7 Major Leadership Theories

Every Manager Should Master in

2021
By SimplilearnLast updated on Apr 30, 2021
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know-article

Do good leaders make good managers? Or is it the other way around? It's a
chicken-and-egg question that has no clear-cut answer. This often leads people
to wonder what the difference between a leader and a manager really is.
However, one thing is for sure — while leadership and management are not the
same, they both must go hand in hand.

If managers are to be effective in their role, it is essential for them to imbibe

certain leadership skills. And if leaders want to lead successfully, they must know
how to manage their followers — employees, peers, and stakeholders — so that
they feel more inspired, empowered, and engaged, leading to a successful
organization.

Ultimately, both roles need an understanding of human behavior to create a

more engaged workforce and more productive workplaces.

Before diving into the theories, let's see what leadership theories are all about.
Later, we'll talk about some of the most famous leadership theories that will
sharpen your leadership skills and help you perform better as a manager,
including:

- Contingency Theory

- Situational Leadership Theory

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- Transformational Leadership Theory

- Transactional Theories

- Behavioral Theory

- Great Man Theory of Leadership

- Trait Theory of Leadership

For decades, numerous studies have been focused on leadership, giving rise to
several theories. These theories are various schools of thought put forth by
philosophers, researchers, and cognitive experts to explain what goes into the
making of a leader. These theories shed light on the traits and behaviors that
can help individuals cultivate their leadership abilities.

That said, here are some of the major leadership theories that every manager
needs to know to stay on top of their game.

1. Contingency Theory

This theory proposes that no one way or style of leadership may be applicable
to all situations. In other words, it recognizes that there might be variables
influencing any particular situation, and a leader must choose the right course
of action, taking into account those variables.

In this regard, leadership researchers White and Hodgson state, "Effective

leadership is about striking the right balance between needs, context, and
behavior." The best leaders have not only the right traits but also the ability to
assess the needs of their followers, analyze the situation at hand, and act
accordingly.

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2. Situational Leadership Theory

Like the Contingency Theory, the Situational Theory stresses the importance of
situational variables and doesn't consider anyone's leadership style to be better
than the others.

Put forward by US professor, Paul Hersey and leadership guru, Ken Blanchard,
the situational theory is a combination of two factors — the leadership style and
the maturity levels of the followers. According to this theory, different situations
demand different styles of leadership and decision-making. Leaders must act by
judging the situation they are facing.

3. Transformational Leadership Theory

The Transformational Leadership theory, also known as Relationship theories,

focuses on the relationship between the leaders and followers. This theory talks
about the kind of leader who is inspirational and charismatic, encouraging their
followers to transform and become better at a task.

Transformational leaders typically motivated by their ability to show their

followers the significance of the task and the higher good involved in performing
it. These leaders are not only focused on the team's performance but also give
individual team members the required push to reach his or her potential. These
leadership theories will help you to sharp your Skill.

4. Transactional Theories

Transactional Theories, also referred to as Management theories or exchange

leadership theories, revolve around the role of supervision, organization, and
teamwork. These leadership theories consider rewards and punishments as the
basis for leadership actions. This is one of the oft-used theories in business, and
the proponents of this leadership style use rewards and punishments to motivate
employees.

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 Learn new trends, emerging practices, tailoring considerations, and core
competencies required of a Project Management professional with the PMP
Certification course.

5. Behavioral Theory

In the Behavioral Theory, the emphasis shifts from the traits or qualities of leaders
to their behaviors and actions. In sharp contrast to the Great Man Theory and
the trait approach to leadership, this theory considers effective leadership to be
the result of many learned or acquired skills. It proposes that an individual can
learn to become a good leader. This is one of the best leadership theories.

6. Great Man Theory of Leadership

This is one of the earliest leadership theories and is based on the assumption that
leadership is an inborn phenomenon and that leaders are "born" rather than
"made." According to this theory, a person capable of leading has the
personality traits of a leader — charm, confidence, intellect, communication
skills, and social aptitude — from birth, which set them apart. This theory
emphasizes leadership as a quality that you either possess or you don't; it isn't
something that you can learn.

While the theory sounds pretty discouraging to those wanting to learn the ropes
of leadership, you might take heart in the fact that most modern theorists dismiss
it and even by some leaders themselves. It's still an interesting take on leadership
and one that highlights the qualities of great leaders, which have more or less
remained unchanged over time.

7. Trait Theory of Leadership

This theory walks in the footsteps of the Great Man theory in assuming that
leaders are born with traits that make them more suitable for the role of a leader
than others who lack those natural-born traits. As such, the theory pinpoints
certain qualities such as intelligence, accountability, sense of responsibility, and
creativity, among others, that lets an individual excel at leadership.

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One major flaw in the trait approach to leadership is that it doesn't offer a
conclusive list of leadership traits. However, the credibility of the theory lies in the
fact that the significance of personality traits in leadership is well supported by
research. Trait Theory of Leadership will help you to improve your leadership
theories.

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