In contrast, a high-stress job, such as in a police department or hospital may create a sense of solidarity between friendly colleagues that is extremely strong to the point that it can influence job performance ratings. Bias can influence superior's perceptions of how much a friend deserves a promotion or a raise, and there is a strong sense of being part of an 'in-group' that is intrinsic to the profession in an 'us vs. them' mentality. A lack of financial resources may further raise the stakes in terms of the need to promote friends. However, such high-stakes jobs demand a high degree or professionalism, and promotion of in-group members may not always yield higher-quality performance, as measured in an objective fashion. If the in-group is too tight, and too reliant upon standard operating procedures, solutions to using scarce resources can result in a lack of creativity and a failure to use all organizational perspectives. In professions that serve the community, such as healthcare and policing, showing an interest in the perspectives of outside actors, such as patients or the public, the institution is supposed to serve is...

The 'in-group' mentality can be so absorbing, the organization can forget its objectives for the greater good, and only focus on the immediate needs of the group. LMX can be important in generating organizational solidarity and loyalty, and may act as a performance facilitator in some instances. But it can also just as easily encourage group members to 'coast' upon the fact they are a member of the high-status group, and lead to aggressive or alienating behavior against non-group members. This can cost the organization valuable potential team players, and also undercut the greater goal of serving others.
Works Cited

Leader-Member Exchange Theory (LMX). (2009). Changing Minds. Retrieved March 12, 2009 at: http://changingminds.org/explanations/theories/leader_member_exchange.htm

Manzoni, Jean-Francois & Jean-Louis Barsoux. (2000). Appendix 1: What Leader-Member

Exchange Theory tells managers. From Set-Up-to-Fail Syndrome: How good managers cause great people to fail. Cambridge HBS Press. Excerpt retrieved March 12, 2009 http://www.set-up-to-fail.net/pdf/lmx.pdf

LMX