1. Leadership Theories
Andrea Reger

2. Theories Trait Approach Skills Approach Style Approach
Situational Approach
Contingency Theory
Path-Goal Theory
Leader Member Exchange
Transformational
Transactional
Team Leadership

3. Leader Member Exchange

4. Leader Member Exchange Theory (LMX)
Leadership is a process that is centered on the interactions between leaders and followers.
LMX makes the dyadic relationship between leaders and followers the focal point of the leadership process.
Focus is also placed on the differences that might exist between the leader and each of his or her followers – the leader can not treat all the followers the same.

5. Leader Member Exchange

6. LMX
Two kinds of relationships that each follower falls into based on how well they work with the leader and how well the leader works with them. Personality and other personal characteristics are also related to this process.
In groups – based on expanded and negotiated role responsibilities. Followers go far beyond their formal job description, and the leader in turn does more for these followers.
Out group – based on the formal employment contract. Followers are not interested in taking on new and different job responsibilities.

7. Leader Member Exchange
In-Group
more information, influence, confidence & concern from Leader
more dependable, highly involved & communicative than out-group S S
Out-Group
In-Group S
Leader S S S S S S S
Out-Group
less compatible with Leader
usually just come to work, do their job & go home S S S
Subordinate

8. LMX
Researchers found that high quality leader member exchanges produced less employee turnover, more positive performance evaluations, higher frequency of promotions, greater organizational commitment, more desirable work assignments, better job attitudes, more attention and support from the leader, greater participation, and faster career progress over 25 years.
When leaders and followers have good exchanges, they feel better, accomplish more, and the organization prospers.

9. LMX

10. Stranger Acquaintance Mature Partnership
Interactions within the leader-subordinate dyad are generally rule bound
Rely on contractual relationships
Relate to each other within prescribed organizational roles
Experience lower quality exchanges
Motives of subordinate directed toward self-interest rather than good of the group
Acquaintance
Begins with an “offer” by leader/subordinate for improved career-oriented social exchanges
Testing period for both, assessing whether
the subordinate is interested in taking on new roles
leader is willing to provide new challenges
Shift in dyad from formalized interactions to new ways of relating
Quality of exchanges improve along with greater trust & respect
Less focus on self-interest, more on goals of the group
Mature Partnership
Marked by high-quality leader-member exchanges
Experience high degree of mutual trust, respect, and obligation toward each other
Tested relationship and found it dependable
High degree of reciprocity between leaders and subordinates
May depend on each other for favors and special assistance
Highly developed patterns of relating that produce positive
outcomes for both themselves & the organization

11. Leader Member Exchange
Strengths
It makes sense by describing work in terms of those who contribute more and those who do the bare minimum.
Unique because it is the only theory to identify the dyadic relationship. Effective leader member exchanges are important
Notes the importance of communication in leadership
Reminds leaders to be fair about who they let into the in group – this is based on work performance not race, sex, ethnicity, religion, etc
Large amount of research supports this theory

12. Leader Member Exchange
Weakness
On the surface this theory doesn’t seem “fair” because it does not treat everyone equally. Also can support the development of privileged groups in the work place.
The basic ideas of the theory are not fully developed. Fails to explain how high quality exchanges are created.
No part of the research uses dyadic measures to analyze the LMX process

13. Transformational Leadership

14. Transformational Leadership
A process that changes and transforms people. It is concerned with emotions, values, ethics, standards and long term goals and includes assessing followers motives, satisfying their needs, and treating them as full human beings.
Incorporates charismatic and visionary leadership and though the leader plays a pivotal role in precipitation change, followers and leaders are inextricably bound together in the transformation process.
The process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower.

15. Transformational Leadership
It describes how leaders can initiate, develop and carry out significant changes in organizations.
Rather than being a model that tells leaders what to do, transformational leadership provides a broad set of generalizations of what is typical of leaders who are transforming or who work in transforming contexts
Provides a general way of thinking about leadership that emphasized ideals, inspiration, innovation and individual concerns.

16. Transformational Leadership
Charisma
A special personality characteristic that gives a person superhuman or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader.
Charismatic leaders act in unique ways that have specific charismatic effects on their followers

17. Personality Characteristics, Behaviors, and Effects of Followers of Charismatic Leadership

18. Transformational Leadership Factors The Four I’s
Idealized Influence- describes leaders who act as strong role models for followers. Followers identify with these leaders and want very much to emulate them
Inspirational Motivation- leaders who communicate high expectations to followers and inspire them through motivation to become committed to and a part of the shared vision
Intellectual Stimulation- leadership that stimulates followers to be creative and innovative and to challenge their own beliefs and values as well as those of the leader
Individual consideration- leaders who provide a supportive climate in which they listen carefully to the individual needs of the followers

19. Transformational Leadership
Bennis and Nanus research
Leaders had a clear vision of the future state of their organizations
Leaders were social architects for their organizations
Leaders created trust in their organizations by making their own positions clearly known and then standing by them
Leaders used creative deployment of self through positive self-regard

20. Multifactor Leadership Questionnaire
Not at all once in while sometimes Fairly Often Frequently
Idealized influence (attributes) I go beyond self interest for the good of the group ___
Idealized influence (behaviors) I consider the moral and ethical consequences of decisions ____
Inspirational motivation I talk optimistically about the future ____
Intellectual stimulation I re-examine critical assumptions to question whether they are appropriate ____
Individualized consideration I help others to develop their strengths ____
(Also used comparisons to transactional leadership and passive avoidant leadership styles)

21. Transformational Leadership
Pros
It has been widely researched since 1970’s
It has an intuitive appeal (consistent with society’s popular notion of what leadership means)
It treats leadership as a process that occurs between followers and leaders
It provides a broader view of leadership that augments other leadership models
It places a strong emphasis on followers needs, values, and morals
Evidence supports this theory – it does work!

22. Transformational Leadership
Cons
- lacks clarity – it is difficult to define the parameters
Difficult to measure. Idealized influence, inspirational motivation, intellectual stimulation and individualized consideration are all similar and can be hard to make distinct from each other
Transformational leadership can be seen as a personality trait or personal disposition rather than a behavior in which people can be instructed
It is elitist and antidemocratic because it gives the impression that the leader is acting independently of the followers
It has the potential to be abused
It only works in situations that require change! This may not work in an organization that is not open for a tranformation.

23. References
Northouse, P.G. (2007) Leadership Theory and Practice. Sage Publications, Inc. Thousand Oaks, CA.