Leader-Member Exchange: A Critique of Theory & Practice

Leader-Member Exchange (LMX) relationship based on social exchange, reciprocity and role has evolved as a crucial factor in fostering competiveness of organizations all over the world. Outcomes related to LMX such as performance improvement, overall satisfaction, organizational citizenship behavior, commitment, innovation, creativity, team spirit and engagement not only generate positive employment experiences but also augment organizational effectiveness. This review paper is a modest attempt at understanding nuances of LMX, examining predictors of good quality LMX relationships, capturing significant outcomes and providing a critique of the theory and practice.