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    LMX Theory

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    Aishwarya
    Leaders form closer relationships with some followers, known as the "in-group", who are given more responsibilities, attention, rewards, and higher performance ratings. Those not in the in-group are considered the "out-group" and receive less trust, recognition and rewards. Research shows leaders are more likely to form in-groups with followers they perceive as similar or who demonstrate higher self-efficacy. To build high-quality relationships, leaders should initially evaluate employees, develop mutual trust and commitment over time, and reward in-group members to increase their numbers.

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    LMX Theory

    Uploaded by

    Aishwarya
    10 views13 pages
    Leaders form closer relationships with some followers, known as the "in-group", who are given more responsibilities, attention, rewards, and higher performance ratings. Those not in the in-group are considered the "out-group" and receive less trust, recognition and rewards. Research shows leaders are more likely to form in-groups with followers they perceive as similar or who demonstrate higher self-efficacy. To build high-quality relationships, leaders should initially evaluate employees, develop mutual trust and commitment over time, and reward in-group members to increase their numbers.

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    LMX theory - Organisation Behaviour

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    LMX theory

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    Leaders form closer relationships with some followers, known as the "in-group", who are given more responsibilities, attention, rewards, and higher performance ratings. Those not in the in-group are considered the "out-group" and receive less trust, recognition and rewards. Research shows leaders are more likely to form in-groups with followers they perceive as similar or who demonstrate higher self-efficacy. To build high-quality relationships, leaders should initially evaluate employees, develop mutual trust and commitment over time, and reward in-group members to increase their numbers.

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    © All Rights Reserved
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    10 views13 pages

    LMX Theory

    Uploaded by

    Aishwarya
    Leaders form closer relationships with some followers, known as the "in-group", who are given more responsibilities, attention, rewards, and higher performance ratings. Those not in the in-group are considered the "out-group" and receive less trust, recognition and rewards. Research shows leaders are more likely to form in-groups with followers they perceive as similar or who demonstrate higher self-efficacy. To build high-quality relationships, leaders should initially evaluate employees, develop mutual trust and commitment over time, and reward in-group members to increase their numbers.

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    of 13

    LM

    X5
    Group
    The Big
    Questions
    Do parents love all their kids equally?

    Do teachers love all their students

    equally? Do leaders treat every follower

    equally?
    Leaders Often Act differently towards
    different people

    Stanley is the
    single greatest
    presence in this
    Adam is entire office
    ecosystem
    weird! Selina is
    awesome!
    Leader Member Xchange
    Theory
    Leadership positions come with a
    certain time constraint

    Leaders therefore form close relationships


    with small group of people to delegate
    important challenges to under time
    pressure
    Leader Member Xchange
    Theory
    RESEARCH BY- FRED C LUNENBURG,
    INTERNATIONAL JOURNAL OF MANAGEMENT, BUSINESS, AND
    ADMINISTRATION VOLUME 13

    Leaders do differentiate among followers and that these differences are not random

    Followers exhibiting higher levels of self-efficacy were more likely to form in-group relationships
    with leaders

    The perception of similarity seems to be a more important factor than the actual
    demographic similarities (age, gender, ethnicity) (Murphy & Ensher, 1999).

    Leaders believe that in-group members are the most competent and, therefore, they treat them
    as such fulfilling the self-fulfilling prophesy (Eden, 1992)
    In
    Group
    The Favored
    Ones 02
    01
    Given Greater
    Part of the Trusted Inner
    responsiblities
    circle
    03 04
    Given More Attention and
    Rewards Higher Performance ratings
    06
    05 More Goodwill Towards
    Particpate In Decision Making the Organization.
    Out
    Group
    The Unfavoured
    Ones
    0
    Less1trusted Members Have02
    Formal
    relationship
    03 04
    Less work Less
    recognition
    05
    06
    Less
    reward Work as
    backup
    What do leaders
    do?
    Personal compatibility
    Categorize people in
    Subordinate competence Leade
    Extroveted personality very few early
    r
    interactions
    Trust Formal
    High relations
    Interations

    In- Out-
    Group Group
    OUT TO
    IN
    Initially tries to be in the in group

    Due to rewards and benefits

    Later, they also ignore and gets


    isolated
    IN TO
    OUT
    In Group people are not always happy

    Due to over work

    If the leader gets changed, there is huge chances that the in


    group people suffer
    HOW TO BUILD HIGH QUALITY LMX
    RELATIONSHIP
    STAGE 1
    Initial interaction with employees to help each of you
    evaluate each others motives, attitudes and mutual
    role expectations.

    STAGE 2
    Work towards refining the original exchange
    relationship and developing mutual trust, loyalty, and
    respect.

    STAGE 3
    Exchange based on self-interest is transformed into
    mutual commitment to the vision, mission, and objectives
    of the work unit.
    STAGE 4
    Reward these second and third stage “in-group
    members” with greater status, influence, and
    benefits in return for extra attention from
    them.

    STAGE 5
    Follow up with day-to-day observations
    and discussions and work toward
    increasing the number of in-group
    members.
    Thank you for
    listening!

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