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Leader-Member Exchange Theory

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mohammed alsofyani

on 17 September 2013

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Transcript of Leader-Member Exchange Theory

Leader-Member Exchange Theory
LMX is about this area
So,
What is leaders-member exchange theory?
Studies that lead to LMX theory.
LMX and leadership making.
How does the LMX approach work ?



Early Studies
Vertical Dyad Linkage (VDL).
Later Studies
Thank You
Leadership is not just about leaders...
Leader-member exchange (LMX) theory:
Is centered on the interactions between a leader and subordinates
Some theories focus on leaders:
Other theories focus on the follower and the context:
trait approach, skills approach and style approach
situational leadership, contingency theory, and path-goal theory.
While LMX..
LMX theory makes the dyadic relationship between leaders and followers the focal point of the leadership process
Leader
Followers
Leadership Making
How Does the LMX Theory Approach Work?
Leader’s work unit as a whole was viewed as a series of vertical dyads; leader forms unique relationship with each subordinate
L
S
VDL
Researchers found two general types of linkages
in-group
Out-Group
out-group
Relationships marked by mutual trust, respect, liking, and reciprocal influence
Receive more information, influence, confidence, and concern than out-group members
Relationships marked by formal communication based on job descriptions
In Group
High-exchange relationship
Low-exchange relationship
Leaders
Followers
Groups
Organizations in general
Later research focus on the quality of leader-member exchanges resulting in positive outcomes for:

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
Researchers found that high-quality leader-member exchanges resulted in:
Mature partnership phase
Stranger phase
Acquaintance phase
Application
Strengths
Criticisms
References
LMX Focus on how exchanges between leaders and subordinates can be used for leadership making.
leader should develop high-quality exchanges with all of his/her subordinates.
It develop progressively over time in three phases:
LMX theory offers many insights that managers could use to improve their own leadership behavior.
Application
It directs managers to assess their leadership from relationship perspective.
It can be used by managers at all levels.
It can be used to explain how individuals create leadership network to help them accomplish work more effectively.



LMX theory validates our experience of how people within organizations relate to each other and the leader.
LMX theory is the only leadership approach that makes the dyadic relationship the centerpiece of the leadership process.
LMX theory directs our attention to the importance of communication in leadership.
Solid research foundation on how the practice of LMX theory is related to positive organizational outcomes.
Strengths
Criticisms
Inadvertently supports the development of privileged groups in the workplace; appears unfair and discriminatory
The basic theoretical ideas of LMX are not fully developed
How are high-quality leader-member exchanges created?
What are the means to achieve building trust, respect, and obligation? What are the guidelines?
Because of various scales and levels of analysis, measurement of leader-member exchanges is being questioned

http://www.mindtools.com/pages/article/leader-member-exchange.htm
http://www2.uhv.edu/chapao/MGMT4305/PPT/Chp7.pdf
http://www.nationalforum.com/Electronic%20Journal%20Volumes/Lunenburg,%20Fred%20C.%20Leader-Member%20Exchange%20Theory%20IJMBA%20V13%202010.pdf
http://leadershipchamps.wordpress.com/2008/04/21/leader-member-exchange-lmx-theory/


Now...
What you think ?
Are you a STRANGER ? did you think you reach the PARTNERSHIP level ? Are you IN or OUT group ?
Full transcript