Leader–member exchange (LMX) theory suggests that leaders and followers develop unique relationships based on their social exchanges, and the quality of these exchanges within an organization can influence employee outcomes (Graen & Uhl-Bien, 1995; Liden et al., 1997).

How does LMX theory help one better understand a work experience?

The LMX theory places a focus on the relationship between leaders and their followers while it discloses how the relationship develops between leaders and followers of their team. … Advantages for leaders who have high-quality relationships with their followers will experience many benefits in their work environment.

What is the focal point of LMX theory?

While most theories have emphasized the point of view of the leader, the LMX theory conceptualize leadership as a process that is centered on the interaction between leaders and followers. LMX theory makes a dyadic relationship between leaders and followers as the focal point of the process.