What is the focal point of LMX theory?

the LMX theory conceptualize or anticipates

leadership as a process which is the integral part of interaction between the leader and the

followers which is different from other leadership theories. This relationship between the leader

and the follower is termed as dyadic that involves both parties where leadership process is the

main point.

How does LMX theory challenge a basic assumption common to prior theories? leadership

theories have looked at leadership from the point of the leader or the situation. However, LMX is

centered on the interaction between leaders and followers. For example, LMX theory is a one-to-

one relationship with each member.

Explain LMX theory, including the following concepts: vertical dyads, in-group and out-

group, and personality and subordinate initiative as predictors of group status.

LMX theory is a one-to-one relationship with each member One leader + One member = Vertical

Dyad

In-group: members negotiate with leader for what they are willing to do for the group, Groups

are formed based on how interaction is handled between the leader and member. Then, Member

negotiate with leaders for what they are willing to do for the group. These followers or

(subordinates) are the ones that are willing to go above and beyond the basic job description.

Relationships are made and friendships are formed, they look at the whole picture and the

betterment of the group.

Out-group: This type of group come to work, do their job, and go home. The goal is to find

whatever is necessary to form a one-to-one relationship with each follower. There aren’t close

relationships, they are only concerned with their self, not the group.

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 Organizations that rely on volunteers need dedicated individuals to operate, do you believe

they have an above-average number of followers that would be considered high-quality? It

depends because they can be in-group or the out-group based on how well they work with the

leader and how well the leader works with them. In other words, it depends on how followers

involve themselves in expanding their role responsibilities with the leader.

If you were a leader of a non-profit organization that relies on volunteers how would you

try to use the leader-member theory of leadership to ensure you have enough volunteers?

As a leader, what could you do to help foster a high-quality leader-member exchange? I

would use in-group theory and do exchanges in where followers do certain activities that go

beyond their formal job descriptions, and me, in turn, do more for them. For example, keep

constant communication and forms special relationships with all of my followers since each of

these relationships are special and has its own unique characteristics. In addition, I will provide

them with more information and activities to make them feel confident and engage.

Case 7.1

Based on the principles of LMX theory, what observations would you make about Carly’s

leadership at Mills, Smith, & Peters? it seems that Carly was not practicing The LMX theory

to its entirety, because a lot more would be accomplished if all members were being treated

equally by Carly. The observation I would make is that Carly has an in-group created with more

than one group at the company. Carly’s leadership style can be the pivotal concept since she

picks favorites within the different teams and this is not an effective leadership.

2. I s there an in-group and out-group, and if so, which are they? I believe that there seems to be

an in-group and an out-group

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 Jacks: In-group

Terry: In-group

Julie: Out-group

Sarah: Out-group

3. In what way is Carly’s relationship with the four groups productive or

counterproductive to the overall goals of the agency? The main reason for any teams is to

have multiple minds working on the same project to produce a variety of solutions to pick the

best from. By Carly’s choosing favorites with one or a group of teams, clearly, she is not

motivating any of them. The “in” teams will accept that they will be chosen and work less

efficiently toward a goal, and the “out” teams will feel as if it’s pointless to work on something

that will not get chosen, leading to the counter productivity of all teams.

4. Do you think Carly should change her approach toward the associate directors? If so,

what should she do differently? Yes, because she needs to change her approach toward the

associate directors. She needs to treat all the teams equally, and even if she is doing so she needs

to cater to the groups so that they feel that way too. If this means bringing in neutral people to

make decisions based subjectively on work produced, then she should consider it.

7.2

1. Based on the LMX model, how would you describe Jenny’s leadership? I would describe

Jenny as a very effective and fair leader. She does not seem to show any type of favoritism in the

company regardless of her friendship with employees outside of the workplace. She goes out of

her way to make everyone feel like an equal part and creates partnerships with all of them in the

process.

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 2. H ow do you think the employees at City Mortgage respond to Jenny? I think the

employees at City Mortgage respond very positively to Jenny. She seems to be a great leader to

them and is doing a great job at making them feel comfortable with her.

3. If you were asked to follow in Jenny’s footsteps, do you think you could or would want to

manage City Mortgage with a similar style? Yes, I could and would want to manage City

Mortgage with a similar style. She seems to be very effective at reaching the employees and, in

turn, motivating them to continue being an integral part of the company.

7.3

1. From an LMX theory point of view, how would you describe Jim’s relationships with his

employees at the district Social Security office? Based on the LMX theory, I would say Jim’s

style of leadership and relationship with his employees is very fair and makes sense. Since he

attempts to treat everyone equally in the workplace, and assign work to those who have proven

time and time again that it can get done, and get done right.

2. Can you identify an in-group and an out-group? I don’t think so because I do not see any

this unfair favoritism. Jim expresses in the case that, in his experience, these people have been

able to complete tasks very well and he can count on them.

3. Do you think the trust and respect Jim places in some of his staff are productive or

counterproductive? Why? I think the trust and respect Jim places on some of the staff is very

productive. Not only because it empowers those who have worked hard to earn the respect and

responsibilities, but also pushes others to work harder in pursuance of the same.

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