Dicussion

PAF 410 Building Leadership Skills

Session 5

Dyadic Approaches: Leader-Member Exchange Theory

Agenda

• Recap

• Midterm Debrief

• Leader-Member Exchange Theory: What is it?

• Guest Speaker - CANCELED

Recap

• Servant leadership differs from many other leadership theories by emphasizing behaviors that put followers first

• Servant leadership speaks to altruism among leaders. A strong motivation to help others may therefore be a prerequisite

• It is critical that followers are receptive to servant leadership; otherwise perception of micromanagement

Leader-Member Exchange Theory

What is it?

What is it?

• Leadership as a process

• Focuses on the interactions between a leader and individual followers

• Differs from trait, skills and behavioral perspectives as we have covered them so far

• Differs from theories focusing on the context and contingencies of leadership (next time)

Illustration

Dyadic relationship between leader and follower is the focal point for LMX.

Northouse 2016: 138

Two streams

• Descriptive: What does the relationship look like?

• Prescriptive: What kinds of relationships should the leader build with followers?

Descriptive

• Assumption that leaders treat all followers in a collective way is not realistic

• Differences in the quality of relationships may exist

• Work unit viewed as a series of linkages

Northouse 2016: 139

In-Groups versus Out-Groups

• Leaders form unique relationships with each follower

• Some relationships are of higher quality (the ‘in- group’ ones)

Northouse 2016: 140

In-Groups versus Out-Groups

In-Group

• Expanded role responsibilities (extra-role; beyond job description)

• Based on mutual trust and respect

• More information, influence, and attention

Out-Group

• Formal responsibilities as defined in employment contract

• Formal communication

• Monitoring and incentivizing

How to become in-group member?

• In-group versus out-group status based on …

• How well follower works with the leader and vice versa

• How followers involve themselves in negotiating new role responsibilities and tasks that go beyond formal job description

Implications of LMX

• High-quality exchanges (i.e., more in-group relationships) have been linked to positive outcomes for …

• Leaders, followers, groups (work units), and organizations

• Examples: Job performance, commitment, retention, satisfaction and role clarity

Prescriptive

• Emphasizes that leaders should develop high-quality (in-group) relationships with all followers rather than a few

• 3 phases of leadership making as it develops over time …

• 1: Stranger phase

• 2: Acquaintance phase

• 3: Mature partnership phase

Northouse 2016: 143

The LMX Dilemma: Out-Group Formation

• Why does out-group membership tend to occur? What causes it?

• What, if anything, can be done to prevent or remedy out-group formation?

• Consider the leader, followers, and greater organizational context (such as HR policies and procedures)

Followership

• “Lead, Follow, or Get Out of the Way”…

• “Good” leaders do not guarantee good followership

• Why followership is important • It is required for the implementation of goals and visions

• It is relevant to good LMX in terms of in-group (versus out-group) formation

• Effective followership does not equate to “brown-nosing” or being a “yes man”

Effective Followers

• Assume responsibility for one’s own job security and development independent thinkers

• Balance the courage to serve with the courage to challenge • Avoid obstructionist behavior based on personal motives • Avoid “upward delegation”

• Support organizational goals and strategies • Or have the courage to leave

• Dilemma for organizations: Why are many followers either “passive”, “conformist”, or “alienated”?

Managing “Upward”

• Working with (rather than against) the leader’s style and goals

• Serving as a resource for the leader

• Avoiding thinking in black-and-white terms about the leader

• Building a relationship

• Asking questions and asking for advice or feedback

• Modeling the behavior that you seek

• How might societal cultural factors come into play?

LMX

Strengths

• Intuitive: Relationships matter: some are more developed than others

• Dyadic focus: Leaders and followers play significant roles in shaping relationships

Weaknesses

• Privileged groups and access -> fairness?

• Still not clear how high-quality exchanges are formed?

• Endogeneity

Case: Social Security Administration

Read case 7.3 (pp. 152-154) and discuss the following questions with your group:

1. From a LMX theory point of view, how would you describe Jim’s relationships with his employees?

2. Can you identify an in-group and an out-group?

3. Do you think the trust and respect Jim places in some of his staff are productive or counterproductive? Why?

4. As suggested in the chapter, leadership making recommends that the leader builds high-quality relationships with all of the followers. How would you evaluate Jim’s leadership in regards to leadership making?