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Unlike Other Models,which Presuppose Stable Relationships Between Leaders and Followers,the

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Unlike other models,which presuppose stable relationships between leaders and followers,the LMX model assumes each manager-employee relationship is unique.


Definitions:

Hedging

A financial strategy used to reduce or manage risk associated with price movements of assets by taking an opposite position in a related security.

Hedging Relationship

A risk management strategy where two or more financial instruments are used together to offset potential losses in investments.

Hedged Item

A recognized asset or liability, unrecognized firm commitment, or highly probable forecast transaction in a hedging relationship.

Hedge Effectiveness

The degree to which a hedge transaction reduces the risk of fluctuations in the cash flows or value of an underlying exposure.

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