Leader-member exchange theory
Leader-member exchange theory (alternatively known as LMX theory; hereinafter, the Theory) is the leadership theory that says leaders create ingroups and outgroups and those in the ingroup will have higher performance ratings, less turnover, and greater job satisfaction.
Definitions
According to Organizational Behavior by Robbins and Judge (17th edition),
- Leader-member exchange theory. A theory that supports leaders' creation of ingroups and outgroups; subordinates with ingroup status will have higher performance ratings, less turnover, and greater job satisfaction.
