LMX Theory

This chapter develops the background and use of a basic principle for the entire book: LMX. Defined in the introduction, LMX is a relationship-based approach for managing teams. It drives leader effectiveness through developing dyadic relationships with members, and even using these dyads to build effective groups. Leaders measure the dyadic relationships in terms of the level of loyalty, support, respect, and trust. The leader treats each member as a unique individual as a singular relationship is built. In role making, leaders tend to put people into groups: in-group or out-group. LMX is a powerful way to create and nurture relationships between the leader and each member supervised. It shines the light on leadership communication and demonstrates how trust, respect, and loyalty can improve work relationships.