Tagged with: exchange theory of leadership

Group and Exchange Theories

Group and Exchange Theories

The group and exchange theories of leadership are derived from social psychology. These have their roots in the exchange theory. Leaders from different kinds of relationships with various groups of subordinates. Group theories describe how leaders need to maintain their position in group dynamics.

Leader Member Exchange Theory

Leader Member Exchange Theory

The Leader-Member Exchange Theory (LMX), also called the Vertical Dyad Linkage Theory is a relationship-based approach that focuses on the two-way (dyadic) relationship to get the best from all team members. How leaders maintain their position in groups and develop an exchange with each of their subordinates. How leaders and members develop relationships that can contribute to growth or hinder development.

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