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Leader-member exchange theory

what is the basis of the leader-member exchange theory? Discuss this theory's importance for managers?

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The leader member exchange theory based on the two way communication. The leaders in a group assign certain tasks to its member and they commit to complete at on time. There is a strong relationship if there is no communication gap between leader members to achieve the organizational goals. They all need to be royal and loyal to each other. There should be no ego and aggressions, no conflict and problems. This theory defines about how we can build relationship with our peer groups and colleagues. It is to maintain trust and hard work.

The theory is important for managers because they need to think from the company’s prospective and with professionalism. For them building a relationship is very important because they have to work along with the team and think from the team’s point of views and their comfort ability level so they can meet their targets and can work together to achieve the company success.

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