Do intelligent leaders differentiate exchange relationships intelligently? A functional leadership approach to leader-member exchange differentiation.

Journal of Applied Psychology, Vol 109(4), Apr 2024, 490-512; doi:10.1037/apl0001164The burgeoning literature on leader–member exchange (LMX) differentiation indicates that differentiating LMX relationships within groups has both benefits and costs when it comes to group effectiveness. Although some clarity is emerging surrounding the null total effect of LMX differentiation on group performance, we still know little about how leaders themselves shape the differentiation process. In this article, we extend theory to suggest that some leaders may differentiate more effectively than others. Drawing from functional leadership theory, we first identify a potential approach available to leaders likely to enhance their functional effectiveness—strategically investing in and developing stronger social exchange relationships with subordinates who can best help them fulfill the task functions (via task performance-based differentiation) and group maintenance functions (via contextual performance-based differentiation) specified within functional leadership theory. Embedding this potential approach within the ability–motivation–opportunity framework, we then develop a theory for which leaders are best positioned to recognize and pursue strategic relationship development this way. Specifically, we posit that leaders with stronger cognitive abilities (g) are more likely to recognize the value of such an approach, and those high in core self-evaluation are more likely to believe i...
Source: Journal of Applied Psychology - Category: Psychiatry & Psychology Source Type: research