Leader-member exchange (LMX) is a leadership theory that is based on the relationship between a leader and a follower. This theory measures the relationships between a leader and his or her followers and attempts to predict worker outcomes like productivity, turnover, promotion potential, and organizational commitment. Leader member exchange differs from other leader-follower theories in that LMX recognizes that each follower has a unique relationship with the leader. The varied relationships between the leader and follower result in some followers being part of an in-group, and others part of an out-group (PSU World Campus, 2013).
The quality of the leader-follower relationship is the sole determinant of whether the follower falls into the in-group or the out-group. This leads to the question, “What determines the quality of the relationship?” This question cannot be answered easily, and the answers are often debated. Researchers have come to many conclusions about which variables which determine the quality of the leader-follower relationship:
1. Their level of conscientiousness or extraversion (Lapierre & Hackett, 2007).
2. Their failure to ingratiate their supervisors in the same manner at those in the in-group care to (Colella & Varma, 2001).
3. Their negative views of their organization (Deluga, 1998).
4. Their dissimilarity to their leaders (Wu, 2010).
It seems that many of these determining factors are malleable, or able to be changed over a period of time. If that is the case then why do some followers choose to remain in the out-group?
Out-group members are generally believed to be substandard both socially and professionally when compared with their in-group co-workers. Out-group members tend to have less desirable work attitudes, behaviors, and performance. They are generally less committed to their organization and choose to remain within their job description vice stepping out for the betterment of the organization. This usually leads to leaders treating them as “hired hands” and providing them less opportunity for advancement. Leaders also provide less mentorship and have less positive interaction with out-group members (Wu, 2010). In other words, out-group members do not choose to remain in the out-group – they are conditioned to remain there. When followers are placed in the out-group they begin to feel left behind, forgotten, and mistreated. When followers feel this way they may feel that their position in the organization is fixed leaving no purpose for changing their social or professional behaviors.
In-groups and out-groups in organizations are unavoidable. It is human nature for groups of people to band together when they are placed in a common location. LMX is a leadership tool to allow leaders to overcome this potential difficulty through awareness of the impact of leader-follower relationships. Northouse states that it is important for leaders to be aware of in-groups and out-groups in their workplace (2013). Identifying out-groups gives leaders an opportunity to improve effectiveness in their organization by improving relationships with out-group members or by, “…recognizing that each employee is unique and wants to relate to [the leader] in a special way” (Northouse, 2013, p. 3378).
Colella, A., & Varma, A. (2001). The Impact of Subordinate Disability on Leader-Member Exchange Relationships. Academy of Management Journal, 304-315.
Deluga, R. J. (1998). Leader-Member Exchange Quality and Effectiveness Ratings: The Role of Subordinate-Supervisor Conscientiousness Similarity. Group & Organizational Management, 189-215.
Lapierre, L. M., & Hackett, R. D. (2007). Trait Conscientiousness, Leader-Member Exchange, Job Satisfaction, and Organizational Citizenship Behavior: A Test of and Integrative Model. Journal of Occupational and Organizational Psychology, 80, 539-554.
Northouse, P. G. (2013). Leadership: Theory and Practice (Kindle Edition). Los Angeles: Sage Publications.
PSU World Campus. (2013). L.08: Leader-Member Exchange Theory. Retrieved from ANGEL Course Management System: https://courses.worldcampus.psu.edu/fa13/psych485/001/content/08_lesson/printlesson.html
Wu, K. (2010). The Dark Side of LMX: Variances Among Out-Group Members in Growth Need and Work Outcomes. Retrieved from ProQuest.com: http://media.proquest.com.ezaccess.libraries.psu.edu/media/pq/classic/doc/2409600201/fmt/prv/rep/NPDF?_a=ChgyMDEzMTAxOTAyMzQwMzg2Njo2NDM0ODQSBTk5MjEyGgpPTkVfU0VBUkNIIg0xMjguMTE4Ljg4LjQ4KgUxODc1MDIJODc5NjI4NTY4Og9GdWxsVGV4dFByZXZpZXdSBk9ubGluZVoCRlRiA1BSV2