What is Leader-Member Exchange Theory? And Should You Use LMX Theory?

Leader-Member Exchange Theory is deeply problematic. In fact, I don’t like it. But it may be a model you want to adopt. It is certainly a theory you need to understand, so you can avoid its Dark Side.
Watching this video is worth 3 Management Courses CPD Points.
See below for details
Introduction to Leadership
Program 3: Managing and Leading Individuals
Course 11: Leadership
Section 1: Introduction to Leadership
Other videos in our Introduction to Leadership:
What is Leadership? and Why do We Need Leaders?
https://youtu.be/IMakEudu168
The Leadership Skillset: What Every Leader Needs to be Able to Do
https://youtu.be/W4Ucw017y-4
Leadership Attitudes: How to Approach Things Like a Leader
https://youtu.be/Pg9zH135WNQ
10-Step Leadership Process: A Simple Model for How to Lead
https://youtu.be/H8WDlf_0ov8
https://youtu.be/ctRgloq3BYY
Leadership Traits, Roles, and Styles: Three Types of Leadership Model
https://youtu.be/5Ya584RTHwo
LESSON NOTES
Simple definition: ‘Favorites, but for the right reason’.
Leader–member exchange (LMX) theory suggests that leaders and followers develop unique relationships based on their social interactions, and the quality of these exchanges can influence outcomes.
How LMX Theory ‘Should’ Work
Stage 1: Role Taking
Stage 2: Role Making
Stage 3: Role Committing
How it Can Work (The Dark Side)
Characterization of follower potential can be riddled with bias. Leaders may favor followers who are:
• Like them
• Compliant
• Visible
• Obsequious
• …or worse
In-group and Out-group
The big problem is that LMX creates in-groups and out-groups.
Using LMX to Fix Problems
1. Identify Out-Group Members
2. Re-establish the Relationship
3. Look for Opportunities to Develop Them
RECOMMENDED EXERCISE
What is your assessment of LMX Theory?
1. Argue for its strengths and benefits (2 MC CPD Points)
2. Now argue for its weaknesses and dangers (2 MC CPD Points)
3. Last, sum up with an overall assessment (2 MC CPD Points)
DOWNLOADS
Free Resources
CPD Tools - https://gum.co/MC-CPD
Paid resources
Management Courses Onboarding Kit - https://gum.co/MC-ObK ($3)
RECOMMENDED READING
There are a vast number of Leadership books - perhaps more than on any other management-related topic. And there is also a huge range represented in different lists of the best. This no-doubt reflects the different contexts for leadership.
So, any recommended reading list of leadership books must be particularly subjective. I have chosen those that made me think, and which are of particular value to managerial leaders: not sportspeople, military leaders, or CEOs. In no particular order:
Leaders Eat Last
https://geni.us/ZIawP8Y
Start with Why
https://geni.us/D8ZSs
Humble Leadership
https://geni.us/KMuCl
The Leadership Challenge
https://geni.us/nyQ3
The New Leaders
https://geni.us/5ziIw
Shackleton's Way
https://geni.us/Oicsj
Why should Anyone be Led by You
https://geni.us/xugbBk1
The Habit of Excellence
https://geni.us/VIz8Z
Links to our book recommendations are affiliated through Amazon and help support our free videos
Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)
MANAGEMENT COURSES CONTINUING PROFESSIONAL DEVELOPMENT (CPD) POINTS
You can record your Management Courses CPD points on our free, downloadable CPD record log.
Download it at: https://gum.co/MC-CPD
Each video has two levels of MC CPD points. For this video:
- If you simply watched the video, record 3 MC CPD points
- If you also carried out all of the recommended exercises, score a total of 9 MC CPD points
CHAPTER MARKERS
00:00 - Leader-Member Exchange Theory - LMX Theory
00:26 - Favorites for the right reason
00:56 - The basics of LMX Theory
01:16 - How LMX Theory ‘should’ work
03:59 - How LMX Theory can go wrong
05:39 - Using LMX Theory to fix problems
08:34 - Summing-up LMX Theory
#ManagementCourses #Leadership #LMX