To what extent is LMX theory still relevant in contemporary organisations

HRM11120
Leading Strategic
Decision Making
Assessment

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
To what extent is LMX theory still relevant in contemporary organisations..............................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic decision making could be termed to a process of understanding interactions of
decisions along with impacts on business for gaining benefits. Likewise, leadership is an action
in which a person makes use of their potentiality and competence for influencing addition to
directing others for goal attainment (Chernyak-Hai and Rabenu, 2018). It is accomplishment of
objectives by providing proper direction to human assistants. Organisational leaders with specific
styles and theory help self as well as others for performing right things. In the real world,
businesses opt suitable leadership approach to communicate essentials, provide directions along
with encourage personnel for acting actualisation of goals or objectives. Convincing workforce
for making positive changes, including changing habits for better sustaining the planet wherein
they live is major responsibility of a leader. It is considered as integrative together with
multidimensional The aim of the writing the essay is to gain insights about specific leadership
topic.
The essay highlights extent to which Leader-Member Exchange theory is relevant in
contemporary organisations.
MAIN BODY
To what extent is LMX theory still relevant in contemporary organisations
Information observation related to leadership behaviour states that actions of leader is not
similar to all subordinates. Significance of potential differences in the context is brought into
sharp emphasis through Leader-Member Exchange theory of George Graen that is also termed as
vertical dyad linkage theory that views leadership as combination of number of dyadic
relationship that links leader with follower. As per the theory, leaders form variant types of
relationships with ample number of groups as subordinate (Fourie and Mystris, 2021). It
contends that interaction among leaders together with members at workplace assist leaders to
establish effective and healthy relationship which impacts or influences employee behaviour
together with outcomes.
In a company, Leader-Member Exchange theory is still relevant as it enables a leader to
identify where they might be unfair along with assist people to avoid unconscious bias (Sarti,
2019). With this, the water can be tested in slow manner through offering similar development
opportunities. For example, with Leader-Member Exchange theory, leaders of Unilever frame
1