Leader-Member Exchange concept or LMX concept is a two-way relationship or a dyadic relationship between the leaders and also their team members that emphasis on how the leaders’ relationships through subordinates or pendant vary and also how that affects the source allocations and also outcomes.

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The LMX methods of relationships provide rise to two sides the employees- in-group & out-group. Leader let in-group members job-related within their personal circle by doing some favors when they provide less fist or donate to the out-group members.

All in all, the Leader-Member Exchange LMX theory says that the quality of the relationship between leaders and also their team members eventually decides the degree of loyalty, common trust, respect, duty and

Table the Contents

What is the process of LMX concept of Leadership?Four stages in the advancement of LMX Theory4 tips to develop Stronger Relationships v Team MembersLimitations of Leader-Member Exchange Theory

What is Leader-Member Exchange Theory?


Emphasizes the details relationships in between the leader and also each subordinateIt is thought about a robust explanatory concept to explain the duty of high quality relationships between leaders and also followersTalks about the definition of communication in leadershipIt is extremely practical and also valid in the approach

Criticism of the LMX Theory

One that the biggest criticisms of the leader-manger exchange concept is the it is viewed as unfair. The difference between in-group and also out-group in itself is discriminatory. It may hurt anyone in the organization as it may harbor unhealthy competition.

This theory additionally fails to describe how come build and also create high-quality exchanges in the very first place. It simply suggests that together a partnership is developed automatically.

The research of this theory does not specify why or what habits lead to developing a high-quality relationship. It focuses on the nature that the relationship rather than the why or exactly how of the relationship.

Limitations the Leader-Member Exchange Theory

1. Identifying her Out-group

It is imperative to recognize the out-group members and also give lock a chance. Re-evaluate what it is they walk to shed the to trust of the manager.

Are they incompetent, or are they not encouraged to it is in assigned crucial tasks? A manager should check facts and also compare the exact same with their perception the the follower.

2. Reestablishing Relationships

The leader must make an effort to re-establish their partnership with the out-group members. Research shows that members that have a good relationship v their leader show higher morale and also are more productive. So to reestablish relationships, leaders might use one-on-one meetings to identify his or her psychological contract and also what really motivates them.

Using McClelland’s Human motivation Theory or Herzberg’s Motivators and Hygiene aspect Theory can likewise be beneficial in finding what drives the out-group members come succeed.

3. Provide Training and advancement Opportunities

One means to aid followers change from out-group come in-group is to carry out them through training and also other opportunities to grow and develop and also be worthy of being contained in the in-group. One method to test your abilities is to administer them v low-risk opportunities to assess your progress.

This way, the manager have the right to no longer be labeled as unfair. Same opportunities and also growth avenues are provided to all, which have the right to balance the favoritism got by members that the in-group.


It is clear now that leadership is all around relationships in between leaders and also followers. Because of this leaders have to know exactly how to develop solid relationships across their team to optimize organizational as well as individual growth.

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The leadership-member exchange concept emphasizes this element of leadership. Plus, it also suggests that leaders have to keep on check their own behaviors and biases to build a fertile relationship through every member of your team.