The authors investigated the first 6 months that 166 newly hired emplo
yees and their im supervisors worked together. Expectations, perceived
similarity, liking, demographic similarity, and performance were exam
ined as determinants of leader-member exchanges (LMXs). Leader and mem
ber expectations of each other assessed in the first 5 days in the lif
e of the dyad predicted LMXs at 2 weeks and at 6 weeks following the 1
st day of the dyads' existence. Member expectations of leaders also pr
edicted LMXs at 6 months. Following nearly the same pattern, perceived
similarity and liking from both the leaders' and members' perspective
s predicted LMXs at most time periods. Demographic similarity between
leaders and members had no significant effects on LMX development, and
subordinate performance ratings were relatively less important in pre
dicting LMX than were affective variables.