AGED260 Exam2: Leader-Member Exchange (LMX, Chapter 8)

Terms in this set (17)

Define the LMX theory. What is the main focus of the LMX theory? Assumption?
I.) Definition: conceptualizes leadership as a process
i.) that is centered on the interactions between a leader and subordinates
- A prescriptive approach to leadership that emphasizes that a leader should develop high-quality exchanges with all of her or his subordinates, rather than just a few.
i.) Things that I do to make all the employees have high quality interactions

II.) Focus: LMX theory makes the dyadic relationship between leaders and followers the focal point of the leadership process
- Later research focus on the quality of leader-member exchanges resulting in positive OUTCOMES for:
Leaders
Followers
Groups
Organizations in general

III.) Assumption: LMX theory challenges the assumption that leaders treat followers in a collective way, as a group.
i.) LMX - Directed attention to the differences that might exist between the leader and each of his/her followers
Describe the dyadic relationship outlined in this theory.
* The leader (L) forms an individualized working relationship with each of his or
her subordinates (S). The exchanges (both content and process) between the leader and subordinate define their dyadic relationship.
I.) First studies of LMX called- Vertical Dyad Linkage (VDL)
Focus on the vertical linkages leaders formed with each of their followers
Leader's relationship to a work unit viewed as a series of vertical dyads- leaders form unique relationships with each subordinate (plus 3 is high, 0 is stranger)
- Researchers found two general types of linkages (or relationships) - those based on:
i.) in-group and
ii.) out-group
iii.) In-group/out-group status based on how well subordinate works with the leaders and how well the leader works with the subordinate
iv.) How subordinates involve themselves in expanding their role responsibilities with the leader determines whether they become in-group or out-group participants
v.) Becoming part of the in-group involves subordinate negotiations in performing activities beyond the formal job description
Describe in-group and out-group. How do followers get into the in- or out-group? What are the leader and followers roles related to these two groupings?
I.) In-Group= Expanded/negotiated role responsibilities (extra-roles)
i.) more information, influence, confidence, & concern from Leader
ii.) more dependable, highly involved, & communicative than out-group
• Relationships marked by mutual trust, respect, liking, and reciprocal influence

II.) Out-Group= Formal employment contract (defined-roles)
i.) less compatible with Leader
ii.) usually just come to work, do their job, & go home
• Relationships marked by formal communication based on job descriptions
What does "leadership making" mean? How does the quality of the leader-member exchanges affect employee outcomes?
I.) What does it mean: Leadership making is a prescriptive approach to leadership emphasizing that a leader should develop high-quality exchanges with all of the leader's subordinates rather than just a few.
- It attempts to make every subordinate feel as if he or she is a part of the in-group
and, by so doing, avoids the inequities and negative implications of being in
an out-group.
- leadership making develops
progressively over time in three phases: (1) the stranger phase, (2) the
acquaintance phase, and (3) the mature partnership phase

II.) Researchers found that high-quality leader-member exchanges resulted in:
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
*) these all --> to LEADERSHIP MAKING
i.) this is the outcomes piece
Describe the three phases of leadership making. Pay close attention to Table 8.1 as you describe these phases. How are the roles, influences, exchanges and interests different in each phase?
I.) Three phases of leadership making which develops over time:
(a) stranger phase 1:
- Roles: Scripted
- Influences: One Way
- Exchanges: Low Quality
- Interests: Self

(b) acquaintance phase 2
- Roles: Tested (testing)
- Influences: Mixed
- Exchanges: Medium Quality
- Interests: Reciprocal

(c) mature partnership phase 3
- Roles: Negotiated
- Influences: Reciprocal
- Exchanges: High Quality
- Interests: Group
* Leaders and followers use these roles, influences, exchanges and interests in the same way.
* time increases as you go through the stages
Explain Phase 1 of leadership making: Stranger
• Interactions within the leader-subordinate dyad are generally rule bound
• Rely on contractual relationships
• Relate to each other within prescribed organizational roles
• Experience lower quality exchanges
• Motives of subordinate directed toward self-interest rather than good of the group

* Generally this is a leader-hierarchical role bound phase Note: Leaders look for gregarious, enthusiastic, extraversion—while followers look for leaders who are pleasant, trusting, cooperative and agreeable.
i.) Key predictor of relationship quality for both leader and follower was behaviors such as performance.
Explain Phase 2 of leadership making: Acquaintance
• Begins with an "offer" by leader/subordinate for improved career-oriented social exchanges
• Testing period for both, assessing whether
- the subordinate is interested in taking on new roles
- leader is willing to provide new challenges
• Shift in dyad from formalized interactions to new ways of relating
• Quality of exchanges improve along with greater trust & respect
• Less focus on self-interest, more on goals of the Group

* Leader or follower can do the "offer" (like Zach); important point—moves from self interest to self PLUS interest in the group/work.
Explain Phase 3 of leadership making: Mutual Partnership
* Partnerships are transformational - moving beyond self-interest to accomplish greater good of the team & organization (group Focus)

• Marked by high-quality leader-member exchanges
• Experience high degree of mutual trust, respect, and obligation toward each other
• Tested relationship and found it dependable
• High degree of reciprocity between leaders and subordinates
• May depend on each other for favors and special assistance
• Highly developed patterns of relating that produce positive outcomes for both themselves & the organization
How does LMX Theory Work?
- LMX theory works in two ways: it describes leadership and it prescribes leadership
i.) In both - the central concept is the dyadic relationship
Explain how LMX theory works descriptively
- It suggests that it is important to recognize the existence of in-groups & out-groups within an organization
- Significant differences in how goals are accomplished using in-groups vs. out-groups
- Relevant differences in in-group vs. out-group behaviors

1.) The Descriptive part is the early studies with LMX about the dyads and the importance of these linkages with EACH follower and the leader.
2.) If these linkages aren't strong, the follower is likely to end up in the out-group.
3.) This is both the leader and the follower's responsibility to create strong linkages.
Explain How LMX works Prescripitively: best understood within a relationship making model
1.) Special relationships between the leader and all subordinates should be created
2.) Leader should offer each subordinate an opportunity for new roles/responsibilities (followers should ask for these new opportunities, too).
3.) Leader should nurture high-quality exchanges with all subordinates (and followers have a role in this as well).
4.) Rather than concentrating on differences, leader focuses on ways to build trust & respect with all subordinates

- Prescriptively, is the Graen and Uhl-Bien studies (the phases: Stranger, acquaintance and mature-partnership phases).
i.) This "prescription" basically means if the leader and follower together create a good relationship, everyone will be in the in-group and the mature partnership phase (or at least the acquaintance phase).
ii.) it's not JUST the leader's responsibility in this—followers must work on the relationship,too.
In the Despicable Me video, what did Gru and the girls do to evolve from the stranger phase to eventually being in the mature partnership phase?
...
How is LMX similar or different than other theories/approaches in this course?
- Some theories focus on leaders:
i.) trait approach, skills approach, and style approach
- Other theories focus on the follower and the context:
i.) situational leadership, contingency theory, and path-goal theory.
- Leadership is the interaction between the leader and followers
What assessment corresponds to the LMX theory? What do these scores mean?
(I) The LMX 7: designed to measure three dimensions of leader-member relationships;
1.) respect: degree to which leaders and followers have mutual respect for each other's capabilities
2.) trust: feel a deepening sense of reciprocal trust
3.) obligation: have a strong sense of obligation to one another

- The score you obtain on the questionnaire reflects the quality of your leader-member relationships, and indicates the degree to which your relationships are characteristic of partnerships, as described in the LMX model.
i.) very high = 30-35,
ii.) high = 25-29,
iii.) moderate = 20-24,
iv.) low = 15-19, and
v.) very low = 7-14.

- Scores in the upper ranges indicate stronger, higher-quality leader-member exchanges (e.g., in-group members), whereas scores in the lower ranges indicate exchanges of lesser quality (e.g., out-group members).
What are the strengths of LMX Theory LMX theory?
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
What are the weaknesses of LMX theory?
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

*Reminder of country/bluegrass music—how exactly are high-quality leader-member exchanges created?
How could you apply the LMX theory approach in leadership situations?
Applicable to all levels of management and different types of organizations
Directs managers to assess their leadership from a relationship perspective
Sensitizes managers to how in-groups and out-groups develop within their work unit
Can be used to explain how individuals create leadership networks throughout an organization
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