LMX Theory Paper

Decent Essays
Upon reading Case 7.3, Jim Madison, Social Security Administration district office manager, engage with all 30 staff in an in-group/out-group manner. Northouse (2015), stated LMX theory works in two capacities: describing and prescribing leadership. The main concept dyadic relationship, is that leaders form relationships with each of their followers (Northouse, 2015). The theory suggest that it is important for the leader to recognize the existence of in- and out-groups within an organization (Northouse, 2015). According to Leadership making, this is an approach that emphasize leaders should develop high-quality exchanges with all followers, and not just a select few within the organization (Northouse, 2105). Leadership making encourages trusts amongst leaders to attempt building effective dyads with all followers within the organization (Northouse, 2015). Leadership making develops over a course of three phases: Stranger Phase, Acquaintance Phase, and Mature Phase.
During the first phase, the follower dyad is normally rule bound with heavy emphasis on contractual relationships (Northouse, 2015). The leader-member
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Northouse (2015) stated during this phase leader-members are seeking an improved career-oriented social exchange that provides additional resources and personal related information. During this phase, the leader-member determines whether the follower would be interested in assuming additional roles and responsibilities within the organization (Northouse, 2015). In addition, relationship dyads move towards new ways of relating to one another within the organization (Northouse, 2015). At the acquaintance phase, the quality exchange between leader-member is medium. The leader-member has developed a substantial amount of trust and respect for one another, with a focus less on their own interest and more purpose driven goals relating to the organization (Northouse,
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