1. Leadership Theory, Application, Skill Development 1st Edition Robert N. Lussier and Christopher F. Achua Chapter 7 Power Points Adapted by: Dr. Jeffrey Wachtel, AUST

2. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Chapter 7 Dyadic Relationships: Leader- Member Exchange Theory Followership Delegation Adapted by Dr. Jeffrey M. Wachtel 6-1

3. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Chapter 7 Learning Objectives 4 Stages of development / dyadic approach. Vertical linkage model relationships. Team building view / dyadic approach. Systems and networks view / dyadic approach. LMX-7 Cycle leading to Pygmalion effect. 3 Follower influencing characteristics. 5 Things a leader should delegate. 6-2

4. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Dyadic: Dyad is a Group of Two People Dyadic Relationships: The relationship between a leader and each follower in a work unit. 6-3

5. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Dyadic Theory or Leader Member Exchange Theory (LMX) :Graen and Scandura Explains why leaders vary their behavior with different followers. 6-4

6. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Vertical Dyad Linkage Theory: A Theory about Followers and the Boss Personal leader-subordinate interactions creating two groups of followers: those in the “in-group” and those in the “out-group.” Depends on personal compatibility, subordinate competence and/or extroverted personality.

7. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Dyadic Approach: Stages of Development Vertical-Dyad Linkage Theory Vertical-Dyad Linkage Theory Leader-Member Exchange Leader-Member Exchange Team Building Systems and Networks Systems and Networks Individualized leader-subordinate interactions creating in-groups and out-groups. Focus is on the quality of each dyad and its effects on organizational outcomes over time. Leaderships can aspire to build positive relationships with all subordinates, not just chosen few. Creating positive dyadic relationships across traditional boundaries to include a larger network. 6-5

8. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Vertical Dyad Linkage (VDL) Theory In-groupIn-group...those subordinates with strong social ties to their leader in a people oriented style. High Interaction. High Trust Out-groupOut-group...those subordinates with little or no social ties to their leader, a strictly task oriented relationship. Formal 6-6

9. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Dyadic Theory Team Building Effective leaders should aspire to establish relationships with all members, not just a few special individuals. 6-7

10. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Dyadic Approach Systems & Network View Leader relationships are not limited to employees, but include peers, customers, suppliers, and other relevant stakeholders in the broader community. 6-8

11. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing High Quality LMX Relationships Characterized by greater levels of loyalty, commitment, respect, affection, mutual trust, and possibly mutual liking between leaders and members. 6-9

12. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing LMX -7 Scale: Do P. 224, Exercise 7-1 How would you characterize your working relationship with your leader? (Extremely Ineffective, Worse than Average, Average, Better than Average, Extremely effective) 10..........20..........30..........40..........50 High Quality: In Group Low Quality: Out Group 6-10

13. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Experiential Exercise in building positive LMX We are now going to do an exercise in improving dyadic relationships. Leading a team depends on positive dyadic relationships Feedback Sessions: 5 minutes and then change to a new person. One on One and in private. Each person tells the other 1. What they appreciate about the other person and 2. What they need (i.e., what they would like to see the other person do differently) from the other person?

14. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Followership and LMX Follower behavior affects the exchange relationship: In-Group followers are more supportive of their leader, attempt to pressure their leader less and have more open communication.

15. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Pygmalion Effect Occurs when selected subordinates demonstrate loyalty, commitment, dedication, and trust and as a result, win the liking of superiors who subsequently give them higher performance ratings. Discrimination against out-group? 6-11

16. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Followership Styles: See Figure 7-2 p. 235 Effective Follower Conformist Follower Passive Follower Alienated Follower

17. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Recommendations for Effective Followership Fig. 7-3, p. 237 Do Exercise 7-4 p. 236 Discuss Fig. 7-3, p. 237

18. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Follower Key Influencing Characteristics Power Position Locus of Control Education and Experience 6-12

19. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Video Case: Labelle Management What does career management at Labelle have to do with LMX Theory? How do you think Labelle’s giving a training bonus to managers who develop others affects dyadic relationships?

20. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Tasks with DevelopmentalPotential TechnicalMatters Solving Employee’s Problems Routine Tasks Paperwork What To Delegate Delegate 6-13

21. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing HOW TO DELEGATE 1.Tell what the job/task is and why the job you are delegating is important. 2.Define the results that you want. 3.Define the authority the associate has to assist them in doing the task. 4.Agree on a deadline. 5.Ask the associate to repeat what he or she understands about the delegation. This step assures two way communication and mutual understanding. 6.Set up controls. Tell the associate when you will check back to see how they are progressing.

22. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing Delegation Video and Role Play Watch the video. Read Situation 3 on p. 256 Plan by writing out what you will say to the secretary for each delegation step. In dyads each person role plays.

23. Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing W. L. Gore & Associates Case What are the facts of the case? Questions: p. 253