How Does the Leader Member Exchange Theory Work

Leader–member exchange (LMX) theory suggests that leaders and followers develop unique relationships based on their social exchanges, and the quality of these exchanges within an organization can influence employee outcomes (Graen & Uhl-Bien, 1995; Liden et al., 1997).

How does the LMX theory work?

The goal of LMX theory is to explain the effects of leadership on members, teams, and organizations. According to the theory, leaders form strong trust, emotional, and respect-based relationships with some members of a team, but not with others. … LMX theory claims that leaders do not treat each subordinate the same.

How do you use Leader-Member Exchange Theory?

  1. Identify Your Out-Group. Chances are, you know who’s in your Out-Group already. …
  2. Reestablish the Relationship. It’s important that, as the leader, you make a reasonable effort to reestablish a relationship with Out-Group team members. …
  3. Provide Training and Development Opportunities.
Alexander Ross

Alexander Ross

Gaming, Esports & Interactive Media Writer

Alexander Ross has covered the video game industry for a decade, writing deep dives on game design, esports tournaments, VR developments, and gaming culture.

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