Which theory emphasizes leader behaviors toward individuals on a personal level?

Study for the Penn Foster Principles of Management (BUS 110) Test. Review core concepts with flashcards and multiple-choice questions, each offering hints and explanations. Prepare effectively for your exam!

Leader-member exchange (LMX) Theory specifically focuses on the dyadic relationships between leaders and their individual followers. This theory emphasizes that leaders develop unique, personal relationships with each team member, which can have significant implications for the motivation, satisfaction, and performance of those members. The quality of these exchanges can lead to higher levels of trust, commitment, and support, as well as a better understanding of each individual’s needs and contributions.

In contrast, Transformational Leadership Theory is centered around inspiring and motivating followers through a shared vision and change, rather than focusing on individual relationships. Situational Leadership Theory deals with adapting leadership styles based on the maturity and readiness of team members, which does not emphasize personal relationships in the same way as LMX. Transactional Leadership Theory focuses on exchanges and rewards for completing tasks, primarily looking at the organizational structure and performance rather than the personal connections between leaders and followers. Thus, LMX Theory is distinguished by its emphasis on the personal dynamics that develop between leaders and their individual team members.

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