Leader Member Exchange ( Naics ) Theory Essay

Leader Member Exchange ( Naics ) Theory Essay

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Leader-Member Exchange (LMX) Theory

The Leader-Member Exchange (LMX) Theory is unique as it was not leader focused, nor was it follower focused. This theory a different approach, as Northouse (2013) stated, the "Leader–member exchange (LMX) theory takes still another approach and conceptualizes leadership as a process that is centered on the interactions between leaders and followers." (p. 161). The theory acknowledges that a leader may will have different relationships with each follower and that it may effect how the leader supports, rewards and interacts with that person. The followers are considered in the 'in-group ' or in the 'out-group ', which is determined by their perspective at work and how they perform, which modifies the kind of relationship they build with the leader.

The 'in-group ' consists of individuals that put in more effort in the workplace, these individuals tend to think outside of themselves and try to consider what would be beneficial to group as a whole to help them reach goals. These types of workers are the people leaders can be more effective with in reaching goals and because of this the leader may reward their tenacity with more responsibilities and opportunities for advancement. The 'out-group ' on the other hand consists of people that are doing the basics, they understand the requirements they have to meet and they do not attempt to exceed those requirements. This group is not treated badly by the leader, they are just not awarded the extra personal attention and opportunities presented to those individuals going above and beyond (Northouse, 2013).

Research surrounding the leader-member exchange theory was used as a tool in leadership making (Graen & Uhl-Bien, 1991). Research showed that...

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...gh many different channels such as how many of the students are succeeding, their involvement in the school activities, and more specifically on different changes within student and staff surveys. Involvement from students in a school environment is not only beneficial to the company, but also for the student as the activities may help shape them for success in the future.


The leadership theories discussed have both positives and negatives associated with them, this has been evident in most leadership styles and theories in general, not one single theory has been deemed perfect. However, they all can be very useful when implementing or making changes within an organization. Companies must discern what benefits them and what doesn 't apply to them. Although many of the theory have been extensively researched, they are suggest need for further research.

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