ABSTRACT
With America facing an employment shortage, and companies finding it hard to acquire new talent, utilizing the right leadership technique can be critical for addressing these areas of concern. Companies need to find a way to fix flawed management styles and replace them with proper leadership techniques. A leader has many goals and challenges they will face when working with their team. Forming a solid bond between leaders and their followers is the ultimate goal of a great leader. Leader-member exchange (LMX) theory is a leadership principle that utilizes the idea that leaders form two groups, an in-group and an out-group. Leader-member exchange theory can help form bonds between the two groups and help create one group. Leaders need to have emotional intelligence and focus on diversity and inclusion within their led groups. This project will examine how Leader-Member Exchange theory addresses these essential techniques for creating a quality work environment. There are many organizations that have hired leaders without the understanding of how to lead a group effectively, or have the perseverance to maintain a quality relationship with their team. Leaders and followers need to be cohesive for a company to work efficiently. Doing a job well does not make a quality leader. Using quality and proven leadership techniques can help create a better working environment for all.