The Leader-Member Exchange Model (LMX) explores the relationships between managers and team members. Managers assess members' abilities and divide them into in-groups and out-groups. In-group members maintain close relationships with managers, receiving high responsibilities, decision-making opportunities, and motivation. Out-group members receive low responsibilities and limited access to resources and opportunities. Visionary leaders identify these groups to locate problems and look for ways to motivate out-group members, such as providing equal training, development, and goal setting to improve performance and working relationships.

1. Leader-Member Exchange Model
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2. Introduction
Leadership-member exchange model is also
known as the vertical Dyad linkage theory.
Explores managers and leaders relationship with
the team members
Outcome of the relationship in terms of growth
or failure
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3. Three Relationships Between Managers And
Subordinates
Role taking - managers assess the abilities of the
team members.
Role making - managers groups the teams into
two; in-group and the out-group.
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4. Routine stage - managers establish the routines to
be observed by the team members.
Concept of in-group and out-group is that the
managers are aligned more to the in-group than
the out-group.
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5. Differences between in-groups and out-groups
In-group members maintain healthy relations
with their managers.
Highly motivated
Given responsibilities of the highest level
Engage in decision making with the managers
Focused to the task objectives.
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6. Out- group members given low responsibilities
Not entrusted with any sensitive jobs.
Access to resources is limited.
Does not receive opportunities like training and
development
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7. Task Related Performance Factors
In-group members shown how to conduct their
affairs with the view to enhancing their personal
growth.
Taken for training in different seminars
Given additional responsibilities.
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8. Leader’s Relations With His Followers
Relationship between leaders and members
dependent on trust or criticism.
Leaders who deliver are those who integrate the
workers and initiate new structures.
Leader’s relation with the workers should be
based on the job and merit of performance.
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9. Visionary leader identify the out-group and the
in-groups in an organization.
Analyzing these groups helps locate and fix the
problem.
Should look for what may motivate the out-group
members.
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10. Provision of training and development is crucial.
Equal opportunity should be given to all the
workers.
Goal setting and task allocation can improve the
working environment.
Encourage interactions and improve rapport.
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11. For more information on
Leader-Member Exchange Model
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