The Leader-Member Exchange Theory (LMX), also called the Vertical Dyad Linkage Theory, describes how leaders maintain their position in groups and how they develop relationships with other members that can contribute to growth or hinder development .
What are the principles of LMX theory?
The key principle of LMX theory is that leaders develop different types of exchange relationships with their followers and the quality of the relationship that is developed alters the impact on outcomes of this leader and member exchange .
What is the basic idea behind Leader-Member Exchange Theory?
Leader–member exchange (LMX) theory suggests that leaders and followers develop unique relationships based on their social exchanges, and the quality of these exchanges within an organization can influence employee outcomes (Graen & Uhl-Bien, 1995; Liden et al., 1997).
Why is the Leader-Member Exchange Theory important?
This situation is at the heart of the Leader-Member Exchange Theory. 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.
What is the leader-Member Exchange leadership theory and explain the four stages?
The model describes a process in which leader–member relationships go from a “stranger” phase (characterized by formal, contractual interactions) to an “acquaintance” stage (characterized by increased social exchanges and the sharing of information and resources on a personal and work level) to a level of “mature ...
What is group and Exchange theory of leadership?
The group and exchange theories of leadership are derived from social psychology . These have their roots in the exchange theory. Leaders from different kinds of relationships with various groups of subordinates. Group theories describe how leaders need to maintain their position in group dynamics.
What is Fiedler's theory of leadership?
Fiedler's Contingency Theory of Leadership states that your effectiveness as a leader is determined by how well your leadership style matches the situation .
What is a strength of LMX theory?
The LMX theory shows that proper communication of leaders and followers displays mutual trust, respect, and commitment, and therefore produces effective leadership. Another strength of the LMX theory is that it provides an alert for leaders .
Who created LMX theory?
Leader-member exchange (LMX) evolved from vertical dyad linkage (VDL) theory. In their seminal article, Fred Dansereau, George Graen, and William Haga (Dansereau, et al. 1975) introduced this unique leadership theory, which reflects the vertical dyadic interaction between leaders and members.
What are high LMX relationships beneficial to?
Benefits for Followers
Research has found benefits in increased influence and job satisfaction. Those with high-quality LMX relationships with their supervisors experience greater access to organizational resources from leaders 31 , 32 and receive more work-based benefits than those reporting poor-quality relationships.
What are the strengths of Leader-Member Exchange Theory?
Leader-member exchange theory has both strengths and weaknesses. LMX makes sense intuitively . We can all understand and feel in-groups and out-groups. LMX makes the relationship between leaders and followers the focus of the leadership process.
What is a dyadic approach?
Within the context of healthcare research a dyad consists of the participant (a patient) and a person with whom they have a partnership or relationship with (their partner) . This could be, for example, a patient and their informal carer or a patient and their clinician.
What is Ingroups and outgroups in leadership?
In-groups and out-groups are central to the leader-member exchange theory . ... 8) These interactions between the leaders and followers lead to relationships within the group that can be defined as either a part of an in-group or out-group.
What does it mean to say leaders may have differentiated relationships with followers?
Central to LMX theory is the notion that leaders develop and maintain different types of exchange relationships with their followers (i.e., in-group and out-group exchanges; Dansereau, Graen, & Haga, 1975) within the group by treating some followers more favorably than others (Liden et al., 1997).
What is relationship theory in leadership?
Relationship theories, also known as transformational theories, focus upon the connections formed between leaders and followers . These leaders are focused on the performance of group members, but also want every person to fulfill their potential. Leaders with this style often have high ethical and moral standards.
What is leader participation model?
Leader-Participation Model provides a set of rules to determine the form and amount of participative decision making . ... It proposes a method for leaders to involve all members of the organization work together to make decisions.
