1. Based on the principles of LMX theory, what observations would you make about Carly’s leadership at Mills, Smith, & Peters?

Carly Peters directs the creative department of the advertising agency of Mills, Smith, & Peters. The agency has about 100 employees, 20 of whom work for Carly in the creative department. Typically, the agency maintains 10 major accounts and a number of smaller accounts. It has a reputation for being one of the best advertising and public relations agencies in the country.
In the creative department, there are four major account teams. Each is led by an associate creative director, who reports directly to Carly. In addition, each team has a copywriter, an art director, and a production artist. These four account teams are headed by Jack, Terri, Julie, and Sarah.
Jack and his team get along really well with Carly, and they have done excellent work for their clients at the agency. Of all the teams, Jack’s team is the most creative and talented and the most willing to go the extra mile for Carly. As a result, when Carly has to showcase accounts to upper management, she often uses the work of Jack’s team. Jack and his team members........