The Leadership-Exchange Theory (LMX) according to Northouse (2013) had its origins in what was known as the Vertical Dyad Linkage Theory. The theory was based on how leaders and administrators advance relationships with subordinates in an effort to contribute to the work environment and mission accomplishment. Furunes, Mykletun, Einarsen, & Glaso, (2015) suggest that leaders use unique exchange relationships depending on the talents and motivation of their followers. The researchers point out that the difference between the LMX Theory and traditional practice is that the leadership style does not have to be consistent in how exchanges occur. Subordinates are not all treated the same under the LMX Theory. It is …show more content…
He has classified his employees according to their characteristics and strengths and has identified that they have greater overall satisfaction and a strong commitment and loyalty to him as their leader. He has created a positive role association from within the in-group.
According the LMX Theory, Jim has identified the in-group and the out-group. He has acknowledged that Shirley, Patty, Ted, Jana, Glenda, and Annie as people who proven themselves reliable, trustworthy and proficient. They are clearly the In-Group. They are a group that is made up of employees that Jim trusts the most. He states that he pays attention to all employees but provides challenging and interesting work and offering opportunities for additional duties. This group also seems to share a bond with Jim as far as work ethic and attitude which applies to the overall job …show more content…
In this case study there does not seem to be the problems that could occur such as low moral from the out-group or feelings of prejudicial behavior. Nahrgang, & Seo, (2015) indicate that problems can arise when new employees are not given the chance to become part of the in-group. They suggest that it is important for managers like Jim to build in a mechanism to train new employees and take time to learn their unique talents. They confirm Jim’s practice, that those already belonging to the in-group can be utilized as trainers for new employees or can depended on to make up for his on weaknesses. Northouse (2013) points out that Jim uses Ted and Jana to speak in public because that is one of his weaknesses. Jim seems to have avoided most of the disruptive behaviors that could occur when applying the LMX