The Leader-Member Exchange Theory

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

Research showed that it is important for leaders to build relationships with all followers or employees. In building these relationships it allows for all subordinates to excel and take advantage of opportunities. There are three phases of leadership mention by Northouse (2013) which include the Stranger Phase, the Acquaintance Phase, as well as the Partnership Phase. Building these relationships with all subordinates can possibly reduce turnover, employee happiness, and overall organizational

However, the most effective one may be the transformational leadership theory. It is actually the leadership style that seems to utilized most in my current workplace already. There is very high demand required from employees which can create a stressful workplace environment sometimes. The transformational style of building relationships with employees can be used as a tool to combat this by addressing the employees as people and understanding them personally.

The company can use insight from the personal relationships to create ways of alleviating the stress and making the workload more bearable for employees. For example, when in a stressful time period, supervisors have implemented games to play after reaching milestones, which has been effective at removing some of the stress and monotony. This act also builds the morale of employees and helps give them a better disposition, which shows in how they interact with students. The leadership within the company takes a special focus on not only building relationships with employees, but also with the consumers, the students and their