The Role of Leader-Member Exchange Theory and Servant Leadership in Organizational Management

Name 1
Positive Leader
Student’s Name
University
Date
Instructor
Course

Name 2
Positive Leader
Introduction
Arguments on the application of the leader-member exchange theory in Australia stem
from the Karpin 1995 Report that presented the findings of a task force designed to investigate
the quality of leadership in Australian organizations. The report indicated that there were existing
gaps between capabilities and best practices in most sectors in the country. This is because most
Australian firms were applying the traditional strategic approaches for managing the workforce
while failing to acknowledge that the nature of the workplace is changing and thus the need for
management theories to similarly evolve (Karpin 1995, p. 4). The leader-member exchange
theory allows development of manager-employee relationships that lead to increased knowledge
and access to resources that support the kind of job that the employee is engaging in (Bolino &
Turnley 2009, p. 281). This is because employees reciprocate to any positive elements that they
receive from the organization thus improving organizational effectiveness. Therefore, the theory
is based on the way management values the employees as a way of making them more
productive. Thus, the leader-member exchange theory is a new management approach that seeks
to improve management of people in organizations through moving away from the traditional
leadership style and developing approaches that allow exchange between the employee and the
organization.
Table one: servant leadership
An example of a servant leader that I know is Albert Schweitzer who devoted his life in
sacrificing and assisting people through showing the best leadership style that he had.
Characteristics High LMX Low LMX
Leader 1 Mutual trust, respect and Limited trust

Name 3
obligation
Leader 2 Better communication
with employees
Poor communication
Leader 3 Well defined jobs that
increase commitment
Poorly defined jobs
The impact of LMX quality on different types of employees
The leadership member exchange theory is based on the leader conveying role
expectations and that meet the needs of employees. The theory is established on the premise that
there is a reciprocal relationship that exists between the leader and the follower thus increasing
the outcomes of role negotiation which define the quality and maturity of the exchange that takes
place in the organization. Wang, Law, Wang & Chen (2005, p. 421) article presents a leader-
member exchange model through a sample of 162 leader-follower dyads in China. This article
presents how leader exchange theory-mediated in the organization, through the task performing
employee, the work engaged or job performing employee and
According to Brunetto, shacklock, Teo & Farr-Whaton (2014, p. 5) the task performing
employee benefits from this theory through the formal authority and allocation standards that
benefit the organization in return to performance. This implies that social exchange is moved to a
higher level obligation. The employee, on the other hand, receives special privileges that enhance
performance in the organization. This means that there is a social exchange between the follower
and the leader as a means of fulfilling the obligations assigned in the task (Breevaart, Bakker,
Demerouti & Heuvel 2015, p. 762). The leader has unique social exchange relationships with the
followers that define the quality of the relationship thus increasing task performance. Task
performance is thus achieved through the relationship formed between the leader and the
employee. Lee, Thomas, Martin & Guillaume (2017, p. 3) adds that the role of the leader is to