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Institution of Affiliation

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Leader-Member Exchange

The LMX or the leader-member exchange theory refers to the type of a leadership relationship that focuses on the two-way relationship between the leaders and their followers, with the primary aim of explaining the effect of the leadership between the two parties.

A high-quality leader-member exchange refers to the approach or interaction between the leader and the followers in such a manner that emphasizes a leader in developing high-quality exchanges with all their members or subordinates implying that all the measurements in are positive and high quality. The high-quality exchanges are therefore characterized by a high degree of mutual trust, reciprocity, a higher degree of obligation as well as high-quality exchanges. Thus, high-quality exchanges between the leaders and their subordinates produce positive impacts that include reduced employee turnover, more promotions among the members as well as higher employee commitment. The high-quality exchanges as well can be attributed to an increase in the employee attitudes and therefore results in the employee feeling better, accomplishing more in the organization and helping the organization to prosper due to the sense of belonging to the organization.

The leader-member exchange theory may be subject to inherent bias such as cognitive bias, especially for the out-group. The reason is that managers are human and can be subject to making poor judgments that may lead to an individual acquiring unfair membership to the out-group. A wrong impression at first can lead to biased thoughts to a bad work relationship and thus destroying the leader-member interactions that can lead to a culture deficient of trust, cohesiveness, as well as inclusion and this, may decrease the overall performance as well as the satisfaction of both leader and followers.

Works Cited

Lussier, Robert N., and Christopher F. Achua. Leadership: Theory, application, & skill development. Nelson Education, 2015.