(E) The leader-member exchange theory

Question 1

LXM theory

Answer 1

Leader-member exchange theory, describes leadership as process that focuses on interaction between leaders and followers, making it dyadic relationship. Also points out differences that could exist between leaders and followers.

Question 2

Early studies VLD theory

Answer 2

First the study of exchange theory were called vertical dyad linkage theory, where focus was on vertical link that leaders formed with each follower. leaders relationship with to entire team viewed as series of dyads, 2 main groups in-group and out-group.

In-group: relationship based on expanding an negotiating role responsibilities, does extra tasks for leader and leader gives more info, influence and confidence
out-group: based on formal employment contract, are less compatible with leader and do not do more than job requires

whether in or out group depends on how well leader and subordinate can work together, and the way subordinate tries to expand their responsibility

Question 3

Later studies

Answer 3

focused on how LMX theory was related to organizational effectiveness.
High quality leader-member exchange has most impact on employees feeling little empowerment, and leads to less employee turnover, greater positive performance evaluation, more promotions, higher organizational commitment, better job attitudes, more attention and support from leader, higher participation rate, faster career progress.

Question 4

Citizenship behaviors are;

Answer 4

‘discretionary employee behaviors that go beyond the prescribed role, job description or reward system’ .
-Have a positive relationship with quality leader-member relationships

Question 5

Leadership making is:

Answer 5

prescriptive approach to leadership by Graen and Uhl-bien stating leader should not only develop high quality leader-member exchanges with some subordinates, but with all. Strive to create all their relationships as a in-group by building trust and respect all followers. Also not only high quality relationship with own group but also other people. When relationship b/w leaders and others are high quality, leader goals, followers and organization all benefit

Question 6

Three phases of leadership making

Answer 6

Stranger phase: scripted roles, one-way influence, low quality exchange, shows self-interest
Acquaintance phase: tested roles (leaders offers follower improved career-oriented social exchanges), mixed influence, medium quality exchanges and both self and other interest 
Partnership phase (transformation): negotiated roles, reciprocal influences, high quality exchanges and shows group interest

Question 7

How to assess leader-member exchanges

Answer 7

questionnaire that asks leaders and subordinates to report on effectiveness of working relationship. evaluating degree of express respect, trust, and obligation to each other

Question 8

In what way does LMX theory work?

Answer 8

2 ways:
-describe leadership
-prescribes leadership
main concept is dyadic relationship between leaders and followers, and important to realize that there exist in-group and out-group within a group or organization

Question 9

difference goal accomplishment in-groups and out-groups

Answer 9

in-groups more efficient, and do more work and receive more attention, responsibilities and opportunities

Question 10

LMX theory strengths:

Answer 10

• strong descriptive theory, since validates experience of how people within organization relate to each other and the leader. also intuitively makes sense to depict work units in terms of those who contribute more and who contribute the minimum
• unique theory, as only uses dyadic relationship
• important theory, as it clarifies importance of communication in leadership
• makes leaders avoid conscious or unconscious biases influence who will be in out or in-group
• high number of researchers linked use LMX theory to real outcomes and could validate theory and increase practical value

Question 11

LMX theory criticism:

Answer 11

• initial vertical dyad linkage theory runs opposite the basic human value of fairness, bc theory divides each group in 2, it gives appearance of discrimination. LMX theory can support development of privileged groups at workplace
• does not address other fairness issues, such as promotion and pay increases. needs further investigation on how issues affect LMX relationships
• basic ideas of theory not very developed, since does not explain how exactly high quality leader-member exchange is created
• contextual factors impact on LMX relationships are not fully explained yet
• measurement leader-member exchanges are questionable. no other studies have used dyadic measures to analyze process

Question 12

Application LMX

Answer 12

shows managers how to evaluate their leadership from relationship perspective, and suggests high quality leader-member exchanges with all subordinates improves group performance. All managers at all organizational levels can use this.

Also subordinates can use it to see how leadership networks are created throughout an organization to help them perform more effectively

Question 13

Leadership instrument

Answer 13

LMX 7 is used, which is 7 item questionnaire to measure quality of leader-member exchanges.
measures 3 dimensions: respect, trust and obligation
measures how much respect, trust and obligation a leader and followers have for each other, since these 3 items form basis of strong partnership