Leader Member Exchange Theory: Ingredients, Factors, and Implications

Leader Member Exchange
theory

TABLE OF CONTENTS
.........................................................................................................................................................1
INTRODUCTION ..........................................................................................................................3
LMX THEROY...............................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Leader member exchange theory is the one that suggest the leaders and followers must
develop the unique relationship to achieve certain organisational goals and objectives within the
specified time frame. Also, the present report will analyses in detail what is this theory and how
it impacts the organisation in the recent times. Also, it will help in understanding how this
theory plays significant role in big organisations like Tesco and marks and Spencer that is
running on large scale in UK. Furthermore, this theory will also helps in identifying certain
ingredients that are responsible for maintaining the high quality relationships within the
workplace and while carrying out various complex task at various levels.
Moreover, the study will also highlight the benefits of this theory in increasing the
employee satisfactions and self esteem and various other factors so that work is carried out not
only efficiently but also in best of manner. Furthermore, significance of certain factors such as
independence , courage , relevant knowledge existing within the leaders makes the performance
of the groups members and explains the success of this theory. Moreover, the study will also
help in understanding implication of this LMX theory carried out different workplace so that
management is able to develop better strategies and develop best of plans in the future for its
best implementation . Lastly, the study will also describe the in groups and out groups within
this theory along with providing relevant recommendation that might be used within this theory
in the future
LMX THEROY
Leadership member exchange theory (LMX) is relevant in the contemporary
organisations because of the fact that it helps in providing better explanations relating to various
teams, members and the organisation. Thus, it helps in building the unique relationships with the
members of the organisation that is essential for any firm to achieve better competitive
advantage and complete various challenging task in most efficient manner. Furthermore, LMX
theory is beneficial in contemporary organisation as business environment keeps on changing
and is unpredictable Anand, Vidyarthi & Rolnicki (2018).. Hence , strong relationships would
allow organisations in decreasing the employee turnover and develop better job satisfaction
that is essential for continuous growth and success. Moreover, the relevancy of LMX theory
might be explained through certain concepts that are described as follows