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.

LMX LIFE CYCLE MODEL

How can the Pygmalion Effect be used to effect

leaders?

Stages in LMX

High Quality LMX relationship

vs low quality

Factors that determine LMX

Quality

WHAT IS IMPRESSION MANAGEMENT? Is a follower’s 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.`

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 by

• better social 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

Low quality LMX relationship are characterized by

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

High High QualityQuality

Low Low QualityQuality

10..........20..........30..........10..........20..........30..........40..........5040..........50

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 InterpretationAlthough 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 = 30–35, high = 25–29, moderate = 20–24, low = 15–19, and 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).

SOURCE: *Reprinted from “Relationship-Based Approach to Leadership: Development of Leader–Member 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), 219–247. Copyright © 1995. Reprinted with permission from Elsevier Science.

Factors That Determine LMX Quality

FOLLOWER’S ATTRIBUTESProactive 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 supportDelegate moreAllow greater discretionEngage in open communicationEncourage mutual influence between themselves and

their followers

WHEN IS FAVORABLE LMX RELATIONSHIP LIKELY TO EXIST??

EFFECTIVE LEADER – FOLLOWER FEEDBACKCorrecting 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 FEEDBACKPre-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 follower’s self - confident