The Leader Management Exchange theory is also known as LMX theory or LMET theory. This theory has dyadic relationship (two way relationship) between managers and members. It explains the role of the leadership in the organization. How a leader interacts with the team members or the subordinates and how the relationships between them works. The LMX was introduced in 1970. As the name suggests, the main focus of this theory is the interaction between the organization managers/leader and the members.
Stages of LMX Theory:
There are 3 stages of Leader Management Exchange theory. They are discussed as:
1. Role Taking:
This is the initial stage of the theory. In this particular stage the subordinates becomes a part of the team and …show more content…
The members then work on the projects being assigned to them and after that the manager/team leader judge them whether or not they are loyal to their work, they are trust worthy, prone to the new roles being assigned to them. The expectations of the team managers are high as they expect their newly recruited team members to work really hard and with dedication.
The team members are divided into two groups by the team manager i.e.
• In-Group:
This group is made particularly by the team leader for those team members which prove themselves devoted, trust worthy, loyal and hard working. In-Group comprises of more influence, information and confidence from the team leader. This group is highly involved, more dependable and communicative. If a member is working well, the team leader pays his/her utmost attention to the every individual working under his authority and hence offer more opportunities to that particular member to work.
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Stranger Phase:
As the name indicates, there is very little trust. Mostly, the members are self-motivated and are eager to do the work by themselves.
2. Acquaintance Phase:
In this phase there is more focus on the group rather than the self-interest work. Hence the team members performs in form of the groups and do friendly work with their team members and play a role as a group.
3. Partner Phase:
In this phase the level of trust between the subordinates and the team leaders is very much high. Also, more focus is on the group goals rather than the self-interest. The team members are praised for the work they do by their group fellows and team managers as well.
How does LMX Theory works?
• The LMX theory understand the role of attribution in the relationship between leaders and members.
• The LMX theory both describes and prescribes the leadership.
• This theory is important to recognize the role making groups i.e. In-Groups and Out-Groups in