As the HR Head of XYZ inc., you observe that divisional heads tend to manage their subordinates differently. You specifically notice that they treat individual subordinates differently. You find that their leadership style results in the creation of an in-group and an out-group. They tend to delegate responsibility to members of the in-group while with members of the out-group they lead by giving directives. Which theory of leadership will help you understand your observation.
1. Trait theories of leadership.
2. Path goal theory of leadership.
3. Leader Member Exchange theory.
4. Contingency Theory of leadership.