Leader-Member Exchange Theory, Part 2

In our last post, we looked at what Leader-Member Exchange (LMX) theory is and how in-groups and out-groups develop.  Now, we are going to dive into how to use LMX theory to help your team.

One of the problems with LMX theory is that it doesn’t take into account that some team members may be truly untrustworthy and lack competence, and that a leader can’t always remedy that.  

Instead of using LMX theory to make hiring decisions, it is better used as a tool to evaluate which people might have been misjudged or misunderstood.  Leaders can think about where their evaluations of a team member might be biased and unfair, and offer them opportunities to grow and do their best work.

Improving relationships with outgroup members tends to improve their work, attitude, and relationships with other team members.  If you feel that your team has been divided into in-group and out-group members, here are some thoughts for making sure that all team members have the opportunity to thrive.

1. Think about each of your team members individually, and whether they are in the in-group or the out-group.  If they are in the out-group, why are they there? Is your opinion of them based on facts or perception?

2. Reestablish relationships with each of your outgroup members by creating time to talk and interact.  They may be suspicious or aloof at first, so make sure that you are genuine.  Learn what their goals are and what they expect from you as a leader.  Seek to understand the root cause of any lack of motivation or lagging performance.

3. Provide training and development opportunities that are a fit for the team member and their goals, such as special projects, coaching, or mentoring.

1. Think about what leadership style might work best with this team member.  Do they just need encouragement and support? Or do they need more hands-on training and clear expectations?

2. If there is broken trust between you and the team member that needs to be rebuilt, start by giving the team member small, low-risk responsibilities and working up.

Chew On This:

What is one step you can take this coming week to begin to reestablish a relationship with an out-group member?

Leader-Member Exchange Theory, Part 1

Leader-Member Exchange (or LMX) theory states that leaders tend to divide their followers into two groups: an in-group and out-group.  The theory looks at how a leader’s relationship with these two groups influences their follower’s productivity and professional growth.

The in-group is made up of followers who are on good terms with their leader. They often receive extra attention and growth opportunities from the leader, and have a similar personality or work ethic to the leader.  

The followers in the out-group are on poor terms with their leader, typically because the leader perceives them as untrustworthy, unmotivated, or incompetent.  They typically receive less engagement from the leader and fewer growth opportunities.

In-groups and out-groups form in three stages:

1. Role taking: In this stage, members have just joined the group. The leader is getting to know them and assessing their skills and abilities.

2. Role making: In this stage, members start their work on team projects and tasks.  The leader often begins to subconsciously sort their team into the two groups.

3. Routinization: Leader and team-member interactions are solidified.  In-group members often come to like their manager and work hard to maintain their good standing.  Outgroup members are likely to distrust their manager and be disengaged or mistrustful as a result.

In our next blog post, we will look at why LMX theory isn’t completely reliable, and how to increase engagement and make sure that all team members have the opportunity to thrive.

Chew On This:

Is there an in-group and an out-group on your team? How might reintegrating out-group members be beneficial to your team?

Empowering Leadership

Empowering leaders give their team members the freedom to act and decide about their work in the organizations.  Instead of micro-managing, they encourage team members to be self-managing.  They expect that employees will, at times, challenge their authority and seek to be more involved with their team as part of the learning process.  Team members who are empowered typically feel a sense of autonomy and momentum as they towards team goals.

In order to create a culture of team empowerment, leaders and team members must trust each other.  That way, they can depend on each other to take action in ways that are helpful to the team and the organization. 

There also must be clear communication between the leader and the team members.  This way, the team members know where they have the authority to make decisions, and leaders give team members autonomy in areas that fit their skillset and their capacity.

Done well, empowering leadership is tremendously helpful in developing healthy teams.  Empowerment helps team members own their work, which can result in increased productivity, happier employees, and healthier workplace culture.  Empowered employees tend to deliver their projects with more care and can be more effective in their work.

Studies have shown that empowerment also tends to increase the trust between team members and their leaders.  One study showed that team members who felt that they had empowering leaders had greater faith in their leaders and were more likely to put in effort without fearing that they would be taken advantage of.

Despite these benefits, empowering leadership doesn’t work as well when team members lack the expertise to effectively make decisions.  Empowering without providing adequate support is likely to result in stressed team members and a decline in product quality.  

Most team members react positively to the increased freedom and trust from leaders that comes from empowerment.  However, increased freedom given to an untrustworthy employee can be problematic.  Unscrupulous employees may seek to “reciprocate” the increased freedom and trust in ways that benefit the company but are unethical, such as concealing damaging information from clients.

Despite these shortcomings, empowering leadership often helps employees to be more creative and proactive.  Below are some steps you can take to implement empowering leadership in your own workplace:

1. Learn to delegate tasks with the intent to develop team member’s abilities.

2. Make sure that there are clear boundaries and expectations concerning where your team members are free to act.

3. Give team members autonomy to decide how to complete their tasks and realize that your way of doing things probably isn’t the only way.

4. Make sure positive feedback is specific and helpful, and show appreciation for their work.  Be clear about what team members are doing well, and explain the impact it has had on others.

5. Make sure your team members have the resources they need.  Instead of solving every problem a team member presents to you, consider teaching them to problem solve by offering to be a sounding board, coaching them, or giving them tools.

6. Engage in participative leadership.

7. Help team members see how they are making a difference by connecting their work to the organization's mission and vision.

Chew on this:

What’s one area where you can empower your team members and give them more freedom to take action?

Generational Leadership, Part 2

In our last post, we examined the predominant leadership styles of Boomer and Gen X leaders.  Now, we will look at the leadership styles of Millennial and Gen Z leaders.

Millennials are the generation born between 1980 and 1997.  They are a huge part of the workforce today, making up more than a third of the workforce.  They tend to value working with people from different backgrounds, and are collaborative and team-oriented.  They often seek out the opinions of others when making decisions.

Although Millennials are typically very comfortable with technology, they emphasize the importance of relational and soft skills over hard skills in the workplace.

Members of older generations can sometimes perceive Millennials as relying too much on technology and being unwilling to take responsibility.  Many Millennials would benefit from more experience to become effective leaders.

On the positive side, Millennials are often more in touch with their team’s needs than other generations and tend to have an inclusive and empathetic leadership style.  They want fair opportunities for everyone and tend to be highly aware of the need for development and growth opportunities for everyone, not just those at the top.

Gen Z is just entering the workforce, so their preferred leadership style is still being determined.

Members of Gen Z tend to value authenticity and transparency.  They want to work for businesses with socially responsible, sustainable practices.  They tend to be entrepreneurial, independent, and competitive, and with an empathetic, transparent communication style.  They are attentive to mental health and adept at using social media and technology.

Gen Z often looks for non-traditional work schedules and flexible remote opportunities at work.  They don’t tend to identify themselves with their work but seek to share their values with their managers and colleagues openly.  They prioritize other’s emotions and wellbeing.

To return to the first post in the series, click here.

Chew on This:

How can you appropriately increase the level of authenticity in your work culture?

Generational Leadership, Part 1

Leadership styles change over time, and each generation tends to have a different approach to leadership.  Although these different approaches often result in conflict between generations, each generation’s preferred leadership style has unique strengths.  When leaders are willing to learn from the leadership styles of other generations, they can become more balanced and effective leaders.

This post will look at two generations of leaders: baby boomers (“boomers”) and Generation X. As we discuss each generation’s predominant leadership styles, it is important to remember that these are general concepts and not specific to a particular person. 

Born between 1946 and 1964, boomers are one of the oldest generations in the workforce.  This generation tends to value hard work, loyalty, and achievement.  Many started their careers when leadership tended to be authoritative and task-oriented.  Because of this, many boomers resonate with traditional workplace structures, such as a distinct leadership hierarchy, climbing the career ladder, and rewards for their contributions to their organizations.

Some drawbacks to this generational leadership style include being reluctant to embrace change and being slower to adapt to new technology. However, many boomers recognize the value new technology brings to an organization.  Because this generation favors a more hierarchical leadership structure, hires can sometimes be made based on a person’s tenure rather than their skills or abilities.  

Despite these drawbacks, boomers generally have the most experience in the workplace and use the knowledge they have gathered over the years to make well-informed decisions that positively impact their teams and their organization’s bottom line.  They have had time and resources to develop their leadership skills and tend to understand their organization and its culture well.

Gen X leaders are leaders who were born between 1965 and 1980.  They tend to take a middle view between boomers and millennials on many topics, such as values, leadership style, and technology.  Independent and self-reliant, many Gen X leaders are more comfortable with technology than the boomer generation.  They want their work to be engaging and place a premium on work-life balance.  They also want to come across to others as easily approachable.

Gen X leaders tend to focus on the results of a project rather than the amount of time spent on it.  They generally respect their employee’s time and come across as less formal than leaders from the boomer generation.  They also tend to be more transparent and open with their teams.

While Gen X leaders tend to have a more informal, relational leadership style than Boomer leaders, they can lack some of the boomers' experience and expertise.

In part 2 of our Generational Leadership series, we will look at the preferred leadership styles of the  Millennial and Gen Z generations.

Chew on This:

Who is an older, more experienced leader you could learn from?

Flexible Leadership, Part 2

In our last post, we looked at what flexible leadership is and its pros and cons.  Today, we will dive into practical steps you can take to become a more flexible leader.  (Note: The tools listed below are meant to be done in order, but they can also be done independently.)

1. Aim to understand your own leadership style if you don’t already.  Several assessments can help you understand your leadership style, such as the DiSC or the Myers-Briggs Type Indicator.  We all tend to fall back on our preferred leadership style in stressful situations, so it can be helpful to think about how you lead under pressure.

2. Before you head into a situation or an interaction, pause and ask yourself: what would my initial leadership style have been for this situation/interaction?  Is there a more effective leadership style for this?  Allow yourself to be present and observe the situation without making assumptions. 

3. Notice your team members' and colleagues' preferred work and leadership styles.  You can learn more about their styles by asking them to take one of the assessments above or simply getting to know them and thinking about questions such as: how much small talk do they engage in?  How do they respond to stress?  How fast do they like to work?   

4. As you practice a new leadership style, it may be helpful to practice micro-actions instead of doing a total shift overnight.  For example, if Bob wants to practice a more participative leadership style, he might make a point of asking for people’s feedback and ideas at least once during a meeting.

5. Role models can also be very helpful in learning how to use a new leadership style. Find someone who uses the leadership style you want to learn more about very well and watch how they implement it.  Remember, you can learn from people in positions above and below you.

6. As you grow in flexible leadership, reflect on why a particular style is or is not working, and think about what styles will help you reach your goal in the situation.

To go back to part 1 of our Flexible Leadership series, click here.

Chew On This:

Which of the steps above will most help you to practice more flexible leadership?

Flexible Leadership, Part 1

Leaders are constantly faced with new and changing situations, so leader who are able to be flexible in their leadership are invaluable.  “Flexible leadership” is not a single leadership style; instead, it refers to a leader’s ability to adjust their approach to the situation at hand.  

For example, a flexible leader might use a hands-on, authoritative leadership style when they are training their team how to use new software, but later use a more participative style when they are brainstorming ideas for a new product.  Flexible leaders seek to understand and use the leadership style that works best in a given situation.

This doesn’t mean that flexible leader’s can’t have a preferred leadership style.  Instead, it means that a leader develops a range of skills and styles that they can pull from when needed.

In addition to helping leaders successfully navigate many different situations, flexible leadership also helps leaders to build strong connections with their team members.  Everyone has a preferred communication and work style, and flexible leaders pay attention and act on their team members preferences, building trust and understanding.

There are some common problems leaders can encounter when they attempt to increase the flexibility of their leadership style. First, flexible leadership takes time and practice to master, which can feel daunting to leaders who are trying to be as efficient as possible. The good news is that, like any skill, it gets easier and better with practice.

Second, team members who haven’t experienced a flexible leadership style before may be confused by it.  Leaders can avoid this situation by explaining to their team members why they are using a certain leadership style in a particular situation.  For example, a leader giving one of their employees a project might say, “I know you have a lot of experience in this area and gotten consistent results, so I am going to be mostly hands off on this project.  However, I am always available for input and guidance if you need me.”

In our next post, we are going to look at how to incorporate more flexible practices into your leadership.

Chew On This:

How might your team benefit from a flexible leader?

Authoritative Leadership

Many people think authoritative leaders are bossy, micromanaging, or lacking empathy.  However, good authoritative leaders create visionary goals and strive to motivate and encourage their team members to achieve great things. 

An authoritative leader is hands-on and actively guides their team.  The relationship between an authoritative leader and a team member is similar to that between a mentor and a mentee.  First, the leaders inspire their team members by creating a vision and a plan, then they help motivate everyone by giving direction, guidance, and feedback.  The team learns from the leader, and the leader motivates the team to reach the goal.  

Even though they spearhead the efforts, good authoritative leaders are still willing to admit their mistakes and see success as a team effort.      

Authoritative leadership is often confused with authoritarian leadership, so it is important to know the difference.  Authoritative leaders encourage their team members to follow them, while authoritarian leaders command their followers to do what they say.  Authoritative leaders view success as a team effort, while authoritarian leaders see themselves as the key to success.  Finally, while authoritative leadership can be applied in different situations, authoritarian leadership only tends to work well in situations that are truly an emergency and require instant, decisive action.

Authoritative leadership can increase productivity, encourage high-quality work, and help teams operate more efficiently.  Authoritative leaders can plan ahead and make quick decisions, which helps their teams to act quickly while still paying attention to detail.  Good authoritative leaders have high emotional intelligence and seek to build trust with their teams.  They can engage with others' concerns and emotions and use their understanding of their team to remove obstacles to its success.

Despite all these positives, authoritative leadership isn’t the right fit for every situation.  Team members who prefer a more hands-off leader may find this leadership style confining and frustrating.  It also doesn’t work well in situations where team members are experts or peers with more expertise than the leader.  Often, this happens when a new leader gets the responsibility for leading a highly experienced team.

However, authoritative leadership shines in situations that need structure and clarity.  These could be times of leadership change when a team is not meeting its goals or an organization that doesn’t have a clear vision.  An authoritative leadership style is very useful in urgent situations or when a quick turnaround is important. It works well where team members need clear direction and instruction.     

Some ways to use an authoritative leadership style include:

1. Identify your organization’s strengths and weaknesses, and note what needs to change.

2. Make sure you have frequent, two-way communication with your team members.  Understanding your team member’s strengths, weaknesses, and skill sets will help you understand how each team member can contribute to the goal.

3. Be able to explain the reasons behind the actions you take.  Team members may want to know how your plan will help them and the organization.

Chew On This:

Could any aspects of your role benefit from a more authoritative leadership style?

Participative Leadership

Participative leadership is unique because it solicits the input of team members as part of the decision making process.  Participative leaders actively seek out their team’s ideas and perspectives on issues ranging from improving processes to addressing front-line problems.

In order to be effective, participative leaders must be focused on others, great listeners, flexible, empathetic, and real.  They also need an inclusive mindset and a willingness to share their influence.  

Participative leadership is a tangible way for leaders to support their team members.  It shows team members that they have a stake in the team and the organization.  By creating an environment of respect and trust, participative leadership can give team members the confidence to risk sharing their ideas.  

Not surprisingly, research has shown that participative leadership tends to increase a team member’s engagement, performance, job satisfaction, and even their tenure at a company.  Under participative leadership, team members tend to be more helpful, open to change, and innovative.  

However, participative leadership is not ideal in every situation.  Some critical, urgent situations require leaders to step up and act before they have time to get everyone’s opinion.  (In cases like these, a leader can still get everyone’s input during a debrief after the situation).  Participative leadership also doesn’t work where “all the tasks are urgent” because there simply isn’t time to get everyone’s input on every task.

In participative leadership, there is always the likelihood of increased conflict when multiple people are giving their opinions.  Although not all conflict is bad, poorly managed conflict can spiral into bickering and personal disputes, creating divisions within the team.

Even though it doesn’t work in every circumstance, a participative leadership style works well in organizations that value team member growth and development.  It is an especially valuable tool for work that requires a variety of skill sets and knowledge.

Chew on This:

What is one decision you need to make that could benefit from the input of other people on your team?

Authentic Leadership

In the wake of the financial scandals and disasters of the early 2000’s, people were anxious and looking for trustworthy leaders.  This created a demand for an authentic leadership style.  Unsurprisingly, authentic leadership emphasizes trust, transparency, values, purposefulness, and responsiveness to team members' needs.  Genuine and principled, authentic leaders seek to develop and empower their employees.

Research has shown that authentic leadership has four important aspects.

1. Authentic leaders are self-aware.  They understand their strengths and weaknesses and the impact they have on others.

2. Authentic leaders do what is right and lead from their core values instead of being controlled by pressure from others.

3. Authentic leaders are fair and unbiased.  They can consider others’ opinions, even if they disagree.

4. Authentic leaders are appropriately transparent and real in their relationships.

Authentic leaders' genuineness can cultivate trust and create a positive work environment for their teams. As trust is built, team members often respond by increasing their engagement and contributions at work.  An authentic leader develops and empowers their team members, leading to higher engagement, job satisfaction, and commitment to their company.    

While authentic leadership can be used in many leadership situations, it will not be helpful if a leader is unscrupulous.  For example, some leaders believe that being authentic means that they are free to behave in hurtful or wrong ways, as long as they are being true to themselves.  By contrast, good authentic leaders seek to be real and genuine in a way that builds up their team and organization.  

Consider these principles that you can use to grow in authentic leadership:

1. Make a practice of evaluating your strengths, weaknesses, and values. 

2. Make sure you are clear about your own values and always follow company ethics.

3. Look at where your behavior aligns with or differs from your ideals, and think about how you can act in ways that are true to your values.

4. Think about past life experiences that shaped you and how you can apply the lessons you learned. 

Chew On This:

Where do your actions most line up with your values?  Where do you struggle to act in line with your values?