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THE LEADER
FOLLOWER
RELATIONSHIP TAN PIK KOON
SARIAH BINTI ALI
NURUL HUDA BINTI ABDUL GHANI
AZMI BIN MD AMIN
NURUL HANANI BINTI RUSLI
AINULL NAJHWAR BINTI ABDUL RAZAK
VERTICAL DYADIC LINKAGE
THEORY
Edit text
Vertical
Dyad
Linkage
Theory
• focuses on the individual dyadic connections
that exist between leaders and their
subordinates.
• known as The Leadership-Member Exchange (LMX)
Theory
• Fred Dansereau, George Graen and William J. Haga, in 1975
• latest version (2016) - growth of vertical dyadic workplace
influence and team performance in terms of selection and self-
selection of informal apprenticeships in leadership
CONCEPT
- Emphasis on
types of leader-
subordinate
relationships
Sub group
In group
Receive greater
responsibilities and
encouragement
Able to express
opinions without
having any
restrictions
obtain more access
to resources
ideas are frequently considered by
the leader, influenced in his
decision making process
Out group
formal, being based
on the contract of
employment
generally
disfavoured by the
leader
viewpoints and
ideas are less likely
to be accepted
not have full access to
resources and are allocated
fewer responsibilities that
rank lower on the subject of
importance
• Members are observed
and categorized based on
their characteristics, how
effective is their
collaboration with the
leader, their achievements
and how they take on
responsibilities.
STAGES 1. Vertical
dyad linkage
2. Leader–
member
exchange
3. Leadership-
making
4. Team-
Making
often providing
guidance and
assist
easily applied in
real life
situations
high chances of
receiving more
positive
comments
communication
ADVANTAGES
overesti
mate the
work
quality
performance
lack of
equality
within
the team
DISADVANTAGES
10
The Big Questions?
Does Teacher
loves all their
Students equally?
Does Parent love
all their kids
equally?
Does Leader treat
all their Followers
in the same
manner?
11
Leader often act
differently for different
people.
The term involve here is
“Favoritism” refered as in
group in the Theory.
The Theory says that due
to time pressure,Limited
resources, attention,
discretion and energy, so
Leader often establish
special relationship with
small group of Followers.
12
INTRODUCTION OF LEADER-MEMBER
EXCHANGE (LMX)
Using survey to assess,
each Leader-Member
relationship can range
from Low LMX to High
LMX on a continuum,
not either/or
Moves beyond in-groups
and out-group
Focusses on the quality of
relationship between an
individual Leader and a
specific Follower, Leader-
Member
Takes relational
approach to Leadership
An outgrowth of Vertical
Dyad Linkage Model
(Graen & Associates)
CRITICSM/
LIMITATION
•Criticism of the LMX Theory
•Limitations of Leader-Member
Exchange Theory
• 1. Identifying Your
Out-group
• 2. Reestablishing
Relationships
• 3. Provide Training
and Improvement
Opportunities
DEFINITION/
PURPOSE
What is Leader-Member
Exchange Theory?
Understanding Leader-
Member Exchange Theory
ADVANTAGES/STRENGTHS
•Strengths of LMX Theory
STAGES
•Four Stages in the development of LMX
Theory
• Stage 1: Vertical dyad linkage
• Stage 2: Leader-member
exchange
• Stage 3: Leadership-making
• Stage 4: Team-Making
.
PROCESS
•What is the process of LMX Theory of
Leadership?
• 1. Role Taking
• 2. Role Making
• a) In-group
• b) Out-group
• 3. Role Routinization
Tips
•1. Focus on the Strengths
Rather than Weaknesses
•2. Conduct Regular One-on-
One Meetings
•3. Ask Questions
•4. Actively Seek Advice
01
02
03
04
06
05
TABLE OF CONTENTS
14
According to Northouse, (2016) “Leader-Member
Exchange Theory, also known as LMX or Vertical Dyad
Linkage Theory describes leadership and prescribes
leadership ” (p. 144).
He also states, (2016) “This particular theory merged in
the 1970’s and conceptualizes leadership as a process
that is centered on the interactions between leaders and
followers” (p.137).
Northouse (2016) also suggests that the dyadic
relationship is the “focal point” of the leadership process
(p. 137).
—Kang and Stewart, 2007—
“Leader-Member Exchange (LMX) Theory
focuses on the degree of emotional support
and exchange of valued resources between
the leader and the members”
HEAD OF CHEMISTRY UNIT
16
DEFINITION OF LMX
•The Leader-Member exchange theory or LMX
theory is defined as a relationship-based
approach to leadership that suggests how the
quality of leaders’ dyadic (two-way)
relationship with team members of different
groups contributes to their growth or opposes
their development.
17
PURPOSE OF LMX
• The LMX theory directed
researchers attention to the
differences that might exist
between the Leader and each of
the leaders followers.
18
Dimensions of leadership
19
1. Role Taking
2. Role Making
3. Role Routinization
 In the first stage, the member joins the team. In this
stage, the leader evaluates the abilities and talents
of the member. This helps the leader decide
what opportunities to offer the follower that
matches the followers’ capabilities. This is the
stage when a follower starts developing a
relationship with a Leader
 This is the foundational stage of the leader-
member exchange theory, where the Leader first
gets acquainted with the followers. A follower
works towards forming a good first impression to
stand out in the crowd.
 A follower’s relationship with their colleagues,
superiors, and subordinates determines their
position in the firm and the kind of responsibility
they will be assigned with. This stage may last for a
few days or even just a few hours based on the
situation or circumstances that transpire. The
follower must convey their talents, motivations,
and skills to the Leader
 In the second stage of leader-member
exchange theory, the followers and leaders
are involved in unstructured and informal
negotiations. In this, the role of the member
and the benefits they receive in return is
decided.
 The members in this stage blossom and grow
in their jobs, responsibilities, and Leader’
expectations.
 The members work hard and prove that they
are dedicated, loyal, and worthy of the trust
bestowed upon them via the roles assigned to
them. In this stage, the Leader usually sort
team members into two groups known as in-
group and out-group.
 This is the last phase of the relationship in
which the Leader and followers form a
routine. A pattern of social exchange is
established. Members in the in-group work
very hard to maintain their reputation and
relationship with the leader.
 Out-group members find it hard to form a
meaningful relationship with their Leaders
 It is very tough to move from out-group to
in-group as Leader become static in their
followers’ opinions.
 The routinization stage becomes a form of
permanence.
PROCESS of LMX Theory
a) In-group
 The in-group are people that are in the inner circle
of the leader.
 These members have gained the loyalty and trust
of the Leader. Leader feel that they can trust the
members of this group to assist them in their tasks
successfully.
 As a result, they are more personally invested in
the member’s success path.
 The members of this group get the best, most
challenging, and exciting work.
 They get the most face time with the Leader and
receive continuous support and guidance from the
Leader.
Role Making
20
21
LEADER-MEMBER RELATIONSHIP
LEADER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
Dyadic Relationship
between Leader with
Individual Group
follower
22
LMX 7 QUESTIONNAIRE
LEADER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
LEADER-MEMBER RELATIONSHIP
LMX 7 QUESTIONNAIRE
LEADER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
IN GROUP
PERCEIVED SIMILARITY TO
LEADER ON BASIC OF
GENDER, PERSONALITY
ALSO GETS IN IF THEY ARE
CONSIDERED EXTREMELY
GOOD AT THEIR JOB
LEADER-MEMBER RELATIONSHIP
LMX 7 QUESTIONNAIRE
LEADER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
IN GROUP
RELATIONSHIP WITHIN IN
GROUP IS BASED ON TERUST,
RESPECT,LIKING AND
RECIPROCITY
LEADER-MEMBER RELATIONSHIP
LMX 7 QUESTIONNAIRE
LEADER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
IN GROUP
LOW ATTRITION
DO JOBS BETTER
+ ATTITUTE
+ SALARIES
+ PROMOTION
LEADER-MEMBER RELATIONSHIP
Role Making
b) Out-group
 The out-group consists of members that are not close
enough to the Leader and hence are not in the
Leader’s inner circle.
 They receive fewer opportunities and engaging tasks.
Their role in the organization may not be crucial to
advancing the organization’s goals and success.
 If an employee is a part of such a group, they do not
interact much with the Leader and lose out on the
opportunities that in-group members get.
 A Leader may not perceive such members as
trustworthy or skilled enough to take on their
assigned tasks.
26
27
LMX 7 QUESTIONNAIRE
LEADER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
FOLLOWER
OUT GROUP
HIGH ATTRITION
DO JOBS WORST
- ATTITUTE
- SALARIES
- PROMOTION
LEADER-MEMBER RELATIONSHIP
FOLLOWERS WITH HIGH LMX
28
Have better
mental health.
More satisfied and
less likely to quit
More
productive on
both quality
and quantiti.
More likely to
provide honest
feedback and
highly motiivated
More likely to go
beyond job duties to
help out and
successful in their
careers..
More satisfied with
their Leader and
commited to
organisation.
More influential in
their Organisation
RESEARCHER’S CHANGING OPINIONS
29
Reseacher’s initially
believed that Leaders
could only have a few,
select high- quality
relationships with followers
They later concluded that
Leaders should make
every effort to bulid high
quality relationships with
followers.
They saw this as a
Leader’s duty because of
a clear performance
benefits.
High quality relationships
are not assured by the
Leader’s effort, but
Leaders MUST “make the
offer”.
Four Stages in the development of LMX Theory
George B. Graen and Mary Uhl-Bien in
their 1995 paper titled “Relationship-
Based Approach to Leadership:
“Development of Leader-Member Exchange (LMX)
Theory of Leadership over 25 Years: Applying a
Multi-Level Multi-Domain Perspective” discuss the
development of leader-member exchange via four
evolutionary stages-.”
STAGES OF LMX
 The third stage revolves around the
theory and exploration of dyadic
relationship development.
 At this stage, the level of analysis will
again be dyad.
Stage 1: Vertical dyad linkage
 In this stage, validation of differentiation
within work units takes place.
 Here, the level of analysis would be dyads
with the work units.
Stage 2: Leader-member exchange
 At the second stage, there occurs a validation
of differentiated relationships for the
organizational outcomes.
 Here, the level of analysis will be dyad.
Stage 3: Leadership-making Stage 4: Team-Making
 At the final stage, the occurrence of the
competence network investigation of
assembling dyads into larger collectives takes
place to investigate how differentiated dyadic
relationships combine to form larger, network
systems.
 The level of analysis at this stage will be
collectives as aggregations of dyads.
4 Tips to Build Stronger Relationships
with Team Members
The criticism of the theory leads us to the following tips that can improve the
relationship of leaders with their followers:
1. Focus on the Strengths Rather than Weaknesses
 A leader must not scrutinize the weaknesses of their employees without
acknowledging and appreciating their strengths. A laser focus on the
liability may lead the leader to lose sight of their employees’ strengths.
 It is essential to ignore weaknesses up to a certain extent as it may put
things into more excellent perspectives.
4 Tips to Build Stronger Relationships
with Team Members
2. Conduct Regular One-on-One Meetings
 A manager or a leader must strengthen their bonds with everyone in the
organization. This means that they need to use their interpersonal
skills to form relationships with everyone to communicate information
effectively.
 One way to do so is to schedule regular one-on-one meetings with
your direct reports to improve your relationship with them. This can help
forge a strong relationship with the followers.
4 Tips to Build Stronger Relationships
with Team Members
3. Ask Questions
 Forming judgments quickly can be too tempting, and it is easy to
conclude things about your followers. It is easy to believe that their
actions have ill intentions. It is crucial to understand their point of view,
and an excellent way to do so is to ask questions and listen with intent.
 Questions like the follower’s long-term goals, biggest challenges with
the current role, and what they find rewarding about their current role?
These questions demonstrate their perspective with clarity. Their
answers help managers to evaluate the follower’s skills.
4 Tips to Build Stronger Relationships
with Team Members
4. Actively Seek Advice
 A Harvard business review found that 24% of leaders overestimate
their skills. This proves that it may be tough for managers to be self-
aware.
 This is why they must ask for feedback and seek advice. Gaining
insights from others will help a leader understand how to improve their
approach.
Strengths of LMX Theory
 Emphasizes the specific
relationships between the leader
and each subordinate. “Because
leaders at different organizational levels also
have unique roles and spheres of influence, they
can potentially affect employees’ work
experiences in different ways” (Karanika-Murray,
Bartholomew, Williams, & Cox, 2015, p. 58).
 It is considered a robust
explanatory theory to describe the
role of quality relationships
between leaders and followers
 Talks about the significance of
communication in leadership
 It is highly practical and valid in its
approach
Criticism of the LMX Theory
 One of the biggest criticisms of the leader-manger exchange theory is
that it is perceived as unfair. The distinction between in-group and out-
group in itself is discriminatory. It may hurt everyone in the
organization as it may harbor unhealthy competition. A problem with the LMX
theory is that it assumes that all team members are equal. Northouse states (2016) “Because the theory
divides the work unit into two groups and one group receives special attention, it gives the appearance
of discrimination against the out-group ” ( p.146).
 This theory also fails to explain how to build and create high-quality
exchanges in the first place. It simply suggests that such a relationship
is established automatically. Northouse (2016) suggests “Leader extraversion did not
influence relationship quality for the followers, and follower agreeableness did not influence relationship
qualities for leaders ” ( p. 147). “Nonetheless, a key predictor of relationship quality for both leaders and
followers are behaviors such as performance” (Northouse, 2016, p.147).
 The research of this theory does not specify why or what behaviors lead
to forming a high-quality relationship. It focuses on the nature of the
relationship rather than the why or how of the relationship.
Limitations of Leader-Member Exchange Theory
1. Identifying Your Out-group
It is imperative to identify the out-group members and give them a chance. Re-evaluate what it is they did
to lose the trust of the Leader .Are they incompetent, or are they not motivated to be assigned important
tasks? A Leader should check facts and compare the same with their perception of the follower.
2. Reestablishing Relationships
The leader should make an effort to re-establish their relationship with the out-group members. Research
shows that members that have a good relationship with their leader show higher morale and are more
productive. So to reestablish relationships, leaders may use one-on-one meetings to identify his or her
psychological contract and what really motivates them. Using McClelland’s Human Motivation Theory or
Herzberg’s Motivators and Hygiene Factor Theory can also be useful in finding what drives the out-group
members to succeed.
3. Provide Training and Improvement Opportunities
One way to help followers transition from out-group to in-group is to provide them with training and other
opportunities to grow and develop and be worthy of being included in the in-group. One way to test their
abilities is to provide them with low-risk opportunities to assess their progress.This way, the manager can
no longer be labeled as unfair. Equal opportunities and growth opportunities are provided to all, which can
balance the favoritism received by members of the in-group.
CONCLUSION
relationship
Quality leader-
member
exchanges make
for better
relationships are
beneficial for
both leaders and
followers.
Therefore
leaders should
know how to
build solid
relationships
behavoiur
The
leadership-
member
exchange
theory
emphasizes
behaviourof
leadership.
Plus, it also
suggests that
leaders should
keep on
checking their
own behaviors
and biases to
develop a
Experience,trust,
communication
LMX validates our
experience of how
people within
organizations relate to
each other and the
leader. Northouse
concludes with (2016)
“Some contribute more;
while others contribute
less and get less” (
p.145). Finally, placing
focus on the
relationships between
leaders and their
followers in addition to
focusing on work goals
40
Review Questions
1.What researchers are most associated with leader–member exchange theory?
2.Explain the differences between in-groups and out-groups.
3.How did the focus of research change from early research studies to the later studies?
4.What were the findings of the Gerstner and Day (1997) meta-analysis?
5.How does communicating through technology at work affect leader–follower relationships?
6.What support is there for the validity of the LMX 7 Questionnaire?
7.Explain the concept of leadership making, including each phase.
8.What is meant by the term “empowerment” and how does it relate to LMX?
9.What strategy do researchers typically use to evaluate leader–member exchanges?
10.How can leaders best determine how trustworthy or reliable their followers are?
11.Explain how leader–member exchange theory works, both descriptively and prescriptively.
12.What is the relationship between LMX and employee energy and creativity?
13.What are strengths of leader–member exchange theory?
14.What are criticisms of leader–member exchange theory?
15.How can LMX be applied to different levels of an organization?
Team building view /
dyadic approach.
41
42
Learning outcomes
 The concept / definition of team building
 What are the components of team building
 The benefit nof team building to the organization
43
DEFINITION OF TEAM BUILDING
Originally designed as a group process
intervention (e.g., Schein, 1969
1999) for improving interpersonal
relations and social interactions, team
building has evolved to also include a
concern for achieving results, meeting
goals, and accomplishing tasks (Payne,
2001)
44
.
Emphasis : setting objectives and
development of individual and
team goal
Team members : become
involved in action pelanning to
achieve goal
Role clarification
Emphasis : increasing communication
among team members regarding their
respective roles within the team
Team Members : Improve understanding of
their own and other respective roles and
duties within the team
Problem solving
Emphasis: Identifying major task
related problem within team
Team members : become involved in
action planning, implement solution
to identify problem.
COMPONENT OF TEAM
BUILDING
( SALAS, ROZELL, MULLEN 1999)
Emphasis : Increasing teamwork skills (
i.e mutual supportiveness,
communication and sharing of feeling
Team members : Develop trust in one
another and confidence in team
Goal setting
Interpersonal relationship
45
To built face to face
interaction.
To achieve goal / target
Boosting team morale
Inspiring team productivity
Underscoring company culture
01 02
03
04
06
05
The benefit of team building to the organization
Bringing out hidden talents
DYADIC APPROACH
SYSTEMS & NETWORK
VIEW
AZMI BIN MD AMIN
Dyadic Approach
Systems &
Network View
47
Leader relationships are not
limited to employees, but
include peers, customers,
suppliers, and other relevant
stakeholders in the broader
community.
High Quality LMX
Relationships
48
• “High-quality LMX” is a positive, healthy relationships between leaders and
followers.
• Characterized by greater levels of loyalty, commitment, respect, affection, mutual
trust, and possibly mutual liking between leaders and members.
• Studies show that individual performance is higher, turnover rates (and intention) is
lower, commitment to the company and the work is higher, politics are lower.
49
High-Quality LMX Relationships
FOLLOWERS’ ATTITUDES SITUATIONAL FACTORS LEADER PERCEPTIONS LEADER BEHAVIORS
Follower’s attitudes are similar to
the leader’s
Effort to appear competent and
dependable
The subordinate is perceived to
be competent & dependable
The leader cares about the
followers and wants the best for
them
What must exist for high quality LMX to develop?
50
LMX Relationships Scale
Most commonly used instrument for defining and measuring the quality of
relationships.
Attempts to understand the quality of each dyadic relationship & its effects
on organizational outcomes over time
LMX-7 Measures the quality of professional relationships between leaders
and follower Higher scores indicate stronger relationship. lower scores
indicate weaker relationships. (Graen & Uhl‐Bien, 1995).
Quantifies the amount of respect, trust, and obligation exchanged within
leader–follower relationships (Churchill et. al., 1985; Drollinger et. al.,
2006). Very high (30–35), High (25–29), Moderate (20–24), Low (15–19),
Very Low (7–14)
LMX 7 Questionnaire
51
Regardless of how much formal
authority your leader/follower has
built into his or her position, what
are the chances that your
leader/follower would use his or her
power to help you solve problems in
your work?
Again, regardless of the amount of
formal authority your
leader/follower has, what are the
chances that he or she would “bail
you out” at his or her expense?
I have enough confidence in my
leader/follower that I would defend
and justify his or her decision if he
or she were not present to do so.?
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?
How well does your leader/follower
understand your job problems and
needs?
How well does your leader/follower
recognize your potential?
1 2 3
4 5 6
How would you characterize your
working relationship with your
leader / follower?
7
52
Pygmalion Effect
Psychological phenomenon in which
high expectations lead to improved
performance in a given area
Pygmalion Effect
53
“When we expect certain behaviors
of others, we are likely to act in
ways that make the expected
behavior more likely to occur.”
(Rosenthal and Babad, 1985)
Teacher expectations influence student
performance. Positive expectations
influence performance positively, and
negative expectations influence
performance negatively. (Rosenthal and
Jacobson, 1968)
If teachers were led to expect enhanced
performance from students, then the
student's performance was enhanced.
(Robert and Jacobson, 1968)
High expectations lead to better
performance and low expectations
lead to worse (Rosenthal and
Jacobsen, 1968)
Workplace School
School
Workplace
Occurs when
selected subordinates
demonstrate loyalty,
commitment, dedication,
and trust and, as a
result, win the liking of
superiors who
subsequently give
them higher
performance ratings
54
FOLLOWERSHIP
NURUL HANANI BINTI RUSLI
MPP212010
DYNAMICS OF
LEADERSHIP
WHAT IS
FOLLOWER?
56
57
Follower Key Influencing Characteristics
Power
Position
Locus of Control Education and Experience
What is the
Purpose of
Feedback to
Followers?
58
59
Improve performance
Follower career development
Dyadic relationship development
Purpose of Feedback to Followers
How is Feedback
Best Given in the
Relationship?
60
61
STYLES OF FOLLOWERSHIP
• Distance
themselves
• Passive behavior
but independent,
critical thinking
Alienated followers
Not active in either
independent,
critical thinking or
participations
Passive followers
• Not active in
critical and
independent
thinking, but are
active
participants
• “Yes people”
• Avoid conflict
Conformist
followers
• qualities of all
follower styles
• Change when
situation change
• Know how to
work the system
Pragmatic followers
• Independent,
critical thinking,
• Active behavior
(Problem solving,
decision making)
Effective followers
62
How to be an Effective
Follower?
Nama : Ainull Najhwar Binti Abdul Razak
No Matrik : PPP183008
UNIVERSITI
TEKNOLOGI
MALAYSIA
64
1
• Apa ituPenurunan Kuasa (Deligation)?
2
• Keperluan penurunan kuasa
3
• tugasan apa yang diturunkan?
4
• Langkah-langkahyangefektif dalam penurunan kuasa
66
Apaitu PenurunanKuasa?
Penurunan kuasabermaksud proses menyerahkan autoriti kepada
seseorang ataukumpulan untuk membuat keputusandalam situasi
tertentu.
67
KEPERLUAN Penurunan
Kuasa?
1. Membantuorganisasi lebih efektif
2. Keputusandapatdibuat dengancepat tanpamerujukkepada
pemimpinatasan
3. Memberilatihankepada orang bawahan
68
Tugasan Apa yang
diturunkan?
1. Tugasanyang
berulang 2. Tugasanyang
memakanmasa lama
3. Pembangunan
kemahiran
4. Tugasandiluar skop
kerja
5. Tugasan yang
menarik
6. Tugasan yang
memerlukan kemahiran
tertentu
Tugasan apa yang
diturunkan?
Langkah-langkah Penurunan Kuasa Yang Efektif (Sarif,
2003) :-
69
Mengenalpasti
tugas yang
diserahkan oleh
orang bawahan
1 2 3 4
6 7
Menentukan
tujuan dan
piawaian
Memastikan
pekerja faham
tugas yang
diberikan
Menggalakkan
penyertaan
5 Menganggap
tugas akan
diselesaikan
Menyediakan
latihan yang
cukup
Maklumbalas
yang berkala
8 Pekerja harus mempunyai
ketertanggungjawapan
(accountability) terhadap
keputusan atau hasil
9 Pengurus
bertanggungjawab
terhadap tindakan
yang dilakukan oleh
pekerja
Kesimpulan
70
urusan pembahagian
tanggungjawab dapat
berjalan dengan
teratur danlancar
Pemimpintahu
untuk
menurunkan
kuas
Konsep yang
wajar
dilkasanakan
Soalan1
71
Apakah maksudpenurunankuasa dan berikan 3
kelebihanpenurunankuasa.
Sekian, Terima
Kasih
w w w . u t m . m y
In the Name of God for Mankind

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Kumpulan 5 - The Leader Follower Relationship

  • 1. THE LEADER FOLLOWER RELATIONSHIP TAN PIK KOON SARIAH BINTI ALI NURUL HUDA BINTI ABDUL GHANI AZMI BIN MD AMIN NURUL HANANI BINTI RUSLI AINULL NAJHWAR BINTI ABDUL RAZAK
  • 3. Vertical Dyad Linkage Theory • focuses on the individual dyadic connections that exist between leaders and their subordinates. • known as The Leadership-Member Exchange (LMX) Theory • Fred Dansereau, George Graen and William J. Haga, in 1975 • latest version (2016) - growth of vertical dyadic workplace influence and team performance in terms of selection and self- selection of informal apprenticeships in leadership
  • 4. CONCEPT - Emphasis on types of leader- subordinate relationships Sub group In group Receive greater responsibilities and encouragement Able to express opinions without having any restrictions obtain more access to resources ideas are frequently considered by the leader, influenced in his decision making process Out group formal, being based on the contract of employment generally disfavoured by the leader viewpoints and ideas are less likely to be accepted not have full access to resources and are allocated fewer responsibilities that rank lower on the subject of importance
  • 5. • Members are observed and categorized based on their characteristics, how effective is their collaboration with the leader, their achievements and how they take on responsibilities.
  • 6. STAGES 1. Vertical dyad linkage 2. Leader– member exchange 3. Leadership- making 4. Team- Making
  • 7. often providing guidance and assist easily applied in real life situations high chances of receiving more positive comments communication ADVANTAGES
  • 9.
  • 10. 10 The Big Questions? Does Teacher loves all their Students equally? Does Parent love all their kids equally? Does Leader treat all their Followers in the same manner?
  • 11. 11 Leader often act differently for different people. The term involve here is “Favoritism” refered as in group in the Theory. The Theory says that due to time pressure,Limited resources, attention, discretion and energy, so Leader often establish special relationship with small group of Followers.
  • 12. 12 INTRODUCTION OF LEADER-MEMBER EXCHANGE (LMX) Using survey to assess, each Leader-Member relationship can range from Low LMX to High LMX on a continuum, not either/or Moves beyond in-groups and out-group Focusses on the quality of relationship between an individual Leader and a specific Follower, Leader- Member Takes relational approach to Leadership An outgrowth of Vertical Dyad Linkage Model (Graen & Associates)
  • 13. CRITICSM/ LIMITATION •Criticism of the LMX Theory •Limitations of Leader-Member Exchange Theory • 1. Identifying Your Out-group • 2. Reestablishing Relationships • 3. Provide Training and Improvement Opportunities DEFINITION/ PURPOSE What is Leader-Member Exchange Theory? Understanding Leader- Member Exchange Theory ADVANTAGES/STRENGTHS •Strengths of LMX Theory STAGES •Four Stages in the development of LMX Theory • Stage 1: Vertical dyad linkage • Stage 2: Leader-member exchange • Stage 3: Leadership-making • Stage 4: Team-Making . PROCESS •What is the process of LMX Theory of Leadership? • 1. Role Taking • 2. Role Making • a) In-group • b) Out-group • 3. Role Routinization Tips •1. Focus on the Strengths Rather than Weaknesses •2. Conduct Regular One-on- One Meetings •3. Ask Questions •4. Actively Seek Advice 01 02 03 04 06 05 TABLE OF CONTENTS
  • 14. 14 According to Northouse, (2016) “Leader-Member Exchange Theory, also known as LMX or Vertical Dyad Linkage Theory describes leadership and prescribes leadership ” (p. 144). He also states, (2016) “This particular theory merged in the 1970’s and conceptualizes leadership as a process that is centered on the interactions between leaders and followers” (p.137). Northouse (2016) also suggests that the dyadic relationship is the “focal point” of the leadership process (p. 137).
  • 15. —Kang and Stewart, 2007— “Leader-Member Exchange (LMX) Theory focuses on the degree of emotional support and exchange of valued resources between the leader and the members” HEAD OF CHEMISTRY UNIT
  • 16. 16 DEFINITION OF LMX •The Leader-Member exchange theory or LMX theory is defined as a relationship-based approach to leadership that suggests how the quality of leaders’ dyadic (two-way) relationship with team members of different groups contributes to their growth or opposes their development.
  • 17. 17 PURPOSE OF LMX • The LMX theory directed researchers attention to the differences that might exist between the Leader and each of the leaders followers.
  • 19. 19 1. Role Taking 2. Role Making 3. Role Routinization  In the first stage, the member joins the team. In this stage, the leader evaluates the abilities and talents of the member. This helps the leader decide what opportunities to offer the follower that matches the followers’ capabilities. This is the stage when a follower starts developing a relationship with a Leader  This is the foundational stage of the leader- member exchange theory, where the Leader first gets acquainted with the followers. A follower works towards forming a good first impression to stand out in the crowd.  A follower’s relationship with their colleagues, superiors, and subordinates determines their position in the firm and the kind of responsibility they will be assigned with. This stage may last for a few days or even just a few hours based on the situation or circumstances that transpire. The follower must convey their talents, motivations, and skills to the Leader  In the second stage of leader-member exchange theory, the followers and leaders are involved in unstructured and informal negotiations. In this, the role of the member and the benefits they receive in return is decided.  The members in this stage blossom and grow in their jobs, responsibilities, and Leader’ expectations.  The members work hard and prove that they are dedicated, loyal, and worthy of the trust bestowed upon them via the roles assigned to them. In this stage, the Leader usually sort team members into two groups known as in- group and out-group.  This is the last phase of the relationship in which the Leader and followers form a routine. A pattern of social exchange is established. Members in the in-group work very hard to maintain their reputation and relationship with the leader.  Out-group members find it hard to form a meaningful relationship with their Leaders  It is very tough to move from out-group to in-group as Leader become static in their followers’ opinions.  The routinization stage becomes a form of permanence. PROCESS of LMX Theory
  • 20. a) In-group  The in-group are people that are in the inner circle of the leader.  These members have gained the loyalty and trust of the Leader. Leader feel that they can trust the members of this group to assist them in their tasks successfully.  As a result, they are more personally invested in the member’s success path.  The members of this group get the best, most challenging, and exciting work.  They get the most face time with the Leader and receive continuous support and guidance from the Leader. Role Making 20
  • 23. LMX 7 QUESTIONNAIRE LEADER FOLLOWER FOLLOWER FOLLOWER FOLLOWER FOLLOWER IN GROUP PERCEIVED SIMILARITY TO LEADER ON BASIC OF GENDER, PERSONALITY ALSO GETS IN IF THEY ARE CONSIDERED EXTREMELY GOOD AT THEIR JOB LEADER-MEMBER RELATIONSHIP
  • 24. LMX 7 QUESTIONNAIRE LEADER FOLLOWER FOLLOWER FOLLOWER FOLLOWER FOLLOWER IN GROUP RELATIONSHIP WITHIN IN GROUP IS BASED ON TERUST, RESPECT,LIKING AND RECIPROCITY LEADER-MEMBER RELATIONSHIP
  • 25. LMX 7 QUESTIONNAIRE LEADER FOLLOWER FOLLOWER FOLLOWER FOLLOWER FOLLOWER IN GROUP LOW ATTRITION DO JOBS BETTER + ATTITUTE + SALARIES + PROMOTION LEADER-MEMBER RELATIONSHIP
  • 26. Role Making b) Out-group  The out-group consists of members that are not close enough to the Leader and hence are not in the Leader’s inner circle.  They receive fewer opportunities and engaging tasks. Their role in the organization may not be crucial to advancing the organization’s goals and success.  If an employee is a part of such a group, they do not interact much with the Leader and lose out on the opportunities that in-group members get.  A Leader may not perceive such members as trustworthy or skilled enough to take on their assigned tasks. 26
  • 27. 27 LMX 7 QUESTIONNAIRE LEADER FOLLOWER FOLLOWER FOLLOWER FOLLOWER FOLLOWER FOLLOWER FOLLOWER OUT GROUP HIGH ATTRITION DO JOBS WORST - ATTITUTE - SALARIES - PROMOTION LEADER-MEMBER RELATIONSHIP
  • 28. FOLLOWERS WITH HIGH LMX 28 Have better mental health. More satisfied and less likely to quit More productive on both quality and quantiti. More likely to provide honest feedback and highly motiivated More likely to go beyond job duties to help out and successful in their careers.. More satisfied with their Leader and commited to organisation. More influential in their Organisation
  • 29. RESEARCHER’S CHANGING OPINIONS 29 Reseacher’s initially believed that Leaders could only have a few, select high- quality relationships with followers They later concluded that Leaders should make every effort to bulid high quality relationships with followers. They saw this as a Leader’s duty because of a clear performance benefits. High quality relationships are not assured by the Leader’s effort, but Leaders MUST “make the offer”.
  • 30. Four Stages in the development of LMX Theory George B. Graen and Mary Uhl-Bien in their 1995 paper titled “Relationship- Based Approach to Leadership: “Development of Leader-Member Exchange (LMX) Theory of Leadership over 25 Years: Applying a Multi-Level Multi-Domain Perspective” discuss the development of leader-member exchange via four evolutionary stages-.”
  • 31. STAGES OF LMX  The third stage revolves around the theory and exploration of dyadic relationship development.  At this stage, the level of analysis will again be dyad. Stage 1: Vertical dyad linkage  In this stage, validation of differentiation within work units takes place.  Here, the level of analysis would be dyads with the work units. Stage 2: Leader-member exchange  At the second stage, there occurs a validation of differentiated relationships for the organizational outcomes.  Here, the level of analysis will be dyad. Stage 3: Leadership-making Stage 4: Team-Making  At the final stage, the occurrence of the competence network investigation of assembling dyads into larger collectives takes place to investigate how differentiated dyadic relationships combine to form larger, network systems.  The level of analysis at this stage will be collectives as aggregations of dyads.
  • 32. 4 Tips to Build Stronger Relationships with Team Members The criticism of the theory leads us to the following tips that can improve the relationship of leaders with their followers: 1. Focus on the Strengths Rather than Weaknesses  A leader must not scrutinize the weaknesses of their employees without acknowledging and appreciating their strengths. A laser focus on the liability may lead the leader to lose sight of their employees’ strengths.  It is essential to ignore weaknesses up to a certain extent as it may put things into more excellent perspectives.
  • 33. 4 Tips to Build Stronger Relationships with Team Members 2. Conduct Regular One-on-One Meetings  A manager or a leader must strengthen their bonds with everyone in the organization. This means that they need to use their interpersonal skills to form relationships with everyone to communicate information effectively.  One way to do so is to schedule regular one-on-one meetings with your direct reports to improve your relationship with them. This can help forge a strong relationship with the followers.
  • 34. 4 Tips to Build Stronger Relationships with Team Members 3. Ask Questions  Forming judgments quickly can be too tempting, and it is easy to conclude things about your followers. It is easy to believe that their actions have ill intentions. It is crucial to understand their point of view, and an excellent way to do so is to ask questions and listen with intent.  Questions like the follower’s long-term goals, biggest challenges with the current role, and what they find rewarding about their current role? These questions demonstrate their perspective with clarity. Their answers help managers to evaluate the follower’s skills.
  • 35. 4 Tips to Build Stronger Relationships with Team Members 4. Actively Seek Advice  A Harvard business review found that 24% of leaders overestimate their skills. This proves that it may be tough for managers to be self- aware.  This is why they must ask for feedback and seek advice. Gaining insights from others will help a leader understand how to improve their approach.
  • 36. Strengths of LMX Theory  Emphasizes the specific relationships between the leader and each subordinate. “Because leaders at different organizational levels also have unique roles and spheres of influence, they can potentially affect employees’ work experiences in different ways” (Karanika-Murray, Bartholomew, Williams, & Cox, 2015, p. 58).  It is considered a robust explanatory theory to describe the role of quality relationships between leaders and followers  Talks about the significance of communication in leadership  It is highly practical and valid in its approach
  • 37. Criticism of the LMX Theory  One of the biggest criticisms of the leader-manger exchange theory is that it is perceived as unfair. The distinction between in-group and out- group in itself is discriminatory. It may hurt everyone in the organization as it may harbor unhealthy competition. A problem with the LMX theory is that it assumes that all team members are equal. Northouse states (2016) “Because the theory divides the work unit into two groups and one group receives special attention, it gives the appearance of discrimination against the out-group ” ( p.146).  This theory also fails to explain how to build and create high-quality exchanges in the first place. It simply suggests that such a relationship is established automatically. Northouse (2016) suggests “Leader extraversion did not influence relationship quality for the followers, and follower agreeableness did not influence relationship qualities for leaders ” ( p. 147). “Nonetheless, a key predictor of relationship quality for both leaders and followers are behaviors such as performance” (Northouse, 2016, p.147).  The research of this theory does not specify why or what behaviors lead to forming a high-quality relationship. It focuses on the nature of the relationship rather than the why or how of the relationship.
  • 38. Limitations of Leader-Member Exchange Theory 1. Identifying Your Out-group It is imperative to identify the out-group members and give them a chance. Re-evaluate what it is they did to lose the trust of the Leader .Are they incompetent, or are they not motivated to be assigned important tasks? A Leader should check facts and compare the same with their perception of the follower. 2. Reestablishing Relationships The leader should make an effort to re-establish their relationship with the out-group members. Research shows that members that have a good relationship with their leader show higher morale and are more productive. So to reestablish relationships, leaders may use one-on-one meetings to identify his or her psychological contract and what really motivates them. Using McClelland’s Human Motivation Theory or Herzberg’s Motivators and Hygiene Factor Theory can also be useful in finding what drives the out-group members to succeed. 3. Provide Training and Improvement Opportunities One way to help followers transition from out-group to in-group is to provide them with training and other opportunities to grow and develop and be worthy of being included in the in-group. One way to test their abilities is to provide them with low-risk opportunities to assess their progress.This way, the manager can no longer be labeled as unfair. Equal opportunities and growth opportunities are provided to all, which can balance the favoritism received by members of the in-group.
  • 39. CONCLUSION relationship Quality leader- member exchanges make for better relationships are beneficial for both leaders and followers. Therefore leaders should know how to build solid relationships behavoiur The leadership- member exchange theory emphasizes behaviourof leadership. Plus, it also suggests that leaders should keep on checking their own behaviors and biases to develop a Experience,trust, communication LMX validates our experience of how people within organizations relate to each other and the leader. Northouse concludes with (2016) “Some contribute more; while others contribute less and get less” ( p.145). Finally, placing focus on the relationships between leaders and their followers in addition to focusing on work goals
  • 40. 40 Review Questions 1.What researchers are most associated with leader–member exchange theory? 2.Explain the differences between in-groups and out-groups. 3.How did the focus of research change from early research studies to the later studies? 4.What were the findings of the Gerstner and Day (1997) meta-analysis? 5.How does communicating through technology at work affect leader–follower relationships? 6.What support is there for the validity of the LMX 7 Questionnaire? 7.Explain the concept of leadership making, including each phase. 8.What is meant by the term “empowerment” and how does it relate to LMX? 9.What strategy do researchers typically use to evaluate leader–member exchanges? 10.How can leaders best determine how trustworthy or reliable their followers are? 11.Explain how leader–member exchange theory works, both descriptively and prescriptively. 12.What is the relationship between LMX and employee energy and creativity? 13.What are strengths of leader–member exchange theory? 14.What are criticisms of leader–member exchange theory? 15.How can LMX be applied to different levels of an organization?
  • 41. Team building view / dyadic approach. 41
  • 42. 42 Learning outcomes  The concept / definition of team building  What are the components of team building  The benefit nof team building to the organization
  • 43. 43 DEFINITION OF TEAM BUILDING Originally designed as a group process intervention (e.g., Schein, 1969 1999) for improving interpersonal relations and social interactions, team building has evolved to also include a concern for achieving results, meeting goals, and accomplishing tasks (Payne, 2001)
  • 44. 44 . Emphasis : setting objectives and development of individual and team goal Team members : become involved in action pelanning to achieve goal Role clarification Emphasis : increasing communication among team members regarding their respective roles within the team Team Members : Improve understanding of their own and other respective roles and duties within the team Problem solving Emphasis: Identifying major task related problem within team Team members : become involved in action planning, implement solution to identify problem. COMPONENT OF TEAM BUILDING ( SALAS, ROZELL, MULLEN 1999) Emphasis : Increasing teamwork skills ( i.e mutual supportiveness, communication and sharing of feeling Team members : Develop trust in one another and confidence in team Goal setting Interpersonal relationship
  • 45. 45 To built face to face interaction. To achieve goal / target Boosting team morale Inspiring team productivity Underscoring company culture 01 02 03 04 06 05 The benefit of team building to the organization Bringing out hidden talents
  • 46. DYADIC APPROACH SYSTEMS & NETWORK VIEW AZMI BIN MD AMIN
  • 47. Dyadic Approach Systems & Network View 47 Leader relationships are not limited to employees, but include peers, customers, suppliers, and other relevant stakeholders in the broader community.
  • 48. High Quality LMX Relationships 48 • “High-quality LMX” is a positive, healthy relationships between leaders and followers. • Characterized by greater levels of loyalty, commitment, respect, affection, mutual trust, and possibly mutual liking between leaders and members. • Studies show that individual performance is higher, turnover rates (and intention) is lower, commitment to the company and the work is higher, politics are lower.
  • 49. 49 High-Quality LMX Relationships FOLLOWERS’ ATTITUDES SITUATIONAL FACTORS LEADER PERCEPTIONS LEADER BEHAVIORS Follower’s attitudes are similar to the leader’s Effort to appear competent and dependable The subordinate is perceived to be competent & dependable The leader cares about the followers and wants the best for them What must exist for high quality LMX to develop?
  • 50. 50 LMX Relationships Scale Most commonly used instrument for defining and measuring the quality of relationships. Attempts to understand the quality of each dyadic relationship & its effects on organizational outcomes over time LMX-7 Measures the quality of professional relationships between leaders and follower Higher scores indicate stronger relationship. lower scores indicate weaker relationships. (Graen & Uhl‐Bien, 1995). Quantifies the amount of respect, trust, and obligation exchanged within leader–follower relationships (Churchill et. al., 1985; Drollinger et. al., 2006). Very high (30–35), High (25–29), Moderate (20–24), Low (15–19), Very Low (7–14)
  • 51. LMX 7 Questionnaire 51 Regardless of how much formal authority your leader/follower has built into his or her position, what are the chances that your leader/follower would use his or her power to help you solve problems in your work? Again, regardless of the amount of formal authority your leader/follower has, what are the chances that he or she would “bail you out” at his or her expense? I have enough confidence in my leader/follower that I would defend and justify his or her decision if he or she were not present to do so.? 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? How well does your leader/follower understand your job problems and needs? How well does your leader/follower recognize your potential? 1 2 3 4 5 6 How would you characterize your working relationship with your leader / follower? 7
  • 52. 52 Pygmalion Effect Psychological phenomenon in which high expectations lead to improved performance in a given area
  • 53. Pygmalion Effect 53 “When we expect certain behaviors of others, we are likely to act in ways that make the expected behavior more likely to occur.” (Rosenthal and Babad, 1985) Teacher expectations influence student performance. Positive expectations influence performance positively, and negative expectations influence performance negatively. (Rosenthal and Jacobson, 1968) If teachers were led to expect enhanced performance from students, then the student's performance was enhanced. (Robert and Jacobson, 1968) High expectations lead to better performance and low expectations lead to worse (Rosenthal and Jacobsen, 1968) Workplace School School Workplace
  • 54. Occurs when selected subordinates demonstrate loyalty, commitment, dedication, and trust and, as a result, win the liking of superiors who subsequently give them higher performance ratings 54
  • 55. FOLLOWERSHIP NURUL HANANI BINTI RUSLI MPP212010 DYNAMICS OF LEADERSHIP
  • 57. 57 Follower Key Influencing Characteristics Power Position Locus of Control Education and Experience
  • 58. What is the Purpose of Feedback to Followers? 58
  • 59. 59 Improve performance Follower career development Dyadic relationship development Purpose of Feedback to Followers
  • 60. How is Feedback Best Given in the Relationship? 60
  • 61. 61 STYLES OF FOLLOWERSHIP • Distance themselves • Passive behavior but independent, critical thinking Alienated followers Not active in either independent, critical thinking or participations Passive followers • Not active in critical and independent thinking, but are active participants • “Yes people” • Avoid conflict Conformist followers • qualities of all follower styles • Change when situation change • Know how to work the system Pragmatic followers • Independent, critical thinking, • Active behavior (Problem solving, decision making) Effective followers
  • 62. 62 How to be an Effective Follower?
  • 63. Nama : Ainull Najhwar Binti Abdul Razak No Matrik : PPP183008 UNIVERSITI TEKNOLOGI MALAYSIA
  • 64. 64 1 • Apa ituPenurunan Kuasa (Deligation)? 2 • Keperluan penurunan kuasa 3 • tugasan apa yang diturunkan? 4 • Langkah-langkahyangefektif dalam penurunan kuasa
  • 65.
  • 66. 66 Apaitu PenurunanKuasa? Penurunan kuasabermaksud proses menyerahkan autoriti kepada seseorang ataukumpulan untuk membuat keputusandalam situasi tertentu.
  • 67. 67 KEPERLUAN Penurunan Kuasa? 1. Membantuorganisasi lebih efektif 2. Keputusandapatdibuat dengancepat tanpamerujukkepada pemimpinatasan 3. Memberilatihankepada orang bawahan
  • 68. 68 Tugasan Apa yang diturunkan? 1. Tugasanyang berulang 2. Tugasanyang memakanmasa lama 3. Pembangunan kemahiran 4. Tugasandiluar skop kerja 5. Tugasan yang menarik 6. Tugasan yang memerlukan kemahiran tertentu Tugasan apa yang diturunkan?
  • 69. Langkah-langkah Penurunan Kuasa Yang Efektif (Sarif, 2003) :- 69 Mengenalpasti tugas yang diserahkan oleh orang bawahan 1 2 3 4 6 7 Menentukan tujuan dan piawaian Memastikan pekerja faham tugas yang diberikan Menggalakkan penyertaan 5 Menganggap tugas akan diselesaikan Menyediakan latihan yang cukup Maklumbalas yang berkala 8 Pekerja harus mempunyai ketertanggungjawapan (accountability) terhadap keputusan atau hasil 9 Pengurus bertanggungjawab terhadap tindakan yang dilakukan oleh pekerja
  • 70. Kesimpulan 70 urusan pembahagian tanggungjawab dapat berjalan dengan teratur danlancar Pemimpintahu untuk menurunkan kuas Konsep yang wajar dilkasanakan
  • 71. Soalan1 71 Apakah maksudpenurunankuasa dan berikan 3 kelebihanpenurunankuasa.
  • 72. Sekian, Terima Kasih w w w . u t m . m y In the Name of God for Mankind

Editor's Notes

  1. - many managerial processes in organizations occurred on a dyadic basis, with managers forming differentiated relationships - describe their work and working relationships in terms of inputs, process, and outcomes - Some employees described what are called "high-quality exchanges" (also known as "in-group"), which are "characterized by a high degree of mutual trust, respect, and obligation."[1] Others described "low-quality exchanges" (also known as "out-group"), which are "characterized by low trust, respect, and obligation. 2. - differentiated relationships in a work unit to an explanation of how these relationships develop and what the consequences of the relationships are for organizational functioning development of LMX relationships is influenced by characteristics and behaviors of leaders and members and occurs through a role-making process, higher-quality LMX relationships have very positive outcomes for leaders, followers, work units, and the organization in general. 3. - focused more on producing effective leadership process managers should make high-quality LMX relationships available to all employees, rather than having differentiated relationships among employees as described in the VDL approach.  Leadership Making model to provide a more descriptive and practically useful model of leadership development model describes a process in which leader–member relationships go from a "stranger" phase (characterized by formal, contractual interactions) to an "acquaintance" stage (characterized by increased social exchanges and the sharing of information and resources on a personal and work level) to a level of "mature partnership" exchanges (characterized by "in kind" exchanges that are behavioral and emotional, by loyalty, by support, by mutual respect, by trust, and by a high degree of incremental influence) 4. - Team-Making how differentiated dyadic relationships combine to form larger, network systems make up an organization's "leadership structure", or the "pattern of leadership relationships among individuals throughout the organization more effective leadership relationships have a large impact on task performance
  2. most benefits are experienced by the in-group members, as they are favoured by their leader often providing guidance and assist the leader leader is able to understand that the in-group subordinates are devoted and demonstrate competency in the decision-making process. high chances of receiving more positive comments, following the evaluation of their performance, executed by the leader easily applied in real life situations at the workplace (ability to identify the personal characteristics of each in-group and out-group individual) (Differences between the leader's and the subordinates' behaviour and mentality can potentially be determined since the first social interaction opportunities) communication aspect of a team is developed succeeding (interaction between the manager and the in-group subordinates becomes more effective)
  3. - these behaviors are exogenous to LMX, which is an outcome variable (i.e., trusting, liking, etc.) leader may overestimate the work quality presented by the in-group members, as a result of their existent solid connections allocation of the individuals into the respective subgroups is executed on the basis of several factors such as gender, ethnicity or achievements, the theory can be perceived as being discriminating separation of the subgroups that is based on the respective factors encourages the team individuals to have expectations of how each subgroup is likely to achieve performance can vary between working at a high competitive level and giving unsatisfactory input lack of equality within the team (in-group individuals receive full attention from the leader, especially when contributing with opinions and suggestions upon the completion of work duties. As a result, the in-group is likely to provide more positive outcomes and a greater amount of work) (out-group individuals and the leader do not exchange information and ideas frequently, due to absence of attention, leading to less successful communication. Hence, the individuals from the two subgroups are not treated similarly, nor are given identical opportunities to prove their capabilities at the workplace. This can potentially occur even in situations that demonstrate out-group individuals have expanded their knowledge and set of skills while working in the team)