History Of LMX

• 1970s
Originally called Vertical Dyad Linkage (VDL) by Dansereau, Graen, & Haga(1975) because vertical
linkages are formed with followers
• 1980s
Development of Leader-Member Exchange (LMX), based on VDL
• 1990s
Graen & Uhl-Bien (1991) focused on changing relationship over time (stages) and defined "in-groups"
and "out-groups" based on amount of negotiating latitude
• 2000s
George & Jones (as cited in Lunenburg, 2010) said the focus should be more on making larger "in-
groups" and smaller "out-groups."
Schriesheim, Castro, Zhou, & Yammarino (as cited in Abolrous, 2010) studied how higher quality LMX
relationships lead to increased job satisfaction
Leader-Member Exchange Theory (LMX)

• Conceptualizes Leadership as a process that is centered on the

interactions between leaders and followers.
• These interactions stem solely from habits and actions from the
followers who are catergorized into two groups, in-groups and out-
groups.
In-Groups  https://www.youtube.com/watch?v=gO8N3L_aERg
• In-Groups go above and beyond what is expected.
• They receive more confidence and concern from leaders.
• More open ended responsibilities.
• Entrusted with more responsibilities.
• Leaders give in-group members more of their time and support.
Out-Groups https://www.youtube.com/watch?v=5myZjIuJNLg

• Come to work and do the bare minimum of the job description.

• Don't go above and beyond expectations.
• Don't look for future improvement or more opportunities.
• Leaders treat out-group members fairly and according to the formal
contract.
• They do not get special attention from leaders.
Dwight vs Jim

• What makes Dwight (in-group) and Jim (out-group) belong to their

corresponding groups?
 LMX, like all leadership theories has its distinctions compared to others.

• Servant leadership
Leaders will lead by example and look to serve the followers to create a positive work atmosphere.
• Contingency Leadership
Contingency leadership is the change in leadership decisions based upon the internal and external situation.
LMX, however, changes leadership decisions based upon in-groups and out-groups.
• Transformational Leadership
Transformational leadership is the idea of leading followers to become future leaders. In LMX you don't give
all followers the same responsibilities. But instead distinguish them between in-groups and out-groups.
• Authentic Leadership
Authentic leadership is built on ethical foundation in order to build relationships with subordinates, while LMX
theory elaborates on relationships that are already built.
• Situational Leadership
Situational Leadership is the change in leadership based upon the groups performance readiness level. LMX is
based upon in-groups and out-groups making it less flexible.
Strengths Of LMX Theory

• Strong Descriptive Theory

• Uniqueness
• Noteworthy because it directs our attention to the importance of
communication in leadership
• Provides an important alert for leaders
• Research proves that the practice of LMX is related to positive
organizational outcomes
Criticisms of LMX Theory

• Gives the appearance of discrimination against the out-group.

• The theory does not elaborate on strategies for how one gains access
to the in-group if one chooses.
• The basic ideas of the theory are not fully developed.
• Researches have not adequately explained the contextual factors that
may have an impact on LMX relationships.
• Questions have been raised about the measurement of leader-
member exchanges in LMX theory.
 Three Relational Phases
1. Stranger Phase (Role Taking)
Begin to learn each other's work style
Mutual Trust and Respect

Use defined roles in the workplace

2. Acquaintance Phase (Role Making)
Team member and leader know each other's work style
Leader begins to place members in a certain group
3. Mature Partnership Phase (Routinization)
Routines established
High level of performance expected
Conclusion- https://www.youtube.com/watch?
v=bZPA6qaTVgM