognize existence of in-groups & out-groups how goals are accomplished Relevant behavior differences Prescribes leadership Best understood within leadership 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 LMX Theory Approach

  18. What are strengths of LMX theory approach?

  19. What are weaknesses of LMX theory approach?

  20. How do we apply the LMX theory approach?

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