Question Phyllis Business & Management

Transformational Leadership Theory and LMX Theory - Strengths and Weaknesses

What are the strengths and weakness of transformational leadership theory and leader-member theory (LMX)?

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Answer Internal Staff

One strength of transformational leadership theory is that it proposes that leaders are great at creating an overall vision for a company’s future. By having a strong overall vision a transformational leader has the benefit of being able to deal with challenging situations well. This is because they have a focus on the bigger picture and do not get bogged down in worrying about minor details. However, this can actually be a disadvantage as well. As transformational leaders are not concerned about minor details it can often mean that they are overlooked. Some minor details can be very important and actually impact on the overall vision and if it can be achieved. Therefore, transformational leaders often need support from other employees who are concerned with minor details.

One strength of LMX is that it is a unique theory because it’s the only leadership approach that makes the concept of the dyadic relationship the centerpiece of the leadership process. However, the LMX theory can be criticised because the LMX theory runs counter to basic human values of fairness. It gives appearance and discrimination against groups that don’t receive the special attention, and as such, employees can consider this to be unfair.