My Favorite Leadership Theories
Regardless of how big they are or what industry they're part of, all companies require good leadership to operate successfully. Good leaders are a crucial part of effective business operations, and for the most part, being a good leader does not come inherently.
When it comes to leadership, there are several theories on how leadership actually works, what traits make good leaders, and how to be effective. Some of these theories include:
Behavioral Theories
Contingency Theories
Great Man Theories
Power and Influence Theories
Transactional Theories
Participative Theories
Relationship Theories
These theories elaborate on how styles of leadership work within a firm to lead to success. If you're planning to become a business manager or leader, it is imperative that you understand these various leadership theories and how they influence your management and leadership style.
In this article, I talk about my favorite leadership theories.
Here's everything you need to know:
The Premise – What Are Leadership Theories?
Leadership theories are well-researched, overarching, and reasonable assumptions about what makes an individual a good leader. In simple words, these theories explain why and how certain people become great leaders. Moreover, they focus on the behaviors and traits that people can adopt to enhance their leadership capabilities. Here are some of the top characteristics that leaders claim are imperative for good leadership:
High moral standards and strong ethics
Efficient learner
Great self-organization skills
Fosters employee growth
Nurtures belonging and connection
Leaders all over the world consider the traits mentioned above to be extremely important. Leadership theories help explain how leaders develop and harness these traits. Leadership theories have become more formal in recent times, making them more straightforward to comprehend, discuss, and assess in action.
My Favorite Leadership Theories
Even though there are plenty of leadership theories, there are a few that I personally like and prefer. I believe it is extremely important to recognize and understand these theories, mainly if you currently are or aim to become a business leader in the future. Understanding the social and psychological impacts of effective leadership will help you identify the type of leader you want to be.
1. Behavioral Theories
Behavioral leadership theories are based on the idea that great leaders aren't born – they are made. Rooted in behaviorism, the behavioral theory focuses on the actions and behaviors of leaders instead of their internal states or mental qualities. As per this theory, individuals can learn to become leaders through observation and teaching.
In the 1930s, psychologist Kurt Lewin devised a framework based on a leader's behavior. He states that there are three kinds of leaders. These include:
Democratic leaders consult their team before making a decision. Nevertheless, the level of input can differ from one leader to another. This style of leadership is effective when team agreement is essential but can be challenging to implement when there are plenty of different ideas and perspectives.
Autocratic leaders make decisions without seeking input from their team. This leadership style is suitable when there is no need for input, when decisions have to be made quickly, and when team agreement is not required for a successful result.
Laissez-Faire Leaders do not interfere – they allow team members to make a lot of the critical decisions. This leadership style is appropriate when the team is exceptionally motivated and capable and does not require close supervision.
The best type of leaders are those who can use several behavioral styles and select the appropriate style for every situation.
2. Contingency Theories
Contingency theories of leadership focus on specific variables associated with the environment that might determine which leadership style is most appropriate for the situation. According to this theory, no kind of leadership is ideal in all conditions.
There are external and internal factors that impact a leader and their situation. Internal factors can include the size of the team, the type of company, and the innate leadership style of a person. On the other hand, external factors can include the marketplace and the customers' feelings. All of these situations play a role in the contingency theory.
Leadership researchers Hodgson and White state that truly effective leadership isn't just about the leader's qualities. Rather, it's about striking the ideal balance between needs, context, and behaviors. Great leaders can identify the needs of their team members, evaluate the situation, and adapt their behaviors accordingly. Success is dependent on numerous variables, including the style of leadership, aspects of the situation, and characteristics of the team members.
3. Great Man Theories
According to the Great Man theories of leadership, good leaders are born and not made. They have innate skills and traits, such as intelligence, confidence, social skills, and charisma, that makes them natural-born leaders. These things cannot be learned or taught.
These leadership theories usually highlight great leaders as mythic, heroic, and destined to rise to leadership when required. The phrase Great Man was used because, at the time, leadership was considered to be a masculine quality, particularly in terms of military leadership.
People cite Queen Elizabeth, Alexander the Great, Abraham Lincoln, and several others as their examples of the great man theory. These social figures used their skills to lead nations to success. Leaders that appear to manifest this theory generally have high levels of determination and ambition.
4. Power and Influence Theories
Power and influence theories of leadership have a completely different view of leadership. Such theories are based on the various ways in which leaders use their influence and power to achieve their goals and look at the styles of leadership that consequently emerge.
Perhaps the most well-known of these theories is the French and Raven's Five Forms of Power. The model elaborates on three kinds of positional power – coercive, reward, and legitimate – and two sources of personal power – referent (your charm and personal appeal) and expert.
According to this model, using personal power is the better alternative. You should focus on developing expert power, i.e., the power that comes with being a true expert in the task, as this is the most valid and legit source of personal power.
5. Transactional Theories
Transactional theories, also known as exchange leadership or management theories, revolve around the role of supervision, teamwork, and organization. These theories consider punishments and rewards as the basis for leadership actions. This is one of the most frequently implemented theories in business settings, and the proponents of this style of leadership use punishments and rewards to encourage and motivate employees.
When team members are successful, managers reward them. However, managers punish them when they fail. Transactional punishments and rewards are given based on the idea that people only do things when they have a reward in sight.
The transactional style of leadership can be very effective. Positive reinforcement is known for working wonders with employees, motivating and encouraging them to succeed. Moreover, research published in Scientific and Academic Publishing found that transactional leadership tends to be most appropriate for situations where problems are simple and clearly defined.
A famous example of this management style is a leader that gives a cash bonus to sales team members who meet their targets.
6. Participative Theories
Sometimes termed democratic leadership, participative leadership theories suggest that the ideal is one that takes the input and opinion of others into consideration. In this theory, everyone is highly involved with the decisions for the organization and team, with the leader just directing the charge.
Leaders who use this theory facilitate participation and contribution from team members and help them feel more committed and relevant to the decision-making process. This results in higher engagement and motivation levels amongst the team members.
7. Relationship Theory
Also known as transformational leadership, the relationship theory of leadership focuses on leaders who are primarily concerned about their connections and relationships with others. They are usually mentors for employees, working to fulfill their needs and dedicating time to speak to them.
These types of leaders focus on making tasks fun and enjoyable for as many members as possible, and they aim to develop a healthy work environment. While these leaders focus on the performance of team members, they also want every individual to fulfill their potential. A study published in the Journal of Business Ethics reveals that leaders who use this style usually have high moral and ethical standards.
There are several benefits to this type of leadership. Team members feel confident in their leaders and like to follow their lead. They're also inspired to become good and helpful leaders to others. In fact, the results of a study published in the Journal of Occupational and Environmental Medicine mention that this leadership style can also positively influence employee well-being.
Moreover, mentorship offers excellent opportunities to nurture growth in employees and motivates them to stay at an organization for longer.
A popular example of relationship theory at work would be a company manager who takes a new recruit under their wing. She tries to help the employee comprehend how they fit within the company, encourages them to be open about problems and questions, and creates a healthy working relationship. The new recruit is then encouraged to work hard, identify problems, and find solutions for the company.
Why Should You Identify Your Leadership Theory and Style?
Considering your thoughts about leadership practices can help you identify your strengths and weaknesses and take action to become a better leader. Moreover, working knowledge of leadership theories can help you hire the right people and put together the best team. This way, you can get work done with minimal delays and hindrances.
Try to think about what qualities you have and what qualities you can develop. Ask yourself which leadership theory you agree with or want to follow. By assessing your own skills, you can better understand how to lead your team.
Some leadership theories and styles are better for certain work environments than others. For instance, if you're a sales manager and your team needs to meet a yearly sales quota, you might prefer transactional leadership to ensure they achieve their goal. You can use a single style or use a blend of various leadership theories depending on your needs.
Last Few Words
Like many other things, leadership is a highly multifaceted topic. It's a combination of several factors that help determine why certain individuals become great leaders.
In the present day, a team's success largely depends on good leadership skills. The leadership abilities of great leaders will primarily result from how well they can grasp and understand these well-known leadership theories to overcome the challenges they face.
Moreover, some leadership experts believe there's no alternative to striking the right balance between needs, behavior, and the situation for truly effective leadership. In fact, great leaders always have a contingency plan, they pay attention to their team members' needs, analyze their existing conditions, and make adjustments to their behavior accordingly.
