Leadership‐motivated excellence theory: an extension of LMX

Purpose The purpose of this paper is to review and extend leader‐member‐exchange theory (LMX). It also describes the new “Leadership‐Motivated Excellence Theory” (LMX‐T), and its implications for managing members of new generations. Design/methodology/approach This is a conceptual paper and does not employ research methods. Findings Recent findings included in this review and extension of LMX theory suggest that members of the millennial generation (born 1978‐1996) are having difficulties in finding a common ground with their chosen career organization after college. The new LMX‐T suggests that forming unique strategic alliances with team members may increase the inclusion of these generational members, and help them tackle common organizational problems. Practical implications The review of the new Leadership‐Motivated Excellence Theory suggests that managers may want to redesign their managerial leadership climate to make it more “millennial friendly”. Originality/value This review provides a unique perspective on the employee development needed for new generations of employees.