CHAPTER SIX

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CHAPTER SIX

• EXCHANGE AND RELATIONSHIP DEVELOPMENT AND
  MANAGEMENT

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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.

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Learning Objectives (contd)

• 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
  leaders impact is decreased.

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Path-Goal Theory of Leadership
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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

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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

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Attribution TheoryEmployees Are More Likely To
Be Held Responsible When

• When the employee is defensive
• When the managers success depends on the
  employees good performance

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Leader-member Exchange Model
Leader
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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

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Theoretical Overview of LMX

• Relationships develop from series of exchanges or
  interactions
• Phase 1 Role-taking
• member enters organization
• leader assesses members abilities/talents
• Phase 2 Role-making
• informal, unstructured negotiation of role
• Phase 3 Role-routinization
• social exchange pattern emerges
• becomes routine

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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

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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

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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

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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

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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

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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 ones tendency or ability to
  take the perspective (i.e., point of view) of
  another might influence the ways in which leaders
  and subordinates interact?

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Perspective-Taking II Questions

• How difficult was it for you to imagine drawing
  from your partners perspective?
• How do you think your score on the
  perspective-taking questionnaire might relate to
  your performance on this task?
• How do you think ones tendency or ability to
  take the perspective (i.e., point of view) of
  another might influence the ways in which leaders
  and subordinates interact?

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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 others perspective in depth
• Leaders and members high on these aspects may
  have higher quality LMX

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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

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Productive Use Of In-Groups (contd)

• Avoid highly differentiated groups
• Keep membership fluid and dynamic
• Maintain different in-groups for
• different activities
• Consider culture in determining
• membership

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Leadership SubstitutesFollower 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

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Leadership SubstitutesTask Characteristics

• Unambiguous tasks substitute for
• leader structuring
• Direct feedback from the task substitutes for
• leader consideration and structuring
• Challenging task substitutes for
• leader consideration

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Leadership SubstitutesOrganizational
Characteristics

• A cohesive team substitutes for
• leader consideration and structuring
• Leaders 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

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Leading ChangeThe 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

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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

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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