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CHAPTER SIX. EXCHANGE AND RELATIONSHIP DEVELOPMENT AND MANAGEMENT. Learning Objectives. Explain the key role of relationship development and management in effective leadership and use the concepts in improving leadership effectiveness.

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chapter six

CHAPTER SIX

EXCHANGE AND RELATIONSHIP DEVELOPMENT AND MANAGEMENT

learning objectives
Learning Objectives
  • Explain the key role of relationship development and management in effective leadership and use the concepts in improving leadership effectiveness.
  • Discuss the Path-Goal Theory of leadership and explain the role of the leader in removing obstacles in followers’ paths.
  • Understand the role of attribution in the relationship between leaders and followers and how it can be used to manage relationships.
learning objectives cont d
Learning Objectives (cont’d)

4. Present the Leader-Member Exchange Theory of leadership and clarify how the creation of in-groups and out-groups affects the leadership process.

5. Summarize the impact of leadership substitutes and identify situations in which the leader’s impact is decreased.

path goal theory of leadership

Leader

structuring and

consideration

  • Leader’s Actions:
  • Focus on obstacle
  • removal
  • Become comfortable
  • with both task and
  • consideration behaviors
  • Understand followers’
  • perception

Effectiveness:

Employee

satisfaction and

motivation

  • Situational
  • contingencies:
  • Task structure
  • Employee need
  • for autonomy
Path-Goal Theory of Leadership
managerial implications based on path goal theory
Managerial Implications BasedOn Path-Goal Theory
  • Leaders must understand their followers’ perception of the task
  • Leaders must take their followers’ need for

challenge and autonomy into account

  • When followers need challenge or the task is

challenging, leaders must avoid being directive

  • When the task is routine, boring, or stressful, leaders must be supportive to motivate their followers
attribution theory employees are more likely to be held responsible when
Attribution TheoryEmployees Are More Likely To Be Held Responsible When:
  • The consequences of their actions are severe
  • When they have a mediocre track record in other similar situations
  • When other employees are successful in similar situations
attribution theory employees are more likely to be held responsible when7
Attribution TheoryEmployees Are More Likely To Be Held Responsible When:
  • When the employee is defensive
  • When the manager’s success depends on the employee’s good performance
leader member exchange model

Out-group

In-Group

F

F

F

F

F

F

F

F

F

F

F

F

F

Follower

Leader-member Exchange Model

Leader

leader member exchanges
Leader-Member Exchanges
  • Leaders develop relationships with each member of work group
  • High quality relationship
    • member is part of “in-group”
    • more responsibility, higher satisfaction
  • Low quality relationship
    • member is part of “out-group”
    • less responsibility, lower satisfaction
theoretical overview of lmx
Theoretical Overview of LMX
  • Relationships develop from series of exchanges or interactions
  • Phase 1: Role-taking
    • member enters organization
    • leader assesses member’s abilities/talents
  • Phase 2: Role-making
    • informal, unstructured negotiation of role
  • Phase 3: Role-routinization
    • social exchange pattern emerges
    • becomes routine
precursors of lmx
Precursors of LMX
  • Member attributes influence relationship
    • extroversion
    • abilities
    • ingratiation behaviors
  • Leader provides social support
  • Affective responses influence relationship
    • perceived similarity
    • attraction
      • leads to increased interaction
    • trust
outcomes of lmx
Outcomes of LMX
  • Job satisfaction
  • Organizational commitment
  • Moderated/affected by other factors
    • type of task matters
      • level of challenge
    • situational factors
      • size of group
      • workload
      • financial resources
gender fairness and lmx
Gender/Fairness and LMX
  • Gender differences influence interactions
  • Mixed gender relationships
    • supervisors rate performance lower
    • supervisors report liking subordinate less
    • subordinates experience greater role ambiguity
  • Opposite true in same gender relationships
gender fairness and lmx process phases
Gender/Fairness and LMX Process Phases
  • 1: Role-taking - mutual respect essential
    • men and women define respect differently
    • social categorizing and stereotyping
  • 2: Role-making - trust develops
    • single violation may destroy relationship
    • violations reinforce negative stereotypes
  • 3: Role-routinization - mutual obligation
    • gender/fairness issues resolved by this phase
perspective taking
Perspective-Taking
  • Ability to “read” leader or member important in LMX
  • Use role-taking skills to entertain the point of view of another
  • Associated with empathy, reasonableness, and sensitivity
  • Negatively associated with aggressiveness and sarcasm
perspective taking i questions
Perspective-Taking I Questions
  • When you were drawing, did you draw toward yourself or toward your partner?
  • How do you think your score on the perspective-taking questionnaire might relate to your performance on this task?
  • How do you think one’s tendency or ability to take the perspective (i.e., point of view) of another might influence the ways in which leaders and subordinates interact?
perspective taking ii questions
Perspective-Taking II Questions
  • How difficult was it for you to imagine drawing from your partner’s perspective?
  • How do you think your score on the perspective-taking questionnaire might relate to your performance on this task?
  • How do you think one’s tendency or ability to take the perspective (i.e., point of view) of another might influence the ways in which leaders and subordinates interact?
perspective taking wrap up
Perspective-Taking Wrap-up
  • 3 role-taking aspects related to perspective-taking
    • accurate in ability to perceive how others understand and respond to world
    • can view situations from many perspectives
    • able to perceive other’s perspective in depth
  • Leaders and members high on these aspects may have higher quality LMX
productive use of in groups
Productive Use Of In-Groups

In order to use in-groups effectively, leaders should:

  • Base in-group membership on current

performance and/or future potential

  • Review criteria for in-group membership
  • Assign tasks to those with best skills
  • Set clear performance-related guidelines for in- group membership
productive use of in groups cont d
Productive Use Of In-Groups (cont’d)
  • Avoid highly differentiated groups
  • Keep membership fluid and dynamic
  • Maintain different in-groups for

different activities

  • Consider culture in determining

membership

leadership substitutes follower characteristics
Leadership Substitutes:Follower Characteristics
  • Experience and training substitute for

leader structuring

  • Professionalism substitutes for

leader consideration and structuring

  • Lack of value for goals neutralizes

leader consideration and structuring

leadership substitutes task characteristics
Leadership Substitutes:Task Characteristics
  • Unambiguous tasks substitute for

leader structuring

  • Direct feedback from the task substitutes for

leader consideration and structuring

  • Challenging task substitutes for

leader consideration

leadership substitutes organizational characteristics
Leadership Substitutes:Organizational Characteristics
  • A cohesive team substitutes for

leader consideration and structuring

  • Leader’s lack of power neutralizes

leader consideration and structuring

  • Standardization and formalization substitute

for leader structuring

  • Organizational rigidity neutralizes leader

structuring

  • Physical distance neutralizes leader

consideration and structuring

leading change the medtronic way
Leading Change:The Medtronic Way
  • Company built on compassion and service to inside and outside constituents
  • Former President, Bill George, focused on balance
  • Provide employees with means to successfully balance their work and life
leadership in action the caring navy commander
Leadership In Action: The Caring Navy Commander
  • Focus on removing obstacles for the crew
  • Willingness to listen and change
  • Use of participation as a way of getting the job done
  • Reliance on referent power rather than only legitimate and reward and punishment
  • Creates situations that serve as substitutes for leadership
the leadership challenge
The Leadership Challenge
  • India is vertical collectivistic and ascriptive
  • Office manager acting in accordance with his culture
  • Carefully evaluate the consequences of not hiring the “cousin”
  • In-groups are formed differently in different cultures