What does the Leader-Member Exchange (LMX) theory emphasize?

The Leader-Member Exchange (LMX) theory emphasizes the quality of relationships between leaders and their followers. This theory suggests that leaders develop different types of relationships with each team member, leading to in-group and out-group dynamics within a team. The focus is on how these relationships affect various outcomes, such as employee satisfaction, performance, and organizational commitment.

High-quality exchanges, characterized by trust, respect, and mutual obligation, promote more effective communication and collaboration between leaders and members. When leaders cultivate strong relationships with their followers, it can lead to increased motivation and improved job performance. This concept highlights the importance of interpersonal relationships in the workplace, distinguishing it from other theories that may prioritize different aspects, such as needs hierarchy, organizational structure, or team dynamics. By concentrating on the leader-follower relationship, LMX theory ultimately provides valuable insights into enhancing organizational effectiveness and employee well-being.