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9990 · 4.2.3

Leaders and followers

9990 Organisational — leader-member exchange, followership, and power in organisations.

Need to know

What you need to know

  • LMX theory focuses on the unique dyadic relationship between a leader and each follower.
  • Leaders form an 'in-group' (high-quality exchange) and an 'out-group' (low-quality exchange).
  • In-group status is associated with higher performance, satisfaction, and organisational commitment.
  • Out-group relationships are formal and transactional, based on the employment contract.

Explanation

Leaders and followers

  1. LMX theory focuses on the unique dyadic relationship between a leader and each follower.
  2. Leaders form an 'in-group' (high-quality exchange) and an 'out-group' (low-quality exchange).
  3. In-group status is associated with higher performance, satisfaction, and organisational commitment.
  4. Out-group relationships are formal and transactional, based on the employment contract.