The leader-member exchange model involves motivating and directing followers primarily through contingent reward-based practices.

The leader-member exchange model involves a dyadic relationship between leaders and followers, where leaders differentiate their followers into in-group and out-group members based on their potential for goal achievement. Leaders then provide more resources, support, and attention to in-group members, while neglecting out-group members. Motivating and directing followers through contingent reward-based practices is just one of the many tactics used by leaders in this model.