DB- Module 04: Path-Goal and Leader-Member Exchange Approaches to Leadership

Module 04: Path-Goal and Leader-Member Exchange Approaches to Leadership
You will learn about the Path-Goal theory. Path-Goal is a type of contingency theory and is
concerned with how best to enable subordinates to achieve goals.
Discussion:
Discuss the benefits and drawbacks of the Leader-Member Exchange (LMX) theory of
leadership. Considering the evolving dynamics of today’s workforce, do you believe this
leadership model remains effective? Provide a detailed analysis to support your stance,
considering factors such as employee engagement, team performance, and organizational
outcomes.
Provide at least 3 academic sources.
Directions:
•
•

Discuss the concepts, principles, and theories from your textbook. Cite your
textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 500-word
limit.

Learning Outcomes
1. Critique the main components of the Path-Goal Theory of leadership.
2. Critique the main components of the Leader-Member Exchange Theory of
leadership.
3. Analyze how the Path-Goal Theory and Leader-Member Exchange Theory facilitate
innovation and organizational change.
Readings
Required:
• Chapters 6 & 7 in Leadership: Theory and Practice
• Farhan, B. Y. (2018). Application of path-goal leadership theory and learning theory
in a learning organization. The Journal of Applied Business Research, 34(1), 13-22.
Recommended:
• Chapter 6 PowerPoint slides
• Chapter 7 PowerPoint slides
• Martin, R., Ono, M., Legood, A., Dello Russo, S., & Thomas, G. (2023). Leader–
member exchange (LMX) quality and follower well-being: A daily diary study. Journal
of Occupational Health Psychology, 28(2), 103–
116.

Chapter 6: Path-Goal Theory

Northouse, Leadership, 9th edition. © SAGE Publications, 2021.

Description (1 of 13)
• Goal-oriented leader motivation.
• Stated goal.

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Description (2 of 13)
• Leader, follower, and organization
relationship.
– Leaders adjust to followers.
– Leaders assist followers.
– Improved work environment.

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Description (3 of 13)
• Leadership generates motivation.
– Follower payoffs.
– Guidance.

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Description (4 of 13)
• Expectancy theory of motivation.
– Assumes employees’ main motivational
factors.
– Leaders should understand followers’ goals
and desired rewards.

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5

Description (5 of 13)
Leader Behaviors.
• Four primary leadership behaviors.

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Description (6 of 13)
Leader Behaviors: Directive Leadership.
• Directive leadership.
• Explicit expectations give clarity.

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Description (7 of 13)
Leader Behaviors: Supportive Leadership.
• Supportive leadership.
• Leaders make work pleasant.
• Treat followers as equals.

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Description (8 of 13)
Leader Behaviors: Participative Leadership.
• Participative leadership.
• Aims to increase performance through
shared goals.

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Description (9 of 13)
Leader Behaviors: Achievement-Oriented
Leadership.
• Achievement-oriented leadership.
• Leaders confident in followers’ capabilities.

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Description (10 of 13)
Follower Characteristics (1 of 2).
• Need for affiliation.
• Preference for structure.

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Description (11 of 13)
Follower Characteristics (2 of 2).
• Desire for control.
– Internal locus of control.
– External locus of control.

• Self-perceived level of task ability.

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Description (12 of 13)
Task Characteristics (1 of 2).
• Task characteristics.
– Design of followers’ task(s).
– Organization’s formal authority system.
– Primary work group of followers.

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Description (13 of 13)
Task Characteristics (2 of 2).
• Situations that don’t need leaders.
• Tasks benefiting from leader involvement.
• Revision to the path-goal theory (1996).
– Four additional leadership behaviors.

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How Does Path-Goal Theory
Work? (1 of 6)
• Directs how leaders can help followers.

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How Does Path-Goal Theory Work? (2 of
6)
TABLE 6.1 Path–Goal Theory: How It Works
Leadership Behavior

Follower
Characteristics

Task Characteristics

Directive
Provides guidance and
psychological structure

Dogmatic
Authoritarian

Ambiguous
Unclear rules
Complex

Supportive
Provides nurturance

Unsatisfied
Need for affiliation
Need for human touch

Repetitive
Unchallenging
Mundane

Participative
Provides involvement

Autonomous
Need for control
Need for clarity

Ambiguous
Unclear
Unstructured

Achievement Oriented
Provides challenges

High expectations
Need to excel

Ambiguous
Challenging
Complex

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How Does Path-Goal Theory
Work? (3 of 6)
• Situations for directive leadership:
– Followers dogmatic/authoritarian.
– Unclear task and/or organizational rules.
– Complex task.

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How Does Path-Goal Theory
Work? (4 of 6)
• Situations for supportive leadership:
– Undesirable task issues.

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How Does Path-Goal Theory
Work? (5 of 6)
• Situations for participative leadership:
– Followers seek control.
– Task demands ambiguous.

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How Does Path-Goal Theory
Work? (6 of 6)
• Situations for achievement-oriented
leadership:
– Task demands ambiguous.
– Leader challenges followers.

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Strengths
• Explains how leadership behaviors affect
followers.
– Distinct leadership categories.

• Uses expectancy theory.
• Practicality.

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Criticisms (1 of 2)
• Overly complex.
• Limited research support.
• Ignores demographics’ influences.

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Criticisms (2 of 2)
• Relationship between leadership behavior
and follower motivation unclear.
• Inflates leaders’ communication skills.
• Too leader-centric.

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Application
• Minimal training applications.
• Provides general recommendations.
• Applicable to all organizational levels
and tasks.
• Reminds leaders to focus on followers.

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Chapter 7: Leader–Member Exchange
Theory

Description (1 of 15)
• Leader–member exchange (LMX) theory.
– Dyadic relationship.
– How researchers treated leadership.

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2

Description (2 of 15)
Early Studies (1 of 2).
• Vertical linkages.
• In-group.
• Out-group.

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Description (3 of 15)

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4

Description (4 of 15)

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Description (5 of 15)
Early Studies (2 of 2).
• Definition of group membership.
• Benefits of in-group followers.
• Characteristics of out-group members.

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Description (6 of 15)
Later Studies (1 of 4).
• Studies of in-group and out-group
differences.
• Positive outcomes of LMX.

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Description (7 of 15)
Later Studies (2 of 4).
• Importance of communication.
• Interest in continued LMX research.

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Description (8 of 15)
Later Studies (3 of 4).
• Atwater & Carmeli (2009): workplace
energy and creativity.
• Ilies, Nahrgang, and Morgeson (2007):
employee citizenship behaviors.

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Description (9 of 15)
Later Studies (4 of 4).
• Empowerment’s effect.
• Martin et al. (2016): job performance.

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Description (10 of 15)
Leadership Development (1 of 3).
• High-quality exchanges with followers.
• Networks of partnerships.

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Description (11 of 15)
Leadership Development (2 of 3).
• Three phases of relationships.
• Desired follower qualities.
• Desired leader qualities.

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Description (12 of 15)
TABLE 7.1 Phases in Leadership Development
Phase 1
Stranger

Phase 2
Acquaintance

Phase 3 Mature
Partnership

Roles

Scripted

Tested

Negotiated

Influences

One way

Mixed

Reciprocal

Exchanges

Low quality

Medium quality

High quality

Interests

Self

Self and other

Group

Time

Source: Adapted from “Relationship-Based Approach to Leadership: Development of Leader–Member
Exchange (LMX) Theory of Leadership Over 25 Years: Applying a Multi- Level, Multi-Domain
Perspective,” by G. B. Graen and M. Uhl-Bien, The Leadership Quarterly, 6(2), pp. 219–247. Copyright
1995 by Elsevier. Reprinted with permission.

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Description (13 of 15)
Leadership Development (3 of 3).
• Performance predicts relationship quality.
• Behaviors impact relationships.
• Effects of partnerships.

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Description (14 of 15)
Leadership Development: Emotions and LMX
Development.
• Role taking.
• Role making.
• Role routinization.
– LMX differentiation.

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Description (15 of 15)
TABLE 7.2 Affective Processes and LMX Development
STAGE I
Role Taking

STAGE II
Role Making

STAGE III
Role
Routinization

LMX
Development

Leader initiates
possibility of
LMX relationship

Series of dyadic
affective events
shapes LMX
quality

Stable
relationship
disrupted
by LMX
differentiation

Key Affective
Process

Leader
emotional
expressions are
affective events

Leader and
members
share affect
(entrainment)

LMX relationship
can change
based on LMX
differentiation

Level

Individual

Dyadic

Group

Source: Adapted from Cropanzano, R., Dasborough, M. T., & Weiss, H. M. (2017). Affective
events and the development of leader–member exchange. Academy of Management Review,42(2), 233–258.

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How Does LMX Theory Work?
(1 of 3)

• Describing leadership.
• Prescribing leadership.
• Productivity with in-group.

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How Does LMX Theory Work?
(2 of 3)

• Out-group differences.
• Unique relationships with all followers.

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How Does LMX Theory Work?
(3 of 3)

• Giving resources leads to more
giving.
• Aim for in-group metrics.

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Strengths (1 of 3)
• Intuitive.
• Addresses in-groups and out-groups.
– Validates organizational relationships.

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Strengths (2 of 3)
• Dyadic relationship central.
• Importance of communication.
• Creates awareness of bias versus
fairness.

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Strengths (3 of 3)
• Cross-cultural applications.
• Research support.

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Criticisms (1 of 2)
• Early issues with fairness.
– Privileges in-groups.

• Underdeveloped.
– Lacks complex theorization.

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Criticisms (2 of 2)
• Contextual factors inadequately explained.
• Insufficient empirical measurements.

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Application (1 of 2)
• Emphasizes relationship perspective.
• Widely applicable across organizational
levels.
• Appropriately explains leadership
networks for effectiveness.

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Application (2 of 2)
• Widely applicable across organizational
types.
• Emphasizes followers’ importance.

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