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The leader–member exchange (LMX) theory is a relationship-based approach to leadership that focuses on the two-way relationship between leaders and followers. [1]The latest version (2016) of leader–member exchange theory of leadership development explains the growth of vertical dyadic workplace influence and team performance in terms of selection and self-selection of informal ...
The theory focuses on types of leader-subordinate relationships [4] which are further classified into subgroups, namely the in-group and the out-group. [5] The in-group consists of members that receive greater responsibilities and encouragement, [5] and are able to express opinions without having any restrictions.
LMX theorizes that the type of exchanges between the leader and specific followers can lead to the creation of in-groups and out-groups. In-group members are said to have high-quality exchanges with the leader, while out-group members have low-quality exchanges with the leader. [79]
Psychological research in the theory of LMX has empirically proven its usefulness in understanding group processes. The natural tendency for groups to develop into subgroups and create a clique of an in-group versus an out-group is supported by researcher (Bass, 1990).
The terminology was made popular by Henri Tajfel and colleagues beginning in the 1970s during his work in formulating social identity theory. The significance of in-group and out-group categorization was identified using a method called the minimal group paradigm. Tajfel and colleagues found that people can form self-preferencing in-groups ...
The quality of the relationship between the two can be described by Sahin as a term called leader-member exchange (LMX) theory. What LMX theory basically points out against McGregor theory is that “leaders develop unique relationships with different subordinates and that the quality of these relationships is a determinant of how each ...
In-group favoritism, sometimes known as in-group–out-group bias, in-group bias, intergroup bias, or in-group preference, is a pattern of favoring members of one's in-group over out-group members. This can be expressed in evaluation of others, in allocation of resources, and in many other ways.
[7] [17] Tajfel instead developed social identity theory's motivational explanation. In social identity theory, people are thought to award more points to their own group than to the out-group in the minimal group paradigm because, in those circumstances, in-group favoritism is the only way in which to achieve positive distinctiveness.