What is the LMX model?

The Leader-Member Exchange Theory first emerged in the 1970s. It focuses on the relationship that develops between managers and members of their teams. The theory states that all relationships between managers and subordinates go through three stages.

What are the four factors of Leader Member Exchange?

The four stages

  • Stage 1: Vertical dyad linkage.
  • Stage 2: Leader–member exchange.
  • Stage 3: Leadership-making.
  • Stage 4: Team-Making.

Is LMX a leadership theory?

LMX theory is an exceptional theory of leadership as unlike the other theories, it concentrates and talks about specific relationships between the leader and each subordinate.

What are disadvantages of LMX?

Disadvantages of the leader-member exchange A leader who does not recognize their faults and bring the out-group members into the core group can discourage employees, which can affect productivity and loyalty.

How do you use LMX theory?

For followers, applying the concepts of LMX theory is easy: align yourself with the leader, take on extra tasks, and expect positive results. For leaders, LMX offers a greater challenge, because making your team as productive as possible will mean finding ways to turn out-group members into in-group members.

What is a strength of LMX theory?

Strengths of LMX Theory Emphasizes the specific relationships between the leader and each subordinate. It is considered a robust explanatory theory to describe the role of quality relationships between leaders and followers. Talks about the significance of communication in leadership.

Why is LMX important?

Leader–member exchange (LMX) theory suggests that leaders and followers develop unique relationships based on their social exchanges, and the quality of these exchanges within an organization can influence employee outcomes (Graen & Uhl-Bien, 1995; Liden et al., 1997).

What is an advantage of LMX theory?

Similarly, there are numerous benefits of having a high LMX relationship with members of your team – increased job satisfaction and productivity, increased confidence, stronger mutual trust, increased respect and recognition, more independence, easy and open communication and increased commitment to the job and …

What are the strengths of LMX theory?

One of the most obvious strengths is that leader-member exchange theory makes sense to us intuitively. We have all witnessed and most likely personally experienced in-groups and out-groups in our personal lives.

What is Leader Member Exchange Theory And what does it say about leadership?