It has developed as an alternative to average leadership style (ALS), which attempts to identify a single most effective leadership style. Northouse, P. G. (2016). Summary/ Description of the Theory This leadership theory is unique in that it focuses on leadership as a process centered on interactions between leaders and followers. Bauer, T. N., & Erdogan, B. Answer. Retrieved from https://ebookcentral.proquest.com. The relationship between leaders and followers is at the heart of the leadership process” (PSUWC, 2020). Leadership: Theory and Practice. I do have to say that when I was hired with the organization along with few other workers, the manager was evaluating how everyone was working on the tasks assigned in order to see how they would fall under in-group and out-group categories. Leadership theory and practice (6th ed.). Subordinates feel a sense of loyalty to the leader and do not mind going above and beyond their job description. When a person becomes knowledgeable of this theory, he or she can work towards having more balanced relationships. Out-group members do not feel treated fairly and feel that their efforts are not appreciated (Northouse, 2013). Hello! The Leader-Member Exchange theory ( or LMX for short) first came to prominence during the 1970s from researchers, including James Dulebohn. Just like any workplace environments, the created relationship has a lot to do with how the relationship can either contribute or disrupt the process in place. The In-Group is identified as high-quality of LMX with positive outcomes.Some of the characteristics and benefits of In-Group are:- 1. Weaknesses of LMX• The LMX theory runs counter to basic human belief in fairness: It gives the appearance of discrimination against groups that don’t receive the special attention• The basic ideas and theory are not fully developed: details of compatibility of personality, interpersonal skills, how trust is developed, etc., are not presented or discussed how important they are compared to other … One strength of transformational leadership theory is that it proposes that leaders are great at creating an overall vision for a company’s future. I have also bore witness to this style going horribly wrong and bringing productivity to a screeching halt. I believe that Leader-Member Exchange Theory is a realistic representation of how leaders and followers interact in organizations. Each linkage, or relationship, is likely to differ in quality. Uses the theory of two-way interactions; Shows the importance of positive interactions; A positive outcome for the business if the focus is on in-group; Weaknesses of the Leader-Member Exchange theory. By having a strong overall vision a transformational leader has the benefit of being able to deal with challenging situations well. Include in your discussion how your knowledge of the LMX theory might help you to become a better leader, as well as how you would apply transformational theory and leader-member exchange theory (LMX) to improve an organization’s performance. This can lead to direct conflict between the two groups. This would be the in-group exchange.Personally I think this is great and that the LMX is one of my favorite theories. The leader also can then help these individuals to overcome their weaknesses. The theory addresses the out-group and the in-group issues, but it does not explain how a follower can shift from one group to the other. (2020). “LMX may be seen as ‘unfair,’ especially with the language of In-Group and Out-Group,” Thoresen explains. It is an enjoyable productive experience, which makes all group members from the leader to the most junior group member stronger as everyone pushes themselves and each other to be better. Retrieved from https://psu.instructure.com/courses/2045005/modules/items/28166636. Describe the strengths and weaknesses of transformational leadership theory and leader-member theory exchange theory (LMX). Northouse points out a major weakness in that the theory is rather vague and missing details on how to foster a leadership making relationship; nor is there any training program for companies (Northouse, 2013). As the lesson commentary goes in the detail about the strengths and weaknesses of leader-member exchange theory, the positiveness still balances out much more than negative since the benefits can be seen in all the individuals involved including the organization itself. Leaders identify them as subordinates that are proactively seeking to help the leadership role. At this stage, your manager hasn’t as yet built an image or opinion of you so you have the opportunity to stand out from the crowd. In the Leader-Member Exchange (LMX) theory of leadership, the quality of the exchange relationship between a leader and a particular member of a work unit, team or organization is the basic unit of analysis (dyad). I think the creation of good training on the Leadership Member Exchange is desperately needed, since the benefits can be high performance and group cohesion. Those who feel more welcomed and can relate to others in their job are more willing to put time in to their work and are more committed to the job. However, this may not be easy as it seems and that is why leaders need to step in to motivate and provide fairness in order to build these relationships. Great post! The leader–member exchange (LMX) theory is a relationship-based approach to leadership that focuses on the two-way relationship between leaders and followers. Despite the fact that the crux of the Leader-Member Exchange Theory is building better relationships with all members of a team, one of the most common criticisms is that it’s a fancy term for blatant favoritism. Thousand Oaks, California: Sage Publications, Inc. Pennsylvania State University (2020). Relationships are far too complex to be reduced to simple equations. Turnover and promotion can lead to opportunities for out-group members to take on more responsibilities if they desire. The LMX theor… Many researchers determined that positive LMX relationships result in low employee turnover, more promotions, higher levels of organizational commitment, innovation, empowerment and career progress to name a few (Northouse, 2016). The formation of in-groups and out-groups occurs not only in the workplace but in early childhood. The leader-member exchange theory is in its foundational stage; your manager is just getting to know you and your abilities. Copyright 2021 © The Pennsylvania State University, The Toxic Triangle: Chronicle of a fatal teleconference, Bridging Cultural Gaps: Dilemmas in Contrasting Countries. When the Leadership Member Exchange is functioning smoothly in a leadership making style all parties involved enjoy what they are doing and are motivated to work (Northouse, 2013). Other arguments concerning the weakness of the leader member exchange is that the core ideas of the theory are not fully developed and that accurate measurements of the bilateral relationship (dyads) between leaders and members are not set, (Northouse, 2013, p. 171). Clips from NBC Universal's "The office" for educational purpose The in-group members are loyal and trust-worthy including mangers provides most of their attention while out-group members betray the trust of their mangers and are not motivated to do anything (Northouse, 2016). For these reasons I believe Leadership Member Exchange is very important. In that case, it is difficult to create inequalities using the LMX theory. The formation of these groups within an organization has both positive and negative effects. Hence, the purpose of this paper is to: (a) review the existing literature on the LMX leadership approach to identify its strengths and weaknesses; (b) present a multidi-mensional model of the leader-member ex-change; and (c) present a preliminary model of the LMX developmental process. If you are becoming more of friends with the subordinates and favoring them with special assignments this would be a weakness of LMX (Kinicki and Williams 2012). July 13, 2015 by David Becker Leave a Comment. Ultimately, if you share common traits with your employer or you display specific qualities that make you a good employee, leaders will look favorably at you and make you a member of their in- group. As Northouse described, I became in-group members who was considered loyal and manager was able to see me as reliable including providing me new tasks and projects which helped increase different opportunities for me within the organization (Northouse, 2016). First, it is argued that leader-member exchange is a multidimensional construct and should be measured accordingly. One strength of transformational leadership theory is that it proposes that leaders are great at creating an overall vision for a company’s future. Overtime, the manger was able to see that I was working hard and loyal to the organization. Leadership in work: PSYCH 485 [Online course lesson]. This opened to door to developing a closer relationship and eventually reach the mature partnership stage where my employer could rely on me for assistance and had confidence in me that I could work hard and do well (Northouse, 2016). There are some strengths and many weaknesses in LMX theory and research. At the time that I started my job, I was 17 years old and the next youngest person in my office was 27. It is the lack of trust and respect. A number of fundamental concepts are quite old, such as rewards for supporting leadership being as old as political philosophies from Classical Greek days. weaknesses still remain. The theory also has a number of weaknesses: Qualitative data around the interactions from managers to subordinates is questionable I think a well developed training program for this style would be very beneficial for any cooperation. I think the creation of good training on the Leadership Member Exchange … Over time, the more I matured, the easier it felt to talk to them and soon enough, I became a member of the in- group. Topic 4 DQ 1 “Describe the strengths and weaknesses of transformational leadership theory and leader-member theory exchange theory (LMX). “This may also have a negative impact on the entire group. You have to first get acquainted with the work style that suits the organization. The Leader-Member Exchange (LMX) Theory of leadership is different from the other theories and approaches you have studied so far. Name: Leader-member Exchange (LMX) Author: Dansereau, Graen, and Haga Classification: Transactional Theories Year: 1975 Leader-member Exchange (LMX) flows from literature on transformational leadership, extant in the 1970s. As the lesson commentary goes in the detail about the strengths and weaknesses of leader-member exchange theory, the positiveness still balances out much more than negative since the benefits can be seen in all the individuals involved including the organization itself. A number of fundamental concepts are quite old, such as rewards for supporting leadership being as old as political philosophies from Classical Greek … The oxford handbook of leader-member exchange. (2013). Even though I was apart of the out- group, it did not deter me from working hard and being an asset to my job. Northouse points out a major weakness in that the theory is rather vague and missing details on how to foster a leadership making relationship; nor is there any training program for companies (Northouse, 2013). As with many areas, even if it is not unfair, if there is a perceptionof lack of fairness, this can contribute to problems.” Thoresen also explains that th… It is grounded on the assumption that all managers do not treat and perceive each member of their teams in the same way. What is the Leader-Member Exchange Theory? Based on the assumptions of the theory, one of the main reasons a marriage fails is because the costs for at least one person are outweighing the benefits. Thanks for sharing your own personal experience. because these followers would have less time with the manager hurting the relationship. Leader–member exchange (LMX) theory is a relationship-based, dyadic theory of leadership. Northouse, P.G. Leader-Member Exchange Theory Leadership Making Are You In Or Out? Interactions are seen as vertical i.e. It is instinct that we find groups of people that we can relate to. Leaders should recognize these groups in order to create fairness for each employee or there may be negative effects such as high turnover. The Leader-Member Exchange theory (LMX) is based on the idea that a leader has a particular group of supporters entrusted with special projects, usually resulting in increased job satisfaction, higher morale, a reduction in turnover, and stronger performance. For these reasons I believe Leadership Member Exchange is very important. In your personal experience, it was good that from an early stage, you showed your skills and abilities that your employer would find as an asset to the team. Previous research shows that better LMX results in more resources being available to subordinates and restricted information. It is very important for this theory to exists especially in the workplace environment since it adds lots of benefits to not only both parties but also to the organization. One of the benefits this theory can provide is the focus of the strong leadership process that is created between leaders and followers including getting support from the organization … Hence, the purpose of this paper is to: (a) review the existing literature ... change; and (c) present a preliminary model of the LMX developmental process. There are always opportunities within an organization to evolve from out-group to in-group also. The LMX theory (as it is called) identifies Previous research shows that better LMX results in more resources being available to subordinates and restricted information. Data from 225 leader‐member dyads in a Fortune 500 manufacturing plant found exchange quality to be positively related to follower autonomy, leader support of followers, and follower commitment to the organization. Include in your discussion how your knowledge of the LMX theory might help you to become a better leader, as well as how you would apply transformational theory and leader-member exchange theory (LMX) to improve an organization's performance.” In order for the LMX theory to be successful employees need to build relationships with everyone and not just the employees who “get along”. Los Angeles: SAGE Publications, Inc. Great post! LMX emphasizes that leaders have different sorts of relationships with different subordinates (Kinicki and Williams 2012). As a result, you were given more opportunities and were well trusted. A problem with the Leader-Member Exchange Theory is that it assumes that all team members are equally worthy of trust, prestigious projects and advancement. Leadership Member Exchange Theory has several facets: Leadership is viewed as a process. Leadership-Member Exchange (LMX) Theory Informal observation of leadership behavior suggests that leader’s action is not the same towards all subordinates. Also can support the development of privileged groups in the work place. Fails to explain how high quality exchanges are created. I have to agree with your comment that LMX can make or break a work environment. The leader does not hold much respect from the out-group members; they may only respect the leaders positional authority. The theory does not explain some of the important aspects of leadership, such as decision-making rules and promotions that are also known to affect how an institution is managed. This type can certainly contribute to the benefit of the members of the team in the workplace. I have seen it in use and tend to use this style myself. PSYCH 485: Lesson 8: Leader-Member Exchange Theory. Nice post- Jen. Technical Details. There is a Key focus on interactions between leaders and subordinates. This approach was originally called Current Theory the Vertical Dyad Linkage (VDL) theory (Dan- sereau, Cashman, & Graen, 1973) but more Twenty-one empirical papers using the LMX recently has been renamed Leader-Member approach that have been published since 1972 Exchange (LMX) (Graen, Novak, & Sommer- appear in Table 1. Describe the major components of Leader-Member Exchange theory. The leader-member theory focuses on the daily interactions with mangers and workers to see if a successful workplace environment is reached every time. Leadership: theory and practice. “LMX says that leadership is a process that is centered on the interactions between leaders and followers. Keeping all group members informed and treated as equals in reciprocal influences and able to negotiate their role helps to build trust between the leader and group (Northouse, 2013). I have seen time and time again where a leader does not have a good relationship with all group members and in-group vs. out-group rivalries form. (Eds.). I know that there are some leadership styles that would view this type of relationship as a weakness. Over the next few months, I was in the acquaintance phase where my employer had asked me more about what I was interested in and about how the job was. Even though the LMX theory has addressed the most important aspects of leadership, it has a number of shortfalls. (2015). Of course it could. Although we may like to think that everyone is honest, hard-working and worthy of our esteem, the reality can be different! Leadership: theory and practice. You have studied approaches and theories that focus on the leader. LIMITATIONS TO LEADER MEMBER EXCHANGE THEORY The Leader-member exchange theory might not be the best leadership model to practice in most organizations because it violates the rules and characteristics of a good leader by research. LMX theory suggests that it is important to recognize the existence of in-groups and out-groups within an organization (Northouse, 2016). When the Leadership Member Exchange goes wrong it is an awful train wreck that has very little production. I am able to describe my own situation regarding a manager for one of my previous employment. Northouse, P. G. (2016). My work is 100% original, plagiarism free, Edited, formatted, and ready for you to add your name to it. La Théorie LMX (Leader-Member Exchange) porte son attention sur les relations entre les leaders et les subordonnés. The Pennsylvania State University. This theory assumes that leaders develop an exchange with each of their members, and that the quality of these leader-member exchange (LMX) relationships influences members' responsibility, decision influence, access to resources and performance (Power, 2013). This theory, also known as LMX or the Vertical Dyad Linkage Theory, explores how leaders and managers develop relationships with team members; and it explains how those relationships can either contribute to growth or hold people back. The Social Exchange Theory does a great job of explaining relationships as cost-benefit equations. This allows the quality of the relationship of the manager and the subordinates to be seen. How the Leader-Member Exchange Theory Works The LMX theory focuses on a dyad, that is, the relationship between a leader and each subordinate considered independently, rather than on the relationship between the superior and the group. The members who go beyond their expected roles and have a constructive approach to the tasks receive special attention from the leaders, they form the In-group. Would […] If the leader does not use a leadership making style with all employees dissension and conflict is inevitable as well as a loss of production. Northouse, P. G. (2016). Since they all were around the same age and had been working together for several years, they belonged to the in-group with each other and our boss. Organizationally tasks and goals are completed and as long as there isn’t extreme preferential treatment or abusive aspects in the leadership style, I don’t see a downside to cultivating in-group members and relying on them to carry a heavier workload. Leader–member exchange (LMX) theory is a relationship-based, dyadic theory of leadership. A good leader must be able to work to the team members’ strength irrespective of their skills and knowledge. You have also studied approaches and theories that focus on the context or situation between the leader and the subordinate. I suspect out-group members even become a little jealous and resentful or the in-group members getting the better jobs and having influence with the leader. The leader–member exchange (LMX) theory is a relationship-based approach to leadership that focuses on the two-way relationship between leaders and followers. Leader-Member Exchange theory-components,criticism and weaknesses. 2. Leader-member exchange theory is also known as LMX or vertical dyad linkage theory. Visit https://lindashelp.com to learn about the great services I offer for students like you. leader-member exchange theory (LMX) (Graen & Uhl-Bien, 1995). I have seen this style many times in use in the Navy and I have even used it to great success with my own boat crews in the Navy. On the other hand, people who do not share as many similarities and do not form really close relations become part of the out- group. Despite the fact that the crux of the Leader-Member Exchange Theory is building better relationships with all members of a team, one of the most common criticisms is that it’s a fancy term for blatant favoritism. The next question is could this be a weakness. Leader Member Exchange can be a very effective leadership style. I Can write your papers, do your presentations, labs, and final exams too. Would either approach be applicable for an organisation that uses task motivated leadership? Whether it’s good or bad depends on the effectiveness of the leader to remain fair. Looking back, I’m glad that I worked hard in order to form stronger relationships with my coworkers and not be complacent with being in the out- group. Question. Understanding the Theory. I definitely believe that the relationships we form with our colleagues and employers influence the quality of work and efficiency. There are some mindsets that feel as the leader you should be leading. For the purposes of this paper, kamp, 1982). I find it also greatly increases morale, even in some of the worst conditions imaginable. I think this is an area that many companies and leaders might benefit from if some clarity and direction were given. I think this is an area that many companies and leaders might benefit from if some clarity and direction were given. What are the strengths and weakness of transformational leadership theory and leader-member theory (LMX)? Definition: The two-way (dyadic) relationship between leaders (supervisors) and members (subordinates). Out-group members are typically satisfied with their contributions to the organization and while they aren’t getting preferential treatment or increased responsibilities, they are successfully completing their role requirements, creating satisfaction and value added to the organization. The leader-member exchange theory first emerged in the 1970s. As managers we need to be able to know when that line is in question. There also needs to be a fine line that friendships become stronger than the leader follower relationship. The hostile relationship type can also affect the growth of the organization including unable to reach desired goals. The theory ‘focuses on the nature and quality of the relationships between a leader and his or her subordinates,’ CITATION Pow13 \l 1033 (Power, 2013). For instance, leaders who perceive the way of their connections can survey whether each in-group part is earning the advantages their enrollment brings (smallbusiness.chron.com). The importance of potential differences in this respect is brought into sharp focus by Graen’s leader-member exchange model, also known as the vertical dyad linkage theory. One of the benefits this theory can provide is the focus of the strong leadership process that is created between leaders and followers including getting support from the organization (PSUWC, 2020). Leader‐member exchange (LMX) theory and research is one approach to studying organizational leadership. the theory does state that all types of relationships between managers and followers go through group process which being in-group and out-group. RE: Compare Leader-Member Exchange with Social Network Theory Do You need help with your school? What are the strengths and weaknesses of each approach and how might the shortcomings of each be overcome? However, I tend to agree more with the weaknesses than the strengths of this theory. This paper evoked leader‐member exchange (LMX) and transformational leadership theories to explain innovative behavior in leader‐member dyads. In my personal experience, I worked at an office where I was the youngest employee and I felt part of the out- group. The Leader-Member Exchange Theory first emerged in the 1970s. Answer. This theory focuses on how management should be interacting with members of the organization and once they are treated greatly, the workers performances reinforces the success of the team and continuance success of the organization. • No part of the research uses dyadic measures to analyze the LMX process Leaders that form relationships with their subordinates know what their strengths and weaknesses are. Going in, I did not really have much to talk about with them because I was at a different point in my life where I was still in high school and everyone else in my office was married and had kids. Also, discuss the criticism, or weaknesses. By doing this, you built trust and established a relationship with your employer to become a loyal employee. Criticisms of the Leader-Member Exchange Theory. LMX focuses instead on the heterogeneity of dyadic relationships. It builds trust and respect between both the leader and followers. Thousand Oaks, CA: SAGE Publications, Inc. Leader-Member Exchange: Current Theory Twenty-one empirical papers using the LMX approach that have been published since 1972 appear in Table 1. Thousand                  Oaks, CA: SAGE Publications Inc. The more positive relationship between managers and workers, the better environment it creates including increasing motivation for the members of the team. The formalization of LMX stems from the term \"Vertical Dyad Linkage (VDL), a concept developed by Dansereau, Graen, and Haga in 1975, with their paper, \"A Vertical Dyad approach to leadership within formal organizations\". 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