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Lmx Theory

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Lmx Theory
In recent years the concept of Leader-Member Exchange theory has gained greater prominence in the field of contemporary management practices. Using evidence from management research consider the extent to which LMX theory may be useful when applied to the role of the Manager of the Student Center.

Although Leader-member exchange (LMX) has its limitations, when applied to the role of the Student Centre Manager it is extremely useful. LMX is a relationship based theory of leadership based on the interactions between a supervisor and an employee. It recognizes the ability of high quality relationships to create job satisfaction, commitment and innovation. In the case of the Student Centre Manager, the role requires that staff are satisfied, effective relationships are built between staff, students and academics, and that the Student Centre offers the highest and latest quality service. To analyze how LMX can aid the role of Student Centre Manager, the position will be examined from three areas most vital to performing the role successfully. These are stakeholder management, performance management and innovation.

Background
Firstly, LMX and the role of the Student Center Manager will be explained. LMX theory has evolved over the last 25 years. It was first introduced by George Graen and his colleagues, as Vertical Dyad Linkage (Dansereau, Graen, & Haga, 1975), where leaders were discovered to develop differentiated relationships with their direct reports. According to Graen and Ulh-Bien (1995), today LMX theory states that effective leadership processes occur when leaders (managers) and followers (employees) are able to develop mature relationships. Leaders and followers engage in a role-making process to establish working partnerships. These partnerships or dyads are either high-quality exchanges characterized by mutual trust, respect, and obligation or low quality relationships of low trust, respect and obligation. High quality relationships are beneficial to



References: Deluga, R.J., Perry, J.T. (1994). The role of subordinate performance and ingratiation in leader-member exchanges. Group & Organisation Management, 19(1), 67-86. Den Hartog, D.N., Verburg, R.M. (2002). Service excellence from the employees’ point of view: the role of the first line supervisors. Managing Service Quality, 12(3), 159-164. Dansereau, F., Graen, G.B., Haga, W. (1975). A vertical dyad linkage approach to leadership in formal organizations. Organizational Behaviour and Human Performance, 13, 46-78. Dienesch, R.M., Linden, R.C. (1986). Leader-member exchange model of leadership: A critique and further development. Academy of Management Review, 11(3), 618-634. Dunegan, K.J., Uhl-Bien, M., Duchon, D. (2002). LMX and the subordinate performance: the moderating effects of task characteristics. Journal of Business and Psychology, 17(2), 275-285. Gerstner, C.R., Day, D.V. (1997). Meta-analytic review of leader-member exchange theory: correlates and construct issues. Journal of Applied Psychology, 82(6), 827-844. Graen, G.B., Uhl-Bien, M. (1995). Relationship-based approach to leadership: development of leader-member exchange (LMX) theory of leadership over 25 years: applying a multi-level multi-domain perspective. Leadership Quarterly, 6(2), 219-247. Job description, 325-101 assignment guidelines, 2008. Schermerhorn, J.R., Hunt, J.G., Osborn, R.N. (2001). Managing Organizational Behaviour, 2nd ed., New York, United States of America: John Wiley & Sons. Stringer, L. (2006). The link between the quality of the supervisor-employee relationship and the level of employee job satisfaction. Public Organization Review, 6(2), 125-142. Tierney, P., Farmer, S.M., Graen, G.B. (1999). An examination of leadership and employee creativity: the relevance of traits and relationships. Personnel Psychology, 52, 591-620.

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