The basic premise of LMX theory is that leaders develop a separate exchange relationship with each subordinate as the two parties mutually define the subordinate's role.

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Leader-Member Exchange (LMX) theory posits that leaders form unique, dyadic relationships with each of their followers, where both parties negotiate and define the follower's role, leading to varying quality of relationships across different subordinates.

The Basic Premise of LMX Theory Is That Leaders Develop