Leadership Studies
PBL #3 Reporting Phase
Learning Goals
1) What is abusive supervision and what are the consequences of abusive supervision?
2) What are the antecedents of abusive supervision?
3) What is LMX theory and how has this theory developed over time?
4) How do leader-follower relationships develop?
1
, Chapter 9: Dyadic Theories and Followership
Leader-Member Exchange (LMX) Theory
Definition: describes the role-making processes between a leader and each individual
subordinate and the exchange relationship that develops over time
o Key idea: leaders develop an exchange relationship with each subordinate as the
two parties mutually define the subordinate’s role
o Exchange relationships are formed on the basis of:
Personal compatibility
Subordinate competence and dependability
o Relationships develop gradually over time through reciprocal reinforcement of
behavior as the exchange cycle is repeated over and over again evolve to a high
degree of mutual dependence, loyalty, and support
High-exchange relationship
o Basis: leader’s control over outcomes that are desirable to a subordinate
E.g. delegation of greater responsibility, assignment to desirable tasks,
pay increase, involvement in making some of the leader’s decisions
o In return, the subordinate provides various types of benefits to the leader
E.g. work harder, be more committed, be loyal to leader
o Leader develops this with small number of trusted subordinates who serve as
assistants, lieutenants, or advisors
o Benefits
Subordinate commitment is vital to a leader’s success
Assistance can help time-constrained managers
o Costs
To maintain the relationship, the leader must provide attention to the
subordinates, remain responsive to their needs/feelings, and rely on time-
consuming influence methods (e.g. persuasion)
Low-exchange relationship
o Characterized by less mutual influence
o Subordinates only comply with formal role requirements and receive only
standard benefits for the job (e.g. salary)
Research on LMX
Definition of LMX varies substantially from study to study
Several different measures on LMX have been used since the proposal of the theory
more difficult to compare results from different studies
Only small number of studies have measured LMX from the perception of both the
leader and the follower
o Subordinate LMX ratings how supportive and fair the leader is with the
subordinate
o Leader LMX ratings judgments about the subordinate’s competence and
dependability
2
, Determinants and Consequences of LMX
How is LMX related to other variables?
o Factors that predict a favorable exchange relationship (i.e. quality)
Subordinate perceived as competent; has values/attitudes similar to
those of the leader
Personality traits: extraversion and agreeableness
Associated with a more supportive and trusting style of interaction
o How LMX is related to leader and subordinate behavior
Favorable exchange relationship leader behavior is more supportive;
includes more consultation, delegation, and mentoring; includes less close
monitoring and domination of conversations
High LMX subordinate behavior includes more support and honest
communication with the leader; less use of pressure tactics
What is the relationship between LMX and outcomes?
o Favorable exchange relationship correlated with:
More role clarity
Higher satisfaction
Stronger organizational commitment
Better subordinate performance
High level of subordinate trust
o Suggestion leaders should try to establish a special exchange relationship with
all subordinates if possible, not just a few favorites
o A leader’s upward dyadic relationship affects downward dyadic relationships
How? obtaining necessary resources, cutting red tape, gaining approval
of changes desired by subordinates
Evaluation of LMX Theory
Conceptual improvements:
1. More elaboration about the way exchange relationships evolve over time
Series of ups and downs or continuous/smooth fashion?
2. Clear description of the way a leader develops different dyadic relationships, how
they affect each other, and how they affect group performance
As differentiation increases more likely to be feelings of resentment among
low-exchange members who believe the leader’s “favorites” are getting more
benefits than they deserve
Negative effects of extreme differentiation are more likely for an interacting team
(competition and hostility among members undermines necessary cooperation)
Increasing selected individuals’ self-efficacy/identification with the leader vs.
negative effects on group performance
3. More research on situational conditions affecting the development of exchange
relationships (e.g. type of organization, demographic attributes of subordinates)
Leader Attributions About Subordinates
How a leader acts toward a subordinate varies depending on whether the subordinate is
perceived as competent and loyal, or incompetent and untrustworthy
3
PBL #3 Reporting Phase
Learning Goals
1) What is abusive supervision and what are the consequences of abusive supervision?
2) What are the antecedents of abusive supervision?
3) What is LMX theory and how has this theory developed over time?
4) How do leader-follower relationships develop?
1
, Chapter 9: Dyadic Theories and Followership
Leader-Member Exchange (LMX) Theory
Definition: describes the role-making processes between a leader and each individual
subordinate and the exchange relationship that develops over time
o Key idea: leaders develop an exchange relationship with each subordinate as the
two parties mutually define the subordinate’s role
o Exchange relationships are formed on the basis of:
Personal compatibility
Subordinate competence and dependability
o Relationships develop gradually over time through reciprocal reinforcement of
behavior as the exchange cycle is repeated over and over again evolve to a high
degree of mutual dependence, loyalty, and support
High-exchange relationship
o Basis: leader’s control over outcomes that are desirable to a subordinate
E.g. delegation of greater responsibility, assignment to desirable tasks,
pay increase, involvement in making some of the leader’s decisions
o In return, the subordinate provides various types of benefits to the leader
E.g. work harder, be more committed, be loyal to leader
o Leader develops this with small number of trusted subordinates who serve as
assistants, lieutenants, or advisors
o Benefits
Subordinate commitment is vital to a leader’s success
Assistance can help time-constrained managers
o Costs
To maintain the relationship, the leader must provide attention to the
subordinates, remain responsive to their needs/feelings, and rely on time-
consuming influence methods (e.g. persuasion)
Low-exchange relationship
o Characterized by less mutual influence
o Subordinates only comply with formal role requirements and receive only
standard benefits for the job (e.g. salary)
Research on LMX
Definition of LMX varies substantially from study to study
Several different measures on LMX have been used since the proposal of the theory
more difficult to compare results from different studies
Only small number of studies have measured LMX from the perception of both the
leader and the follower
o Subordinate LMX ratings how supportive and fair the leader is with the
subordinate
o Leader LMX ratings judgments about the subordinate’s competence and
dependability
2
, Determinants and Consequences of LMX
How is LMX related to other variables?
o Factors that predict a favorable exchange relationship (i.e. quality)
Subordinate perceived as competent; has values/attitudes similar to
those of the leader
Personality traits: extraversion and agreeableness
Associated with a more supportive and trusting style of interaction
o How LMX is related to leader and subordinate behavior
Favorable exchange relationship leader behavior is more supportive;
includes more consultation, delegation, and mentoring; includes less close
monitoring and domination of conversations
High LMX subordinate behavior includes more support and honest
communication with the leader; less use of pressure tactics
What is the relationship between LMX and outcomes?
o Favorable exchange relationship correlated with:
More role clarity
Higher satisfaction
Stronger organizational commitment
Better subordinate performance
High level of subordinate trust
o Suggestion leaders should try to establish a special exchange relationship with
all subordinates if possible, not just a few favorites
o A leader’s upward dyadic relationship affects downward dyadic relationships
How? obtaining necessary resources, cutting red tape, gaining approval
of changes desired by subordinates
Evaluation of LMX Theory
Conceptual improvements:
1. More elaboration about the way exchange relationships evolve over time
Series of ups and downs or continuous/smooth fashion?
2. Clear description of the way a leader develops different dyadic relationships, how
they affect each other, and how they affect group performance
As differentiation increases more likely to be feelings of resentment among
low-exchange members who believe the leader’s “favorites” are getting more
benefits than they deserve
Negative effects of extreme differentiation are more likely for an interacting team
(competition and hostility among members undermines necessary cooperation)
Increasing selected individuals’ self-efficacy/identification with the leader vs.
negative effects on group performance
3. More research on situational conditions affecting the development of exchange
relationships (e.g. type of organization, demographic attributes of subordinates)
Leader Attributions About Subordinates
How a leader acts toward a subordinate varies depending on whether the subordinate is
perceived as competent and loyal, or incompetent and untrustworthy
3
