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Questions and Answers
According to LMX theory, what is the central concept in both descriptive and prescriptive approaches?
What is the main focus of LMX theory?
What is the primary difference between in-groups and out-groups in LMX theory?
What is the key aspect of the Leadership Making Model, according to LMX theory?
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What is a key strength of LMX theory, according to the text?
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What is the primary outcome of the prescriptive approach of LMX theory?
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What is the significance of communication in LMX theory?
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What is the result of a leader focusing on building trust and respect with all subordinates, according to LMX theory?
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What is a key limitation of LMX theory, according to the text?
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What is the relationship between the practice of LMX theory and organizational outcomes, according to the text?
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Study Notes
Leadership
- Leadership is a process that is centered on the interactions between a leader and subordinates.
Skills Approach
- The skills approach focuses on the leader's point of view, along with the trait approach and style approach.
LMX Theory Description
- Leader-Member Exchange (LMX) theory conceptualizes leadership as a process centered on the interactions between a leader and subordinates.
- LMX theory is a descriptive and prescriptive approach to leadership.
- The theory was first described by Dansereau, Graen, and Haga (1975), Graen and Cashman (1975), and Graen (1976).
- The theory has undergone revisions since its inception and continues to interest researchers.
Dimensions of Leadership
- LMX theory makes the dyadic relationship between leaders and followers the focal point of the leadership process.
Early Studies
- The first studies of LMX were called Vertical Dyad Linkage (VDL) and focused on the vertical linkages leaders formed with each of their followers.
- The leader's relationship to a work unit was viewed as a series of vertical dyads.
- Researchers found two general types of linkages (or relationships):
- Expanded/negotiated role responsibilities (in-group)
- Formal employment contract (defined-roles) (out-group)
In-Group & Out-Group Subordinates
- In-group status is based on how well a subordinate works with the leader and how well the leader works with the subordinate.
- In-group subordinates receive more information, influence, confidence, and concern from the leader.
- Out-group subordinates are less compatible with the leader and usually just come to work, do their job, and go home.
Later Studies
- Later research focused on how LMX theory was related to organizational effectiveness.
- 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
Phases in Leadership Making
- The Leadership Making Model by Graen and Uhl-Bien (1995) consists of three phases:
- Stranger phase: interactions are rule-bound and rely on contractual relationships.
- Acquaintance phase: a testing period for both leader and subordinate, assessing whether to improve career-oriented social exchanges.
- Mature partnership phase: marked by high-quality leader-member exchanges, mutual trust, respect, and obligation.
LMX Outcomes for Employees
- Benefits of high LMX include:
- Preferential treatment
- Increased job-related communication
- Ample access to supervisors
- Increased performance-related feedback
- Disadvantages of low LMX include:
- Limited trust and support from supervisors
- Few benefits outside the employment contract
How Does the LMX Theory Approach Work?
- LMX theory works in two ways: it describes leadership and it prescribes leadership.
- The central concept is the dyadic relationship.
- Descriptively, LMX theory recognizes the existence of in-groups and out-groups within an organization.
- Prescriptively, LMX theory suggests that the leader should form special relationships with all subordinates and nurture high-quality exchanges with all subordinates.
Strengths
- 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.
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Description
This quiz covers the concepts of leader-member exchange, its effects on employee empowerment, and the skills approach to leadership. It is based on Chapter 3 of the Leadership Making book.
