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Chpt 8 Exchange, Theory Approach

Chpt 8 Exchange, Theory Approach



Dr. William Allan Kritsonis lectures on the work of Peter G. Northouse

Dr. William Allan Kritsonis lectures on the work of Peter G. Northouse



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    Chpt 8 Exchange, Theory Approach Chpt 8 Exchange, Theory Approach Presentation Transcript

    • Leader-Member Exchange Theory Approach Leadership Theory and Practice, 3/e Peter G. Northouse, Ph.D. William Kritsonis, PhD Presenter
      • LMX Theory Approach Perspective
      • Early Studies
      • Later Studies
      • Phases in Leadership Making
      • How Does the LMX Approach Work?
    • LMX Theory Approach Description
      • Development - 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 researchers
      • Assumption - LMX theory challenges the assumption that leaders treat followers in a collective way.
      • LMX theory conceptualizes leadership as a process centered in the interactions between leaders and followers.
      Perspective Definition
    • Early Studies
      • Leader’s work unit as a whole was viewed as a series of vertical dyads; leader forms unique relationship with each subordinate
      • Researchers found two general types of linkages
        • Expanded/negotiated roles = in-group
          • Relationships marked by mutual trust, respect, liking, and reciprocal influence
          • Receive more information, influence, confidence, and concern than out-group members
        • Formal employment contract = out-group
          • Relationships marked by formal communication based on job descriptions
      L S Dyadic Relationship The Vertical Dyad
    • Early Studies
      • In-group/out-group status based on how well subordinate works with the leader and how well the leader works with the subordinate
      • How subordinates involve themselves in expanding their role responsibilities with the leader determines whether they become in-group or out-group participants
      • Becoming part of the in-group involves subordinate negotiations in performing activities beyond the formal job description
      L S L S In- Group +3 +3 +3 +3 L S L S Out- Group +0 +0 +0 +0
    • Later Studies
      • Initial research primarily addressed differences between in-groups and out-groups; later research addressed how LMX theory was related to organizational effectiveness
      • Researchers (Graen & Uhl-Bien, 1995) 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 Graen & Uhl-Bien (1995) Phase 1 Phase 2 Phase 3 Stranger Scripted Acquaintance Partner Roles Influences Exchanges Interests One Way Low Quality Self Tested Mixed Medium Quality Self / Other Negotiated Reciprocal High Quality Group TIME
    • Phase 1 Graen & Uhl-Bien (1995) Stranger
      • Interactions rule bound
      • Rely on contractual relationships
      • Relate to each other within prescribed
      • organizational roles
      • Experience lower quality exchanges
      • Subordinate motives directed
      • toward self-interest
      Phase 1
    • Phase 2 Graen & Uhl-Bien (1995) Acquaintance
      • Offer by leader/subordinate for improved
      • career-oriented social exchanges
      • Testing period of taking on new roles and
      • leader providing new challenges
      • Shift from formalized interactions to
      • new ways of relating
      • Quality of exchanges improve along with
      • greater trust and respect
      • Less focus on self-interest, more on goals of
      • the group
      Phase 2
    • Phase 3 Graen & Uhl-Bien (1995) Mature Partnership
      • Marked by high-quality LMX exchanges
      • Experience high degree of mutual trust,
      • respect, and obligation toward one another
      • Tested relationship that is dependable
      • High degree of reciprocity between leader and
      • subordinate
      • May depend on each other for favors and
      • special assistance
      • Highly developed patterns of relating that
      • produce positive outcomes
      Phase 3
    • How Does the LMX Theory Approach Work?
      • Focus of LMX Theory Approach
      • Strengths
      • Criticisms
      • Application
    • LMX Theory Approach
      • Essential to recognize existence of in-groups & out-groups
      • Significant differences in how goals are accomplished using in-groups vs. out-groups
      • Relevant differences in in-group vs. out-group behaviors
      • Best understood within the Leadership Making Model
        • Leader forms special relationship with each subordinate
        • Leader should offer each subordinate an opportunity for new roles/responsibilities
        • Leader should nurture high-quality exchanges with all subordinates
        • Rather than concentrating on differences, leader should focus on ways to build trust
      Descriptive Prescriptive
    • 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
      • Solid research foundation on how the practice of LMX theory is related to positive organizational outcomes
    • Criticisms
      • Inadvertently supports the development of privileged groups in the workplace; appears unfair and discriminatory
      • The basic theoretical ideas of LMX are not fully developed
      • Because of various scales and levels of analysis , measurement of leader-member exchanges is being questioned
    • Application
      • Applicable to all levels of management and different types of organizations
      • Directs managers to assess their leadership from a relationship perspective
      • Sensitizes managers to how in-groups and out-groups develop within their work unit
      • Can be used to explain how individuals create leadership networks throughout an organization