ABSTRACT

In many companies, the management philosophy is based on the concept of separating thinking from doing. Leaders establish strategies, roll them out, expect their people to accept the directives, and work toward accomplishing the goals. Leaders need to become aware of the differences and determine the best way to engage their team members and guide the interactions between them. Geographically separated teams have additional communication needs to deliver customer value. Leadership behaviors demonstrate low trust and low respect for employees. Leader–Member Exchange (LMX) Theory in comparison is less focused on results and more focused on high-quality social connections. Team members are encouraged to take on more responsibility and make more decisions. According to this theory, greater performance results from better social connections. Leaders who are transformative in their approach adopt the theory of LMX that better social connections lead to better performance.