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Leader-Member Exchange TheoryChapter 8

How do we create meaningful relationships with high quality exchange of ideas? LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 1Which music genre do you enjoy the most?Country or BluegrassClassical or jazz RapHousePop2

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION Have all the fans of country or bluegrass stand up, and then you would say something like "all of you get extra credit because you like the same style of music as me". Then I could ask how the other group (out-group) felt about that and if they think that the in-group deserves special treatment. I think that this could make the point that often times as leaders we choose in-groups on arbitrary issues such as common interests, and this can discourage out-group members. Then I can mention that it is important as a leader to be conscious of how you are choosing an in-group and that you need to work to find ways to bring out-group members in.

2Overview LMX Theory Description LMX Theory Perspective Early Studies Later Studies Phases in Leadership Making How Does the LMX Approach Work?3Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 3DefinitionLeader-member exchange (LMX) theory:conceptualizes leadership as a process that is centered on the interactions between a leader and subordinates

Some theories focus on leaders: trait approach, skills approach, and style approach

Other theories focus on the follower and the context: situational leadership, contingency theory, and path-goal theory.4Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 4Why cover this chapter before Path-goal? Because were starting to work in groups;this information has potential to help with that process.Connection to the Tango video: interaction between leader and follower are key to the leadership processDimensions of LeadershipLMX theory makes the dyadic relationship between leaders and followers the focal point of the leadership process5Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 5Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.6

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION LMX says leadership is a process centered on interactions between a leader and subordinates. As we saw in Chapter 1, our definition of leadership is a process definition where leadership is about interaction between leaders and followers. LMX takes it a step further saying the relationship between follower and leader is critical and the focal point6LMX Theory DescriptionDevelopment - LMX theory first described by Dansereau, Graen, & Haga (1975), Graen & Cashman (1975), and Graen (1976)Revisions - Theory has undergone a number of revisions since its inception and continues to be of interest to researchersAssumption - LMX theory challenges the assumption that leaders treat followers in a collective way, as a group.LMX - Directed attention to the differences that might exist between the leader and each of his/her followers7Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.Perspective LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 7We might say that a dance leader will dance with the whole troupe at some pointtreating each partner independently and yet the whole troupe is the team working toward a common goal. Like in Dancing with the Starsthe troupe members whose star gets voted off then still does dances with the troupe and is still part of the show.First studies of LMX called Vertical Dyad Linkage (VDL)Focus on the vertical linkages leaders formed with each of their followersLeaders relationship to a work unit viewed as a series of vertical dyads8Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 8Focus in this slide on the individual linkages btwn leader and follower. Leader has a different type of relationship with each follower rather than treating all the same.Contrasted with Situational that may have implied individual (differential) treatment of individual followers but that wasnt the explicit focuscollectively a group might need coaching etc.The multiple individual vertical dyad linkages in a leader-follower work environment help leaders avoid a collective way of treating all followers.TrueFalse9

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION Answer: Truethats the purpose of this theory is to develop high quality exchanges with all followers. Leaders may need to create those linkages in different ways with each follower.9Early Studies continuedResearchers found two general types of linkages (or relationships) those based on:Expanded/negotiated role responsibilities (extra-roles) = in-groupRelationships marked by mutual trust, respect, liking, and reciprocal influenceReceive more information, influence, confidence, and concern than out-group membersFormal employment contract (defined-roles) = out-groupRelationships marked by formal communication based on job descriptions

10Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 10Early StudiesLeaders work unit as a whole was viewed as a series of vertical dyads; leader forms unique relationship with each subordinate11Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 11Plus 3 is high quality exchanges; 0 is strangerEarly Studies continuedIn-group/out-group status based on how well subordinate works with the leader and how well the leader works with the subordinateHow subordinates involve themselves in expanding their role responsibilities with the leader determines whether they become in-group or out-group participantsBecoming part of the in-group involves subordinate negotiations in performing activities beyond the formal job description12Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 12It is both leader and subordinate responsibility to interact well with each other. So this theory is a little less leader focused and more about exchanges/interactions that are reciprocal in nature.. Pg 163: Suborindates who are interested in negotiating with the leader what they are willing to do for the group can become a part of the in-group. These negotiation where subords go beyond the job description. Like Zach Doman who extended an offer to help with next class session on SKYPESubordinateIn-Group more information, influence, confidence, & concern from Leader more dependable, highly involved, & communicative than out-groupOut-Group less compatible with Leader usually just come to work, do their job, & go home In-Group & Out-Group Subordinates13Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.SOut-GroupLeaderIn-GroupSSSSSSSSSSSSSSS LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 13I have potential to become an in-group follower if I:Am highly involved in work with my leaderI take on roles that involve work that is outside my job descriptionIf my leader and I both have mutual respect, liking and trust with each otherAll of the above

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LEADERSHIP THEORY AND PRACTICE SIXTH EDITION D. All of the above14Later Studies (Graen & Uhl-Bien, 1995) Initial research primarily addressed differences between in-groups and out-groups; later research addressed how LMX theory was related to organizational effectivenessLater research focus on the quality of leader-member exchanges resulting in positive outcomes for:LeadersFollowersGroupsOrganizations in general15Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 15Later Studies (Graen & Uhl-Bien, 1995) Researchers found that high-quality leader-member exchanges resulted in:Less employee turnoverMore positive performance evaluationsHigher frequency of promotionsGreater organizational commitmentMore desirable work assignmentsBetter job attitudesMore attention and support from the leaderGreater participationFaster career progressLeadership Making16Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 16This is the outcomes piece; be sure to explain what employee turnover meansLeadership Making (Graen & Uhl-Bien, 1995) 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.

Three phases of leadership making which develops over time:(a) stranger phase(b) acquaintance phase(c) mature partnership phase17Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 17Phases in Leadership Making Graen & Uhl-Bien (1995)ScriptedOne WayLow QualitySelf18Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 18Leaders and followers use these roles, influences, exchanges and interests in the same way.Leadership Making Graen & Uhl-Bien (1995)StrangerInteractions within the leader-subordinate dyad are generally rule bound Rely on contractual relationshipsRelate to each other within prescribed organizational roles Experience lower quality exchangesMotives of subordinate directed toward self-interest rather than good of the groupPhase 119Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 19Generally this is a leader-hierarchical role bound phase Note: Leaders look for gregarious, enthusiastic, extraversionwhile followers look for leaders who are pleasant, trusting, cooperative and agreeable. Key predictor of relationship quality for both leader and follower was behaviors such as performance.Leadership Making Graen & Uhl-Bien (1995)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 relatingQuality of exchanges improve along with greater trust & respect Less focus on self-interest, more on goals of the groupPhase 220Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.Acquaintance LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 20Leader or follower can do the offer (like Zach); important pointmoves from self interest to self PLUS interest in the group/work.Leadership Making Graen & Uhl-Bien (1995)Mature Partnership Marked by high-quality leader-member exchangesExperience 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 organizationPhase 3Partnerships are transformational moving beyond self-interest to accomplish greater good of the team & organization (Group Focus)21Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 21Phases in Leadership Making Graen & Uhl-Bien (1995)ScriptedOne WayLow QualitySelf22Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc.

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 22Leaders and followers use these roles, influences, exchanges and interests in the same way.Despicable Me video clipsPart 1 You Tube GroundRulesPart 2 You Tube Sleepy KittensPart 3 You Tube Changed his Heart23 LEADERSHIP THEORY AND PRACTICE SIXTH EDITION . Go through slides 19, 20 and 21 and then show these all in a row, in order so they see the differences? Like stranger with rules/contracts; acquaintance-the offer of reading the kitten book and then mature partnership with him writing his bookand kissing them good night which is such a nice touch JThen you can lead a discussion that takes them through the 3 phases. You will want to think of some questions for this.You Tube clipped portions: Clip 1 stop at were going to be really happy here, right? 32:56Maybewhat did you see in the clips that suggested Gru and the girls went from stranger to acquaintance phase? When in stranger phase, how do you think the girls felt? Were they in the in group with Gru. How did we see Gru negotiating and working toward high quality exchanges with the girls by the end? Something like that.

23When the girls asked Gru to read them a bedtime story and he reluctantly agreed and read the story, Gru and the girls were in which phase of leadership making?

StrangerAcquaintanceMature partnership24

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION B. Acquaintance phase.. Starts with an offer or a request from either leader or follower to have more responsibility and/or move outside the standard roles/responsibilities. The girls said please and asked and Gru wasnt going to agree but finally did. He moved from interest in self only to self an others (the girls) as he read the story but still wasnt really into it. Then later, in the mature partnership phase he created his own book and read it with enthusiasm (and did kiss the girls goodnight)interest in the good of the group not self.24When Gru was establishing the rules of the house with the girls, Gru and the girls were in which phase of leadership making?

StrangerAcquaintanceMature partnership25

LEADERSHIP THEORY AND PRACTICE SIXTH EDITION Answer A. Then move on to the other questions like:Maybewhat did you see in the clips that suggested Gru and the girls went from stranger to acquaintance phase? When in stranger phase, how do you think the girls felt? Were they in the in group with Gru. How did we see Gru negotiating and working toward high quality exchanges with the girls by the end? Something like that.

25You have been working in a busy accounting firm for the last 6 months as the newest CPA in the firm. Youre finally clear on your job responsibilities which you feel good about heading into the busy income tax season. You feel confident that youre ready for some more responsibility with the firm.

Which of the following would help you move from the stranger to acquaintance phase with your boss?I could ask for more responsibilityMy boss could give me a more important accountI could ask for a meeting with my boss to discuss my performance in the firmMy boss could invite me to sit in on the next new client meeting26 LEADERSHIP THEORY AND PRACTICE SIXTH EDITION A-D are all correct26How Does the LMX Theory Approach Work? Focus of LMX Theory Strengths Criticisms Application LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 27How does LMX theory work?LMX theory works in two ways: it describes leadership and it prescribes leadershipIn both - the central concept is the dyadic relationshipDescriptively: It suggests that it is important to recognize the existence of in-groups & out-groups within an organizationSignificant differences in how goals are accomplished using in-groups vs. out-groupsRelevant differences in in-group vs. out-group behaviors

28Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 28This is a repeat of slide #18.How does LMX theory work?Best understood within the Leadership Making Model (Graen & Uhl-Bien)Special relationships between the leader and all subordinates should be created.Leader should offer each subordinate an opportunity for new roles/responsibilities (followers should ask for these new opportunities, too)Leader should nurture high-quality exchanges with all subordinates (and followers have a role in this as well)Rather than concentrating on differences, leader focuses on ways to build trust & respect with all subordinates resulting in entire work group becoming an in-groupPrescriptively:29 LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 29StrengthsLMX theory validates our experience of how people within organizations relate to each other and the leaderLMX theory is the only leadership approach that makes the dyadic relationship the centerpiece of the leadership processLMX theory directs our attention to the importance of communication in leadershipSolid research foundation on how the practice of LMX theory is related to positive organizational outcomes30Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 30CriticismsInadvertently supports the development of privileged groups in the workplace; appears unfair and discriminatoryThe basic theoretical ideas of LMX are not fully developedHow 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 questioned31Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 31Reminder of country/bluegrass musichow exactly are high-quality leader-member exchanges created?ApplicationApplicable to all levels of management and different types of organizationsDirects managers to assess their leadership from a relationship perspectiveSensitizes managers to how in-groups and out-groups develop within their work unitCan be used to explain how individuals create leadership networks throughout an organizationCan be applied in different types of organizations volunteer, business, education, and government settings32Northouse - Leadership Theory and Practice, Sixth Edition 2012 SAGE Publications, Inc. LEADERSHIP THEORY AND PRACTICE SIXTH EDITION 32