The Making of a Leader
Effective leadership is a crucial element in any successful organization. Organizational research has explored the leader-member relationship from a variety of perspectives. A contemporary theory on the nature of leader and subordinate relationships is Leader-Member Exchange (LMX) theory. LMX theory asserts that a leader develops unique exchange relationships with each of their subordinates and that these relationships vary in quality of exchange. Studies regarding the explanatory power of LMX theory have been inconsistent at best (Gerstner and Day 1997; Schriesheim, Castro and Cogliser, 1999). Poor and varied operationalization of the leader-member exchange is a contributing factor to this ambiguity (Dienesch and Liden, 1986; Schriesheim, Castro and Cogliser, 1999). The purpose of this study is to elucidate current LMX theory and enhance the reliability in predicting organizational outcomes of employee commitment and satisfaction. This will be accomplished through the introduction of a mediating construct (organizational justice perceptions) and a moderating construct (leader active listening aptitude). Moderators such as organizational context and leader traits have been proposed in past research to better explain LMX theory (Gerstner and Day, 1997; Liden, Sparrowe and Wayne, 1997). The LMX model will be examined, dissected, and expanded by including proposed factors of LMX, leader active listening, and subordinate fairness perceptions. This new proposed model of LMX may account for the inconsistent findings in past LMX research.