Leader Member Exchange Theory

Question 1

Leader-Member Exchange theory

Answer 1

-Conceptualizes leadership as a process that is centered on the interactions between a leader and followers
-Makes the dyadic relationships between leaders and followers the focal point of the leadership process
-Directs attention to the differences that might exist between the leader and each of their followers

Question 2

Describe the first studies of LMX theory: Vertical Dyad Linkage

Answer 2

-Focus on the vertical linkages leaders formed with each of their followers; leader forms a unique relationships with each follower
-Found two general types of linkages (or relationships) those based on:
-Expanded/negotiated role responsibilities (extra roles) = In-group
-Formal employment contract (defined roles) = Out group

Question 3

How do followers become part of the in-group or out-group?

Answer 3

-Followers become part of the in-group or the out-group based on how well they work with the leader and how well the leader works with them
-Also based on how followers involve themselves in expanding their role responsibilities with the leader
-Becoming part of the in-group involved follower negotiations in performing activities beyond the formal job description

Question 4

In-group followers

Answer 4

-get more information, influence, confidence, and concern from leader
-Are more dependable, highly involved, and communicative than out-group

Question 5

Out-group followers

Answer 5

-less compatible with leader
-usually just come to work, do the job, and go home

Question 6

Initial research on LMX theory primarily addressed ___________ between in-groups and out-groups

Answer 6

-differences
-LMX differentiation

Question 7

Describe later studies of LMX Theory (Graen and Uhl-Bien, 1995)

Answer 7

Later research addressed how LMX theory was related to organizational effectiveness by focusing on the quality of leader-member exchanges resulting positive outcomes for: leaders, followers, groups, and organizations in general

Question 8

Researchers found that high quality leader-member exchanges resulted in…

Answer 8

-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

Question 9

Leadership Making (Graen & Uhl-Bien, 1995)

Answer 9

-A prescriptive approach to leadership that emphasizes that a leader should develop high-quality exchanges with all of his or her followers, rather than just a few
-Three phases of leadership making which develop over time: stranger phase, acquaintance phase, mature partnership phase

Question 10

Stranger phase

Answer 10

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

Question 11

Acquaintance phase

Answer 11

-Begins with an “offer” by leader/follower for improved career-oriented social exchanges
-Testing period for both, assessing whether: the follower is interested in taking on new roles, leader is willing to provide new challenges
-Shift in dyad from formalized interactions to new ways of relating
-Quality of exchanges improves along with greater trust and respect
-Less focus on self interest, more on goals of the group

Question 12

Mature partnership phase

Answer 12

-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 positive outcomes for both themselves and the organization
-Partnerships are transformational: putting aside self interest to accomplish greater good of the team and organization

Question 13

What are the benefits for employees who develop high-quality leader-member relationships?

Answer 13

-Preferential treatment
-Increased job related communication
-ample access to supervisors
-increased performance related feedback

Question 14

What are the disadvantages for those with low-quality leader-member relationships?

Answer 14

-limited trust and support from supervisors
-few benefits outside of employment contract

Question 15

How does LMX theory work?

Answer 15

-LMX theory works in two ways: it describes leadership and prescribes leadership
-In both, the central concept is the dyadic relationship

Question 16

How does LMX theory work descriptively?

Answer 16

-It suggests that it is important to recognize the existence of in-groups and out-groups within an organization
-Significant difference in how goals are accomplished using in-groups vs out-groups
-Relevant differences in in-group vs out-group behaviors

Question 17

How does LMX theory work prescriptively?

Answer 17

-Best understood within the Leadership-Making Model
-Leader forms special relationships with all followers
-Leader should offer each follower an opportunity for new roles/responsibilities
-Leader should nurture high-quality exchanges with all followers
-Rather than concentrating on differences, leader focuses on ways to build trust and respect with all followers, resulting in entire work group becoming an in-group

Question 18

Strengths of LMX theory

Answer 18

-Validates our experience of how people within organizations relate to one another and the leader
-Only relationship approach that makes the dyadic relationship the centerpiece of the leadership process
-Directs our attention to the importance of communication in leadership
-Solid research foundation on how LMX theory is related to positive organizational outcomes

Question 19

Criticisms of LMX theory

Answer 19

-inadvertently supports the development of privileged groups in the workplace; appears unfair and discriminatory
-The basic theoretical ideas of LMX are not fully developed
-Because of various scales and levels of analysis, measurement of leader-member exchanges is being questioned