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The LMX theory provides predictions in terms of stages of relationship development. With each individual, both leader and subordinate, there is a phase in which both assess each other’s potential. The potential is defined as each person’s motivations, attitude, and respect for one another. Provided this is established, there is a development of trust, loyalty, and greater respect. At the final stage of this progress, self-interest becomes intertwined in the commitment of both leader and subordinate in mission objectives. In vases of low-exchange relationships, the consequences of this are lower compliance with the terms of each mission, particularly if the subordinate in a low-exchange relationship feels that he is being less favored than other subordinates are. This will cause the team to become antagonistic instead of welcoming of work together. The leader must create a feeling of respect, trust, and loyalty among all subordinates while treating each as an individual respecting their needs and wants as well.
There are multiple benefits to the leader developing different relationships with each subordinate. Every subordinate is an individual with different ideas, need, and beliefs. Within LMX theory, the development of positive relationships between leader and subordinate provides for a continuous thread of high-quality work, lack of resentment among team members, higher initiative, and increased loyalty and trust. There are increased costs in a high-exchange subordinate because as the relationship grows, so does the responsibility and reward for the subordinate. The responsibilities and rewards can include a pay raise, promotion of the individual, and performance accelerated benefits, such as a better schedule or a larger office. As such, the subordinate is required to demonstrate a higher level of commitment to tasks, share in the leader’s duties, and increased loyalty.
Attribution theory is the reaction of the leader to the subordinate’s inadequate performance. This theory states that leaders see reasons for lacking performance as one of two things. One, it is due to something within the subordinate’s personality, such as a lack of effort or inability to perform the task, or two; an issue beyond the subordinate’s control, such as insufficient information or other subordinates fell short in their support. Often the leader will consider the individual in the attribution of poor performance, particularly when the subordinate in question has no prior history of such behavior or exhibition. However, this can promote the leader’s bias about their preconceived notion of a particular subordinate when their performance was lackluster, or continues to be so.
Subordinates can influence their leader’s perception of them in a variety of ways; however, they are not always positive. The three primary tactics used by subordinates are exemplification, ingratiation, and self-promotion. In exemplification, the subordinate attempts to influence the leader by coming to work early and staying late, positive behavior when they know the leader is watching and doing high visibility tasks. When the subordinate employs ingratiation, they are particularly friendly and considerate to the leader. They also exhibit interest in the leader’s personal life, agree with everything they say, and show undue appreciation for the leader’s endeavors. Self-promotion is often perceived as the worst tactic, as in so doing the subordinate places more emphasis on their skill level and attempts to get others to ingratiate themselves to said subordinate.
For a subordinate to positively influence a leader’s perception by being an effective follower. To do this, the subordinate should take the initiative to deal with problems that arise, instead of running to the boss for every minor issue. The subordinate should also keep the leader in the loop of the progress of the project they have been assigned and be honest and accurate with the leader about progress and results. They can also encourage the leader to provide them with honest feedback so that they can improve on not only themselves but also the relationship with the leader as well. The subordinate can provide coaching to other team members, support changes that need to be made, challenge the leader when you know the plan is inaccurate, and show appreciation for others’ efforts when it is proper to do so.
The factors that influence subordinate attributions about leader competence are much the same as how the subordinate influences their leader’s perception of them, only the roles are reversed. The leader exemplifies his dedication by walking the talk and making self-sacrifices for the achievement of a desired goal or objective. The leader ingratiates himself to a particular subordinate through praise, appreciation, and interest in the subordinate’s personal life. The leader will self-promoter, flaunting his achievements and skills and through intimidation. By intimidating the subordinate, the leader can create a feeling of threat or danger in the subordinate, creating disloyalty, lack of trust, and dysfunction.