Leader- Member Exchange

Question 1

Early studies
LMX – Vertical Dyad Linkage (VDL)

Answer 1

• Focus on the vertical linkages leaders formed with each of their subordinates.
• The leader (L) forms an individualised working relationship with each of his/her subordinates (S).
• The content and process exchanges between the leader and subordinate define their dyadic relationship.

Question 2

Vertical Dyad Linkage (VDL)

Answer 2

• Leader’s relationship to a work unit viewed as a series of vertical dyads.
• The leader forms special relationships with all of his/her subordinates. Each of these relationships is special and has its own unique characteristics

Question 3

Two general types of linkages/ relationships

Answer 3

Expanded/negotiated role responsibilities (extra roles) – In-group
• Relationships marked by mutual trust, respect, liking, and reciprocal influence.
• Receive more information, influence, confidence, and concern than out-group members.

• Formal employment contract (defined roles) – Out-group - Relationships marked by formal communication based on job descriptions

Question 4

In-group subordinates

Answer 4

• More information, influence, confidence and concern from leader.
• More dependable, highly involved, and communicative than out-group.

Question 5

Out-group subordinates

Answer 5

• Less compatible with leader.
• Usually just come to work, do their job, and go home.

Question 6

Later studies
: related to organisational effectiveness

Question 7

• Focus on the quality of leader-member exchanges resulting in positive outcomes for:
• Leaders
• Followers
• Groups
• Organisations in general

Question 8

High-quality leader-member exchanges

Answer 8

• Less employee turnover
• More positive performance evaluations
• Higher frequency of promotions
• Greater organisational commitment
• More desirable work assignments
• Better job attitudes
• More attention and support from the leader
• Greater participation
• Faster career progression

Question 9

Leadership Making

Answer 9

• A prescriptive approach to leadership

• Emphasizes that a leader should develop high-quality exchanges with all of his/her subordinates, rather than just a few.

Question 10

Three phases of leadership making which develops over time

Answer 10

(a) Stranger phase
(b) Acquaintance phase
(c) Mature partnership phase

Question 11

Stranger

Answer 11

• Interactions within the leader-subordinate dyad are generally rule bound
• Rely on contractual relationships
• Relate to each other within prescribed organisational roles
• Experience lower quality exchanges
• Motives of subordinate directed toward self-interest rather than good of the group

Question 12

Acquaintance

Answer 12

• Begins with an “offer” by leader/subordinate for improved career-oriented social exchanges
• Testing period for both, assessing whether
• The subordinate is interested in taking on new roles
• The leader is willing to provide new challenges
• Shift in dyad from formalised 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.

Answer 13

• 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 favours and special assistance
• Highly developed patterns of relating that produce positive outcomes for both themselves and the organisation
• Transformational – move beyond self-interest to accomplish greater good of the team and organisation

Answer 14

• It suggests that it is important to recognise the existence of in-groups and out-groups within an organisation.
• Significant differences in how goals are accomplished using in-groups vs. out-groups.
• Relevant differences in in-group vs. out-group behaviours.

Question 15

Prescriptively

Answer 15

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 and respect with all subordinates, resulting in entire work group becoming an in-group.

Question 16

Strengths on Leader Member Exchange

Answer 16

• LMX theory validates our experience of how people within organisations relate to each other and the leader.
• LMX theory is the only leadership approach that makes the dyadic relationship the centrepiece of the leadership process.
• It directs our attention to the importance of communication in leadership.
• Solid research foundation on how the practice of LMX theory is related to positive organisational outcomes

Question 17

Criticisms Leader Member Exchange

Answer 17

• Inadvertently supports the development of privileged groups in the workplace.
• Appears unfair and discriminatory

• The basic theoretical ideas of LMX are not fully developed.
• How are high-quality leader-member exchanges created?
• What are the means to achieve building trust, respect, and obligation? What are the guidelines?

• Because of various scales and levels of analysis, measurement of leader-member exchanges is being questioned.

Question 18

Application Leader member Exchange

Answer 18

• Applicable to all levels of management and different types of organisations.
• Directs managers to assess their leadership from a relationship perspective.
• Sensitizes managers to how in-groups and out-groups develop within their work unit.
• Can be used to explain how individuals create leadership networks throughout an organisation.
• Can be applied in different types of organisations – volunteer, business, education, and government settings