Leader-Member exchange theory focuses on the relationship that exists between managers and workers on how they should interact with each other in order to create a successful workplace environment for both individuals. Just like any workplace environments, the created relationship has a lot to do with how the relationship can either contribute or disrupt the process in place. The hostile relationship type can also affect the growth of the organization including unable to reach desired goals.
“LMX says that leadership is a process that is centered on the interactions between leaders and followers. The relationship between leaders and followers is at the heart of the leadership process” (PSUWC, 2020). The leader-member exchange theory first emerged in the 1970s. the theory does state that all types of relationships between managers and followers go through group process which being in-group and out-group. The in-group members are loyal and trust-worthy including mangers provides most of their attention while out-group members betray the trust of their mangers and are not motivated to do anything (Northouse, 2016). The leader-member theory focuses on the daily interactions with mangers and workers to see if a successful workplace environment is reached every time. It is very important for this theory to exists especially in the workplace environment since it adds lots of benefits to not only both parties but also to the organization.
The more positive relationship between managers and workers, the better environment it creates including increasing motivation for the members of the team. This type can certainly contribute to the benefit of the members of the team in the workplace. As the lesson commentary goes in the detail about the strengths and weaknesses of leader-member exchange theory, the positiveness still balances out much more than negative since the benefits can be seen in all the individuals involved including the organization itself. One of the benefits this theory can provide is the focus of the strong leadership process that is created between leaders and followers including getting support from the organization (PSUWC, 2020).
I am able to describe my own situation regarding a manager for one of my previous employment. I do have to say that when I was hired with the organization along with few other workers, the manager was evaluating how everyone was working on the tasks assigned in order to see how they would fall under in-group and out-group categories. Overtime, the manger was able to see that I was working hard and loyal to the organization. As Northouse described, I became in-group members who was considered loyal and manager was able to see me as reliable including providing me new tasks and projects which helped increase different opportunities for me within the organization (Northouse, 2016). This theory focuses on how management should be interacting with members of the organization and once they are treated greatly, the workers performances reinforces the success of the team and continuance success of the organization.
Bauer, T. N., & Erdogan, B. (Eds.). (2015). The oxford handbook of leader-member exchange. Retrieved from https://ebookcentral.proquest.com
Northouse, P. G. (2016). Leadership: Theory and Practice. Thousand Oaks, California: Sage Publications, Inc.
Pennsylvania State University (2020). PSYCH 485: Lesson 8: Leader-Member Exchange Theory. Retrieved from https://psu.instructure.com/courses/2045005/modules/items/28166636