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Leader-Member Exchange Theory (LMX)

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A leader is one or more people who selects, equips, trains and influences one or more follower(s). They have diverse skills, abilities and gifts. Leaders point the followers in the direction of the organisation’s mission and objectives. The leader achieves this by conveying the vision of the future so that it resonates with the follower’s beliefs and values. A leader enables the followers to be innovative and self-directed. A follower is someone who supports and is guided by another or by a group. Followers play a vital role in supporting the activities and action of leaders. Leaders become ineffective and lack authority and status without loyal faithful followers. Hence leader-follower relationship lies at the heart of effective leadership. …show more content…
Leader-member exchange theory (LMX) focuses on the dyadic relationship between supervisors and subordinates. The central concept of LMX is that leadership is more effective when “leaders and followers are able to develop partnerships and thus gain access to the many benefits these relationships bring” The theory adopts that leaders develop an exchange with each of their subordinates. Considering the quality of the leader-member exchange relationship will influence the responsibility, decision influence, performance and access to resources of the subordinates. It promotes that high quality relationships with leaders result in rewards and positive employment experiences. The leader-member exchange theory focuses on determining the type of leader-subordinate relationships that promote effective outcomes and the factors that determine whether leaders and subordinates will be able to develop high-quality …show more content…
Research has shown that the dyadic relationship between employees and supervisors or LMX plays a significant role in shaping the attitudes and behaviours of followers. The different relationships which leaders develop with their followers drive the behavioural and attitudinal reactions with dyadic LMX relationships. High-quality exchange relationships are beneficial for both the leader and subordinate and benefits include increased performance, commitment and

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