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The leader-member exchange theory of leadership focuses on the two-way relationship (dyadic relationships) between supervisors and subordinates. The theory assumes that leaders develop an exchange with each of their subordinates, and that the quality of these leader-member exchange (LMX) relationships influences subordinates' responsibility, decision influence, access to resources and performance.This theory promotes positive employment experiences and also augments organizational effectiveness.Also known as LMX, LMET, leader–member exchange focuses on increasing organizational success by creating positive relations between the leader and subordinate.
Reference : http://en.wikipedia.org/wiki/Leader%E2%80%93member_exchange_theory
