LEADERSHIP THEORIES

1) Trait Theory (1930's - 1940's):

The trait leadership theory believes that people either are born or are made with certain qualities
that will make them excel in leadership roles. That is, certain qualities such as intelligence, sense
of responsibility, creativity and other values puts anyone in the shoes of a good leader.

The trait theory of leadership focused on analyzing mental, physical and social characteristic in
order to gain more understanding of what is the characteristic or the combination of characteristics
that are common among leaders.

Proponents to this theory, which is now considered largely out of date, believe that leadership
development consists of identifying and measuring leadership qualities, screening potential leaders
from non-leaders, and then training those with potential.

2) Behavioral Theory (1950-1970):

Behavioral theories of leadership are based on the belief that great leaders are made, not born. This
leadership theory focuses on the actions of leaders not on intellectual qualities or internal states.
According to the behavioral theory, people can learn to become leaders through training and
observation. Naylor (1999) notes that interest in the behavior of leaders has been stimulated by a
systematic comparison of autocratic and democratic leadership styles. It has been observed that
groups under these types of leadership perform differently:
 Autocratically led groups will work well so long as the leader is present. Group members,
however, tend to be unhappy with the leadership style and express hostility.
 Democratically led groups do nearly as well as the autocratic group. Group members have
more positive feelings, however, and no hostility. Most importantly, the efforts of group
members continue even when the leader is absent.

3) Great Man Theory (1840s):

Great man theories assume that the capacity for leadership is inherent, that great leaders are born,
not made. These theories often portray leaders as heroic, mythic and destined to rise to leadership

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when needed. The term great man was used because, at the time, leadership was thought of
primarily as a male quality, especially military leadership.
4) Participative Theory:
Participative leadership theories suggest that the ideal leadership style is one that takes the input
of others into account. Participative leaders encourage participation and contributions from group
members and help group members to feel relevant and committed to the decision-making process.
A manager who uses participative leadership, rather than making all the decisions, seeks to involve
other people, thus improving commitment and increasing collaboration, which leads to better
quality decisions and a more successful business.

5) Situational Theory:
Situational theory proposes that leaders choose the best course of action based upon situational
conditions or circumstances. Different styles of leadership may be more appropriate for different
types of decision-making. For example, in a situation where the leader is expected to be the most
knowledgeable and experienced member of a group, an authoritarian style of leadership might be
most appropriate. In other instances where group members are skilled experts and expect to be
treated as such, a democratic style may be more effective.

6) Transactional/Management Theory:

Transactional theories, also known as management theories, focus on the role of supervision,
organization and group performance and the exchanges that take place between leaders and
followers. These theories base leadership on a system of rewards and punishments. In other words,
on the notion that a leader’s job is to create structures that make it abundantly clear what is
expected of followers and the consequences (rewards and punishments) associated with meeting
or not meeting expectation. When employees are successful, they are rewarded and when they fail,
they are reprimanded or punished. Managerial or transactional theory is often likened to the
concept and practice of management and continues to be an extremely common component of
many leadership models and organizational structures.

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 7) Relationship/Transformational Theory :

Relationship theories, also known as transformational theories, focus on the connections formed
between leaders and followers. In these theories, leadership is the process by which a person
engages with others and is able to “create a connection” that results in increased motivation and
morality in both followers and leaders. Relationship theories are often compared to charismatic
leadership theories in which leaders with certain qualities, such as confidence, extroversion, and
clearly stated values, are seen as best able to motivate followers . Relationship or transformational
leaders motivate and inspire people by helping group members see the importance and higher good
of the task. These leaders are focused on the performance of group members, but also on each
person to fulfilling his or her potential. Leaders of this style often have high ethical and moral
standards.

8) Skills Theory:

This theory states that learned knowledge and acquired skills/abilities are significant factors in the
practice of effective leadership. Skills theory by no means refuses to acknowledge the connection
between inherited traits and the capacity to lead effectively, but argues that learned skills, a
developed style, and acquired knowledge, are the real keys to leadership performance. A strong
belief in skills theory often demands that considerable effort and resources be devoted to leadership
training and development.

9) Role Theory:

Role theory (Merton, 1957; Pfeffer & Salancik, 1975) was based on the assumptions that
individuals:

 Define roles for themselves and others based on social learning and reading
 Form expectations about the roles that they and others will play
 Subtly encourage others to act within role expectations
 Will act within the role they adopt
Within organizations, formal and informal information about leadership values, culture, training,
and modeling shapes expectations and behavior. When expectations do not match behavior, role
conflict can occur.

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 10) Path-goal theory:

Robert House presents path-goal theory in 1971, revised in 1996. The path-goal theory of leader
effectiveness or path-goal model can be considered as a variant on Transactional Leadership
Theory, where the leader clearly is directing activity and the only factor that varies is the manner
in which this is done. There are some aspects of Contingency Theory, as well, where various means
of application vary with the situation. The leader sees a path that needs to be tread, one leading to
the accomplishment of a goal and she or he attempts to clear it and get the group members to tread
on it.

11) Contingency Theories :

Contingency theories of leadership focus on particular variables related to the environment that
might determine which style of leadership is best suited for a particular work situation. According
to this theory, no single leadership style is appropriate in all situations. Success depends upon a
number of variables, including leadership style, qualities of followers and situational features. A
contingency factor is thus any condition in any relevant environment to be considered when
designing an organization or one of its elements .Contingency theory states that effective
leadership depends on the degree of fit between a leader’s qualities and leadership style and that
demanded by a specific situation.

12) Fiedler's Contingency theory:

This theory presented by Fred Fiedler in1958 in his work Leader Attitudes and Group
Effectiveness. Fiedler's contingency theory is one of the contingency theories that states that
effective leadership depends not only on the style of leading but on the control over a situation.
There needs to be good leader-member relations, task with clear goals and procedures, and the
ability for the leader to mete out rewards and punishments. Lacking these three in the right
combination and context will result in leadership failure. Fiedler created the least preferred co-
worker (LPC) scale, where a leader is asked what traits can be ascribed to the co-worker that the
leader likes the least. Its group performance depends on leader's psychological make-up, as well
as group atmosphere, task and the leader's power position).

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 13) Vroom-Yetton-Jago Decision-Making Model of Leadership:

Vroom-Yetton-Jago Decision-making Model of Leadership by Victor Vroom and Philip Yetton,

and later, Arthur Jago in Victor Vroom and Philip Yetton in 1973; Arthur Jago added to theory in
1988.

The Vroom-Yetton-Jago Decision-making Model of Leadership focuses upon decision-making as

how successful leadership emerges and progresses. The parameters shaping a decision are quality,
commitment of group or organization members, and time restrictions. There are a number of
leadership styles ranging from authoritarian to highly participatory. In 1988, Vroom and Jago
created a mathematical expert system as a decision-making device in their work Leadership and
Decision Making.

This addition of Jago renamed the original theory to the theory, with its variants being Vroom-
Yetton, Vroom-Jago, and Vroom-Yetton-Jago.

14) Functional theory:

Functional leadership theory (Hackman & Walton, 1986; McGrath, 1962) is a particularly useful
theory for addressing specific leader behaviors expected to contribute to organizational or unit
effectiveness. This theory argues that the leader’s main job is to see that whatever is necessary to
group needs is taken care of; thus, a leader can be said to have done their job well when they have
contributed to group effectiveness and cohesion (Fleishman et al., 1991; Hackman & Wageman,
2005; Hackman & Walton, 1986).

15) Ohio State University (1940s):

A leadership study that was aimed at identifying the appropriate traits did not yield any conclusive
results; a group of people from Ohio State University developed a list of 150 statements from their
generated responses that included 1,800 hundred statements. The list was designed to measure nine
different behavioral leadership dimensions. The resulting questionnaire is now well known as the
LBDQ or the Leaders Behavior Description Questionnaire.

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As part of the study, the LBDQ was administered to various groups of individuals ranging from
college students and their administrators, private companies including military personnel. One of
the primary purposes of the study was to identify common leadership behaviors. After compiling
and analyzing the results, the study led to the conclusion that there were two groups of behaviors
that were strongly correlated. These were defined as Consideration (People Oriented behavioral
Leaders) and Initiating Structure (Task Oriented Leaders).

16) Strategic Contingencies Theory:

D. J. Hickson et al (1971) wrote strategic Contingencies Theory. With Strategic Contingencies

Theory, a leader depends on his problem solving skills and a projective personality that is center
stage. The leader his so because she or he is in demand and others cannot solve the problems the
leader faces. This gives the leader bargaining power. In that the leader cannot be replaced easily,
he or she is not easily displaced, especially by popular will. Social processes depend upon the
leader. Strike out the leader and the system is in danger of collapsing. The ability of one to maintain
leadership in a system through problem solving relies on the interconnectedness of system units
(department, divisions, etc.), social interaction, communications speed and system infrastructure
integrity.

17) Leader-Member Exchange Theory – LMX:

Dansereau, Graen, and Haga wrote Leader-Member Exchange (LMX) theory in the Year of 1975.

How a leader maintains leadership through working with her or his supporters, those entrusted
with responsibility and advisers defines the Leader-member Exchange theory as a method for
exerting and maintaining leadership. LMX is intuitive. It is what can be expected from a leader-
group structure.

The theory points to what people could do to strengthen or weaken the leadership dynamics. The
theory explains the dynamic of age-old problems of cronyism, the mechanics of loyalty to a leader
and corruption and provides a structure for not only modeling specific situations but solutions to
problems.

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Leaders must garner and maintain their leadership position and the Leader-member Exchange
theory states that such persons work with associates, supporters, trusted persons with
responsibility, advisers and other "inner circle" to maintain her or his position.

18) University of Michigan (1950s):

Lead by the famous organizational psychologist, Dr. Rensis Likert, the leadership studies at the
University of Michigan identified three characteristics of effective leadership; two of which were
previously observed in studies that had been conducted at Ohio State University. The study showed
that task and relationship-oriented behaviors were not of major significance within the world of
organizational psychology. However, it was the third observation that introduced a new concept,
one of participative leadership.

19) W.J.Reddins 3-D Management Style Theory:

This theory presented by W.J. Reddin the representation of management style theory. The "3D
Model" is a situational leadership model that, as such, is based on behaviour. It is a model that
describes thebehaviour that a manager must follow in order to achieve his job, which is to be
effective.

The model is essentially based on the fact that the use of the appropriate behaviours can be learned.
That is, managers are not born with such skills. In fact, that is the reason why managers can be
"trained in leadership." The model includes only two types of behavior (task orientation and
relationships orientation), which are not mutually exclusive. Throughout these two types of
behavior, the model establishes some "managerial styles" that describe how managers face "a
situation" in their environment.

The fundamental feature of the model is that in order for a manager to be effective, the style used
should be the appropriate one for the situation that is faced.

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 20) Process Leadership Theory:
Additional leadership theories with a process focus include servant leadership, leaming
organizations, principal centered leadership and charismatic leadership, with others emerging
every year. Greenleaf introduced servant leadership in the early 1970s. A resurgence of the
discussion of servant leadership was noted in the early 1990s.

The process leadership theory and others that have emerged often suggest that the work of leaders
is to contribute to the well-being of others with a focus on some form of social responsibility.
There appears to be a clear evolution in the study of leadership.
Leadership theory has moved from birth traits and rights, to acquired traits and styles, to situational
and relationship types of leadership, to the function of groups and group processes and, currently,
to the interaction of the group members with an emphasis on personal and organizational function
of groups and group processes and, currently, to the interaction of the group members with an
emphasis on personal and organizational moral improvements.

21) Relationship Theory:

Relationship theories, also known as transformational theories, focus upon the connections formed
between leaders and followers. Transformational leaders motivate and inspire people by helping
group members see the importance and higher good of the task. These leaders are focused on the
performance of group members, but also want each person to fulfill his or her potential. Leaders
with this style often have high ethical and moral standards. Relationship-oriented leadership theory
describes a leader who is primarily motivated by and concerned with her interactions with people.
Relationship-oriented leaders often act as mentors to their subordinates. They schedule time to talk
with employees and incorporate their feedback into decisions. They also often try to make the
work experience enjoyable and attempt to foster a positive work environment or group dynamic.

22) Power and Influence Theory(French and Raven in 1959):

Power and influence theories of leadership take an entirely different approach – these are based on
the different ways that leaders use power and influence to get things done, and they look at the
leadership styles that emerge as a result. Perhaps the best-known of these theories is French and
Raven's Five Forms of Power. This model highlights three types of positional power – legitimate,

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reward, and coercive – and two sources of personal power – expert and referent (your personal
appeal and charm). The model suggests that using personal power is the better alternative, and that
you should work on building expert power (the power that comes with being a real expert in the
job) because this is the most legitimate source of personal power.

23) The Managerial Grid Model / Leadership Grid:

Managerial Grid Model also known as leadership Grid. This theory represented by Dr. Robert R.
Blake, Dr. Jane Sryley Mouton in 1964. At conception, the managerial grid model was composed
of five different leadership styles. These styles were a relation between a manager's concern for
people, concern for production and his motivation. The motivation dimension really provides the
underlying motive of the leader behind a successful leadership style. Thus, the managerial grid
model categorizes leaders into one of 81 possible categories.

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 24) Likert Management System:

Rensis Likert of Michigan University USA and his associates made extensive research on
management and leadership pattern in large number of organizations. Likert evolved 4 models of
management as system of management. His system are:

 System 1: Exploitative- authoritative

 System 2: Benevolent- authoritative
 System 3: consultative
 System 4: Participative -Democratic

Likert found that most individual manager and organization fit into one or the other of his system
in terms of certain operating characteristics as goal setting, decision-making, motivation,
leadership, communication and control.

25) Power and Influence Theory (French and Raven in1959):

Power and influence theories of leadership take an entirely different approach – these are based on
the different ways that leaders use power and influence to get things done, and they look at the
leadership styles that emerge as a result. Perhaps the best-known of these theories is French and
Raven's Five Forms of Power . This model highlights three types of positional power – legitimate,
reward, and coercive – and two sources of personal power – expert and referent (your personal
appeal and charm). The model suggests that using personal power is the better alternative, and that
you should work on building expert power (the power that comes with being a real expert in the
job) because this is the most legitimate source of personal power.

26) Implicit Leadership Theories:

Implicit leadership theories are informal theories about leadership that reside within the thoughts
of each individual. They are pet theories we devise based on our respective beliefs and assumptions
about the characteristics of effective leadership.

Hanges, Braverman, and Reutsch (1991) observed that individuals have implicit beliefs,
convictions, and assumptions concerning attributes and behaviors that help that individual
distinguish between

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 1. Leaders and followers
2. Effective leaders from ineffective leaders
3. Moral leaders from evil leaders

Robert J. House, company, and Gary Yukl explained that implicit theories are developed and
refined over time as a result of

1. Actual experience
2. Exposure to literature (books and other publications)
3. Other social-cultural influences

Moreover, they explain that these pet theories are influenced by

1. Individual beliefs, values, and personality traits

2. Shared beliefs & values about leaders in organizational culture and national or local
culture.

Finally, these implicit theories act to

1. Constrain
2. Moderate
3. Guide the exercise of leadership.

27) System Leadership Theory (2015 onwards):

Our awareness of the interconnected world has led to an appreciation of the systemic nature of
contemporary issues System leadership recognizes that collaboration is essential to solve wicked
problems.
Building on decades of leadership research and practice, and raising questions about our collective
responsibility for solving wicked problems, we can understand some of the characteristics of – and
need for – true system leadership. Much like Jim Collins’ Level 5 leaders (2001), they have deep
humility and fierce professional resolve. The difference is that they have moved from individual
to collaborative responsibility for the whole.

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 28) Weber’s Charismatic Leadership Theory:

In 1947, Weber used the term charisma to explain a form of influence based on follower
perceptions that the leader is endowed with the gift of divine inspiration or supernatural qualities
(Weber, 1947). Charisma can be seen as a fire that ignites followers’ energy and commitment,
producing results above and beyond the call of duty (Klein & House, 1995). Charisma can be
described as the influencing of followers resulting in major changes in their attitudes, assumptions
and commitment (Yukl, 1998). According to Yukl (1998), charismatic leaders are more likely to
come forward as leaders during times of great social crisis. They are often instrumental in focusing
society’s attention to the problem it faces by means of a radical vision that provides a solution.

29) Servant-Leadership Theory:

Servant-leadership is an employee-focused form of leadership, which empowers followers to make

decisions and keep control of their jobs. Servant-leadership is leadership that transcends self-
interest in order to serve the needs of others, by helping them grow professionally and emotionally
(Daft, 1999). The focus of servant-leadership is on empowering followers to exercise leadership
in accomplishing the organization’s goals. Traditional leadership theories emphasize the leader-
follower structure, in which the follower accepts responsibility from the leader and is accountable
to the leader. The non-traditional view of leadership however, views the leader as a steward and
servant of the employees and the organization. It is less about direction or controlling and more
about focusing on helping followers do their jobs, rather than to have followers help the managers
do their jobs.

30) Exemplary Leadership Theory:

Kouzes and Posner (2002) discovered though their studies of leadership experiences that
successful leaders have certain behaviors in common. They developed a model of leadership based
on this common behavior that they called (The Five Practices of Exemplary Leadership.” The five
practices of exemplary leadership identified by Kouzes and Posner (2002) are the following:

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  Model the way

To effectively model the behaviors that are expected of others, leaders must first be clear about
their own guiding principles. Leaders must find their own voice and then they must clearly and
distinctively express their values.

 Inspire a shared vision

Leaders inspire a shared vision. They desire to make something happen, to change the way things
are, to create something that no one else has ever created before. Leaders breathe life into the hopes
and dreams of others and enable them to see the possibilities, which the future holds.

 Challenge the process

Leaders are pioneers – they are willing to step out into the unknown. They search for opportunities
to innovate, grow and improve. They learn from their mistakes as well as from their successes.

 Enable others to act

Leadership is a team effort. Exemplary leaders enable others to act. They foster collaboration and
build trust.

 Encourage the heart

Leaders encourage their followers to carry on despite setbacks. They build a strong sense of
collective identification and community spirit that can carry a group through exceptionally tough
times.

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