Leader-Management-Exchange (LMX) Coursework Example | Topics and Well Written Essays - 2000 words

Leader-Management-Exchange (LMX) - Coursework Example   However, since these leaders do not have much time and power on their hands, they seek to narrow down their radar to focus their attention on those members who seem to capitalize on the leadership outcome that is the extent of the relationship. The theories prior to the leader-member-exchange theory either focused too much on the leader or on the members. The LMX, on the other hand, has a different approach, whereby it considers the relationship between the leaders and the members as an important element that contributes to leader effectiveness. Also unlike other theories that considered the entire group of members as a whole, the LMX judges each individual separately. According to the dealings and agreements between the members and the leaders, the theory identifies two different types of relationships. The two distinct relationships that are found after application of the LMX include the in-group and the out-group. There is a set of people within the members' group that tend to go further than and achieve more than what their expected roles would limit them to, this set of people also take up a more productive and comprehensive approach to the tasks they need to complete. This set of people makes up the in-group that is shown as the high quality of the LMX with positive results. Characteristics of the in-group consist of negotiations by the members to develop and increase their role ahead of their job prescriptions, mutual trust, respect and concern between the leaders and the members.... The out-group is formed by the set of members who work hard enough, only to complete the contractual requirements of their job prescriptions, nothing more. There is a low degree of enthusiasm compared to the in-group and they do not receive any form of special attention from the leaders, nor any additional perks or promotions. Even though the leader tries to better the degree of interaction, the out-group member does not show much interest and remains self-concerned. Therefore, the out-group is a low quality LMX and provides average level outcomes. It is argued that the existence of these two unique groups is somewhat discriminating and de-motivating, however they will continue to exist and the leader must constantly make an effort to expand the in-group of the organization. The quality of outcomes that the LMX is able to provide is under effect of several factors that may enhance it if controlled properly, however, if these factors are left casually undecided, they may very well res ult in average or possible less than average LMX outcome. Communication plays an important element in deciding the quality of the LMX. Individual interaction and communication with the leaders and the coworkers allows for a sense of belonging for the subordinates to build, making them feel like a significant part of the organization that matters. This results in a high quality LMX. When the leader of a group has authority that reaches higher on the ladder of an organization enabling him/her to have a good say in managerial decisions, task assignment and performance review, the members tend to be more motivated and confident, eventually leading to a good LMX. Sometimes