6. In- Group Out- Group
-Leaders-followers have a
significant relationship beyond
job responsibilities
-Express higher confidence, trust
and support for one another.
-Receive more information,
additional jobs, rewards and
opportunities
-Leaders-followers have a strictly
professional relationship.
-Have basic interactions required
to perform job roles and
responsibilities.
- Receive information and support
necessary for job performance, no
additional jobs or opportunities
Differentiating points..
7. • LMX Theory focuses
on dyad.
• Each linkage differ in
quality.
• Same leader may
have different
relationships with
different subordinates.
How LMX Theory works?
8. • Research Findings.
• Managerial Implication.
• How to build high-quality LMX Relationships?
• Some tips for improving the quality of leader
member exchanges.
Additional info ..
9. Conclusion..
• The basic Idea of LMX :
In-Group Members &
Out-Group Members.
• As a result ,
differentiation naturally
occurs.
• Therefore, Leaders
should develop high
quality relationships with
as many subordinates as
possible.
10. • Lunenburg, Fred C. Leader-Member Exchange Theory
IJMBA V13 2010.pdf.
• Positive Spin on LMX.
• Leadership and Change Management, Text Book.
References..
The leader-member exchange theory of leadership focuses on the two-way relationship (dyadic relationships) between supervisors and subordinates.
The theory assumes that leaders develop an exchange with each of their subordinates, and that the quality of these leader-member exchange (LMX) relationships influences subordinates' responsibility, decision influence, access to resources and performance.
This theory promotes positive employment experiences and also augments organizational effectiveness. Also known as LMX, LMET, leader–member exchange focuses on increasing organizational success by creating positive relations between the leader and subordinate.
LMX theory suggests that group members often separate into subgroups, as some members may have similar interests or personalities.
In one of those groups, leaders 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.
The other group is known as the “out-group,” and they typically prove to be less motivated or less competent in comparison to the other group
Why In-Group and Out-Group occurs in an Organization?
There are some individuals that have the desire to be in the spotlight; they are driven by ambitious goals and will do what it takes to obtain them. Others may simply have complimentary personalities with their boss and get on with them better than others.
Why In-Group and Out-Group occurs in an Organization?
There are some individuals that have the desire to be in the spotlight; they are driven by ambitious goals and will do what it takes to obtain them. Others may simply have complimentary personalities with their boss and get on with them better than others.
Key FACTORS LEADING TO IN-GROUP & OUT-GROUP
Time Constraints.
Attitudes & Personality Characteristics.
Competencies & Extroversion.
The LMX theory focuses on a dyad, that is, the relationship between a leader and each subordinate considered independently, rather than on the relationship between the superior and the group. Each linkage, or relationship, is likely to differ in quality. Thus, the same leader may have poor interpersonal relations with some subordinates and open and trusting relations with others. The relationships within these pairings, or dyads, may be of a predominantly in-group or out-group nature.
Each linkage, or relationship, is likely to differ in quality.
Thus, the same leader may have poor interpersonal relations with some subordinates and open and trusting relations with others. The relationships within these pairings, or dyads, may be of a predominantly in-group or out-group nature.
A leader initiates either an in-group or an out-group exchange with a member of the organization early in the life of the dyadic relationship. Members of the in-group are invited to participate in decision making and are given added responsibility. The leader allows these members some latitude in their roles; in effect, the leader and key
subordinates negotiate the latter’s responsibilities in a non-contractual exchange relationship. In essence, an in-group member is elevated to the unofficial role of “trusted lieutenant.” In-group members, in many respects, enjoy the benefits of job latitude (influence in decision making, open communications, and confidence in and consideration for the member). The subordinate typically reciprocates with greater than required expenditures of time and effort, the assumption of greater responsibility, and commitment to the success of the organization.
In contrast, members of the out-group are supervised within the narrow limits of their formal employment contract. Authority is legitimated by the implicit contract between the member and the organization. The leader will provide support, consideration, and assistance mandated by duty but will not go beyond such limits. In effect, the leader is practicing a contractual exchange with such members; they are “hired hands,” who are being influenced by legitimate authority rather than true leadership. In return, out-group members will do what they have to do and little beyond that.
Reasearch Findings:
Many of the research findings are supportive to this theory.
Research indicates that leaders do differentiate among followers and that these differences are not random.
Reasearch further suggests that a sharp distinction between the in-group and the out –group may not be desirable.
Leaders invest their resources in those they expect to perform well. In-group members have exhibites greater “ citizenship behaviors at work.
Managerial Implication:
An important implication of LMX Theory is that the quality of relationship between the leader and each group member has important job consequences. They should have as large as in –group and as small as out group as possible.
How to build high-quality LMX Relationships?
Stage 1: Meet separaetely with your employees in their initial stage to help each of you to evaluate each other motives , attitudes and potential resources to be exchanges and establish mutual role expectations.
Conclusion
The basic idea behind the leader-member exchange (LMX) theory is that leaders form two groups, an in-group and an out-group, of followers. In-group members are given greater responsibilities, more rewards, and more attention. The leader allows these members some latitude in their roles. They work within the leader’s inner circle of communication. In contrast, out-group members are outside the leader’s inner circle, receive less attention and fewer rewards, and are managed by formal rules and policies. As a result, in-group members have higher productivity, job satisfaction, motivation, and engage in more citizenship behaviors than out-group members. Therefore, leaders should develop high-quality relationships with as many subordinates as possible. Their in-group should be as large as their out-group.
