Fundamentals of Management, 8th ed

Out-Group

In-Group

©

C

enga

ge

Lea

rn

in

g

F I G U R E 1 1 . 6

The Leader–Member Exchange Model

The LMX model suggests that leaders form unique independent relationships with each

of their subordinates. As illustrated here, a key factor in the nature of this relationship is

whether the individual subordinate is in the leader’s out-group or in-group.

LMX model

Stresses that leaders

have different kinds

of relationships with

different

subordinates

Chapter 11: Leadership and Influence Processes

3 4 3

Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

---

The model suggests that supervisors establish a special relationship with a small

number of trusted subordinates, referred to as the in-group. The in-group usually

receives special duties requiring responsibility and autonomy; they may also receive

special privileges. Subordinates who are not a part of this group are called the out-group,

and they receive less of the supervisor’s time and attention. Note in Figure 11.6 that the

leader has a dyadic, or one-to-one, relationship with each of the five subordinates.

Early in his or her interaction with a given subordinate, the supervisor initiates either

an in-group or an out-group relationship. It is not clear how a leader selects members of

the in-group, but the decision may be based on personal compatibility and subordinates’

competence. Research has confirmed the existence of in-groups and out-groups. In

addition, studies generally have found that in-group members have a higher level of

performance and satisfaction than do out-group members.

28

RELATED APPROACHES TO LEADERSHIP

Because of its importance to organizational effectiveness, leadership continues to be the focus

of a great deal of research and theory building. New approaches that have attracted much

attention are the concepts of substitutes for leadership and transformational leadership.

29