Organizational Characterization And Social Exchange Theories

Classical organization theory evolved during the first half of this century. It represents the merger of scientific management, bureaucratic theory, and administrative theory.

The Jake’s Pet Land case study is an example of leadership and follower situations, highlighting the key points of each role within an organization. This case is a study on how the leader-member exchange (LMX) impacts the outcomes of workplaces. According to Daft, LMX is individualized leader model that explores how the relationship between leader and follower develops over time and how the quality of the exchange relationship affects outcomes (Daft, 2015, p. 54). The LMX in many cases is the foundation an organization is built upon, because of this comes a great understanding between management and subordinates. There is a massive difference between being a manager and an effective leader, and throughout Jake’s Pet Land case study this notion is very evident.

The LMX theory helps the employer in deciding whether a strong or weak relation is present with the employees. For instance, if there are a lot of out-groups present it reflects the bad leadership qualities of the employer. This theory enables the employer to identify the bad relations and work upon them to ensure that they are made positive and helpful towards the firms ultimate goals.

Multiple-linkage model includes four variables: managerial, intervening, criterion, and situational (Yuki, 2006). This model describes “the interacting effects of managerial behavior and situational variables on the intervening variables that determine the performance of a work unit” (Yuki, 2006, p. 228). The six intervening variables are task-commitment, ability and role clarity, organization of work, cooperation and mutual respect, resources and support, and external coordination. These variables are interdependent. To maximize the effectiveness of a group, a balance of each variable is critical. A situation can affect the variables, regardless of leader involvement. A leader’s role is to correct any deficiencies.

Fiman that took a sample of female clerical and secreterial workers and their office managers within a corporate headquarters of a lage retail organization (Fiman, 1973, pg. 99). My findings support Mackey's arugument of how positive behavior reinforcement by leadership can influence the attitude and outcome of employee performance. Researcher G. Fiman found that there were strong assoications between supervisory characteristics and the level of subordinate satisfaction. Subordinates that perceive their supervisor to possess a Theory Y attitude tend to have a higher level of satisfaction (Fiman, 1973, pg.

Bass, B.M., & Avolio, B.J. (1990a). The implications of transactional and transformationalleadership for individual, team and organizational development. Research inOrganizational Change and Development, 4, 231-372Bass, B.M. (1990). Bas and Stogdill handbook on leadership. A

Similarly, middle managers exhibit transactional and transformational leadership characteristics towards their subordinates even though they report to the supervisor. Middle managers may display transactional leadership behaviors by actively monitoring the subordinates performance for any deviation from the guidelines and processes and makes corrections promptly (Bass,1990). These same middle managers may display transformational leadership behaviors by setting goals to challenge subordinates and empowering them by offering words of encouragement to instill confidence in them (Harms & Credé,

Leader-member exchange (LMX) theory, and distributive leadership theory are new leadership theories. LMX focuses on the relationship of the leader and the follower and how this impacts individual and organizational performance (Duncan & Herrera, 2014). Distributive leadership theory promoted sharing leadership across teams and locations by driving cross-functional alignment to common organizational strategy and goals (Jones, Lefoe, Harvey, & Ryland, 2012). This paper compares and contrasts distributive leadership and leader-member exchange methods, reviews both in relation to large multinational corporations as well as small businesses, and implications for diverse organizations to consider when adopting LMX and distributed leadership.

As employees, active involvement is necessary between the managers. Employees should be as much engaged in accountability for job performance and moving the PM process. Managers should be effectively providing a “clear and reasonably accurate picture of their actual performance and areas where they can improve.” (Murray, n.d.) Because the relationship established between the employee and the manager determines how the employee engages in the organization, it is important that the manager continually motivates the employee by knowing what goals and values are important to the employee. The manager should encourages the employee to be responsible to for goals that are established personally, and keep a good relationship, while understanding that the process of PM is more important than the output. Mangers should always ensure that employees are being encouraged to excel and take ownership of responsibilities assigned.

V , 2008). Leaders can emerge within a group and it may not always be the manager, as some people are natural leaders and lead the group in a certain direction due to their specific talents. However, as Robert House, 1968, said “it is found that leadership training can have undesirable consequences for group cohesiveness, superior-subordinate relations, intergroup relations & the formal authority system.” A manager is known to be someone that everyone must obey where as following a leader is through choice. Managers may have obtained their position through time or loyalty to the company and not for their leadership skills. “Organizational environments are becoming increasingly complex, dynamic and interdependent. As it is difficult for managers to detect, interpret and handle these challenges all by themselves, employees have been recognized as an invaluable source of comments and suggestions for addressing and solving work critical problems and issues.” (Gao, L, Janssen, O, Shi, K. 2011). As a manager has many different managerial functions these can be dispatched amongst employees, the workload is therefore shared amongst employees and a shared responsibility of meeting performance targets, showing that you do not need managers to produce good management.

LMX deals with the ways in which the leader-subordinate relationship affects the leadership process. The relationship between the leader-subordinate pair, which is referred to as a dyad, is considered separately for each pair, because leaders behave differently with each subordinate.

The study of LMX has been theoretically based on the premise that leaders form different quality of relationships among their subordinates (Liden et al., 2006). For instance, the different quality of LMX created by leaders’ implementation of a social exchange framework is founded on the LMX role-making model (Graen & Cashman, 1975; Graen & Uhl-Bien, 1995). Leaders have strong motivations to establish the range of varying quality relationships because leaders’ have time constraints. Therefore, leaders develop from lower to higher quality relationship with their subordinates quickly (Liden & Graen, 1980; Bauer & Gree, 1996; Liden et al., 1993). Previous research findings show the positive relationships between the quality of LMX and subordinates’ performance such as task performance, job satisfaction, and organization citizenship behaviors (Gerstner & Day,1997; Ilies, Nahrgang, & Morgeson, 2007; Zhang, Wang, & Shi, 2012). Additionally, high quality of LMX, in turn, influence on multilevel outcomes including subordinates, leaders themselves, group, and organizational performance outcomes (Liden et al., 2006, Henderson et al., 2008, Wilson et al., 2010).

Abstract: The objectives of this paper is to: (I) examine the underlying issues of poor performers in organizations and to better understand the causal relationship between leadership style and subordinate performance; (ii) to explore the perceptions of how bosses and subordinates mutually influence each other 's behavior; and (iii) it is intended to heighten the readers’ awareness on some of the issues and problems that can cause poor performance. The

“Research has also shown that the key relationship in the workplace is between an individual employee and their immediate line manager and that it is the line manager who has the greatest impact on the motivation and performance of employees”.("Workplace Snippets | Workplace Stress Tops Absence League | Acas").

Organisation usually develops standard behaviour settings that differentiate its members from other organisations. Organisational Culture (O.C) is defined as fundamental design of values and hypothesis that manage how employees in an organisation behave when dealing with complications and prospects thus forming a basis of socio-psychological atmosphere in an organisation. These Standards pave the way for social and conceptual environment of an organization. It is centred on mutual outlooks, principles, duties, and recorded and unrecorded guidelines established over time and are reflected in the organisation’s activities. (Smith & Dugan, 1996).Original Values and beliefs are guidelines which function underneath the