A Review of the Leader-Member Exchange (LMX) Theory

Abstract

Yukl opined that “LMX theory was formerly called the vertical dyad linkage theory because of its focus on reciprocal influence processes within vertical dyads composed of one person who has direct authority over another person” (Yukl, 2006, p. 117). He continued "According to the theory, most leaders develop a high-exchange relationship with a small number of trusted subordinates who function as assistants, lieutenants, or advisors" (p. 117). Once again, the leader may use the information obtained from the people to build a social system to protect him/herself, which is a negative of LMX theory. Nevertheless, the leader may build a cadre of trusted people to carry out his/her mandate and not necessarily use the LMX for negative rewards. The LMX theory can be used and this has been done over the years by way of 1) a standardized 7-item survey and 2) a multidimensional scale. It can be deduced from those measurement approaches that perception is the core of this evaluation. Hence, Yukl argued that there may be a disparity between the perception of the leader and that of the subordinate, and this brings into focus the validity of the measurement of LMX (Yukl, 2006). Yukl postulated that people frequently ascribe all the accolades to the leader, and little attention is paid to the quality of the followers. Quality followership must be equally used to explain leadership effectiveness as is quality leadership. The follower can destroy leadership by way of dissent, and passive resistance, and the reverse is equally true that of cooperation, support, sharing the leader's visions and cooperation in the functioning processes.