1.
Leader-Member Exchange
Theory (LMX)
Question: what is the relationship
between leaders & followers & how does
that affect response?
• News
• Quiz
• Multiple-Linkage Model
• Leader-Member Exchange (LMX) & Vertical
Dyad Linkage (VDL)
• Team Task

2.
Multiple-Linkage Model
(Yukl, 1994)
• Recognizes complexity in formal organizations
• Incorporates other theories
• Leaders have short (tactical) and long term (strategic) impact
• Short term relies on skillful correction of deficiencies of intervening variables
in the work unit
• Long term relies on leader changing situational variables to be more
favorable (e.g., strategic planning, policy formation, program development,
organizational change, political activity, etc. )

3.
Short-term
Long-term
Extent to which these are
appropriately used will reflect the
leader’s success

4.
Yukl’s Multiple Linkage Model

5.
Leader Leader Variables
characteristics Personal power Modification of
• Technical • Expert Yukl’s Model
• Cognitive • Reference
• Social • Connection
• Personality
• Motivation
• Values
Individual /group
behavior, capabilities
Leader Influence & performance Essential Secondary
behavior • Directive • Task role clarity Outcomes outcomes
• Contingent Direct • Task proficiency • Mission success • Professional image
• Analysis • Ach-oriented • Motivation & effort • Member well being & & reputation
• Intent • Persuasive confidence commitment • Trust & confidence
formation • Facilitative • Teamwork & cohesion • Internal integration in Ldr
• Supportive • Professional conduct • External adaptability • Support for the Ldr
• Participative • Resilience
• Delegative
Position power Task, group, system,
• Legitimate
institution & environ. Uncontrollable factors
• Reward characteristics
• Coercive • Resources
• Information • Structures
• Ecological
• Procedures
• Responsibilities • Climate and culture
• Constraints • Strategic capabilities
• Opportunities • Professional attributes
Situational Variables • External relationships
http://www.cda.forces.gc.ca/cfli-ilfc/lea/conc/ch8-eng.asp

6.
Vertical Dyad Linkage (VDL) / Leader-
Member Relations (LMX)
• Think of a work/team situation in which there have been
an “in-group (close to the boss) and “out-group” (well
established but just not given those special tasks)
• How what influenced the formation of those two
groups?
• What did the boss expect of each group? How did s/he
treat them differently?
• What were advantages and disadvantages of being in
each group?
• How did the groups perceive each other?
• What was the effect on the work environment &
relationships?

7.
Vertical-Dyad Linkage (VDL)
Leader-Member Exchange (LMX)
(Dansereau, Cashman, & Graen, 1973)
• While most leadership theories account for the
impact of leadership on groups or the organization
as a whole, Leader-Member Exchange Theory
uniquely focuses on the Leader-Follower dyad.
• Not every follower is treated the same by the
leader due to time and resources. This differential
treatment, expectation, and exchange separates
followers into two groups: the “in-group” and “out-
group”
• Interaction varies from dyad to dyad, exchanging
privilege for performance, & focuses on quality of Perceptions of the
interaction “out-group” when LMX
• Negotiating latitude: as relationship evolves, the is not going well
leader enables the role incumbent to further
define his/her own role

8.
The Role theory of Katz and Kuhn (1966) is the original
theoretical base of the LMX (Graen, 1976). Leaders accomplish
their work through role sets, in which the leader is most
influential. The leader communicates to the member a set of
expectations regarding the appropriate role behavior of the
member (role expectation). The member then receives and
interprets these sent expectations (received role) and may
modify his or her role behavior. Finally, the member's role
behavior transmits feedback to the leader (monitored behavior).
Burns and Otte (1999) describe the three stages:
Phase 1: Role-taking as leaders and members come to understand how the other views and
desires respect, the leader communicates role expectations to the member, with no
reciprocal contribution from the member.
Phase 2: Role-making is the trust that develops in order for leaders and members to further
extend the relationship and influence over each other's attitudes and behaviors. Both
contribute to role re-definition and this is where in/out work groups are differentiated
Phase 3: Role-routinization of the social exchange pattern becomes established and
routine
http://business.nmsu.edu/~dboje/teaching/338/power_and_leadership.htm

9.
Leader-Member Exchange (LMX)
Vertical-Dyad Linkage (VDL)
Leader • Comply with basic role requirements
• Accept legitimate direction
• Standard benefits and compensation
Perceived
• Inside information • Unstructured tasks
Equity or
• Influence decisions • Volunteer extra
• Task assignment • Additional Inequity • Alienation
• Job latitude responsibilities • Apathy
• Support • Special projects • Hostility
• Attention • Low performance
Other Subordinates--
Subordinate Viewed as having less
•Leadership potential
•Competency potential, interest, or
•Compatibility opportunity
•Agreement
•Personality “In-Group” “Out-Group”
•Loyalty High----Negotiating Latitude-----Low
•Commitment
High Power Leaders give more negotiating
latitude to high power employees)

10.
Strengths & Weaknesses of LMX
Strengths of LMX
• As a descriptive theory, it notes the importance of the
existence of in-groups and out-groups within an organization
• The LMX theory is unique as the only leadership theory that makes
the the dyadic relationship the central factor of the leadership
process
• LMX directs our attention to the importance of leadership
communication and relationships
• Research substantiates how the practice of the LMX theory is related
to positive organizational outcomes
http://www.d.umn.edu/~stau0106/group/LMX.doc

11.
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 constructs
• Few empirical studies have used dyadic measures to analyze the
LMX process
• Measurement scales lack content validity (may lack what they
intended to measure) and unclear whether they measure single
or many dimensions
http://www.d.umn.edu/~stau0106/group/LMX.doc

12.
What makes a good “follower”?

13.
Team Discussion
• Pick a case you are familiar with that involves
in/out group dynamics
• Use the theory to analyze what went well/not
well and why
• If you were a trainer or consultant to this
leader, write out a series of recommendations
about what should be changed to improve
the situation (consider selection criteria for
subordinates, how in/out groups are
framed, equity issues, opportunities to break
into the in-group, dealing with
alienation, etc.)