What can LMX theory explain about individuals within an organization?

LMX theory, or Leader-Member Exchange theory, focuses on the dynamic relationship between leaders and their followers within an organization. It highlights how these relationships can vary in quality and depth, leading to different experiences and outcomes for individuals based on their position within the leader's “in-group” or “out-group.”

The correct answer relates to how LMX theory can elucidate the concept of leadership networks. Through this theory, it's understood that strong relationships between leaders and members are formed through trust, mutual respect, and high-quality exchanges. These relationships foster effective communication, collaboration, and a sense of belonging among team members, which directly impacts the overall leadership network within an organization. High-quality exchanges typically lead to enhanced performance, motivation, and job satisfaction among those in the in-group, while weaker exchanges may create a divide between groups, affecting dynamics and productivity.

In the context of the other choices, performance metrics are often quantitative measures that may not fully capture the nuances of interpersonal dynamics; management styles refer to broader approaches that leaders might take but do not delve into specific relationships; and decision-making processes can be influenced by leader-member dynamics but aren't solely defined by them. Therefore, the focus on leadership networks is the most appropriate representation of what LMX theory can