When Alan was promoted to the head of the sales team at Mac Software Inc., he chose three of his closest friends in the team to form the core sales group with him. Which one of the following predictions would be consistent with the LMX theory?
A) Such an arrangement eventually becomes unstable.
B) Job satisfaction is more likely to be higher for the team members who are not a part of the core group.
C) Team members who are not a part of Alan's core group are actually far more competent than his friends who form the core team.
D) There will be a higher turnover among team members who are not a part of the core group.

Question

Quizplus · Accepted Answer

According to LMX theory, there are two groups of employees within a team: the in-group (core group) and the out-group (non-core group). The in-group receives more attention, support, and opportunities for growth from their leader, while the out-group does not. As a result, the out-group may experience lower job satisfaction, feel demotivated, and have higher turnover rates. Therefore, the prediction that there will be a higher turnover among team members who are not a part of Alan's core group is consistent with LMX theory.

When Alan Was Promoted to the Head of the Sales