LEADER-MEMBER EXCHANGE (LMX) THEORY
The understanding assumption of LMX theory is that
leaders or superiors have limited amounts of social, personal and organizational resources and as a result tend to distribute them among followers selectively.
Leaders do not interact with all followers equally,
which ultimately results in the formation of LMXs that vary in quality.
Therefore (LMX) is defined as the quality of the
exchange relationship between an employee and his or her supervisor.
TEAM BUILDING
Team leadership involves a primary concern to
motivate a group of individuals to work together to achieve a common objective, while alienating any conflicts or obstacles that may arise while striving toward that objective.
The emphasis is on forming relationship with all
group members, not just with a few special individuals.
SYSTEMS AND NETWORKS
The systems and networks version of the dyadic
approach examines how a dyadic relationship can be created across traditional boundaries to include everyone in the organization.
From a network perspective, the focus is on
relations among actors, whether they are individuals, work units or organizations.
A system-oriented perspective focuses on how the
quality of the LMX relationship affects followers at the interpersonal, group and organizational levels.
How can the Pygmalion Effect be used to effect leaders?
Stages in LMX
LMX LIFE CYCLE MODEL
High Quality LMX relationship vs low quality
Factors that determine LMX Quality
Stage 1
Leader & follower conduct themselves as strangers Involves: impression management & ingratiation
Leader & follower become acquainted
Stage 2
Roles reach maturity In-group / Out-group level
Stage 3
WHAT IS IMPRESSION MANAGEMENT?
Is a followers effort to project a favorable
image in order to gain an immedite benefit or improve a long-term relationship with the leader
WHAT IS INGRATIATION?
The effort to appear supportive, appreciative and
respectful.
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DYADIC APPROACH SYSTEM & NETWORK VIEW
Leader relationships are not limited to employees, but include peers customers, suppliers and other relevant stakeholder in the broader community.
HIGH QUALITY vs LOW QUALITY
High quality LMX relationship are characterized better social by Low quality LMX relationship are characterized by
support More resources More guidance for career development Greater follower input decision making Greater negotiating latitute
Less support More formal supervision Little or no involvement in decision making
LMX Scale
Attempts to understand the quality of each
dyadic relationship & its effect on organizational outcomes over time
Is the most commonly used instrument for
defining and measuring the quality of relationships
Low Quality
10..........20..........30..........40.......... 50
High Quality
LMX 7 QuesTionnaire*
Instructions: This questionnaire contains items that ask you to describe your relationship with either your leader or one of your subordinates. For each of the items, indicate the degree to which you think the item is true for you by circling one of the responses that appear below the item. 1. Do you know where you stand with your leader (follower) . . . [and] do you usually know how satisfied your leader (follower) is with what you do? Rarely Occasionally Sometimes Fairly often Very often 1 2 3 4 5 2. How well does your leader (follower) understand your job problems and needs? Not a bit A little A fair amount Quite a bit A great deal 1 2 3 4 5 3. How well does your leader (follower) recognize your potential? Not at all A little Moderately Mostly Fully 1 2 3 4 5
Scoring Interpretation Although the LMX 7 is most commonly used by researchers to explore theoretical questions, you can also use it to analyze your own leadership style. You can interpret your LMX 7 scores using the following guidelines: very high = 3035, high = 2529, moderate = 2024, low = 1519, and very low = 714. Scores in the upper ranges indicate stronger, higherquality leadermember exchanges (e.g., in-group members), whereas scores in the lower ranges indicate exchanges of lesser quality (e.g., outgroup members).
SOURCE: * Reprinted from Relationship-Based Approach to Leadership: Development of LeaderMember Exchange (LMX) Theory of Leadership Over 25 Years: Applying a Multi-Level, Multi-Domain Perspective, by G. B. Graen and M. Uhl-Bien, 1995, Leadership Quarterly, 6(2), 219247. Copyright 1995. Reprinted with permission from Elsevier Science.
Factors That Determine LMX Quality
FOLLOWERS ATTRIBUTES
Proactive followers :
Show initiative even in areas outside their immediate
responsibility possess a strong sense of commitment to work unit goals Show a stronger sense of responsibility for unit success These follower attributes influence leaders to: Show support Delegate more Allow greater discretion Engage in open communication Encourage mutual influence between themselves and their followers
WHEN IS FAVORABLE LMX RELATIONSHIP LIKELY TO EXIST??
EFFECTIVE LEADER FOLLOWER FEEDBACK
Correcting deficiencies can help the follower
improve
Example Nurse / student who wanted to perform
better but was not given the feedback and support to do so.
Must be done so that the leader follower
relationship is preserved
GUIDELINES FOR EFFECTIVE LEADER FEEDBACK
Pre-feedback ;- leader should :
Remind self to stay calm and professional Gather accurate facts on followers perfomance Remind self to avoid rush to judgement
DURING FEEDBACK SESSION LEADER SHOULD :
Be specific in stating performance deficiency Explain negative impact of ineffective behaviour
help follower identity reasons for poor performance
Ask follower to suggest remedies
Arrive at mutual agreement on specific action
steps
POST-FEEDBACK SESSION LEADER SHOULD:
Follow up to ensure implementation of action
steps
Show desire to be of help to follower build
followers self - confident
