MBA_OB_unit 4_week 11_seq 3_Member Exchange theory_Pandian

Apr 02, 2026 06:06 · 6:39 · English · Whisper Turbo · 2 Mga Speaker

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Welcome to the session on Leader Member Exegy Theory. In this session, we will understand

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about Leader Member Exegy Theory. Introduction Leader Member Exegy Theory, LMX, is a highly

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significant topic in the study of business, particularly when understanding leadership

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dynamics within the workplace. This theory sheds light on the unique relationships leaders

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established with each of their subordinates and the subsequent impact on productivity and morality.

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The Leader Member Exegy Theory is a concept that revolves around the relationship between

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the leader and their team members. The idea underpinning this theory is that leaders from

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different types of relationships with various forms different types of relationships with

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various subordinates. Not everyone is treated equally and as a result, there are in-groups

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and out-groups within the team. In-groups comprise of team members who enjoy a better relationship

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with their leader, typically involving higher levels of trust, interaction, support and privileges.

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On the other hand, out-groups consist of those who have a more formal, limited interaction with the

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leader. The key principles of Leader Member Exegy Theory. Leaders do not interact with all

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subordinates in the same way. The nature of Leader Member interactions can range from professional to

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personal. The quality of the Leader Member relationship impacts job performance and satisfaction.

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In-group members typically receive more benefits than their out-group counterparts.

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Stages in Leader Member Exegy Theory. The transition from out-group to in-group

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in the Leader Member Exegy Theory generally undergoes three stages.

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Stage 1. Role-taking. The leader assesses a new commercial skills, abilities and attitudes.

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Stage 2. Role-making. It occurs after the leader has had some time to observe

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their subordinates, characterized by more free-flowing, two-way communication.

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Stage 3. Routinization. The leader and the downline have accepted one another and work

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productively together. For instance, consider new employees joining a team. At first,

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their interaction with the team leader is limited. Their performance in the initial task

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decides whether or not they move closer to the leader. If they demonstrate diligence and competence,

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they may receive more responsibilities and better rapport with the team leader.

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Reader Member Exegy Theory is explained in this diagram.

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Follower Characteristics include Competence, Agreeableness, Conscientiousness, Openness, Positive

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Effectivity, Effective, Negative Effectivity. Leader Characteristics include Supervisor's

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Expectations of Followers, Contingent Reward Behavior, Transformational Leadership,

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Entrepreneurship, Agreeableness. Interperson Relationship includes Perceived Similarity,

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Stop Promotion, Assertiveness, Leader Trust and the Consequences include Turnover Intentions,

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Actual Turnover, Job Performance, Overall Organization Commitment, General Job Satisfaction,

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Satisfaction with Pay, Procedural Justice, Empowerment, Perception of Politics, Role Ambiguity,

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Positive Followers Outcomes include 4. 1. Satisfaction, 2. Performance, 3. Commitment and 4. Behaviour,

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Advantages and Disadvantages of High and Low LMS that is Leader Member Exegy Theory. Benefits of High

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LMS include Preferential Treatment, Increased Job Satisfaction, Job Rated Communication, Ample

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Access to Supervisors, Increased Performance Related Feedback. Disadvantages, Low LMS include

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Limited Trust and Support from Supervisors, Few Benefits outside the Employment Contract.

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Type 4 Questions

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Question 1. Which Leadership Theory is not Leader Centered?

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A. Trade Theory

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B. Leader Member Exchange Theory

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C. Contingency Theory

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B. Path to Go Leadership Theory

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The Leader Member Exchange Theory is the correct answer because Leader Member Exchange Theory is

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Member Centered, Subordinate Centered and not Leader Centered.

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In Leader Member Exchange Theory, Leader Street Followers

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A. Equally

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B. In a Collective Way

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C. Independently

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D. According to Group Average

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C. The Correct Answer is in Leader Member Exchange Theory, Leader Street Followers

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Independently. They don't treat their followers equally because

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some followers gain the trust of the leaders and they are close to them.

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So, leaders treat their followers depending upon the individuals.

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In this session, we have understood about Leader Member Exchange Theory.

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Happy Learning. Thank you.

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