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LMX and Transformational Theories
This document summarizes several leadership theories including trait approach, skills approach, situational approach, path-goal theory, leader member exchange theory, transformational leadership, and transactional leadership. It provides details on leader member exchange theory and transformational leadership theory. Leader member exchange theory focuses on the quality of relationships between leaders and followers, noting leaders form in-groups and out-groups. Transformational leadership aims to inspire followers and focus on emotions, values and long-term goals. It encompasses idealized influence, inspirational motivation, intellectual stimulation and individual consideration.
LMX and Transformational Theories
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- 2. Theories • Trait Approach •Skills Approach • Style Approach • Situational Approach • Contingency Theory • Path-Goal Theory • Leader Member Exchange • Transformational • Transactional • Team Leadership
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- 4. Leader Member ExchangeTheory (LMX) • Leadership is a process that is centered on the interactions between leaders and followers. • LMX makes the dyadic relationship between leaders and followers the focal point of the leadership process. • Focus is also placed on the differences that might exist between the leader and each of his or her followers – the leader can not treat all the followers the same.
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- 6. LMX • Two kindsof relationships that each follower falls into based on how well they work with the leader and how well the leader works with them. Personality and other personal characteristics are also related to this process. • In groups – based on expanded and negotiated role responsibilities. Followers go far beyond their formal job description, and the leader in turn does more for these followers. • Out group – based on the formal employment contract. Followers are not interested in taking on new and different job responsibilities.
- 7. Leader Member Exchange SSubordinate In-GroupOut-Group Leader S S S S S S S S S S S S In-Group more information, influence, confidence & concern from Leader more dependable, highly involved & communicative than out-group Out-Group less compatible with Leader usually just come to work, do their job & go home
- 8. LMX • Researchers foundthat high quality leader member exchanges produced 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, and faster career progress over 25 years. • When leaders and followers have good exchanges, they feel better, accomplish more, and the organization prospers.
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- 10. Stranger • Interactions withinthe leader-subordinate dyad are generally rule bound • Rely on contractual relationships • Relate to each other within prescribed organizational roles • Experience lower quality exchanges • Motives of subordinate directed toward self-interest rather than good of the group Acquaintance • 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 relating • Quality of exchanges improve along with greater trust & respect • Less focus on self-interest, more on goals of the group Mature Partnership • Marked by high-quality leader-member exchanges • Experience 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 organization
- 11. Leader Member Exchange Strengths •It makes sense by describing work in terms of those who contribute more and those who do the bare minimum. • Unique because it is the only theory to identify the dyadic relationship. Effective leader member exchanges are important • Notes the importance of communication in leadership • Reminds leaders to be fair about who they let into the in group – this is based on work performance not race, sex, ethnicity, religion, etc • Large amount of research supports this theory
- 12. Leader Member Exchange Weakness •On the surface this theory doesn’t seem “fair” because it does not treat everyone equally. Also can support the development of privileged groups in the work place. • The basic ideas of the theory are not fully developed. Fails to explain how high quality exchanges are created. • No part of the research uses dyadic measures to analyze the LMX process
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- 14. Transformational Leadership • Aprocess that changes and transforms people. It is concerned with emotions, values, ethics, standards and long term goals and includes assessing followers motives, satisfying their needs, and treating them as full human beings. • Incorporates charismatic and visionary leadership and though the leader plays a pivotal role in precipitation change, followers and leaders are inextricably bound together in the transformation process. • The process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower.
- 15. Transformational Leadership • Itdescribes how leaders can initiate, develop and carry out significant changes in organizations. • Rather than being a model that tells leaders what to do, transformational leadership provides a broad set of generalizations of what is typical of leaders who are transforming or who work in transforming contexts • Provides a general way of thinking about leadership that emphasized ideals, inspiration, innovation and individual concerns.
- 16. Transformational Leadership • Charisma –A special personality characteristic that gives a person superhuman or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader. – Charismatic leaders act in unique ways that have specific charismatic effects on their followers
- 17. Personality Characteristics, Behaviors,and Effects of Followers of Charismatic Leadership
- 18. Transformational Leadership Factors TheFour I’s • Idealized Influence- describes leaders who act as strong role models for followers. Followers identify with these leaders and want very much to emulate them • Inspirational Motivation- leaders who communicate high expectations to followers and inspire them through motivation to become committed to and a part of the shared vision • Intellectual Stimulation- leadership that stimulates followers to be creative and innovative and to challenge their own beliefs and values as well as those of the leader • Individual consideration- leaders who provide a supportive climate in which they listen carefully to the individual needs of the followers
- 19. Transformational Leadership • Bennisand Nanus research – Leaders had a clear vision of the future state of their organizations – Leaders were social architects for their organizations – Leaders created trust in their organizations by making their own positions clearly known and then standing by them – Leaders used creative deployment of self through positive self-regard
- 20. Multifactor Leadership Questionnaire Not atall once in while sometimes Fairly Often Frequently 0 1 2 3 4 Idealized influence (attributes) I go beyond self interest for the good of the group ___ Idealized influence (behaviors) I consider the moral and ethical consequences of decisions ____ Inspirational motivation I talk optimistically about the future ____ Intellectual stimulation I re-examine critical assumptions to question whether they are appropriate ____ Individualized consideration I help others to develop their strengths ____ (Also used comparisons to transactional leadership and passive avoidant leadership styles)
- 21. Transformational Leadership Pros - Ithas been widely researched since 1970’s - It has an intuitive appeal (consistent with society’s popular notion of what leadership means) - It treats leadership as a process that occurs between followers and leaders - It provides a broader view of leadership that augments other leadership models - It places a strong emphasis on followers needs, values, and morals - Evidence supports this theory – it does work!
- 22. Transformational Leadership Cons - lacksclarity – it is difficult to define the parameters - Difficult to measure. Idealized influence, inspirational motivation, intellectual stimulation and individualized consideration are all similar and can be hard to make distinct from each other - Transformational leadership can be seen as a personality trait or personal disposition rather than a behavior in which people can be instructed - It is elitist and antidemocratic because it gives the impression that the leader is acting independently of the followers - It has the potential to be abused - It only works in situations that require change! This may not work in an organization that is not open for a tranformation.
- 23. References Northouse, P.G. (2007)Leadership Theory and Practice. Sage Publications, Inc. Thousand Oaks, CA.