The leader-member exchange theory suggests leaders should have as big an in-group and as small an out-group as possible.

Question

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This statement is correct. The leader-member exchange theory (LMX) suggests that leaders should strive to have high-quality relationships with all their followers, but particularly with a select few who make up the in-group. These individuals are trusted, given more autonomy and support, and have greater access to resources and opportunities. In contrast, the out-group comprises of followers who have lower-quality relationships with the leader, receive less support, and have less access to resources and opportunities. So, in summary, the LMX theory encourages leaders to develop as big an in-group and as small an out-group as possible.

The Leader-Member Exchange Theory Suggests Leaders Should Have as Big