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Leader-Member Exchange (LMX) Theory

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Leader-member Exchange Model

You have been invited by the human resources manager of a medium-sized company to prepare a "report" on "In Groups and Out Groups." The report will be distributed to departmental VPs and directors.
In the report you should:
1. Introduce the concepts of In and Out groups.
2. Describe a situation where you (or someone you know) were a member of the "In group" and another situation where you (or someone you know) were a member of the "Out group." This should be an example from your own business experience.
3. Analyze and explain the major differences between the two situations
4. Explain how having an in-group and an out-group affected the groups and the organization
5. To what extent was membership in either the in-group or the out-group based on task related performance factors? What non-task related factors entered into the decision?
6. Describe the implications for leadership and a leader's relationship with followers

The Objective of the Assignment will involve the following the Course Outcomes :

1.Describe the role of relationship development and management in effective leadership and use the concepts in improving leadership effectiveness.
2.Analyze the various leader, follower, cultural, and situational characteristics that contribute to leadership.
3.Use effective communication techniques.
4.Apply critical thinking skills to analyze business situations.

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Solution Summary

This solution discusses Leader-Member Exchange (LMX) Theory. In-groups and out-groups are explained, with examples. The solution discusses the impact of LMX on the leader-follower relationships and the influence on task-performance.