The four stages Leader–member exchange theory

1 4 stages

1.1 stage 1: vertical dyad linkage
1.2 stage 2: leader–member exchange
1.3 stage 3: leadership-making
1.4 stage 4: team-making

the 4 stages

in 1995 paper titled relationship-based approach leadership: development of leader-member exchange (lmx) theory of leadership on 25 years: applying multi-level multi-domain perspective, george b. graen , mary uhl-bien discuss development of lmx through 4 evolutionary stages.

based on graen , uhl-bien


stage 1: vertical dyad linkage

graen , uhl-bien explain research issues relating leader–member exchange began studies on work socialization , vertical dyad linkage found many managerial processes in organizations occurred on dyadic basis, managers forming differentiated relationships reported them. longitudinal studies of management teams conducted in managers , reported them asked describe work , working relationships in terms of inputs, process, , outcomes. when asked describe manager s behavior, different employees gave different descriptions of same person. employees described called high-quality exchanges (also known in-group ), characterized high degree of mutual trust, respect, , obligation. others described low-quality exchanges (also known out-group ), characterized low trust, respect, , obligation. according graen , uhl-bien, vdl research concluded these differentiated relationships resulted manager s limited time , social resources, allowing him/her form few higher-quality exchange relationships.

stage 2: leader–member exchange

in second stage, terminology shifted vertical dyad linkage leader–member exchange. graen , uhl-bien explain vdl research followed series of studies moved theory beyond description of differentiated relationships in work unit explanation of how these relationships develop , consequences of relationships organizational functioning . number of studies analyzed specific characteristics of lmx relationships, , other studies analyzed relationship between lmx , organizational outcomes/consequences. graen , uhl-bien describe central concepts of lmx research @ time as: (1) development of lmx relationships influenced characteristics , behaviors of leaders , members , occurs through role-making process, , (2) higher-quality lmx relationships have positive outcomes leaders, followers, work units, , organization in general.

stage 3: leadership-making

graen , uhl-bien recount research in third stage moved beyond in-groups , out-groups , focused more on producing effective leadership process through development of effective leadership relationships. according graen , uhl-bien, key difference in stage says managers should make high-quality lmx relationships available employees, rather having differentiated relationships among employees described in vdl approach. stage uses leadership making model provide more prescriptive , practically useful model of leadership development. idea of leadership making began 2 longitudinal field experiments analyzed happen if leaders trained give of subordinates opportunity develop high-quality relationship. results showed performance of subordinates took advantage of opportunity develop high-quality lmx improved dramatically. overall, performance of work unit improved increasing number of high-quality lmx relationships. leadership making model developed based on these studies emphasize importance of forming high-quality relationships within organizations , outline process how these relationships might formed , maintained in practice. model describes process in leader–member relationships go stranger phase (characterized formal, contractual interactions) acquaintance stage (characterized increased social exchanges , sharing of information , resources on personal , work level) level of mature partnership exchanges (characterized in kind exchanges behavioral , emotional, loyalty, support, mutual respect, trust, , high degree of incremental influence).

stage 4: team-making

at fourth stage graen , uhl-bien propose using systems-level perspective investigate how differentiated dyadic relationships combine form larger, network systems. these networks make organization s leadership structure , or pattern of leadership relationships among individuals throughout organization . graen , uhl-bien explain leadership structure emerges network of relationships , mutual dependencies develop organization members fulfill roles , complete tasks. investigation @ stage analyzes task interdependencies , quality of relationships develop due these interdependencies. specifically, research seeks identify more effective leadership relationships have large impact on task performance how differentiated relationships affect each other , entire leadership structure.