Sunday, November 18, 2018

A640.5.2.RB_BorutyAlan_Leader-Member Exchange Theory of Leadership


Leader-Member Exchange Theory of Leadership

Why are individuals willing to work harder than required for leaders that invest in high-quality relationships with them?
Simply stated, leaders that invest in high-quality relationships with subordinates expect more from those individuals than they do others.  Further, by working harder than required, individuals receive benefits that others do not.  On the surface, these relationships resemble ‘good ole boy’ or ‘scratch my back and I will scratch yours’ agreements.  In fact, individuals that have a high-quality relationship with the leader are considered to be part of the in-group.  Indeed, this is a major criticism of the leader-member exchange theory of leadership (Dunaetz, 2015).
However, this is not the intent of the theory.  These high-quality relationships run deeper than appearance would suggest.  They form as a result of the interactions between the leader and an individual and are marked by mutual trust, respect, liking, and reciprocal influence (Rowe and Guerrero, 2018).  While every subordinate has the opportunity to make it to the leader’s in-group, not all exchanges are equal and some are not in-group quality.  Those subordinates become part of the out-group.
Rowe and Guerrero (2018) go on to clarify, “in-group relationships develop when leaders and followers negotiate that followers do more than required by their job description, and the leaders provide more than that required by the formal hierarchy” (p. 122).  Leaders give in-group members more responsibilities, more say in decisions, better jobs, more rewards, and more support for career advancement (Rowe and Gurrero, 2018).  Therefore, in-group subordinates are the individuals in an organization with high leadership and promotion potential.  So, to finally answer the prompt question, individuals that have high-quality relationships with the leader will work harder than required so as not to fall out of the leader’s favor and find themselves among the out-group. 
Would you be willing to work harder than required for someone like that and under what conditions?
My simple answer to this question is yes, I would.  However, this is not a simple question.  Therefore, I feel I must qualify my answer.  Having been a member of an in-group and an out-group at different points in my career, there are truths that I learned and can share about each.  First, while in-groups and out-groups are not announced or recognized by the organization, they do exist and they are real.  Second, everyone in the organization knows who is in which group.  Third, the groups create different classes of people in the organization.  Fourth, impressions are based on these classifications placing a stigma on the lower-class out-group members.  Fifth, once one is relegated to the out-group, finding their way into the in-group is extremely difficult, if not impossible. 
There are people that are content being in the out-group.  They are the ones that have not set goals for their career.  They are the ones that have not had a leader take an interest in them and discuss their career in terms of opportunity, goals, and accomplishment.  Perhaps they were nervous and did not make a good first impression with the leader and fell victim to expectations lower than their abilities (Rowe and Guerrero, 2018).  For whatever reason, they find it easier to do what is expected and nothing more, than it is to get the leader’s attention.  It is an unfortunate loss of organizational potential, but these people do exist.  However, most people in the out-group have greater aspirations and, for a while, they will work hard and do whatever they believe is necessary to be accepted into the in-group.  Time is of the essence though because everyone has a breaking point. 
In my case, I can honestly say that I worked harder and longer doing the jobs no one else wanted to do to demonstrate my worthiness to a leader that really did not care, than I ever did as an in-group member exceeding a leader’s expectations.   When I finally succeeded and found myself in the in-group, I resented the leader for his arrogance and never got past it. 
This explains the simple answer I provided earlier.  My easiest day trying to work my way out of the out-group and gain the acceptance of the leader who had previously rejected me was exponentially harder than the hardest day I ever worked exceeding the expectations of a leader that already accepted me.
What are some of the implications of being a member of the in-group? out-group? 
The things I have discussed are not the intent of the leader-member exchange theory of leadership, but they are reality within the organization.  When leaders only form high-quality relationships with a few select people, in-groups are the natural result.  If one is not in the in-group, then there must be an out-group.  The creation of these groups or even the perception that these groups exist is where the problems with the theory begin. 
There are implications for members of the in-group.  Everyone else will see them as ‘the chosen ones’ or as receiving preferential treatment.  Additionally, expectations of in-group members could become unrealistic.  Finally, they could begin to see themselves as better than others or give others that impression.
I have already mentioned several implications for out-group members, and will summarize here.  Out-group members may be seen as lower-class members or be put in a situation in which they cannot succeed.  The leader’s rejection could create a sort self-fulfilling prophecy resulting in even lower performance.  Finally, out-group members can be stigmatized unfairly and permanently. 
The implication for the organization is simple: low morale, in-fighting, and poor performance.
Rowe and Guerrero (2018) assert that in-group relationships result in responsibility, good jobs, rewards, and career advancement where out-group relationships include formal communications focused on job descriptions.  In-group members grow as a result of their relationships with the leader.  Out-group members stagnate as a result of their relationship with the leader.
Leader-member exchange theory is based on having high-quality exchanges between the leader and an individual.  The more high-quality relationships the leader can develop the better the organization will perform.  The existence of in-groups and out-groups is inconsistent with the theory.  The mere presence of an out-group implies that performance is not as effective as it should be.  Leaders cannot form high-quality relationships with a select few and expect to achieve organizational effectiveness, they must strive to form high quality relationships with all their subordinates and succeed.  Only then can the leader-member exchange theory of leadership improve organizational effectiveness (Rowe and Guerrero, 2018).
~Pete
References

Dunaetz, D. (2015, July 12). Leader-Member Exchange Theory: Northouse 7 ed. Ch. 7. Retrieved from https://www.youtube.com/watch?v=Z2kxaiDVFso

Rowe, W.G. & Guerrero, L. (2018). Cases in leadership (5th ed.). Thousand Oaks, CA: Sage Publications, Inc



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