Chapter 7 Leader-Member Exchange Theory Discussion Questions PDF

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Chapter 7 – Leader-Member Exchange Theory Discussion Questions and Exercises

1. What is the focal point of LMX theory? How does LMX theory challenge a basic assumption common to prior theories?  LMX theory makes the dyadic relationship between leaders and followers the focal point of the leadership process. It challenges the basic assumption to prior theories by directing researchers’ attention to the differences that might exist between the leader and each of the leader’s followers.

2. Explain LMX theory, including the following concepts: vertical dyads, in-group and outgroup, and personality and subordinate initiative as predictors of group status.  Vertical dyads: The leader forms an individualized working relationship with each follower. Each relationship is special and has its own unique characteristics.  In-group: Those that were based on expanded and negotiated role responsibilities.  Out-group: Those that were based on the formal employment contract. o Followers become part of the in-group or out-group based on how well they work with the leader and how well the leader works with the follower. Personality and other personal characteristics are related to this process. Followers interested in negotiating with the leader what they’re willing to do become in-group. If followers aren’t interested in taking on new and different job responsibilities, they become out-group.

3. Contrast the experiences of in-group and out-group members. Have you observed groups that fit these descriptions in an organization in which you work or with which you affiliate? Give specific examples to support your observations.  Followers in the in-group receive more information, influence, confidence, and concern from their leaders than do out-group followers. They are also more dependable, highly involved, and communicative. Whereas in-group members do extra things for the leader and the leader does the same for them, followers in the out-group are less compatible with the leader and usually just come to work, do their job, and go home. o Example: At my job, I would say my GM Marisa and I have an in-group relationship since she has personally gotten to know me, trusts me to do extra tasks for her, and gives unexpected rewards. However, Melissa, one of the managers under her, and I have an out-group relationship like many others who work with her because of her bad attitude, rude remarks, and criticization of everything we do.

4. What are the specific benefits of high-quality leader-member relationships for leaders?  High-quality leader-member exchanges produce less employee turnover, more positive performance evaluations, higher frequency of promotions, greater organizational commitment, more desirable work assignments, better job attitudes, more attention and support from leaders, greater participation, and faster career progress over 25 years.

5. Explain the concept of leadership making and characterize its three phases.  Leadership making is a prescriptive approach to leadership emphasizing that leaders should develop high-quality exchanges with all their followers rather than just a few. Roles Influences Exchanges Interests

Phase1: Stranger Scripted One Way Low Quality Self

Phase 2: Acquaintance Tested Mixed Medium Quality Self and other

Phase 3: Partnership Negotiated Reciprocal High Quality Group

Time 6. What is the relationship between LMX and employee empowerment?  During phase 3 of leadership making, members of the partnership may depend on each other for favors and special assistance. Leaders may rely on followers to do extra assignments and followers may rely on leaders for needed support or encouragement.

7. Explain differences in goal accomplishment using in-groups as compared to out-groups.  In-group members are willing to do more than is required in their job description and look for innovative ways to advance the groups goals. In response to their extra effort and devotion, leaders give them more responsibilities, opportunities, time, and support.  Rather than trying to do extra work, out-group members operate strictly within their prescribed organizational roles. They do what is required but nothing more. Leaders treat them fairly but don’t give them any special attention. For their efforts, out-group members receive standard benefits as defined in their job description.

8. How can LMX be used by CEOs to develop tactical relationships within their organizations?  LMX theory could be used to explain how CEOs develop special relationships with select individuals in upper management to develop new strategic and tactical corporate goals.

**Complete the LMX 7 Questionnaire. How would you interpret the results? Give an example from your own experience that supports the results of this questionnaire. Leader: 34 (Very High)

Follower: 31 (Very High)

Both results came out very high. For my leader I used my GM, Marisa, who is very understanding and recognizes me for all the work I do. For my follower, I used my trainee, Carol, who started about a month or 2 ago. There have been a few occasions where I have had to stand up for her to my manager, Melissa, during a situation. Because of the in-group relationship I’ve built with her, she understands my jobs problems and needs and has proven she will go out of her way to help me complete tasks....