*LEADER MEMBER EXCHANGE THEORY (LMX)*

Question 1

LEADER MEMBER EXCHANGE THEORY (LMX) (Graen & Cashman 1975)

General

3 Types

Answer 1

Leadership is a process that is centered on the interactions between a leader and followers

• Dyadic Relationship:
  
  • Interaction between followers and leader (vertical dyad)
• Descriptive Part:
  
  • Differentiation between in-groups and out-groups
• Prescriptive Part:
  
  • Leadership Making Model
  • gives you as a leader reccomendations how to develop relation between leader and follower

Question 2

ROLE MAKING

Two general types of linkage/characteristics

In-Group Characteristics

Answer 2

Based on expanded and negotiated role responsibilitites

• Reciprocal influence
• Do extra things for the leader and the leader does the same for them
• respect, linking, trust, loyality

Question 3

ROLE MAKING

Two general types of linkages/characteristics

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

1. Leader should develop high-quality exchanges with all followers

• Creates a stronger and broader powerbase

2. Make every follower feel as if they are part of the in-group

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

Question 7

Vertical Dyad Linkage to Team Making

Stages in Development on LMX Theory

Answer 7

​​1. Vertical Dyad Linkage

• _​_descriptive part

2. Leader-Member-Exchange

• ​​​descriptive part

3. Leadership-Making

• prescriptive part, develops over time - three stages
  
  1. Role Taking, Role Making, Routinization

4. Team-Making

Question 8

What are charateristics of the LMX Leadership Theory?

Answer 8

1. Central concept: dyadic relationship
2. LMX Theory describes leadership
3. LMX Theory prescribes leadership
4. Differences in how goals are accomplished using in-groups vs. out-groups

Question 9

Three Stages of Leadership-Making (LMX Theory)

Answer 9

1. Role Taking
2. Role Making
3. Routinization