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MGT 390 Ch. 7
Terms in this set (16)
Leader-Member Exchange Theory (LMX)
Centered on the interactions between leaders and followers. The dyadic relationship is the focus, initially called vertical dyad linkages.
Two types of linkages
In-group (based on "extra-roles") and out-group (based on "defined roles").
According to LMX, group relationship type is based on the nature of the reciprocal work relationship - determined in part by:
- Individual differences (e.g., personality)
- Follower willingness to negotiate expanded role responsibilities
Followers in the In-Group
• Receive more information, influence, confidence, and concern (from their leaders)
• Are more dependable, more involved, and more communicative
Followers in the Out-Group
• Are less compatible with the leader
• Come to work, do their job, and go home
Earlier studies addressed what?
The differences between in and out groups.
Later studies addressed what?
LMX and organizational effectiveness.
High exchange associated with
- Less Turnover and Role Conflict
- Better Performance Evaluations and more Promotions
- Higher Job Performance, Commitment and Satisfaction
- Great Participation and Faster Career Progress
Leadership Making - Prescriptive Approach
Emphasizing developing high quality exchanges.
Phase 1: Stranger
Roles - Scripted; Influences - One Way; Exchanges - Low Quality; Interests - Self.
Phase 2: Acquaintance
Roles - Tested; Influences - Mixed; Exchanges - Medium Quality; Interests - Self and Other.
Phase 3: Partner
Roles - Negotiated; Influences - Reciprocal; Exchanges - High Quality; Interests - Group.
Why is LMX important for recognizing in and out groups?
• Goals accomplished differently with each group (issues of effectiveness)
• Actions/benefits of members are different in each group (issues of fairness)
Prescriptively, why does LMX tell us to create special relationships with all followers?
• Offer all followers opportunities for new roles and responsibilities
• Build trust, respect, and partnerships with all followers
LMX Theory Strengths (Actually, Fran Doesn't Want Lettuce)
- Accurately describes the workplace condition of In-Groups and Out-Groups
- Focuses on the dyadic relationship in the leadership process
- Directs attention to the importance of communication in the leadership process
- Warns leaders to be cognizant of bias potential
- Lot of research that connects LMX to positive organizational outcomes
LMX Theory Criticisms (In Holland, I quested)
- In-Groups and Out-Groups have fairness implications
- "How" to form high quality exchanges not fully explained
- Impact of some factors on LMX relationships not adequately explained/researched
- Questions/disagreement about how leader-member exchanges should be measured
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