What is Leader-Member Exchange Theory? And Should You Use LMX Theory?

The video discusses Leader-Member Exchange (LMX) theory, which describes how leaders form unique relationships with their followers. It outlines the stages of LMX: role taking, role making, and role committing, highlighting both positive outcomes like increased loyalty and negative aspects such as bias and discrimination. The video also provides steps to mitigate these negative effects by identifying out-group members, re-establishing relationships, and offering development opportunities.

What is the primary focus of Leader-Member Exchange (LMX) theory?

• The marketing strategies of a business

• The unique relationships between leaders and followers

• The financial performance of a company

• The technological advancements in an organization

During which stage of LMX does a team member start to receive new challenges and opportunities?

• Role making

• Role taking

• Role committing

• Role evaluating

What is a potential issue with in-group membership in LMX?

• Bias in leader assessments

• Increased company profits

• Loyalty to the organization

• Improved team morale

What is a major problem associated with the dark side of LMX?

• Increased productivity

• Higher employee satisfaction

• Creation of out-groups

• Better communication

How can leaders use LMX theory to improve team dynamics?

• By ignoring out-group members

• By focusing only on in-group members

• By identifying and developing out-group members

• By reducing communication with all team members

What is the first step in using LMX to improve team relationships?

• Identify out-group members

• Reduce team meetings

• Promote all team members

• Increase workload

What is essential for rebuilding trust with out-group members?

• Increasing workload

• Avoiding communication

• Taking consistent actions

• Making promises