Empiriceme · Model · Theory / Model

Leader-Member Exchange

Also called LMX; in-groups and out-groups under one manager

Managers form relationships of different quality with different subordinates, so there is no single leadership style operating within a team.

LMX inverted the assumption that a leader has a style applied uniformly. Instead, differentiated relationships develop, with an in-group receiving trust, information and discretion, and an out-group receiving formal supervision. Both sides experience a different manager, and measures of leadership that average across the team describe neither.

In practice

  • A staff survey rating one manager both best and worst in the department is not inconsistent.
  • Two people with the same job title receive different information about the same decision, routinely and without malice.
Subject
Organizations & Bureaucracy
Essay
Why organisations learn, harden and decline

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