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The Leadership Member Exchange Theory

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The Leadership Member Exchange Theory
The Leadership member exchange theory according to many sources, states that all relationships between managers and subordinates go through three stages. (LMX Theory 1975) These three stages are identified as role taking, role making, and routinization. Role taking is first, and as soon as new members enter your group. During role taking, members take time to evaluate these new members, and come up with an idea of their strengths. Role making is the second stage where the manager or leader subconsciously and informally divides new members into two categories, the “In-Group” and the “Out-Group”. These informal groups play a very specific role in the success of leader, and his or her group. An In-Group of team members, are people the leader trusts
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