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MBA LMX THEORY

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MBA LMX THEORY
Chapter 8 - Leader-Member Theory

Leadership

Chapter 8 –
Leader-Member Exchange Theory
Northouse, 4th edition

Chapter 8 - Leader-Member Theory

Overview
 LMX Theory Description
 LMX Theory Perspective
 Early Studies
 Later Studies
 Phases in Leadership Making
 How Does the LMX Approach Work?

Chapter 8 - Leader-Member Theory

Definition
 Leader­member exchange (LMX) theory:
– conceptualizes leadership as a process

 that is centered on the interactions between a leader and subordinates

 Some theories focus on leaders:

– trait approach, skills approach and style approach

 Other theories focus on the follower and the context: – situational leadership, contingency theory, and pathgoal theory.

Chapter 8 - Leader-Member Theory

Dimensions of Leadership
LMX theory makes the dyadic relationship between leaders and followers the focal point of the leadership process

Chapter 8 - Leader-Member Theory

LMX Theory Description
Perspective
 Development - LMX theory first described by
Dansereau, Graen, & Haga (1975), Graen &
Cashman (1975), and Graen (1976)
 Revisions - Theory has undergone a number of revisions since its inception and continues to be of interest to researchers
 Assumption - LMX theory challenges the assumption that leaders treat followers in a collective way, as a group.
– LMX - Directed attention to the differences that might exist between the leader and each of his/her followers

Chapter 8 - Leader-Member Theory

Early Studies
 First studies of
LMX called –
Vertical Dyad
Linkage (VDL)
– Focus on the vertical linkages leaders formed with each of their followers
– Leader’s relationship to a work unit viewed as a series of vertical dyads Vertical
Dyads

The
Vertical
Dyad

Chapter 8 - Leader-Member Theory

Early Studies
 Leader’s work unit as a whole was viewed as a series of vertical dyads; leader forms unique relationship with each subordinate

Chapter 8 - Leader-Member Theory

Early Studies, cont’d.
 Researchers found two

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