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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