Ans 1) Leader Member Exchange theory also known as LMX 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 Eds behavior that he as a leader of the group had already identified his inner circle which comprised of Patt 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
Ed.
On the other hand, Kathie , Sallie and George were a part of the outer group. They were given comparatively less importance and hence felt discriminated against leading to overall job dissatisfaction. Hence LMX theory is definitely in play in this case.
Q.s 2 Evaluate Ed’s behavior as a manager, and identify effective and ineffective actions
Ans 2) Eds 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. Eds 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 Ed:
He is trying to empower subordinates, make rewards contingent on performance, and give subordinates an equal opportunity. These actions