Abstract: Research conducted since the construct of leader-member exchange (LMX) was first investigated in 1972 is reviewed with respect to the theoretical, measurement, and analytic adequacy of LMX studies. First it is shown that the conceptual definitions of LMX, its dimensions have discussed; Second, the measures employed to assess LMX have varied widely and included an unidimension and multidimensions; Third it analysis the antecedents and outcomes; Fourth, the article summarized relationship between LMX and transformational leadership. Finally future research related to LMX is discussed. In particular, the levels of LMX and the difference perspectives of L-LMX and M-LMX is emphasized

Key words: leader-member exchange, theory of social exchange, transformational leadership