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How can you use the leader-member exchange model to improve your leadership style?

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As a leader, you want to build strong and trusting relationships with your team members. But how do you do that when each person has different needs, expectations, and preferences? One way to approach this challenge is to use the leader-member exchange model, or LMX. This model suggests that leaders develop different types of relationships with different followers, based on mutual exchange, respect, and support. In this article, you will learn how you can use the LMX model to improve your leadership style and enhance your team's performance and satisfaction.

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Stuart Tan MSc., MBA
Sam Vishwas

1 What is the LMX model?

The LMX model was developed by researchers who observed that leaders do not treat all their followers the same way. Instead, they form two groups: the in-group and the out-group. The in-group consists of followers who have high-quality relationships with the leader, characterized by high levels of trust, communication, influence, and loyalty. The out-group consists of followers who have low-quality relationships with the leader, characterized by low levels of trust, communication, influence, and loyalty. The LMX model proposes that the quality of the leader-follower relationship affects various outcomes, such as motivation, commitment, productivity, and turnover.

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Stuart Tan MSc., MBA
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The LMX model has been around for decades until leadership researchers started to hunt for various other ways to explain leadership such as transformational leadership, charismatic leadership, servant leadership, authentic leadership and the like. As it stands, LMX shows the outcome of leadership rather than the nature of how leadership is used to produce results of an in-group. In-groups often have high levels of bias (due to the common information bias, attribution bias and groupthink). Arguably, in-groups have nothing to do with leadership efficacy. They are just followers and yes-men. It has been increasingly shown that leaders who know how to leverage diversity in spite of the out-group make better decisions due to diverse input.

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Sam Vishwas
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It's good to know about the Leader-Member Exchange (LMX) model and what it covers. Learning about the research that supports this model can be really interesting. Also, it's worth thinking about the idea that the LMX model might not always have just two sides. Instead, it can vary a lot depending on things like one-on-one or group interactions, how well people get along, the situation, context, goals, and timing.

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2 How can you assess your LMX relationships?

To use the LMX model effectively, you need to assess the quality of your relationships with each of your team members. Ask yourself how often you interact with them, how well you understand their goals, strengths, and challenges, and how much feedback, guidance, and support you provide them. Additionally, consider the amount of trust and respect they have for you and vice versa. Moreover, ask your team members to rate their relationship with you on a scale of 1 to 10 and compare their ratings with yours to uncover any discrepancies in your perceptions and expectations.

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Sam Vishwas
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The concept of ranking people on a scale from 1 to 10 is really useful. However, we should remember that in any relationship between two people, there are two types of rankings. One is an overall ranking that's built over a long time, and the other is a ranking based on specific situations. Also, reaching these rankings takes extra effort because everyone values emotional intelligence (EQ) qualities differently. I've made an Excel tool that lets you assess about 30 qualities, each on a scale from 0 to 10. I think giving a 0 rating is important for qualities that are completely absent. Additionally, I'd be happy to share this calculator with you for free. Just send me a direct message and I'll provide it to you.

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3 How can you improve your LMX relationships?

Once you have assessed your LMX relationships, you can take steps to improve them. To strengthen high-quality relationships with in-group members, continue to communicate openly, share resources and information, recognize their achievements, delegate meaningful tasks, and support their development. To improve low-quality relationships with out-group members, increase the frequency and quality of interaction, show interest and empathy for their needs, provide constructive feedback and coaching, involve them in decision-making and problem-solving, and build trust and respect through honesty and fairness.

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Sam Vishwas
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What the article says is accurate. However, if you find it challenging to remember or put into practice, consider incorporating three simple principles; they consistently yield positive results: Start with Purpose: Knowing your objectives enables you to engage effectively with others. Seek Value-Added Conversations: Zero-sum games only work with trusted associates. To make a positive impact on the broader world, focus on adding value rather than diminishing it. Embrace the Least Common Denominator: As a good leader, aim to maintain a neutral stance (genuinely and wholeheartedly), especially in larger groups where you're likely to encounter opposing viewpoints. Both perspectives often carry valid merits.

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4 What are the benefits of using the LMX model?

The LMX model can help you improve your leadership style in various ways. For instance, it allows you to tailor your approach to each team member, rather than using a one-size-fits-all strategy. It also encourages a positive and collaborative culture, where everyone feels valued, engaged, and empowered. Moreover, it can increase team performance and satisfaction by leveraging the strengths and potential of each team member and providing them with the right level of challenge and support. Additionally, it can reduce turnover and absenteeism by boosting loyalty and commitment to yourself and the organization. Finally, you can develop your own skills and competencies by learning from your team members, receiving feedback and support, and expanding your network and influence.

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Sam Vishwas
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I have no reservations about the suggestions provided; they all make sense. However, a word of caution: "Be sure to remain focused and avoid diluting your brand. Making unwarranted adjustments can undoubtedly lead to relationship issues."

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5 What are the challenges of using the LMX model?

Using the LMX model can come with potential pitfalls, such as creating or reinforcing perceptions of favoritism or bias, neglecting or alienating out-group members, limiting your own perspective and creativity, and overburdening or burning out in-group members. To avoid these challenges, you need to be aware of your biases and assumptions, strive for fairness and inclusion in your leadership practices, balance attention and resources among all team members, and promote diversity and dialogue.

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Sam Vishwas
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That's accurate, but there is assistance accessible from business research communities. I suggest searching the internet for terms like "Informal Networking" and "Networking Theories (Human Networking)."

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use the leader-member exchange model to improve your leadership style?

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6

1 What is the LMX model?

2 How can you assess your LMX relationships?

3 How can you improve your LMX relationships?

4 What are the benefits of using the LMX model?

5 What are the challenges of using the LMX model?

6 Here’s what else to consider

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How can you use the leader-member exchange model to improve your leadership style?

1

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3

4

5

6

1 What is the LMX model?

2 How can you assess your LMX relationships?

3 How can you improve your LMX relationships?

4 What are the benefits of using the LMX model?

5 What are the challenges of using the LMX model?

6 Here’s what else to consider

Leadership Development Coaching

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