2. Dyadic leadership theories consider how and
why a leader’s behavior may vary across
individuals (as followers).
In addition, both parties have considerable
influence on how their relationship gradually
forms.
Leader-member exchange theory is the most
popular theory of this field.
Introduction
3. The basic premise of the theory is
that leaders develop separate
exchange relationships with each
individual subordinate as the two
parties mutually define the role of
the subordinate.
Quality of exchange relationship
refers to the degree of emotional
support and exchange of valued
resources.
Main ideas
Leader
Quality of
Exchange
relationship
Follower
4. This theory predict that a leader may form
two groups: In-group (with high quality of
relationship) and out-group (with low
quality of relationship);
As the result of this categorization, in-group
members may have better chance
for success, and the out-group members
may fail.
In-group and out-group
5. According to this theory, most leaders establish a
special exchange relationship with a small number of
trusted subordinates who function as assistants or
advisors.
In-group members are the outcome of exchange
mechanisms.
Quality of exchange relationship is related to both
parties’ evaluations of each other’s competency,
dependability, and personal compatibility.
Initial version of the theory
6. The development of relationships in a leader-subordinate
dyad is described in terms of a “life cycle
model”.
Three stages of this cycle are:
(a) Leader and subordinate evaluate each other’s
motives, attitudes, and potential resources to be
exchanged (role taking stage);
(b) Mutual trust, loyalty, and respect based on self-interests
are developed (role making stage);
(c) Mutual commitment to the mission and objectives of
the work unit is shaped and reinforced (Role
routinization).
Extended version of the theory
7. “First, it is a strong descriptive theory. Intuitively it
makes sense to describe work units in terms of those who
contribute more and those who contribute less or bare
minimum to the organization.
Second, LMX theory is unique because it is the only
leadership approach that makes the concept of the dyadic
relationship the centerpiece of the leadership process.
Third, LMX theory is noteworthy because it directs our
attention to the importance of communication in
leadership.
Fourth, there is a large body of research that
substantiates how the practice lo LMX theory is related to
positive organizational outcomes.”
Strengths of the theory (Northouse,
1997, p. 116)
8. The most recent instrument is LMX-7, which
includes items related to competence,
considerations, recognition, and supporting
behaviors by leaders (Table 8-1).
Although only one dimension has been
identified for LMX-7 in empirical research,
some have argued that the quality of exchange
relationship may be multi-dimensional.
Measurement of LMX
9. Answer the following questions using 1 = not at all, 2 = somewhat, 3 = fully
agree
_____ I like my supervisor very much as a person.
_____ My supervisor is the kind of person one would like to have as a
friend.
_____ My supervisor is a lot of fun to work with.
_____ My supervisor defends my work actions to a superior, even without
complete knowledge of the issue in question.
_____ My supervisor would come to my defense if I were “attacked” by
others.
_____ My supervisor would defend me to others in the organization if I
made an honest mistake.
_____ I do work for my supervisor that goes beyond what is specified in
my job description.
_____ I am willing to apply extra efforts, beyond those normally required,
to further the interests of my work group.
_____ I do not mind working my hardest for my supervisor.
_____ I am impressed with my supervisor’s knowledge of his/her job.
_____ I respect my supervisor’s knowledge of and competence on the job.
_____ I admire my supervisor’s professional skills.
Self-Assessment: Rate Your LMX
10. Add your score for 1, 2, 3 = _____ This is your score on the Liking factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of liking. A score of 5 to 6 indicates
an average LMX in terms of liking. A score of 7+ indicates a high-quality LMX in
terms of liking.
Add your score for 4, 5, 6 = _____ This is your score on the Loyalty factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of loyalty. A score of 5 to 6 indicates
an average LMX in terms of loyalty. A score of 7+ indicates a high-quality LMX in
terms of loyalty.
Add your score for 7, 8, 9 = _____ This is your score on the Contribution factor of
LMX.
A score of 3 to 4 indicates a low LMX in terms of contribution. A score of 5 to 6
indicates an average LMX in terms of contribution. A score of 7+ indicates a high-quality
LMX in terms of contribution.
Add your score for 10, 11, 12 = _____ This is your score on the Professional
Respect factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of professional respect. A score of 5
to 6 indicates an average LMX in terms of professional respect. A score of 7+
indicates a high-quality LMX in terms of professional respect.
Source: Adapted from Liden, R. C., & Maslyn, J. M. (1998). Multidimensionality of
leader-member exchange: An empirical assessment through scale development.
Journal of Management, 24, 43–72.
Scoring
11. In a review research, Graen and Uhl-Bien (1995)
identified that LMX is related to several important
outcomes.
Consequences of LMX
12. Two-stage attribution model about a
leader’s reaction to poor performance:
(1) Determining the cause (internal or
external)
(2) Selecting an appropriate response to
correct the problem
A leader’s perception of her/his
followers
13. A tendency to underestimate the
external factors and overestimate
internal factors when making
judgment about other people
Fundamental attribution error
14. Self-fulfilling prophecy:
It refers to an idea that expecting an event
could increase the likelihood that the event
would happen.
A leader and his/her followers start forming
expectations as soon as they form their
relationships.
A leader’s perception of her/his
follower (continued)
15. Self-fulfilling prophecy (continued)
Positive expectations of a member are translated into
such leader behaviors as delegating challenging task
assignments, providing constructive feedback, desirable
rewards, and training opportunities.
Negative leader expectations are manifested in the
delegation of routine tasks, provision of less feedback,
less desirable rewards, and fewer opportunities for
training.
A leader’s perception of her/his
follower (continued)
16. Implicit leadership theories are beliefs and
assumptions about the characteristics of
effective leaders.
Implicit leadership theories are gradually
formed and refined as a result of actual
experiences with leaders and social and
cultural influences.
Followers’ perceptions of their leader
17. Leader’s competence:
The unit’s competence,
The performance trend,
Direct and visible actions, especially when
there is a crisis,
Improving performance, especially when
external conditions are not favorable.
Followers’ perceptions of their leader
(continues)
18. Leader’s intention
Whether the leader is concerned
more about her/his personal benefits
and career advancements than their
welfare and the team’s mission;
Self-sacrificing behavior;
Focusing on issues than personal
attributes when facing failures.
Followers’ perceptions of their leader
(continues)
19. Leaders must avoid developing beliefs and
assumptions about their followers without sufficient
evidence (and vice versa).
Leaders and followers can appropriately use
impression strategies (must be ethical) to enhance
the quality of their relations.
It is not necessary to treat all subordinates exactly
the same, but each person should perceive that he
or she is an important and respected member of the
team rather than a “second-class citizen”.
Each member should perceive that there is equal
opportunity based on competence rather than
arbitrary favoritism.
Some prescriptive implications
20. An important implication of understanding the
dyadic nature of leadership is to think about how
one can manage his/her manager.
Understanding your manager’s preferences
including thinking style, time management
preference, and work expectations are critical to
develop plans of how you can manage your boss!
Managing your boss
