Editing Leadership (section)

===Leader–member exchange theory===
{{Main|Leader–member exchange theory}}
Leader–member exchange (LMX) theory addresses a specific aspect of the leadership process,<ref>{{cite journal | last1 = Graen | first1 = G.B. | last2 = Novak | first2 = M. A. | last3 = Sommerkamp | first3 = P. | year = 1982 | title = The effects of leader-member exchange and job design on productivity and satisfaction: Testing a dual attachment model | journal = Organizational Behavior and Human Performance | volume = 30 | issue = 1| pages = 109–131 | doi = 10.1016/0030-5073(82)90236-7 }}</ref> which evolved from an earlier theory called the vertical dyad linkage model.<ref>{{cite journal | last1 = Dansereau | first1 = F. | last2 = Graen | first2 = G. | last3 = Haga | first3 = W.J. | year = 1975 | title = A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role making process | journal = Organizational Behavior and Human Performance | volume = 13 | issue = 1| pages = 46–78 | doi=10.1016/0030-5073(75)90005-7}}</ref> Both of these models focus on the interaction between leaders and individual followers. Similar to the transactional approach, this interaction is viewed as a fair exchange whereby the leader provides certain benefits such as task guidance, advice, support, and/or significant rewards and the followers reciprocate by giving the leader respect, cooperation, commitment to the task and good performance. However, LMX recognizes that leaders and individual followers will vary in the type of exchange that develops between them.<ref name="Howell, Jon P.">{{cite book|last=Howell|first=Jon P.|title=Snapshots of Great Leadership|year=2012|publisher=Taylor and Francis|location=London, GBR|isbn=9780203103210|pages=[https://archive.org/details/snapshotsofgreat0000howe/page/16 16–17]|url=https://archive.org/details/snapshotsofgreat0000howe/page/16}}</ref> LMX theorizes that the type of exchanges between the leader and specific followers can lead to the creation of ''in-groups'' and ''out-groups''. In-group members are said to have ''high-quality exchanges'' with the leader, while out-group members have ''low-quality exchanges'' with the leader.<ref name=autogenerated1>{{cite book|last=Howell|first=Jon P.|title=Snapshots of Great Leadership|year=2012|publisher=Taylor and Francis|location=London, GBR|isbn=9780203103210|page=[https://archive.org/details/snapshotsofgreat0000howe/page/17 17]|url=https://archive.org/details/snapshotsofgreat0000howe/page/17}}</ref>

====In-group members====

[[In-group]] members are perceived by the leader as being more experienced, competent, and willing to assume responsibility than other followers. The leader begins to rely on these individuals to help with especially challenging tasks. If the follower responds well, the leader rewards them with extra coaching, favorable job assignments, and developmental experiences. If the follower shows high commitment and effort followed by additional rewards, both parties develop mutual trust, influence, and support of one another. Research shows the in-group members usually receive higher performance evaluations from the leader, higher satisfaction, and faster promotions than out-group members.<ref name="Howell, Jon P."/> In-group members are also likely to build stronger bonds with their leaders by sharing the same social backgrounds and interests.

====Out-group members====

[[Ingroups and outgroups|Out-group]] members often receive less time and more distant exchanges than their in-group counterparts. With out-group members, leaders expect no more than adequate [[job performance]], good attendance, reasonable respect, and adherence to the job description in exchange for a [[living wage|fair wage]] and standard benefits. The leader spends less time with out-group members, they have fewer developmental experiences, and the leader tends to emphasize his/her formal authority to obtain compliance to leader requests. Research shows that out-group members are less satisfied with their job and organization, receive lower performance evaluations from the leader, see their leader as less fair, and are more likely to file grievances or leave the organization.<ref name="Howell, Jon P."/>