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Leader-Member Exchange

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on 5 June 2015

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Transcript of Leader-Member Exchange

Leader-Member Exchange Theory
Northouse Chapter 8
by Dan Ruiter

Early Research
1975 Graen, Dansereau, Haga, and Cashman
- started out as Vertical Dyad Linkage Theory
- focused on the vertical relationship of leader to member
- differentiated between in-groups and out-groups
- in-group based on expanded role relationships
- out-group based on formal contractual relationships
- was very descriptive
Later Research
1995 - 2012 Graen, Uhl-Bien,Liden, Vidyartha, others
- focused on how LMX theory was related to organizational effectiveness
- found that high-quality exchanges resulted in less turnover, more positive performance evaluations, higher frequency of promotions, greater commitment, better work assignments and attitudes, etc.
- conclusions are that organizations stand to gain much from having leaders who can create high-quality exchanges (good working relationships)
Leadership Making
- focuses on moving each relationship into an In-Group
- relationships go through phases
- Stranger: scripted, lower quality exchanges
- Aquaintance: tested medium quality exchanges
- Partnership: negotiated/proven, high quality exchanges

Overview of Leader-Member Exchange
Focuses on "leadership as a process that is centered on the interactions between leaders and followers."

These interactions are inherent in the dyadic relationship between leaders and followers
In-Group Dyads
Northouse pg 164
Dyads (Relationships)
Out-Group Dyads
Northouse pg 164
Dyads (Relationships)
- strong descriptive theory
- makes the relationship the centerpiece of leadership
- directs attention to the importance of communication in leadership
- warns leaders to avoid letting biases influence in-goup/out-group membership
- large body of research supports the theory over a long period of time
- seems to run counter to the human value of fairness
- the basic ideas of the theory are not developed: How are high-quality exchanges formed?
- researchers have not adequately explained all the factors ie social networks, workplace norms, organizational culture variables
- questions have been raised about the measurement of leader-member exchanges
- it is descriptive and prescriptive
- descriptively is informs us of the existance of In-Groups and Out-Groups
- prescriptively if can be used to move subordinates through relationship phases and into an in-group such as the Leadership Making model suggests
- focuses our attention on the special, unique relationship that leaders can create with others
Dimensions of Leadershiop
Northouse pg 162
Let quality relationships be your guide.
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