Leader-Member Exchange Theory

Leader-Member Exchange Theory (LMX) explains the relationship between leaders and their team members. It suggests that leaders develop unique connections with each employee, resulting in varying levels of trust, respect, and support. Those in the “in-group” enjoy more favorable treatment, opportunities, and resources, while “out-group” members may receive less attention. The quality of these relationships impacts job satisfaction, performance, and overall team dynamics. LMX emphasizes the importance of building strong partnerships between leaders and team members for a more effective and harmonious workplace.