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Leadership theories describe how and why certain individuals emerge as leaders. They highlight the traits and behaviors that individuals can develop to improve their leadership skills. Some essential qualities often emphasized by leaders as vital for effective leadership include:
- High moral standards and strong ethics.
- Outstanding organizational skills.
- Skilled learner.
- Fosters employee growth.
- Promotes belonging and connection.
Research indicates that these qualities are regarded as the most essential by leaders across the globe. Leadership theories help clarify how leaders cultivate and utilize these qualities. In recent years, leadership theories have become more organized, making them more accessible for understanding, discussing, and applying in real-world scenarios.
What Is Leadership?
Leadership directs a team or organization by making sound decisions, establishing a clear vision, motivating members, and achieving goals with integrity and charisma.
What Is a Leadership Theory?
A leadership theory outlines how and why certain individuals rise to leadership positions. It emphasizes the traits and behaviors that people can cultivate to enhance their leadership abilities. According to leaders, possessing strong ethics and maintaining high moral standards are fundamental qualities of an effective leader.
What Makes an Honest Leader?
A successful leader possesses a strong personality, courage, a clear vision, and ambition. They propel organizational success by inspiring their team to perform at their highest potential.
Essential Leadership Skills of Excellent Leaders
- Understand how to provide support. Supportive leaders are approachable to their team, transparent about their decisions, collaborative, and skilled at communicating plans and strategies.
- Show empathy and make sure to demonstrate it.
- Maintain open communication channels.
- Having the ability to make decisions.
- Efficient planning.
- Work together.
10 Key Leadership Theories
1. The Transactional Theory or Management Theory
The transactional leadership theory was introduced during the Industrial Revolution to boost company productivity. It emphasizes the role of hierarchy in enhancing organizational effectiveness. Leaders who adopt this approach value structure and leverage their authority to enforce rules, motivating employees to perform at their best. Employees are rewarded when they meet their goals and are expected to follow their managers’ instructions.
Transactional leaders oversee their teams, ensuring employees are rewarded for meeting targets and disciplined for underperforming. However, they typically don’t drive organizational growth. Instead, their focus is on maintaining the company’s policies and standards to ensure smooth operations.
Leaders Who Practice Transactional Leadership:
- Concentrate on short-term goals.
- Prioritize standardized procedures and regulations.
- Latest updates.
- Hinders innovative thinking.
- Focus on personal interests.
- Promote high performance.
Transactional leadership is effective when tasks are well-defined and the primary objective is to complete the work.
2. Theory of Transformation
According to transformational leadership theory, a strong bond between leaders and employees can greatly benefit an organization. This theory proposes that effective leaders inspire their teams to achieve higher levels of performance and potential. Transformational leaders motivate employees to work toward common goals by establishing a clear vision.
These leaders elevate employee morale, resulting in increased productivity and job satisfaction. Instead of merely giving instructions, transformational leaders lead by example, encouraging the team to follow their lead and aim for excellence.
Leaders Who Use Transformational Leadership:
- Self-manage
- Set an example
- Give interaction a high priority
- Be proactive in your work
- Promote the development of employees
- Receptive to fresh concepts
- Take chances and make difficult choices
In contrast to transactional leaders, transformational leaders focus on improving inefficient processes and uniting team members who collaborate effectively to achieve shared organizational goals. They prioritize the needs of the organization and its employees over their own interests.
3. The Theory of Contingencies
The contingency theory suggests there isn’t a single best way to manage an organization. The ideal approach depends on both internal and external factors. This theory emphasizes that the right leader should match the specific situation to achieve success.
According to contingency theory, several factors affect the choice of leadership style, including:
- Management approach
- Work speed
- Organizational policies and culture
- Employee spirit
- Employees’ level of maturity
- Relationship between coworkers or members of a team
- Organizational objectives
- Environment and routine at work
The leader chooses the management approach that best supports the organization in reaching its goals for each situation.
This perspective suggests that a leader’s effectiveness depends on the situation. It highlights that challenging circumstances will occur regardless of a leader’s success. Leaders understand that their success relies on a mix of their skills and the specific conditions they face.
4. The Theory of Situations
Similar to contingency theory, this approach emphasizes the significance of context and suggests that leaders should adjust to evolving situations to accomplish goals and make decisions. A leader’s style may vary based on the skills and commitment of their team members.
According to situational leadership theory,
- Build a connection with the workforce.
- Motivate employees.
- Identify when different leadership philosophies are needed in a specific situation.
- Build teams and organizational units.
The idea also distinguishes four main leadership styles:
1. Telling: Managers direct employees on what tasks need to be done and how to accomplish them.
2. Selling: Team members are encouraged to adopt a leader’s ideas or concepts.
3. Participating: Effective leaders inspire their team members to engage in problem-solving and decision-making actively.
4. Delegating: Leaders with this style minimize their involvement and delegate most tasks to the team. They empower the group to make decisions while remaining accessible to provide guidance when necessary.
The theory emphasizes key traits of a situational leader, such as problem-solving skills, trust, adaptability, insight, and the ability to coach.
5. The Great Man Theory
One of the earliest leadership theories suggests that leadership qualities are inherent, meaning leaders are born, not made, and cannot be learned. This theory proposes that leaders naturally possess certain innate traits, such as:
- Glamour
- Decisive
- Wisdom
- Daring
- Assertiveness
- Appeal
This perspective emphasizes that leadership qualities cannot be taught—you either have them naturally or you don’t. It suggests that these abilities cannot be learned or trained.
Additionally, the theory asserts that leadership traits remain constant over time and are applicable across all organizations, regardless of the environment. Another key belief is that great leaders emerge when they are needed most.
6. The Trait Theory
The trait theory of leadership expands on the great man theory, proposing that effective leaders possess specific personality traits and behaviors that enable them to lead successfully in different situations. This theory also suggests that some individuals are naturally better suited for leadership than others. Additionally, leaders often have distinct hobbies and personality traits that set them apart from non-leaders.
The key qualities of a successful leader include:
- Emotional equilibrium
- Acknowledging one’s duty
- Competence
- Recognizing obstacles
- Thinking with action
- Motivational abilities
- Talents in communication
- Tenacity and flexibility
- Making decisions with assurance
This leadership theory helps individuals recognize their strengths and weaknesses, enabling them to improve in areas where they may need growth. Many organizations apply the trait approach to identify and select the best candidates for leadership roles.
7. Behaviorist Theory
The behavioral theory suggests that leadership abilities are influenced by a person’s environment rather than inherent traits. Unlike other leadership models that focus on natural qualities, this theory asserts that leaders are made, not born. With the right training and guidance, anyone can develop leadership skills.
The theory also emphasizes that leaders should be mindful of their actions to enhance team performance and morale. Based on their behaviors, managers adopt various leadership styles.
- Managers focused on tasks.
- Leaders who prioritize people.
- Indifferent leaders.
- Successful leaders.
- Authoritarian leaders.
- Existing authorities.
- Dependable leaders.
- Astute businesspeople.
- Nurturing bosses.
- Leaders of country clubs.
The behavioral theory simplifies the process of evaluating the leadership style of construction professionals, team leaders, or skilled leaders.
8. Behavioral Theory
Behavioral leadership theory focuses on the actions of leaders and suggests that others can learn by observing and replicating them. This theory argues that effective leadership is a learned behavior, not an innate trait. It highlights that a leader’s actions are crucial to their success, and these behaviors can be observed to predict their effectiveness. The theory classifies leadership styles based on behavior, including task-oriented, people-oriented, authoritarian, and status-quo leaders.
9. Functional Theory
The functional leadership theory emphasizes how tasks and organizations are led, rather than focusing on who holds the formal leader title. In this approach, leadership is driven by the actions of the group rather than a single individual, with the collective behavior facilitating the achievement of goals.
10. Integrated Psychological Theory
Integrative leadership is a contemporary style that fosters collaboration across various sectors to achieve the greater good. It combines leadership theories and practices from five key areas: business, government, nonprofit organizations, media, and community.
Conclusion
Understanding and applying key leadership theories is essential for effective management. These theories provide valuable insights into how leaders can inspire, motivate, and guide their teams toward success.
By utilizing concepts like behavioral leadership, functional leadership, and integrative leadership, managers can tailor their approach to meet the unique needs of their teams and organizations. This adaptability helps leaders create a more productive and engaged workforce.
Effective leaders recognize the importance of continuous growth and refinement in their leadership style. By fostering collaboration, enhancing performance, and focusing on long-term goals, they drive their teams toward sustained success.
