Chapter 7: Learning-Member Exchange Theory

Review Questions – Chapter 7: Learning-Member Exchange Theory

1. What researchers are most associated with leader–member exchange theory?
The researchers most associated with leader-member exchange theory are Graen, Dansereau and Haga. As this theory has developed, more research has been carried out by researchers such as Gerstner and Day in later studies.

2. Explain the differences between in-groups and out-groups.
Both in-groups and out-groups describe the link between leaders and followers. An in-group linkage characterizes a leader-follower relationship that is based on expanded and negotiated responsibilities. Conversely, an out-group characterizes a leader-follower relationship that is based on a formal employment contract. Compared to in-groups, out-group followers receive less information, influence, confidence and concern for their leaders. This type of followers are typically workers who come to work get their job done before going home.

3. How did the focus of research change from early research studies to the later studies?
Whereas initial research studies conducted on LMX addressed primarily the difference between in-groups and out-groups, later studies addressed how LMX theory was related to organizational effectiveness. Specifically, these later studies focused on how the quality of leader-member exchanges was related to positive outcomes in the organization.

4. What were the findings of the Gerstner and Day (1997) meta-analysis?
Gernster and Day’s 1997 meta-analysis of 164 studies found that LMX was consistently related to member job performance, satisfaction, commitment, role conflict and clarity as well as turn-over intentions.

5. How does communicating through technology at work affect leader–follower relationships?
Communicating through technology at work is likely to affect leader-follower relationships. Technology has the ability to allow more frequent communication between leaders and followers and hence could help develop a high leader-member exchange faster as communication is not bound to face to face interaction. That being said, if not used properly technology will have little to no impact on communication between leaders and followers.

6. What support is there for the validity of the LMX 7 Questionnaire?
The validity of the LMX questionnaire comes from subsequent research studies that link high-quality leader-member exchanges to positive organizational outcomes. Furthermore, the Gernstner and Day studies conducted in 1997 found strong support for the psychometric properties of the LMX 7 questionnaire. The LMX 7 specifically focuses on measuring three dimensions: respect, trust and obligation.

7. Explain the concept of leadership making, including each phase.
Leadership making is perspective approach to leadership that emphasizes leaders developing high-quality exchanges with all of their followers – promoting an organization free of inequities and negative implications. Leadership making is comprised of three different stages: the stranger phase, the acquaintance phase and the mature partnership phase. These are described in more depth below:
1. The stranger phase; constitutes the phase of leadership, in which the leader-follower relationship is primarily rule bound is heavily contractual. They have lower-quality exchanges that are mainly in relation to prescribed organizational roles. At this point the follower is acting out of self-interest rather than the overall good of the group.
2. The acquaintance phase; constitutes the phase of leadership, in which leaders share more resources and or personal and work-related information. This phase acts as a testing period as to whether the follower is interested in taking on more responsibilities as well as if the leader is willing to give these new responsibilities.
3. Mature partnership phase; constitutes the phase of leadership, in which a mature partnership has been developed – leader-member exchange is high. In this stage there is a high degree of mutual trust, respect and obligation towards each other.

8. What is meant by the term “empowerment” and how does it relate to LMX?
The term empowerment in relation to the LMX refers to a followers’ motivation and drive received often from a leader to get a task done. Through studies conducted by Harris, Wheeler and Kacmar in 2008, it was found that high leader-member exchange on issues such as job satisfaction and job performance could compensate for lack of empowerment amongst employee who felt little empowerment – showcasing the importance of having strong leader-follower exchanges.

9. What strategy do researchers typically use to evaluate leader–member exchanges?
To evaluate leader-member exchanges researchers typically use a brief questionnaire that asks both leaders and followers to assess the effectiveness of their working relationship. This includes factors such as trust, respect and obligation.

10. How can leaders best determine how trustworthy or reliable their followers are?
Leaders can best determine how trustworthy of reliable their followers are through using the phases of leadership making. As a follower progresses through each of the phases and gains more knowledge and experience the follower is more likely to be trustworthy and reliable, providing a high leader-follower exchange.

11. Explain how leader–member exchange theory works, both descriptively and prescriptively.
Leader-member exchange theory works in two ways: it describes leadership and it prescribes it. These are described in more depth below:
• Descriptively; focus is on in-groups and out-groups
o Working with in-groups allows leaders to accomplish tasks in a more efficient manner as followers are willing to do more than expected of them.
o Leaders do not give out-groups members special attention as they act strictly within their prescribed organizational roles.
• Prescriptively; best understood within leadership model of Graen and Uhl-Bien
o Leaders should create a special relationship with all followers as well as offering them the opportunity to take on new roles and responsibilities.
o Leaders should nurture high quality leader-member exchanges. This includes looking for ways to build trust and respect for all members of a group.

12. What is the relationship between LMX and employee energy and creativity?
Atwater and Carmeli in 2009 examined the relationship between an employees’ perceived leader-member exchange and their energy and creativity at work. Their findings showcased that a higher perceived leader-member exchange was positively related to feelings of energy in employees leading to greater involvement in creative work. It is important to note here however that LMX theory is not directly associated with creativity, but instead is a mechanism that nurtures people’s feelings which in turn enhances creativity.

13. What are strengths of leader–member exchange theory?
1. Strong descriptive theory; intuitively it makes sense to describe work units by who contributes more and who contributes less. It is very relatable as anyone who has ever worked in an organization would have dealt with in and out groups
2. Focuses on the dyadic relationship; the LMX theory is unique in the sense that it focuses on the dyadic relationship as the centerpiece.
3. Directs our attention to the importance of communication; high quality exchanges are undoubtedly linked to effective communication.

14. What are criticisms of leader–member exchange theory?
1. Goes against initial definition of fairness; what we are taught is fair as kids, through treating everyone equally. In our initial definition we are taught it is wrong to form groups or cliques as they can be harmful to those that are excluded.
2. Basic idea is not fully developed; does not fully explain certain aspects eg. How high-quality leader-member exchanges are created. While it may be implied this is formed a leader finding certain followers more compatible, the guidelines are not easily spelt out.
3. Researchers have not adequately explained contextual factors; because the LMX theory is usually studied in isolation, researchers have not examined the potential impact of other variables on the LMX dyad.

15. How can LMX be applied to different levels of an organization?
LMX can be applied at multiple different levels of an organization. On a higher level of organization LMX could be used to explain how CEO’s or other high ranked individuals form special relationships with select individuals. On a lower level of organization LMX can be used to explain how line managers in a manufacturing plant use a select few workers to accomplish their work quotas for that production unit.

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