Leader-Member Exchange (or LMX) theory states that leaders tend to divide their followers into two groups: an in-group and out-group. The theory looks at how a leader’s relationship with these two groups influences their follower’s productivity and professional growth.
The in-group is made up of followers who are on good terms with their leader. They often receive extra attention and growth opportunities from the leader, and have a similar personality or work ethic to the leader.
The followers in the out-group are on poor terms with their leader, typically because the leader perceives them as untrustworthy, unmotivated, or incompetent. They typically receive less engagement from the leader and fewer growth opportunities.
In-groups and out-groups form in three stages:
Role taking: In this stage, members have just joined the group. The leader is getting to know them and assessing their skills and abilities.
Role making: In this stage, members start their work on team projects and tasks. The leader often begins to subconsciously sort their team into the two groups.
Routinization: Leader and team-member interactions are solidified. In-group members often come to like their manager and work hard to maintain their good standing. Outgroup members are likely to distrust their manager and be disengaged or mistrustful as a result.
In our next blog post, we will look at why LMX theory isn’t completely reliable, and how to increase engagement and make sure that all team members have the opportunity to thrive.
Chew On This:
Is there an in-group and an out-group on your team? How might reintegrating out-group members be beneficial to your team?