Expound on your classmate's explanation of the differences between in-groups and out-groups. Classmate: An in-group in the LMX theory has members that have a strong relationship with their managers and perform highly with the goal of receiving reciprocal appreciation. They may have additional social aspects in common and work well to communicate bilaterally, expanding their impact to additional members of the group. An out-group in the LMX theory has members that are not as closely connected to their manager. They are not part of the inner-circle and have limited engagement with an increased focus on task-centered exchanges and unilateral instructional influence. The contributions of the out-group are rewarded by a pre-determined standard, and the reciprocation can best be described as the minimum effort