Have you ever wondered why different leaders approach the concept of leadership in such dramatically different ways? Sometimes, it seems as though there are as many different styles of leadership as there are grains of sand on a beach! To understand why there are so many varying approaches to leadership, it helps to recognize that these leadership styles are the result of leaders applying different leadership theories. Are you familiar with the most common leadership theories?

In this post, we will explain how leadership theories impact leadership style, and examine six of the major leadership theories that are commonly used by today’s leaders. We will also explain how you can improve your leadership by identifying the best theory and style for your career.

What are leadership theories?

There are a lot of different opinions and beliefs about leadership. Some people believe that leaders are born with certain leadership traits. Others take the opposite view and assert that anyone can become a leader with enough education and experience. There are even some who believe that great leaders are forged under fire and that everyone has some innate capacity for stepping up to lead when the situation requires them to do so. To a certain extent, all these ideas contain some element of truth.

But those theories and beliefs don’t really help anyone to develop leadership skills, do they?

More importantly, they are completely useless when it comes to developing an effective leadership style that can help you become a better leader. Fortunately, there are a variety of leadership theories that can help you to better understand how different types of leadership styles work and what makes them successful in certain environments.

So, what are leadership theories?

Put simply, a leadership theory is an attempt to understand why some people make good leaders and the traits and behaviors that help them to be successful. Researchers and observers study these characteristics and actions to develop theories that explain why different types of leaders and leadership styles are so effective.

How do leadership theories impact leadership style?

To understand why leadership theories matter, it is important to consider the vital role that leadership styles play in any leader’s success. Every leader adopts their own leadership style, or some combination of styles, as they organize and lead their teams in pursuit of a shared objective. As a rule, leaders tend to adopt styles that reflect or align with their own personalities and preferred working habits. The best leaders do this consciously, with full awareness of why their chosen style works.

If you’re not sure which leadership style works best for you, check out our post, Tips You Can Use to Choose the Right Leadership Style for You. It’s a great way to learn about nine different leadership styles and some of the best strategies you can use to figure out which style will work for your leadership needs.

Leadership theories help us understand the types of characteristics, attitudes, and behaviors that most good leaders share. The study and development of these theories make it easier to explain how so many different types of leaders can all find success using different leadership styles. By understanding these different schools of thought on leadership, you can make better decisions about the type of leader you want and need to be.

Why should you study theories of leadership?

There are a whole host of reasons for studying the various theories about leadership, of course. Since leadership success can be achieved in many ways, there is no one-size-fits-all leadership style. An authoritarian, top-down approach to leadership may be fine for a factory setting, but it wouldn’t have the same level of effectiveness in a more dynamic, innovative technology company. Different work environments demand different styles of leadership.

As a leader or aspiring leader, you need to know as much about these different types of leadership as you can. That knowledge and understanding can provide you with the tools and ideas you need to develop your own unique leadership style. Being familiar with the most common leadership theories will help ensure that you choose the right style of leadership while remaining flexible enough to change your approach when the situation requires you to do so.

What are 6 common leadership styles?

But what are the theories of leadership? For the purposes of this study, we will examine six major leadership theories that are commonly used in today’s workplace. As you examine each of these theories, keep in mind that there are many lesser-known theories out there too. The six we discuss below are merely some of the best-known ideas about effective leadership.

Contingency theory

Also known as situational leadership, this theory focuses on how good leaders adapt their leadership style to meet the demands of any given situation. Its emphasis on the characteristics and behaviors leaders use to respond to various situations is based on a simple recognition that good leaders need to be flexible enough to adapt their approach. As a result, the contingency theory has remained popular with experts and observers who believe that there is no best leadership style.

A contingency leader is someone who will alternate between various styles of leadership as the situation requires. Sometimes, they will act as a coach. At other times, they will be servants or visionaries. The contingency leader can be democratic and participative when the situation calls for it, autocratic during a crisis, or hands-off when everything is going well. They excel at being adaptable and responsive to the needs of their employees, customers, and company.

Behavioral theory

Behavioral theory emphasizes the importance of leadership characteristics and studies how those traits impact the behaviors of successful leaders. This school of thought is premised on the belief that anyone can learn how to be a good leader if they can adopt the traits and behaviors of other successful leaders. At its core, this theory asserts that leadership success is defined entirely by how leaders act.

The reason why this theory is so popular should be abundantly clear: its assertion that leadership is something that can be learned and practiced appeals to anyone who aspires to be a successful leader. Of course, there are other attractive elements of the theory. For example, focusing on the behaviors of successful leaders can help to simplify any understanding of the different leadership styles. In addition, the theory suggests that you can study the actions and behaviors of a leader to predict leadership success more accurately.

The Great Man theory

This theory asserts that leaders are born, not made. The idea has been a popular since the middle of the 1800s and suggests that history has been shaped by great leaders. Those who support this theory of leadership point to great leaders like Alexander the Great, Napoleon, Washington, and Lincoln and suggest that they were destined for greatness due to their unique, innate characteristics.

Critics of the Great Man theory have noted that it fails to account for the many examples of leaders who painstakingly developed their leadership skills and traits over many decades. Others take issue with its suggestion that the ability to lead is outside of any leader’s control – you either start life with those leadership traits and skills, or you don’t.

These days, the Great Man theory has been largely dismissed by scholars and other experts, and the idea that “the history of the world is but the biography of great men” is widely rejected.

Transformational leadership theory

Another popular theory about leadership focuses on how some leaders are able to inspire others to make positive changes in their environment. This theory is known as transformational leadership and looks at all the different ways great leaders can motivate their followers to adopt their vision and join with them to create transformative change. According to the theory, leaders who utilize a transformational approach to leadership utilize several common strategies:

They focus on vision
They share their vision and work to motivate employees
They make themselves active in the effort to bring that vision to life
They work to create trust and individual growth, serving as coaches and mentors for their team members

Transformational leadership theory also identifies various traits that transformative leaders tend to possess. For example, this type of leader is skilled in self-management, proactive, in tune with employee needs, and open to new ideas and solutions. They are inspirational, aspirational, and adaptable. They are also focused on upholding high ethical standards, maintaining open communication with their teams, and delegating duties to ensure that employees are empowered.

Management theory

The management leadership theory is sometimes referred to as transactional leadership. This theory emphasizes a leadership style that focuses on the supervision and performance monitoring aspects of business. According to this theory, transactional leaders are adept at developing and implementing reward systems that are based on employee performance. This transactional approach to leading a team uses those systems to either reward or punish employees based on their job performance.

If that sounds familiar to you, it should. Companies across the United States and around the world have utilized transactional management techniques for many years. This style of management leadership is designed to motivate employees by offering bonuses, commissions, prizes, and perks for those who do well in their jobs. Those same systems sometimes include penalties for underperformers but may also simply deny rewards to workers who fail to meet expectations.

The transactional aspect of the theory is simple to understand: the leader creates the system and offers rewards for those who meet or exceed certain goals and expectations. The employees’ role in that transaction is to satisfy those expectations in exchange for the agreed-upon rewards. The reason why this theory of leadership has continued to be followed by so many companies is that it works.

It is worth noting, however, that there can be drawbacks for leaders who rely too much on the management theory of leadership. Over time, employees can become disillusioned with the rewards-based transactional system, especially if they’re struggling to meet ever-increasing expectations. In addition, this type of leadership can leave employees feeling as if they have no individual agency – which can lead to increased dissatisfaction, a decrease in morale, and a loss of job engagement.

Trait theory

The trait theory of leadership, like the Great Man theory, has lost much of its luster in recent decades. This theory is premised upon a belief that great leaders start life with innate traits that they can later use to motivate people to follow their lead. While that may sound a lot like the core assertion of the Great Man theory, there is a distinct difference: the trait theory recognizes that those innate traits do not by themselves guarantee greatness and success.

Instead, this theory has been presented as a concept that can help companies and managers identify leadership potential by noting key leadership traits in their workforce. Unfortunately, scholars and experts have noted that there is a serious flaw in that concept – and it has to do with the general lack of agreement when it comes to defining those key leadership traits. Recent trends in technological development and new ways of working have also raised questions about which traits need to be prioritized in an evolving economy.

How can choosing the right leadership theory benefit your career?

Leadership theories may not seem very relevant to your career advancement, but nothing could be further from the truth. In fact, the more you learn about and understand these theories, the more insight you’ll gain into how leaders use theory to develop their own unique leadership styles. While the theories of leadership are attempts to study different leader traits and behaviors, they can also provide useful information that you can employ to become a more successful leader.

By gaining an understanding of these theories and drilling down to the essential traits and behaviors that they represent, you should be able to identify areas in which you can improve your own leadership abilities. For example:

Play to your strengths

If you do a real self-assessment, chances are you’ll be able to identify some key traits that have helped you to become a leader. It could be your decisiveness and will to persist. Maybe it’s your resilience – that ability to bounce back from defeat and keep trying until you succeed. Or perhaps it’s your flexibility and willingness to change course when your decisions are not producing the desired results.

By applying trait theory, you can work to identify your real strengths and then leverage them for even greater success in your role as a leader. As you do so, you can also take note of areas of weakness and develop strategies to overcome those deficiencies.

Focus on how people impact situations, and vice versa

Another great example of how theory can be used to strengthen your leadership style can be found in the contingency theory. The next time you find yourself adapting to an unforeseen situation, take careful stock of how your actions are impacting the situation.

Are you focusing enough on the people impacted by your decisions?
Do you find that your attention is primarily directed at the situation?

By paying attention to these details, you can gain insight into how your contingency thinking impacts everyone around you. That self-awareness can motivate you to redouble your efforts to get your team more involved in brainstorming and being part of the solution. That can help to foster greater trust, openness, and a new culture of inclusivity for your team.

Learn to ask what others need

We’ve already noted some of the potential drawbacks to relying on the transactional theory of leadership – but you can apply some of those principles in any leadership style. The key is to recognize that the management style of transactional leadership is based on finding something that employees want or need and offering it to them in exchange for your desired results. If you can train yourself to focus on those wants and needs, you can start to think about new and different ways to achieve the results you seek.

The goal here is to take the useful part of any leadership theory and figure out how you can apply it to enhance your own leadership style. Once you view these theories as something more than scholarly musings, it becomes easier to recognize that each of them can provide sound advice that you can use to become a more self-aware and effective leader.

Knowledge of leadership theories can help you enhance your style of leadership

The more you know about leadership theories, the more you’ll appreciate why different leadership styles work for the leaders that employ them. That knowledge and appreciation can help you make better decisions about your own leadership style and help you find new ways to become the very best leader you can possibly be.

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6 Major Leadership Theories