Understanding dysfunctional leader‐member exchange: antecedents and outcomes

Abstract

Purpose The purpose of this paper is to identify a number of limitations of the theory on leader‐member exchange (LMX). This paper aims to argue that under certain conditions high quality LMX can be dysfunctional. It proceeds to identify the antecedents and outcomes of dysfunctional LMX. Design/methodology/approach This paper examines the theory on LMX and justice to identify the conditions that lead to dysfunctional LMX and its consequences. Findings A review of the extant literature indicates that favouritism by the leader and the reliance on impression management by followers can lead to dysfunctional LMX. This can then lead to negative reactions from group members and undermine work group cohesiveness. Research limitations/implications This paper points to new directions for research in LMX. It highlights the need to recognize that under certain conditions high quality LMX can be perceived as unfairness. Practical implications Managers need to recognize issues needing their attention in developing quality exchange with their subordinates. Failure to address these issues can undermine work group performance. Originality/value This study contributes to the debate on the role of LMX. Specifically, it attempts to add to the discussion in the emerging literature on dysfunctional LMX.

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