Chapter 8: Leadership Theory and Practice

Leader-Member Exchange (LMX) Theory

- conceptualizes leadership as a process that is centered on the interactions between leaders and followers. - makes the dyadic relationship between leaders and followers the focal point of the leadership process - challenged this assumption and directed researcher's attention to the differences that might exist between the leader and each of the leader's followers.

CRITICISMS of Leader-Member Exchange Theory

- gives the appearance of discrimination against the OUT-GROUP - basic ideas of the theory are not fully developed. Ex: does not fully explain how high-quality leader-member exchanges are created - researchers have not adequately explained the contextual factors that may have an impact on LMX relationships.

STRENGTHS of Leader-Member Exchange Theory

- makes sense to describe work units in terms of those who contributes more and those who contribute less to the organization - only leadership approach that makes the concept of the dyadic relationship the centerpiece of the leadership process - directs our attention to the importance of communication in leadership - warns leaders to avoid letting their conscious or unconscious biases influence who is invited into the in-group, (biases regarding race, gender, ethnicity, religion, or age) - large body of research substantiates how the practice of LMX theory is related to positive organizational outcomes.

APPLICATION of Leader-Member Exchange Theory

- managers could use to improve their own leadership behavior - directs managers to assess their leadership from a relationship perspective - used by managers at all levels with an organization - explain how individuals create leadership networks throughout an organization to help them accomplish work more effectively - applied in different types of organizations - applied in volunteer settings as well as traditional business, education, and government settings

Mature Partnership Phase

- marked by high-quality leader-member exchanges. - experience a high degree of mutual trust, respect, and obligation toward each other - high degree of reciprocity between leaders and subordinates - each affects and is affected by the other - members may depend on each other for favors and special assistance - leaders and subordinates are tied together in productive ways that go well beyond a traditional hierarchically defined work relationship

IN-GROUP

- negeotiations involve exchanges in which subordinates do certain activities that go beyond their formal job descriptions, in turn the leader does more for them as well. - receive more information, influence, confidence, and concern from their leaders - more dependable, more highly involved, and more communicative - do extra things for the leader and the leader does the same for them

OUT-GROUP

- not interested in taking on new and different job responsibilities - less compatible with the leader and usually just comes to work, do their job, and go home

Acquaintance Phase

- offer by the leader or the subordinate for improved career-oriented social exchanges - involve sharing more resources and work-related information - successful dyads begin to develop greater trust and respect for each other - tend to focus less on their own self-interest and more on the purposes and goals of the group

Leadership Making

- prescriptive approach to leadership emphasizing that a leader should develop high-quality exchanges with all of the leaders' subordinates rather than just a few. -attempts to make every subordinate feel as if he or she is part of the in-group and, by so doing, avoids the inequities and negative implications of being in an out-group. - promotes partnerships in which the leader tries to build effective dyads with all employees in the work unit. - can create networks of partnerships throughout the organization, which will benefit the organization's goals and the leader's own career program.

Vertical Dyad Linkage (VDL) theory

- researchers focused on the nature of the vertical linkages leaders formed with each of their followers - researchers found two different types of linkages (relationships) 1. based on expanded and negotiated role responsibilities (extra roles) called IN-GROUP 2. Formal employment contract (defined roles) called OUT-Group (within organization subordinates become a part of the in or out group depending on how well they work with the leader and the leader works with them.)

Stranger Phase

- the interactions in the leader-subordinate dyad generally are rule bound, relying heavily on contractual relationship - relate to each other within prescribed organizational role - lower quality exchanges (similar to OUT-GROUP)

3 Phases of Leadership Making

1. Stranger Phase 2. Acquaintance Phase 3. Mature Partnership Phase

HOW DOES LMX THEORY WORK?

two ways: 1. describes leadership 2. prescribes leadership - central concept is the dyadic relationship that a leader forms with each of the leader's subordinates - descriptively LMX theory suggest that it is important to recognize the existence of IN-GROUPS and OUT-GROUPS within a group or an organization