LEADER MEMBER EXCHANGE THEORY (LMX)

Question 1

Generell

Answer 1

• Dyadic Relationship: Interaction between followers and leader (vertical dyad)
• Descriptive Part: Differentiation between in-groups and out-groups
• Prescriptive Part: Leadership Making Model -> Matrix

Question 2

In-Group Characteristics

Answer 2

• Based on expanded (crucial word!) and negotiated role responsibilitites
• Reciprocal influence
• In-Groups do extra things for the leader and the leader does the same for them

Question 3

Out-Group Characteristics

Answer 3

• Based on formal employment contract
• Only formal communication -> no reciprocal influence
• Less compatible with leader -> ususally just come to work to do job

Question 4

5 Empirical Findings for high quality LM Relations (Graen)

Answer 4

1. Less employee turnover
2. More support for leadership
3. Greater organizational commitment
4. More positive performance evaluations
5. Higher frequency of promotions

Question 5

Leadership Making Model

Answer 5

Question 6

Strengts & Weaknesses of the Leadership Making Model

Answer 6

• Leaders should develope high-quality exchanges with all followers -> creates a stringer and broader powerbase
• Make every follower feel as if they are part of the in-group

Pros:

• String description of in- and out-groups
• Focus on dyadic relationship
• Shows up importance of communication
• Warns to not being biased in the chouce of in-group members
• Improves organizational outcomes

Cons:

• In-groups run counterpart to fairness
• Does not fully explain creation and influencing contextual factors of high-quality LMX relationships
• Measurement of LM relations is not empirically tested