Guide To 6 Top Leadership Theories and How To Apply Them

Understanding leadership theories and styles can help you be more effective in your role, particularly if you frequently collaborate with or manage others. Also, during the job search process, interviewers may assess your leadership potential, so it can be helpful to understand your preferred leadership practice.

In this article, we define leadership theory, explore six main leadership theories and explain how you can define your leadership approach.

What are leadership theory and leadership style?

Leadership theory studies the qualities of good leaders. Psychologists analyze and develop leadership theory, and researchers try to discover the common qualities or behavioral patterns of strong leaders. Some leadership aspects they consider include:

  • Personality traits

  • Actions

  • Environment

  • Situation

  • Decision-making processes

  • How input is received

  • How relationships are maintained

Leadership style is the way a leader approaches managing team members. These styles were formally developed as a result of studies on leadership theory, and each style includes distinct qualities. Common leadership styles include:

  • Coach: Recognizes strengths and weaknesses, helps people set goals and provides a lot of feedback.

  • Visionary: Manages through inspiration and confidence.

  • Servant: Focuses on helping team members feel fulfilled.

  • Autocratic or authoritarian: Makes decisions with little or no input from others.

  • Laissez-faire or hands-off: Delegates tasks and provides little supervision.

  • Democratic: Considers the opinions of others before making a decision.

  • Pacesetter: Sets high standards and focuses on performance.

  • Bureaucratic: Follows a strict hierarchy and expects team members to follow procedure.

6 main leadership theories

Primary leadership theories include:

Great man theory

The great man theory of leadership states that great leaders are born with all the right personality traits such as intelligence, courage, confidence, intuition and charm. A popular concept in the 19th century, this theory asserts that you can't develop leadership abilities—you either have them or you don't. Opponents of this theory claim it's unrealistic in its basic assumption.

Trait theory

The trait theory of leadership states that certain natural qualities tend to create good leaders. Having such qualities, however, does not necessarily mean someone has strong leadership skills. Some leaders may be good listeners or communicators, but not every listener or communicator makes a good leader. 

Behavioral theory

The behavioral theory of leadership focuses on how a person’s environment, not natural abilities, forms him or her into a leader. One of the key concepts is conditioning. It asserts that a person will be more likely to act or lead in a certain style as a result of environmental responses to behavior. The theory states that anyone can be a leader if they behave the way other leaders do.

Transactional or management theory

The transactional theory of leadership, also called "management theory," states that leadership is a system of rewards and penalties. It views effective leadership as results-focused and hierarchical. Transactional leaders prioritize order and structure over creativity by rewarding someone who meets a goal and penalizing someone who doesn’t.

Transformational or relationship theory

The transformational theory of leadership, also called "relationship theory," asserts that effective leadership is the result of a positive relationship between leaders and team members. Transformational leaders motivate and inspire through their enthusiasm and passion. They are a model for their teams, emphasizing a collaborative work environment, diplomatic communication skills, and efficient delegation. 

Situational theory

The situational theory of leadership does not relate to a certain type of leader or claim that any one style is best. Instead, it asserts that the best kind of leader is one who can adapt their style based on the situation. They may respond to a situation by commanding, coaching, persuading, participating, delegating or however they think is necessary. Situational leaders are defined by their flexibility.

Why you should identify your leadership theory and style

Considering your thoughts about and practices of leadership can help you identify your areas of strength and weakness and take action to become a better leader. Try to think about what qualities you possess and what ones you could develop. Ask yourself what leadership theory you agree with or would like to follow. By evaluating your skills, you can understand how to better lead your group.

Some theories and styles of leadership are better for certain work environments than others. You can practice a single style or try a mix based on your needs.

Jamie Birt

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