Leader-Member Exchange theory of leadership Essay Example for Free

Leader-Member alternate theory of leadership EssayThe Leader-Member Exchange theory of leadership (Also known as LMX, LMET or plumb Dyad Linkage Theory) is a type of leadership theory that focuses on the dyadic relationship amidst leader and follower where the leader treats individual followers differently, resulting in two groups of followersan in-group and an out-group. The in-group consists of a low-toned number of trusted followers with whom the leader usually establishes a special higher quality alter relationship.The out-group includes the followers with whom the relationship of the leader remains more formal. It focuses on increasing organizational success by creating positive relations between the leader and subordinate (follower). The theory asserts that leaders do not move with subordinates uniformly. In-group followers perform their jobs in accordance with the employment contracts and can be counted on by the supervisor to perform uncrystallised tasks, to volu nteer for extra work, and to take on additional responsibilities.Supervisors exchange personal and positional resources (inside information, influence in decision making, task assignment, job latitude, support, and attention) in return for subordinates performance on unstructured tasks. High LMX relationship achieves increased mutual trust, confidence, job satisfaction, organizational commitment, common bonds, open communication, independence respect, rewards cognition and hence benefits both the organisation and the employee.Recognizing the existence of the in-group and out-group, could be discriminating against the out-group thus affecting employee turnover found on bad-quality LMX and job dissatisfaction. This is because members of out-group Example of an organization that has successfully used this theory is E-Myth Worldwide