1. Based on the principles of LMX theory, what observations would you make about Carly's leadership at Mills, Smith, & Peters?
2. Is there an in-group and out-group, and, if so, which are they?
3. In what way is Carly's relationship with the four groups productive or counterproductive to the overall goals of the agency?
4. Do you think Carly should change her approach toward the associate directors? If so, what should she do differently?
Carly Peters directs the creative department of an advertising agency. Four leaders, Jack, Terri, Julie, and Sarah report to Carly.
Jack and his team excel at their work, are given extra resources and better assignments. Jack's group is often selected to produce the best product for the agency. Terri's team performs well, but Terri feels that Jack is in a favored group and given additional resources and better assignments. Julie also feels that her team is not in the inner circle and wishes that Carly valued her team's work more. Sarah recognizes that her team is not as valued as Jack's but seems satisfied with that because she does not want to work additional hours.