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Leader Member Exchange Theory(Lmx)

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Leader Member Exchange Theory(Lmx)
LEADER MEMBER EXCHANGE THEORY (LME)
Leader-member Exchange (LME) flows from literature on transformational leadership, extant in the 1970s. A number of fundamental concepts are quite old, such as rewards for supporting leadership being as old as political philosophies from Classical Greek days. The formalization of LME stems from the term "Vertical Dyad Linkage (VDL), a concept developed by Dansereau, Graen, and Haga in 1975, with their paper, "A Vertical Dyad approach to leadership within formal organizations".
Leadership is one of the primary areas of study, research, and practice in organizational behavior. Leaders often develop relationships with each member of the group that they lead, and Leader-Member Exchange Theory explains how those relationships with various members can develop in unique ways.
The leader-member exchange theory of leadership focuses on the two-way relationship between supervisors and subordinates. These are not the only 2. Also known as LME, LMET or Vertical Dyad Linkage Theory, leader-member exchange focuses on increasing organizational success by creating positive relations between the leader and subordinate.
In particular, leaders usually have special relationships with an inner circle of assistants and advisors, who often get high levels of responsibility and access to resources. This is often called the “in-group,” and their position can come with a price. These employees work harder, are more committed to task objectives, and share more administrative duties. They are also expected to be totally committed and loyal to their leader. Conversely, subordinates in the “out-group" are given low levels of choice or influence and put constraints on the leader.
These relationships start very soon after a person joins a team and follows these three stages:
1. Role-taking: The member joins the team and the leader evaluates his or her abilities and talents. Based on this, the leader may offer opportunities to demonstrate capabilities.



References: • Deluga, R. J. (1998). Leader-member exchange quality and effectiveness ratings: The role of subordinate-supervisor conscientiousness similarity. Group and Organization Management, 23, 189–216. • Liden, R. C., Sparrowe, R. T., & Wayne, S. J. (1997). Leader-member exchange theory: The past and potential for the future. Research in Personnel and Human Resources Management, 15, 47–119. • Seibert, S.E., Sparrowe, R.T., & Liden, R.C. (2003). A group exchange structure approach to leadership in groups. In C.L. Pearce and J.A. Conger (Eds.), Shared leadership: Reframing the hows and whys of leadership. Thousand Oaks, CA: Sage Publications. • Graen,G.B. and Uhl-Bien,M.(1995). “The Relationship-based approach to leadership: Development of LMX theory of leadership over 25 years: Applying a multi-level, multi-domain perspective, Leadership Quarterly, 6(2):219–247. • Dansereau, F. Jr, Graen, G. and Haga, W.J. (1975). A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role making process. Organizational Behavior and Human Performance, 13, 46-78. • Graen, G., and Cashman, J.F. (1975). A role making model of leadership in formal organizaitons: A developmental approach. In J.G. Hunt and L.L. Larson (eds), Leadership frontiers, Kent, OH:Kent State University Press. • Chen, Z., Lam, W., & Zhong (2007). Leader-member exchange and member performance: A new look at individual-level negative feedback-seeking behavior and team-level empowerment culture. Journal of Applied Psychology, 92(1), 202-212. • Eden, D. (1992). Leadership and expectations: Pygmalion effects. Leadership Quarterly, 3, 278-279. • Engle, E. M., & Lord, R. G. (1997). Implicit theories, self-schemas, and leader-member exchange. Academy of Management Journal, 40(4), 988-1010. • George, J. M., & Jones, G. R. (2008). Understanding and managing organizational behavior (5th ed.). Upper Saddle River, NJ: Prentice Hall. • Graen, G. B., & Uhl-Bien, M. (1995). Relationship-based approach to leadership:Development of the leader-member exchange (LMX) theory of leadership over 25 years. Leadership Quarterly, 6, 219-247. • Ilies, R., Nahrgang, J. D., & Morgeson, F. P. (2007). Leader-member exchange and citizenship behaviors: A meta-analysis. Journal of Applied Psychology, 92(1), 269-277. • Kreitner, R., & Kinicki, A. (2010). Organizational behavior (9th ed.) (pp. 484-485). New York, NY: McGraw-Hill. • Mage, G. C. (2003, September). Leading despite your boss. HR Magazine, 139-144. • McClane, W. E. (1991). Implications of member role differentiation: Analysis of a key concept in the LMX model of leadership. Group and Organization Studies, 16, 102-113. • Murphy, S. E., & Ensher (1999). The effects of leader and subordinate characteristics in the development of leader-member exchange quality. Journal of Applied Psychology, 29(7), 1371-1394. • Nelson, D., Basu, R., & Purdie, R. (1998). An examination of exchange quality and work stressrs in leader-follower dyads. International Journal of Stress Management, 5, 103-112. • Schermerhorn, J. R., Hunt, J. G., & Osborn, R. N. (2011). Organizational behavior (11th ed.) (p. 253). New York, NY: Wiley. • Schriesheim, C. A., Neider, L. L., & Scandura, T. A. (1998). Academy of Management Journal, 41(3), 298-318. • Yukl, G. (2006). Leadership in organizations (6th ed.) (pp. 117-120). Upper Saddle River, NJ: Prentice Hall. • Yukl, G. (2010). Leadership in organizations (7th ed.). Upper Saddle River, NJ: Prentice Hall.

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