Describe and differentiate between the leader-member exchange theory and the social exchange theory.

The Leader-member exchange LMX is the study of manager-subordinate relationship quality. The Social exchange theory describes how relationships initiate and develop through processes of exchange and reciprocity. Whereas high LMX relationships are more like partnerships between managers and subordinates in co-producing leadership, low LMX relationships are more like traditional supervision, with managers supervising and monitoring and subordinates complying or maybe resisting. According to social exchange theory, relationships develop through exchanges-actions contingent upon rewarding reactions. We engage in exchanges every day when we say something or do something for another, and those actions are rewarded or not rewarded. Relationships develop when exchanges are mutually rewarding and reinforcing.