Chapter 6: The Leader–Member Exchange (LMX) Approach to Age Diversity

This chapter examines the age diversity (specifically as it relates to older workers) and the extent to which it can be impacted by the unique dyadic approach of leader–member exchange. One of the primary reasons older workers sometimes encounter difficulties in obtaining and retaining employment is the perpetuation of discrimination of older workers (via stereotypes). Invariably, this has led to older workers being considered as a homogeneous group, rather than individuals with varying levels of skills and competence, who are still able to contribute to the workplace. Organizational leaders have a key role in affecting this environment. Rather than focusing solely on the leader and their efficacy, LMX requires the active participation of both parties. According to the LMX, where there are higher levels of support from managers, there are likely to be higher levels of productivity, innovation, and job satisfaction. Thus, in order for the benefits of age diversity to be realized, leaders need to foster relationships with older employees that value contributions and in which they are respected. LMX theory acknowledges the heterogeneous nature of older workers and facilitates the development of an environment of trust, equitable treatment, and enhanced productivity. As it relates to age diversity and the aging population, there is a paucity of extant literature considering LMX as an effective leadership approach. This chapter offers a framework for academic discussion, as well as key considerations and guidance for human resource practitioners in relation to LMX practices they could adopt to realize the benefits of age diversity.