Kevin manages a group of eight project engineers, all of whom have worked for the company for over five years. Almost every day, Kevin and Joe, Carlos, and Kim, who are three of his subordinates, go to the cafeteria and play bridge while eating lunch. Joe, Carlos, and Kim receive very good performance reviews and are typically given the most challenging projects. What theory best explains this situation?

Question

Quizplus · Accepted Answer

The situation described fits the characteristics of Leader-Member Exchange (LMX) theory, also known as Vertical Dyad Linkage theory. This theory suggests that leaders form different quality relationships with their subordinates, and those in the in-group (Joe, Carlos, and Kim in this case) receive more resources and opportunities, including challenging projects and informal and social interactions such as playing bridge. Such higher-quality exchanges lead to better performance outcomes and higher job satisfaction. Thus, LMX theory explains why Kevin's in-group members receive better treatment and more challenging assignments.

Kevin Manages a Group of Eight Project Engineers, All of Whom