LMX Theory: An Overview According to Northouse Term Paper

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LMX Theory: An Overview

According to Northouse (2013), before LMX theory was developed, leadership was viewed as something leaders did 'to' followers. Thus the focus of most leadership theories was upon how to make leaders better leaders, versus the mutual exchange which occurs between follower and leader ideally in a transactional fashion (Northouse 2013:161-162). The premise of LMX can be seen in the interconnected circles of 8.1 where the dyadic relationship of leader and follower meet in the middle and the mutual 'exchange' symbolized by the arrows going both ways in figures 8.3 and 8.4 suggests vertical dyads (Northouse 2013:162). LMX theory fundamentally views the workplace through a social lens, structured through 'in-groups' and 'out-groups.' The best employee-leader relationships are empowering partnerships based upon social and emotional ties much deeper than traditional work relationships. For employees who secure these bonds of trust amongst the leadership, the benefits can be much greater than any formal human resource policies written on paper that give hard-working employees special treatment; for employees out-of-the-loop, however, the result can be isolation and frustration (Northouse 2013:161-168).

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Senge's concept of bridging theory-to-practice is fundamentally rooted in his concept of a 'learning organization' in which organizations are flexible and dynamic in relation to the environment and can adapt to different circumstances. Senge (2006) speaks of the organization almost as a living entity -- an organization must 'know' when not to adhere to a set of rules in a very confined fashion and instead can adapt those rules to changing circumstances. Organizations are fundamentally based upon relationships, and without attention to the human elements of the organization, change cannot happen. An organizational leader cannot simply logically justify a change; he or she must also make the need for change persuasive to organizational members. The foundation of 'systems thinking' is bringing people from different theoretical overviews and perspectives together….....

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