The underlying assumption of LMX theory is that leaders or superiors have limited amounts of social,personal,and organizational resources,and as a result tend to distribute them among followers selectively.

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LMX theory proposes that leaders or superiors have limited resources which they selectively distribute among their followers based on the quality of their relationships with them. This implies that not all followers are treated equally, and those with higher-quality relationships receive more resources and support from their leaders.

The Underlying Assumption of LMX Theory Is That Leaders or Superiors