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Lmx theory
- 1. Leader Member Exchange How theLMX theory can solve PlasticCo’s leadership problems By Georgina Michael George, ID: 000771065 Mohammed Nassib, ID: 000806844 Stefka Bodurova ID:000782412 Idris Mayowa ID: 0007499345
- 2. LMX Theory Leader-memberexchange (LMX) theory focuses on the degree of emotional support and exchange of valued resources between the leader and the members (Kang and Stewart, 2007) Thus, diagnosing this relationship can lead to a higher quality relationship and improved organisational performance
- 3. LMX Development RoleTheory: role expectations of a supervisor and the extent to which they are met by subordinated results on the exchange. Social Exchange Theory: how power and influence among leaders and subordinates are conditioned by the availability of alternative exchange patterns
- 4. Critical Facts ofPlasticCo Engagement problems lie with the factory workforce. Lack of communication between the manager and his subordinates b using a ‘top-down’ leadership approach Production process is 24 hours a day, 365 days a year, with strict working shifts of 12hours, (8pm-8am or 8am-8pm)
- 5. Diagnosing the problem, In-Groups,Out-Groups Craighead and Nemeroff (2001) In-groups Poor relationships created with managers by: Responding with negative attitudes Showing signs of withdrawal Exhibiting aggressive behaviour Out-Groups Great relationships are created with managers by: Displaying trust Giving respect Expressing empathy Demonstrating persistence Links to social comparison theory (Festinger, 1957, cited by Elliot, 2008), Leaders like to surround themselves around others who hold similar attitudes.
- 6. Diagnosing the problem, SocialExchange theory Blau (1964) 12 hour shifts, makes it difficult to obtain a work life balance, factory conditions do not meet their salient goals. Limited encouragement for decision making amongst employees, from the managers, and also employees are ignoring issues. No social exchange, hence no high quality relationships Managers do not trust the employees with any responsibilities ‘Reactive’ rather than ‘Proactive’ problem solving
- 7. Recommendations Work socialClubs or leisure activities such as a staff lounge, which would meet their Social needs. Appraisal systems: Arranging one to one meetings between the employees and line manager to discuss; performance, concerns, Objectives, personal goals such as progression and setting targets to achieve these goals. This system will be the first steps in initiating Leader member exchange, in order to develop into a high relationship. Social attraction, initial interactions, trust can be developed from the appraisal system, thus resulting in social exchange and a high quality relationship between member and leader. Appraisal system will create more transcend out groups into in-groups
- 8. Conclusion ‘Change is notabout driving employees to work harder, but about providing the conditions under which they will work smarter’ – Leadership and development manger LMX and in particular, Social exchange theory allowed us to diagnose the problem and further understand the core of the problem which was the lack of significant communication between the manager and his subordinates This has allowed us to identify a cost efficient, logical and effective way to solve the leadership problem which is by building the first initial interactions between employees and line managers through appraisal systems, which is already a well known tried and tested strategy. This will aid in the development of the managing director's vision of a more involved culture, without necessarily changing the company’s shift structure.
- 9. References Blau, P.(1964), “Exchange and Power in Social Life” New York: John Wiley and Sons. Craighead, E.J. and Nemeroff, C.B. (2001), “The Corsini Encyclopedia of Psychology and Behavioral Science” New York: John Wiley Eliot, A.J. (2008), “Handbook of Approach and avoidance motivation”, New York: Psychology Press Phillips, A. & Bedeian, A (1994) Leader-Follower Exchange Quality: the Role of Personal and Interpersonal Attributes. Academy of Mnagement Journal. Vol. 37, p. 990-1001 Wayne, S., Handerson, D., Shore, L., Bommer, W. & Tetrick, E. (2008) Leader–Member Exchange, Differentiation, and Psychological Contract Fulfillment: A Multilevel Examination. Journal of Applied Psychology. Vol. 93, p.1208–1219
Editor's Notes
- #3 Exchange of greater physical resources, information and enjoyable tasks between leaders and followers Leaders rely on followers for acting in their stead and encouraging them to undertake more responsible activities Frequent interaction, support, confidence, consideration as a result, Always as solving the engagement problem.
- #4 Role Theory (understanding the role of leaders and members) – role expectations of a supervisor and the extent to which they are met by subordinated results on the exchange process=this is how leaders and followers develop a role relationship based on mutual dependencies Social Exchange Theory (focus on the exchange between leaders and followers) – describes how power and influence among leaders and subordinates are conditioned by the availability of alternative exchange patterns Therefore, LMX is development is conditioned by the expectation of the exchange and satisfaction with the exchange behaviours
- #5 These are the key facts of the business that were taken into consideration when creating the solutions.
- #6 Intro: The main problem is that there more out groups than in groups. And example is the work in groups managers vs out groups factory workers. Continuous routine relationship between managers and members led in and out groups.
- #7 According to (Blau 1964), these are the steps actions that need to be taken to obtain high lmx, however this can be used to identify the problematic symptoms of leadership and therefore contribute to provide better leadership and hence engagement from others. As well as identifying the problems on the surface, this theory will allow us to identify the root of the problem and then be able to come up with a solution that deals with the core of the problems. The first area is social needs: We as individuals have needs, we require social support from our peers and we need to meet our goals in order to satisfy ourselves, one of which is having a work life balance. They are not met as the employee can not maintain a work life balance with 12 hour shift, 8a -8pm Social Attraction: we are attracted to those who fufill our needs. Social Comparison theory (Festinger 1957) leaders and followers like to be with people who hold the same opinion and values. Initial interactions, psychological contracts, you do this for me I do this for you.
- #8 Work social clubs: many of these could be diversity clubs, this is a cheap way of catering to the employees needs in order to develop high quality relationships. Provides a balance between being social and work, whilst maintain the company’s work shift structure that is required as to keep production going (24 hours a day 365 days a year)