The leader-member exchange theory (LMX)states that leaders create in-groups and out-groups and those in the in-group will have higher job satisfaction.

Question

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The leader-member exchange theory suggests that leaders form differentiated relationships with different group members, creating in-groups and out-groups. Members of the in-group typically enjoy higher levels of support, communication, and trust from the leader, which can lead to higher job satisfaction and better performance. Therefore, option A is true.

The Leader-Member Exchange Theory (LMX)states That Leaders Create In-Groups and Out-Groups