Leader-Member Exchange (LMX) Theory is a widely accepted theory of organizational behavior that studies the interactions between managers and their direct reports. This theory proposes that the quality of the relationship between a manager and their direct reports is a major determinant of job satisfaction and overall performance. Unfortunately, due to its very nature, LMX is biased toward in-group members. In-group members with a high-quality LMX relationship have more input and influence than out-group members.
One possible approach to minimizing the bias in LMX relationship is to train and encourage new leaders to maintain a high quality LMX relationship with all members of the organization, regardless of their in-group status. This approach can help to create a more harmonious work environment by ensuring that all members of the organization have an equal opportunity to contribute and influence the organization’s decision-making process. Additionally, training and encouraging new leaders to maintain a high quality LMX relationship with all members of the organization can help to create a more team-oriented work environment, which can help to improve overall performance.
In addition to training and encouraging new leaders to maintain a high quality LMX relationship with all members of the organization, another approach to minimizing the bias in LMX is to use a different instrument to measure the quality of the relationship. A different instrument can help to provide more accurate insights into the quality of the relationship, which can then be used to create more equitable opportunities for all members of the organization.
Overall, while LMX is inherently biased toward in-group members, it is possible to reduce this bias. Training and encouraging new leaders to maintain a high quality relationship with all members of the organization, as well as using a different instrument to measure the quality of the relationship, can help to create a more equitable and team-oriented work environment.