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Leader Member Exchange Theory (LMX)

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Leader Member

Exchange Theory (LMX)


Gokul Ram Thangamani

OBJECTIVES
Understanding LMX Theory
In-Groups & Out-Groups
Privileges of In-Group &Out-Groups
Example
Conclusion

What is LMX Theory


Its a theory that focuses on

the relationship and


communication between
supervisors and subordinates.

Vertical Dyad Linkage


Leaders maintains different relationship with

different individuals

In- Group & Out - Group


In-group members maintain healthy relations

with their managers whereas Out-group


members maintains formal relations

In-Group & Out-Group Realities


In-Group
Preferential treatment
Highly motivated
Engage in decision making

Out-Group
Lack of access
Limited trust and information
Feelings of neglect and loss of team identity

Bioplus , Inc
Do you think David Morgan
followed LMX theory in Bioplus ?

Overall
LMX challenges leaders to look at their own

leadership style
Understanding the nature of a high-quality

relationship
All levels of managers can use this theory
Every person is unique and should be treated in

unique manner

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