Explain leader-member exchange theory

What will be an ideal response?

* Leader-member exchange (LMX) theory recognizes that supervisors develop different types of
relationships with different subordinates, and seeks to explain those differences and their impact
on subordinates' satisfaction and productivity. LMX theory recognizes that, like relationships
outside of work, relationships between supervisors and subordinates vary in type and quality. For
example, supervisory relationships are formal and task oriented and leadership relationships are
less formal and characterized by free-flowing information. In addition to higher job satisfaction,
strong PCC (person-centered communication) and LMX relationships improve employee
commitment, autonomy, and negotiation latitude, and benefit supervisors and organizations by
reducing turnover and increasing productivity.