The Leader Member Exchange Theory Essay

The Leader Member Exchange Theory Essay

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Leader member exchange (LMX) originated at vertical dyad linkage (VDL) theory about 30 year ago. LMX theory views leadership as a process that focuses on the interactions between a leader and subordinates. The interactions maybe either high quality or low quality that dictates subordinates relationships to the leader. Positive relationship leads to in-group and normal so positive relationship dictates out-group membership (Northouse, 2013).
The researchers who studied LMX theory were: Graen, 1976; Graen & Uhl-Bien, 1995; Liden, Wayne, & Stilwell, 1993; Anand, Hu, Liden, & Vidyarthi, 2011. In-group members are privileged with more information, influence, confidence, and concern from leader. The members are more dependable, highly involved, and communicative than out-group. High quality leader subordinates dyads lead to less employee turnover, greater organizational commitment, better job attitudes, and greater participation. In essence, there is a mutual benefit between leader and member (Northouse, 2013).
Practical Use
LMX could be a prescription that encourages the leader to nurture high quality exchanges with all employees. The leader could focus on ways to build trust and respect with all employees, thus, resulting in entire work group becoming an in-group. LMX offers insights that managers could use to improve their leadership behavior. LMX could be used at all levels of management within an organization. This theory can explain how individuals create leadership networks throughout an organization to help accomplish work more efficiently. LMX makes awareness in how we relate to our subordinates. The objective should be that all subordinates be part of in-group member (Northou...

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...t of the ego state that is a part of a larger method called transactional analysis (TA). People shift in and out of the three ego states: parent, child, or adult. TA concept is linked to feelings and experiences with how people actually behave. Four dimensions important in assessing personality in Carl Jung’s personality types are energy level (internal or external), information gathering (sequential or random), decision making (rational or subjective), and planning that is organized or spontaneous (Northouse, 2013).
Practical Use
Psychodynamic approach approach raises awareness of leaders and followers to their own personality types. Psychodynamic leadership approach finds strengths in every personality. It embraces diversity that sees others can be different, yet normal. It may help people know what to expect from different personality types (Northouse, 2013).

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