Theories Of The Leader-Member Exchange Theory

Every leader and follower is unique and works in a different way, depending on the situation. Leadership is a relationship built between leaders and followers, which require some sort of guidance for leaders. There are various leadership theories which have advanced over many different styles to define the leadership characteristics, traits & styles. Three main theories Lead-Member Exchange theory (LMX Theory), Transactional Leadership theory and Transformational theory allow the leaders to develop their own style utilizing one or more of these theories in order to properly develop relationships between leaders and followers.

How the Leader-Member Exchange Theory Works

The LMX theory is a relationship between a leader and each of the followers,

This group consists of employees that a leader trusts the most. Leaders will give these members most of their attention and provide challenging and interesting work. This group offers opportunities for additional training and

This will allow the leader to evaluate the follower’s motives, attitude and potential skills that will establish mutual role expectations.

Step 2: Refine any relationships that are questionable. This is for the followers that may have potential to develop toward becoming an in-group member.

Step 3: In this step relationships will develop and the potentials will either fall into out-group or mature and transform into mutual committing and trusting in-group members.

Step 4: This is the reinforcement stage and where the in-group and out-group begin to develop into separate groups. Here the leader needs to reward the “in-group members” with a higher status, benefits and influence in return for additional attention while maintaining responsive to the in-group needs with consultation when needed.

Stage 5: The groups have been established and leaders should be working toward increasing the number of in-group members.

Transactional