Conversion of leadership and leadership leadership theory to exchange is the theme of discussion for many scholars. Most authors believe that the influence of change leaders on their followers is qualitatively different and qualitatively greater than that of exchange leaders (Gupta & Krishnan 2004, p. 7). Based on existing literature on these two theories, this thesis attempts to draw a parallel line between LMX and transformational leadership.
Leadership Leadership exchange pattern was proposed by George Graen and Fred Dansereau. This model emphasizes the importance of the diverse relationship between the supervisor and his / her subordinates. Each pair of upper and lower levels is called "vertical symmetry". In other words, the top is in a 1: 1 relationship with each of the lower rank. It focuses on the difference between the top and the bottom. Supervisors can establish special relationships with a few trustworthy subordinates in the group. They may enjoy privileges and obligations. People who are not members of the group are called groups, their time and attention are reduced. Although not very clear, the leader can select group members based on personal compatibility and subordinate abilities. A higher level of performance and satisfaction is observed from members of the group, not members outside the group
Leader-Member Exchange (LMX) theory is a relationship-based leadership approach that focuses on a bi-directional (binary) relationship between leaders and followers. It is clear that the leader has established communication with each subordinate and that the quality of the exchange relationship between these leaders and members affects their subordinate's responsibilities, decisions, and access to resources and performance. Human relations are based on trust and respect, usually emotional relationships beyond employment. Leaders - Member exchanges can promote positive employment experience and enhance the efficiency of the organization. It has been widely used by many administrators and has replaced many elderly people.