Transactional Leadership

Leader-Member Exchange (LMX) Theory Description Member Exchange Theory, also called LMX or Vertical Dyad Linkage Theory, describes how leaders in groups maintain their position through a series of tacit exchange agreements with their members.

The Exchange In-group and out-group leaders often have a special relationship with an inner circle of trusted lieutenants, assistants and advisors, to whom they give high levels of responsibility, decision influence, and access to resources. This in-group pay for their position. They work harder, are more committed to task objectives, and share more administrative duties. They are also expected to be fully committed and loyal to their leader. The out-group, on the other hand, are given low levels of choice or influence. This also puts constraints upon the leader. They have to nurture the relationship with their inner circle whilst balancing giving them power with ensuring they do not have enough to strike out on their own.

Three Stages 1. Role taking - Leader assesses member abilities and talents and there is discovery by both parties of how the other likes to be respected. 2. Role making - Negotiation whereby a role is created and any felt betrayal, especially by the leader, can result in the member being relegated to the out-group. A member who is similar to the leader in various ways is more likely to succeed.similar 3. Routinization - In this phase, a pattern of ongoing social exchange between the leader and the member becomes established.

So what? Using it When you join a team, work hard to also join the inner circle. Take on more than your share of administrative and other tasks. Demonstrate unswerving loyalty. See your leader's point of view. Be reasonable and supportive in your challenges to them, and pick your moments carefully. As a leader, pick your inner circle with care. Reward them for their loyalty and hard work, whilst being careful about maintaining commitment of other people. Defending If you want to be an 'ordinary' member of a team, play your part carefully. There will be others with more power. If you want to lead an equal team, beware of those who curry favor.

Social Exchange Theory Description All relationships have give and take, although the balance of this exchange is not always equal. Social Exchange theory explains how we feel about a relationship with another person as depending on our perceptions of: The balance between what we put into the relationship and what we get out of it. The kind of relationship we deserve. The chances of having a better relationship with someone else. In deciding what is fair, we develop a comparison level against which we compare the give/take ratio.

So what? Using it When you want to ask something else for something, make sure the balance of exchange is in your favor. You can also work on their perception of how exchanges happen within your relationship. Defending When people call in favors, think about what kind of exchange relationship you have with them and whether this is reasonable.

Equity Theory Description People are happiest in relationships where the give and take are about equal. If one person is getting too little from the relationship, then not only are they going to be unhappy with this—the person getting the lion’s share will also be feeling rather guilty about this imbalance. Overall, though, it is still better to be getting more than less— although you could feel better about the relationship, the benefits you get from it can buy you compensatory happiness elsewhere. Equity Theory is also called Inequity Theory

So what? Using it Discussion: What’s likely to happen if there is perceived inequity? Defending If you are getting what you want from a relationship, resist attempts to change the balance.

Social Comparison Theory Description We learn about our own abilities and attitudes by comparing ourselves with other people and their opinions. Mostly, we seek to compare ourselves with someone against whom we believe we should have reasonable similarity. Upward social comparison occurs where we mostly compare ourselves with people who we deem to be socially better than us in some way. Downward social comparison acts in the opposite direction.

So what? Let’s discuss these: Using it Find out other people with whom the target people compares themselves, then either get those reference people to adopt the desired action or find a way of persuading the target to select a better reference. Defending Who are your social references? Are they normal people or have you adopted (or been persuaded to adopt) unreasonable comparisons. Beware of comparing yourself against people whose standards you cannot reasonably attain or who have other attributes which are not so desirable.

Social Impact Theory Description This theory states that the likelihood that a person will respond to social influence will increase with: Strength : how important the influencing group of people are to you. Immediacy : how close the group are to you (in space and time) at the time of the influence attempt. Number : How many people there are in the group

So what? Using it Convince one person about something. Then collaborate with them on persuading a friend (find out first who will most easily be convinced). Then work through the group, one at a time. Also work out through interconnected groups. Defending When your friends try to persuade you about something, find out who is behind it, and who is just going along with things. Divide and conquer: set up a counter-group. Or expose the situation for what it is.