4. Leader Member Exchange Theory
(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.
6. LMX
• Two kinds of 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
S Subordinate
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 found that 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.
10. Stranger
• Interactions within the 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
14. Transformational Leadership
• A process 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
• It describes 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
18. Transformational Leadership Factors
The Four 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
• Bennis and 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 at all 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
- It has 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
- lacks clarity – 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.
