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Member Exchange Theory

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- Using the Leader-Member Exchange Theory, discuss the dynamics between the leader and the in-group and out-group members. How does the in-group and out-group concept impact the leader-subordinate relationship?

- Identify and describe examples of in-group and out-group roles within your current or previous organizations. How did the in-group and out-group dynamics impact the organization?

APA 6th. Edition 2 pages

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According to the leader member exchange theory (LMX), there are two way relationships between the supervisor and subordinates (The Leader Member Exchange Theory, 2014). Following are the dynamics between the leader and in-group and out-group members:

In group Members: These group members are reliable, trustworthy and dedicated towards their tasks given by their immediate supervisor or leader. This form of relationship between the subordinate and supervisor is perceived as high quality exchange. These subordinates exceed their employment contracts to fulfill their roles effectively under LMX. This group prefers to work hard to maintain their performance for their leaders. This group is considered by the leaders as competent and motivated towards the task (The Leader Member Exchange Theory, 2014).

Out-group Members: These group members are not so reliable, trustworthy or competent. It is termed as low quality exchange. These kinds of subordinates do not go beyond their employment contracts (Bader, 2007). Out-group members work on the basis of formal job description. In other words, ...

Solution Summary

Leader-member exchange theories are provided.