How can you use the LMX theory to improve your leadership style?

2 Why is the LMX theory important?

The LMX theory is important because it helps you understand how your relationship with your employees affects their motivation, performance, and satisfaction. Research has shown that high-LMX relationships are associated with positive outcomes, such as higher productivity, creativity, commitment, engagement, and retention, as well as lower absenteeism, turnover, and conflict. On the other hand, low-LMX relationships can lead to negative outcomes, such as lower quality of work, morale, and cooperation, as well as higher stress, burnout, and dissatisfaction. Therefore, by improving your LMX relationships, you can enhance your team's effectiveness and well-being.

3 How can you assess your LMX relationships?

Before you can improve your LMX relationships, you need to assess the current state of your exchanges with your employees. To do this, consider how often you communicate, give and receive feedback, trust and respect them, support and empower them, involve and consult them in decision making, and recognize and reward them for their contributions. Additionally, you can ask your employees to rate their LMX relationship with you using a questionnaire or survey. Examples of LMX scales include the LMX-7 or the LMX-MDM. By comparing your self-assessment and your employees' ratings, you can identify the strengths and weaknesses of your LMX relationships and the areas for improvement.

4 How can you improve your LMX relationships?

Once you have assessed your LMX relationships, you can take some steps to improve them. It is important to communicate openly and frequently with your employees, building trust and respect while also supporting and empowering them. Involve and consult your employees in decision making, and recognize and reward their contributions with specific, timely feedback and tangible or intangible incentives. Use different channels of communication to tailor your message to each employee's preferences and needs, showing that you care about them as individuals. Show fairness and consistency, delegate tasks according to abilities and interests, acknowledge perspectives, explain decisions, celebrate successes, and highlight strengths and areas of improvement.

5 What are the benefits of improving your LMX relationships?

By improving your LMX relationships, you can reap many benefits for yourself, your employees, and your organization. For instance, you can improve your leadership effectiveness and credibility, gain more respect from your employees, and enhance your reputation among peers. Additionally, you can motivate employees to work harder and smarter, increase employee satisfaction and engagement, foster a positive team environment, and promote a collaborative team culture. All of these improvements can lead to higher quality and quantity of work, as well as a more innovative team dynamic.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?