An understanding of leader-member exchange (LMX) theory gives leaders a powerful tool for increasing a wide range of worker outcomes. Leaders using this theory can maximize superior-subordinate relationships. These improved work relationships can lead to enhanced worker performance of over 20%, and worker job satisfaction improvements of over 50%. Strengthening LMX relationships is largely a matter of understanding the LMX process and increasing relevant leader-worker communications. This paper provides an overview of LMX theory and gives guidelines for developing high quality LMX relationships.
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