The leader-member exchange (LMX)theory states that when leaders treat all subordinates the same resulting in general feeling of job satisfaction in the organization.

Question

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The leader-member exchange (LMX) theory actually proposes that leaders develop different relationships with different subordinates, resulting in in-group and out-group distinctions. The in-group members receive more attention, rewards, and opportunities for growth and development, leading to higher job satisfaction and performance.

The Leader-Member Exchange (LMX)theory States That When Leaders Treat All