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Transformational Leadership and Leader-member exchange LMX
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Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc9430047 \h 3Leader’s Behavior PAGEREF _Toc9430048 \h 3Transformational leader leadership theory PAGEREF _Toc9430049 \h 3Pros of a leader’s behavior PAGEREF _Toc9430050 \h 3Cons of a leader’s behavior PAGEREF _Toc9430051 \h 4LMX theory PAGEREF _Toc9430052 \h 4Pros of a leader’s behavior PAGEREF _Toc9430053 \h 4Cons of a leader’s behavior PAGEREF _Toc9430054 \h 5Organizational performance PAGEREF _Toc9430055 \h 5Transformational leadership theory PAGEREF _Toc9430056 \h 5Pros to organizational performance PAGEREF _Toc9430057 \h 5Cons to organizational performance PAGEREF _Toc9430058 \h 6LMX theory PAGEREF _Toc9430059 \h 6Pros to organizational performance PAGEREF _Toc9430060 \h 6Cons to organizational performance PAGEREF _Toc9430061 \h 7Conclusion PAGEREF _Toc9430062 \h 7List of References PAGEREF _Toc9430063 \h 9
Introduction
Through leadership theories, it is possible to explain why particular individuals become leaders while others remain as followers. Leadership theories often focus on the characteristics of leaders, although others seek to identify the behaviors that individuals can use to improve their leadership abilities in various settings. The leadership theories focused in this essay are transformational leadership theory and the leader-member exchange (LMX) theory. This essay will compare and contrast the transformational leadership theory with LMX theory using two aspects; the leader’s behavior and organizational performance. Comparing and contrasting transformational leadership theory with LMX theory with the two aspects is critical because it enables leaders to identify the leadership theory that is suitable for a given setting
Leader’s Behavior
Transformational leadership theory concentrates predominantly on how the leader’s behavior is unilaterally directed towards the subordinates (Cote, 2017). On the contrary, the LMX theory is more relationship-based. It is exemplified by one-on-one reciprocal social exchanges between a leader and follower. Instead of concentrating predominantly on the behavior of the leader as transformational leadership theory does, LMX considers the behavior of both the leader and the follower.
Transformational leader leadership theory
Pros of a leader’s behavior
Transformational leadership focuses on the behavior of the leader. It utilizes the various qualities of the leader to influence the followers. According to Burch and Guarana (2014), transformational leaders use charisma, inspiration, intellectual stimulation, and individual consideration to influence their followers. In essence, transformational leadership centers on the behavior of the leaders because they are the ones critical to the achievement of group or organizational goals. The focus in the leader’s behavior is an effective way of inspiring followers to work towards a particular goal. Leaders create a vision which makes it easy for a group or an organization to achieve a particular goal (Fok-Yew, 2015). Since the behavior of the leader is critical in the achievement of group or organizational goals, leaders are in a better position to adjust their behavior accordingly.
When a leader needs to create change, then the transformation leadership theory is appropriate. In transformational leadership theory, it easier for a group or an organization to create a new vision. Where the change is needed, then the transformation leadership approach is the most effective way of bringing change (Middleton, Harvey and Esaki, 2015). Leaders are in a position to inspire and motivate the followers towards a new direction. Given that change is critical in entities, the application of transformational leadership is necessary.
Cons of a leader’s behavior
The leader behaves towards the followers in the same way. Whereas this brings a feeling of equity, it ignores the differences that exist among followers. This disadvantages the most hardworking followers since the reward is the same.
LMX theory
Pros of a leader’s behavior
The main idea behind LMX is for the leader to develop many quality relationships with the followers (Martin et al., 2016). LMX focuses on the dyadic relationship between the leader and the followers (Lunenburg, 2010). Here, leaders and their followers develop dyadic relationships with each other, which constitutes the leadership focus of the leadership process. These relationships, in turn, enhance the satisfaction and the performance of the subordinates. As leaders and followers develop mature relationships, they get access to the benefits that come along with these relationships.
Similarly, in MLX theory, leaders are in a position to reward members for their performance, which motivates them to work towards a particular goal (Herrera, 2013). Using LMX theory, it is easier for the leader to assess whether the in-group members deserve the benefits they get. These leaders can also establish whether there are out-group members who have missed opportunities and reward them.
Cons of a leader’s behavior
In LMX theory, the leader behaves to the individual followers in different ways. Whereas the individuals in the in-group feel empowered, those in the out-group feel discriminated (Shu and Lazatkhan, 2017). The out-group members could react by putting less effort into their work in an attempt to establish equity in the group. It could create divisions in the group, which could reduce the effectiveness of an organization.
Additionally, LMX theory focuses mainly on the relationship between the leaders and the followers and fails to consider how the relationship affects group dynamics (Power, 2013). The failure to consider g...