Hence ELM theory case study
What theories from this chapter are relevant for analyzing the case? NAS 1) Leader Member Exchange theory also known as ELM or Vertical Dyad Linkage theory would be most appropriate In analyzing this case. According to this theory Leaders tend to build special relations with some employees which end up becoming a part of the Leaders Inner circle.
These employees are Implicitly trusted by the leader and usually given high levels of responsibility, decision making power and access to resources.
In return the inner circle is expected to work hard and achieve their objectives and display loyalty. The other employees who belong to the out group, on the other hand are given lower levels of responsibility. It is evident from Des behavior that he as a leader of the group had already identified his inner circle which comprised of Pat among others. They were not only given more significant projects but were also well appreciated.
These inner circle employees were content and hence were good performers and contributors with complete loyalty towards De.
On the other hand, Kathleen , Sallies and George were a part of the outer group. They were given comparatively less importance and hence felt discriminated against eating to overall Job dissatisfaction. Hence ELM theory Is definitely In play In this case. Q. S 2 Evaluate Deed’s behavior as a manager, and Identify effective and Ineffective actions NAS 2) Des style of management in an effective one, which , if used correctly can not only strengthen his relationship with his subordinates but also motivate the team members to achieve their objectives.
Des strategy of empowering employees and encouraging them to make their own decisions, thereby enabling them to learn new skills, required to perform the Job well is an effective way of management. Effective actions by De: He is trying to empower subordinates, make rewards contingent on performance, and give subordinates an equal opportunity. These actions are consistent with currently prescribed management approaches.
Ineffective actions by De: He falls to appreciate the significant Individual differences among his subordinates, and he does not understand the need to vary his behavior more across subordinates. Besides providing autonomy to the employees, he needs to develop the skills and self-efficacy of the inexperienced employees. This can be done through providing appropriate instruction, coaching and support.
De should meet subordinates periodically to discuss their work relationship, negotiate the subordinates role and plan with the employees about how to achieve improvement of relevant skills.
Perhaps the experienced employees could coach or mentor the new employees. This is also one way for the senior employees to learn leadership skills. Q. S 3 What should Dan say or do now? NAS) Dan should provide suggestions to De on how to solve the problem in his marketing unit. Dan could Instruct De on how to apply the ELM theory to management practices (the need to tailor his relationship to the requirements of ACH Individual employee, recognizing Individual differences.
More Importantly, Dan himself may also have made a mistake similar to Deed’s. Since it is Deed’s first supervisory position, Dan snouts prove more guidance Ana coaching to Nell learn now to carry out leadership practices effectively. Because leadership training will only be effective if accompanied with appropriate follow-up activities such as encouragement, coaching, and support by the boss. For example, Dan could meet with De regularly to discuss in a supportive way how to improve his skills and attain leadership effectiveness.