Economic and social leader–member exchange relationships and follower performance

This exploratory study investigated the link between economic and social leader–member exchange relationships and follower work performance and organizational citizenship behavior. Instead of viewing exchange relationships between leaders and subordinates on a continuum from low to high quality, we conceptualize social and economic exchange relationships as relationships with different qualities, rather than different levels of quality. Data from 552 followers and 78 leaders supported our two-dimensional model of leader–member exchange relationships. Furthermore, an economic leader–member exchange relationship was negatively related to both work performance and organizational citizenship behavior. As expected, positive relationships were obtained for a social leader–member exchange relationship and work performance and organizational citizenship behavior. Implications for practice and future research are discussed.     

Perceptions of and reactions to leader toxicity: Do leader–follower relationships and identification with victim matter?

This experimental study examined the influence of leader–follower relationships (i.e., LMX) and target salience on perceptions of leader toxicity and intentions to challenge the leader. There are no studies that evaluate the effect of leader–follower relationships on these two variables. Participants (n = 298) with work experience viewed a video of a leader acting in a destructive manner toward a target. As predicted, LMX out-group participants perceived the leader to be toxic to a greater extent than participants with favored status, and indicated greater intent to challenge the leader. With regard to target salience, the results also showed that observers perceived the leader to be toxic to a greater extent when the leader was targeting someone in their LMX grouping, but there were no significant differences in challenging intentions based on the target's LMX status. Implications for leaders, followers, and organizations are discussed.     

The moderating role of leader and follower sex in dyads on the leadership behavior–leader effectiveness relationships

Transformational leadership (TL) and leader–member exchange (LMX) literatures provide theoretical frameworks and accompanying empirical evidence for studying the relationship between leader behavior and effectiveness. Although prior attention has been given to gender differences in leadership style and leader effectiveness, the moderating effects of the sex of the leader and subordinate on the leadership–leader effectiveness relationship have not been investigated. In a field study of employees from a manufacturing plant, we examined whether leader and subordinate sex, and the sex composition of the leader–subordinate dyad, moderated the linkages of each set of leader behaviors (i.e., TL and LMX) with actual evaluations of leader effectiveness provided by the leader's subordinates and direct supervisor. Although female leaders were rated as more effective than male leaders overall, a fine-grained analysis of leader–subordinate dyads revealed that the male leaders benefited more than the female leaders from the use of transformational leadership in the leader behavior–leader effectiveness relationship. Implications and future research directions are discussed.     

Balance in leader and follower perceptions of leader–member exchange: Relationships with performance and work attitudes

Using a sample of 285 matched pairs of employees and supervisors, we explore the extent to which congruence in leader and follower ratings of LMX quality is related to follower job performance and work attitudes. An original conceptual model is introduced that identifies four combinations of leader and follower LMX ratings: balanced/low LMX (low leader and follower LMX), balanced/high LMX (high leader and follower LMX), follower overestimation (low leader LMX/high follower LMX), and follower underestimation (high leader LMX/low follower LMX). As expected, balanced/low (high) LMX relationships were associated with relatively low (high) levels of follower job performance, organizational commitment, and job satisfaction, while the incongruent combinations generally yielded intermediate levels of follower outcomes. However, follower underestimation was also related to high levels of follower job performance, whereas follower overestimation was associated with high levels of follower satisfaction and organizational commitment. Implications of these findings for future LMX research are considered.     

When opposites do (and do not) attract: Interplay of leader and follower self-identities and its consequences for leader–member exchange

Employees' self-identities, or the ways in which they define themselves relative to others, have implications for the quality of leader and follower relationships at work. Although self-identity has been examined within the context of transformational and charismatic leadership, its relevance for leader–member exchange (LMX) has received little attention. In this study we integrate LMX and self-identity theories. Doing so proved useful because it was found that leader and follower identities predicted LMX quality, as did the fit between leader and follower identities and interactions among fit at different self-identity levels. LMX quality fully mediated relationships of self-identity fit with job performance, regardless of whether LMX was reported by subordinates or their supervisors. Lastly, we also found that self-identity predicted LMX agreement across supervisors and subordinates. Implications of our findings for theory and practice are discussed.     

Further specification of the leader political skill–leadership effectiveness relationships: Transformational and transactional leader behavior as mediators

The present investigation was a three-source test of the intermediate linkages in the leader political skill–leader effectiveness and follower satisfaction relationships, which examined transformational and transactional (i.e., contingent reward behavior) leader behavior as mediators. Data from 408 leaders (headmasters) and 1429 followers (teachers) of state schools in the western part of Germany participated in this research. The results of mediation analyses, based on bias-corrected bootstrapping confidence intervals, provided support for the hypotheses that political skill predicts both transformational and transactional leader behavior, beyond other established predictors, and that transformational and transactional leader behavior mediate the relationships between leader political skill and leadership effectiveness. The contributions to theory and research, strengths and limitations, directions for future research, and practical implications are discussed.     

Leader–follower equilibria to examine investment decisions in grid resilience-enhancing measures

Large-area, long-duration power outages are increasingly common in the United States, and cost the economy billions of dollars each year. Building a strategy to enhance grid resilience requires an understanding of the optimal mix of preventive and corrective actions, the inefficiencies that arise when self-interested parties make resilience investment decisions, and the conditions under which regulators may facilitate the realization of efficient market outcomes. We develop a bi-level model to examine the mix of preventive and corrective measures that enhances grid resilience to a severe storm. The model represents a Stackelberg game between a regulated utility (leader) that may harden distribution feeders before a long-duration outage and/or deploy restoration crews after the disruption, and utility customers with varying preferences for reliable power (followers) who may invest in backup generators. We show that the regulator's denial of cost recovery for the utility's preventive expenditures, coupled with the misalignment between private objectives and social welfare maximization, yields significant inefficiencies in the resilience investment mix. Allowing cost recovery for a higher share of the utility's capital expenditures in preventive measures, extending the time horizon associated with damage cost recovery, and adopting a storm restoration compensation mechanism shift the realized market outcome toward the efficient solution. If about one-fifth of preventive resilience investments is approved by regulators, requiring utilities to pay a compensation of $365 per customer for a 3-day outage (about seven times the level of compensation currently offered by US utilities) provides significant incentives toward more efficient preventive resilience investments.     

Charismatic,ideological, and pragmatic leaders: An examination of leader–leader interactions

Although a number of researchers have examined and demonstrated the unique relationships different types of leaders develop with their followers (Dansereau, F., Graen, G.B., & Haga, W.J. (1975). A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role making process. Organizational Behavior and Human Performance, 13, 46–78.; Dienesh & Liden, 1986; Mumford, 2006), relatively little is known regarding how outstanding leaders interact or work together (Hunter, Bedell-Avers, Mumford, 2009-this issue). Given the particular importance of such questions, especially when considering leaders who have the potential to influence national and worldwide developments, the intent of the present study was to examine the leader–leader exchange relationships of charismatic, ideological, and pragmatic leaders. Due to the difficulty associated with examining high-level leader–leader exchanges, a hybrid qualitative–quantitative approach was taken to assess the interactions of Frederick Douglas, W.E.B. Dubois, and Booker T. Washington – three high-level leaders who responded to the same crisis, in the same time period, in the same region of the world. The results provide preliminary evidence regarding the interactions of charismatic, ideological, and pragmatic leaders; in fact, they indicate that leaders interact in a manner consistent with their mental model.     

Attachment and emotion regulation: Compensatory interactions and leader–member exchange

The current study draws on attachment theory (Bowlby, 1982) to examine how attachment (a relationship-based trait disposition), and the interaction between attachment and emotion regulation, relate to LMX quality. Data were collected from subordinates and supervisors in a variety of work settings. Attachment anxiety and attachment avoidance negatively predicted LMX quality. Moderator effects were found between attachment and emotion regulation.     

Mission impossible? Effects of crisis,leader and follower strain on health-oriented leadership

Previous studies underline positive effects of health-oriented leadership for follower well-being. However, it is not clear whether and to what extent situational and personal factors influence health-oriented leadership behavior towards employees (i.e., staff care). We examine the effect of crises and the moderating role of strain for the relationship between strain and staff care in two studies. The first study investigated main and interactive effects of crisis and leader strain on staff care in a cross-sectional survey (N = 201). To test for causality, we complemented our findings with an experimental vignette study (N = 169) and extended our findings with regard to the influence of follower strain. As expected, results of both studies showed negative effects of crisis and leader strain on staff care. Furthermore, crisis effects on staff care were contingent on both leader strain (Study 1 and 2) and follower strain (Study 2): While leader strain strengthened the negative relationships between crisis and staff care, follower strain served as a buffer. These findings support the assumption that staff care is at risk in crises particularly when leaders are strained. However, it is a positive finding that staff care is still feasible on a moderate and relevant level and that leaders respond to follower strain with additional efforts regarding staff care even in crises. The study contributes to the clarification and better understanding of situational contingencies of leadership behavior.     

Perceptions of politics and organizational cynicism: An attributional and leader–member exchange perspective

As the political perspectives of organizations gain acceptance, leadership is increasingly viewed as a political process. While some researchers have begun to shun the notion that politics should be viewed as necessarily bad and undesirable, it is still commonly seen as a negative attribute of the organizational environment. Moreover, organizational members who perceive themselves to be working in negative political environments may develop cynical attitudes toward the organization. The purpose of this paper is to provide insight into the role that attributions play in eliciting negative cognitive and affective reactions to the political environment. We argue that because the quality of the leader–member exchange (LMX) is often central to these reactions, LMX theory and research possess considerable promise for enhancing our understanding of these processes. We explore attributional processes in detail, with special attention to (a) how these attributional processes occur within a leader–member relationship and (b) how attributions ultimately impact perceptions of politics, as well as organizational cynicism.     

Intraday futures patterns and volume–volatility relationships: the German evidence

This paper examines the intraday behavior of 5-min DAX futures return volatility, volume and transactions, employing data from between January 1999 and September 2011, thus covering major market up and down trends. We focus on the interplay of the above variables finding a W-shape due to US macroeconomic news releases and the opening of US markets. By carefully modeling regular but infrequent events, we show that the last trading days of the FDAX and ODAX have significant impact on volatility and alter the intraday patterns. Additionally, we pay special attention to interactions between the futures and cash market caused by different trading hours at the Eurex. Thereby, we discover a uW-shape lending support for Daigler’s (J Futures Markets 17:45–74, 1997) extended market closure theory. Focusing on possible changes in the interplay of volume and volatility, we empirically analyze the implications of different volume–volatility theories. Finally, we model simultaneously the main volatility components—intraday calendar effects, macroeconomic announcement effects and interday volatility clustering—employing the framework of Andersen and Bollerslev (J Finance 53:219–265, 1998) to quantify and compare the impact of macroeconomic news announcements during contractions and expansions and focus on the economic impact of the crisis 2007/2008 on intraday volatility.     

Power and trust in board–CEO relationships

In this paper we develop and test a theoretical model that reduces relational risks to solve the puzzle of conflicting task requirements imposed on boards of directors in listed companies. Doing so unites two seemingly conflicting tasks—board control and service tasks—through examining relational risks between the board and the CEO. We also present two mechanisms that could reduce relational risks. One is board power over the CEO, and the other board trust in the CEO. Practitioners could apply these two mechanisms to achieve better performance of board control and service tasks simultaneously. We test hypotheses using 441 survey responses collected in 2005. The result shows a good fit between the model and survey data, indicating examining relational risks is a rewarding approach to understanding conflicting board task performance, and board control over the CEO and board trust in the CEO are two effective mechanisms to reduce relational risks.     

Beyond leader–member exchange (LMX) differentiation: An indigenous approach to leader–member relationship differentiation

The existing literature has established that leaders differentiate among their followers; however, the focus has long been on the Western leader–member exchange (LMX) theory. This paper examines leader–member relationship differentiation from an indigenous, leader–member guanxi (LMG) perspective. Using a sample of 60 groups and 228 employees, we examined the dual effects of LMG differentiation on employee job satisfaction, organizational commitment, turnover intention, and co-worker helping behavior after controlling for LMX, LMX median, and LMX differentiation. The results of this study supported the proposed dual effects of LMG differentiation, demonstrating that LMG differentiation, in general, is detrimental to employees' work attitudes and their intentions to stay in an organization. On the contrary, interestingly enough, LMG differentiation can accentuate the positive relationship between LMG and job satisfaction, organizational commitment, and co-worker helping behaviors.     

Organizational cynicism: Spillover effects on supervisor–subordinate relationships and performance

Organizational cynicism has grown in contemporary Western organizations. However, its impact on interpersonal relationships and consequently on organizational functioning remains understudied. The present study addresses these gaps by: a) exploring the spillover effect of organizational cynicism on supervisor–subordinate relationships, and b) examining if the spillover effect extends to employee performance. Specifically, it examines if affective commitment to the supervisor mediates the relationship between the PSS × organizational cynicism interaction effect and performance (i.e., mediated-moderation). Data were collected from both employees and supervisors (N = 274) from 45 organizations. Our results generally support our hypotheses. This study provides evidence that organizational cynicism interferes in the relationship employees develop with their supervisors, with consequences to performance. This study opens new avenues for research on organizational cynicism and carries implications for theory and practice.     

A model of relational leadership: The integration of trust and leader–member exchange

This article presents a model of relational leadership based on a review of leader-member exchange (LMX) and interpersonal trust. This model asserts that the LMX relationship is built through interpersonal exchanges in which parties to the relationship evaluate the ability, benevolence, and integrity of each other. These perceptions, in turn, influence the behaviors predicted by LMX researchers. This integrated model of relational leadership provides insights into the dynamics of leader-subordinate relationships and resolves some of the inconsistencies in the LMX research without losing the richness and uniqueness of the exchange theory. A number of propositions for future research in relational leadership are also suggested.     

Relative leader–member exchange,negative affectivity and social identification: A moderated-mediation examination

We argue that leader–member exchange (LMX) standing relative to the LMX relationships of other coworkers (RLMX) in workgroups may influence employees' job performance. Based on social comparison and social identity theories, we develop a moderated-mediation model of the psychological processes linking RLMX and job performance, and test it on a sample of 252 employees and 42 managers working in two large banks. Results of hierarchical regression analyses provide support for the model. We found that RLMX was positively related to social identification after controlling for perceptions of LMX; and also that social identification mediated the relationship between RLMX and job performance. We found further that negative affectivity moderated the relationship between RLMX and social identification which, in turn, also mediated the interactive effect on job performance.     

Is a disease leader attractive? Six tests of whether the COVID-19 pandemic affected follower preferences for attractiveness,health and other traits in political and non-political leaders

Attractive political candidates receive more votes on Election Day compared to their less attractive competitors. One well-cited theoretical account for this attractiveness effect (White et al., 2013) holds that it reflects an adaptive psychological response to disease threats. Voters are predicted to upregulate preferences for attractiveness because it constitutes a cue to health. The global COVID-19 pandemic constitutes an ecologically relevant and realistic setting for further testing this prediction. Here, we report the results from six tests of the prediction based on two large and nationally representative surveys conducted in Denmark (n = 3297) at the outbreak of the pandemic and one year later. Utilizing experimental techniques, validated individual difference measures of perceived disease threat and geographic data on COVID-19 severity, we do not find that disease threats like the COVID-19 pandemic upregulate preferences for attractive and healthy political or non-political leaders. Instead, respondents display heightened preferences for health in socially proximate relations (i.e. colleagues). Moreover, individuals who react aversively to situations involving risks of pathogen transmission (scoring high in Germ Aversion) report higher importance of a wide range of leadership traits, rather than for health and attractiveness in particular. Results are discussed in relation to evolutionary accounts of leadership and followership.