Leader-member exchange has the word "exchange" in it because subordinates have to "bribe" their managers to get in the in-group by giving them kickbacks from their salaries and bonuses employees exchange smiles, friendly gestures, and other positive forms of emotional labor with customers in exchange for the privilege of being a member of the in-group, the in-group members produce higher quality work the employees exchange emotions (through emotional contagion processes) with their managers