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LEADER MEMBER-EXCHANGE THEORY

OB:LEADERSHIO
by

on 4 April 2014

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Transcript of LEADER MEMBER-EXCHANGE THEORY

LEADER MEMBER-EXCHANGE THEORY
(LMX)

Content
Introduction
LMX theory

History
In groups/out groups
Leadership phases
Strengths
Case study
Issues identified
Impacts
Application of LMX
Conclusion
Contribution
Introduction
Brief History
Definition
Stages

Suhur Beyleh - ID:000692615
Tiffany Wallace - ID:000669826
Rowan Hanley - ID:000670649
Helen Ip - ID:000676811

1975 earl study of LMX theory
Vertical Dyadic Linkage
"Conceptualization of leadership as a process that is based on the interactions between leader and subordinates". Graen (1976)

Strengths
Valid and practical approach.

Effective in identifying in-groups and out-groups

Importance of communication

Unique and exceptional theory

It is an important alert for leaders

In-groups
The in group are the members that the manager trusts the most.

They prove themselves as loyal, trustworthy and skilled

Get more one-to-one time with the manager

In group members often have a similar personality and work-ethic to their manager
Out-group
Members that betray the trust of the manager, or prove unmotivated.

Incompetent.
Restricted and non-challenging tasks.

Less access to the manager

Minimum opportunities growth and advancement.
1
Role-Taking
2
Role-Making
3
'Routinization' [SIC]
Role-Taking

Role-Making.


'Routinization.'
Hierarchical relationship
Scripted roles
Low quality exchanges

Self interested

Minimum effort

Testing Relationship

Increasing respect and trust

Decreasing self interest

Orienting mutual goal


Satisfied relationship

Mutual trust

Sense of obligation

Favors and additional assistance

Group and shared goal intrest
Case Study
Issues
Impacts
Practical Application
Conclusion
Contribution
References
Any Questions
Applicable to all levels of management and organisations

Harold and the managers will be able to understand the way he leads from the perspective of the employees,

Harold and middle managers will be able to understand the different functions of in and out group managers, understanding their roles and different methods of working better

LMX theory focused on developing communication, a key problem within this organisation, with focus being on delegation and understanding

LMX theory encourages high quality exchange, and helps to develop trust and respect within an organisation
Mind tools (2014) 'The leader member exchange theory, getting the best from all team members' Available at: http://www.mindtools.com/pages/article/leader-member-exchange.htm (Accessed 28/03/2014)



"HTE"
High Tech Engineering
Leadership Issues:

Cultural issues - moved from managing a small business to a company with 250 employees.

Clear vision – but don’t know how to get there.

Communication issues – failure to listen to employees.

Organisational Issues

Unorganised structure- Individual workers reported to 3 different managers.

Changes were made from the top down, with little input from lower or middle management.

Employees began to feel lost.

Employees found it difficult to support the company’s vision.

Separate groups started forming:
In-group, those who were favoured by Harold
Out-group, those who felt lost and was not heard.

- LMX has been a practical approach to leadership since 1970s

- Solely focuses on the relationship/ interactions of Leaders and members

- Identifies the two group segments

- Outlines the phases to transform out-group into in-group

- Equally benefits both leaders and members

Suhur - LMX theory/presenation desing

Rowan - Application of LMX (solution) /Research

Tiffany - Strengths of LMX/Research

Helen - Case study analysis (issues and implications
Earnhardt, M (no date)

'Practical application of five leadership theories on a U.S naval vessel Leadership advance online (accessed 31/03/2013) Available at: www.regent.edu/acad/global/publications/lao/issue_11/earnhardt.html
Northouse, P. G(2013a) 'Leadership: theory and practice' Thousand Oaks: Sage Publications, Inc
Northouse, P (2013b). Leadership: Theory and practice . 6th ed. United states of America : SAGE. p169-170.

Graen (1976) cited by Bass, B. M. (1990). Bass and Stogdill’s handbook of leadership: A survey of theory and research. New York: Free Press.
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