Examines how leaders form one-on-one relationships with followers, and how these often create in-groups and out-groups within the leader’s work unit
• In-group
■ Includes followers with strong social ties to their leader in a supportive relationship characterized by high mutual trust, respect, loyalty, and influence
• Out-group
■ Influences followers with few or no social ties to their leader, in a strictly task-centered relationship characterized by low exchange and top-down influence