Abertay University
Jun 7, 2024
Effective leadership is the cornerstone of organisational success, driving teams towards shared goals and inspiring growth. Yet, the concept of leadership is multifaceted, with various theories and styles shaping its understanding.
In this blog, we explore the main leadership theories and styles, uncovering the intricacies that define effective leadership in diverse contexts, and examining different types of leader as well as what makes a strong leader in today’s modern workplace.
Understanding leadership theories: Examining the foundations
Here, we’ll explore the building blocks of what makes a good leader through the lens of some major leadership theories. In doing so, we’ll get a better idea of how different leadership styles come about and why they matter.
The great man theory: Unravelling the myth of innate leadership
The great man theory suggests that leadership traits are inherent and exclusive to a select few. Originating in the 19th century, this theory is attributed to Scottish essayist, historian and philosopher Thomas Carlyle, who delivered a series of lectures on the role heroes play in 1840.
According to Carlyle, individuals are born with innate qualities that predispose them to leadership roles, such as superior intellect and heroic courage.
However, while some individuals may possess natural charisma and confidence, this theory fails to account for the complexities of leadership development and the influence of environmental factors.
Trait theory: Exploring the anatomy of effective leaders
Throughout the 1900s there have been multiple studies on leadership based on individual traits. This theory builds on Carlyle’s great man theory, and despite many criticisms of trait-based leadership in both research and professional environments, a 2011 study by Hoffman et al. made some progress in identifying personality traits which are predictive of leader effectiveness.
Some of the traits that were found to correlate with leader effectiveness in Hoffman’s study include achievement motivation, energy, flexibility, dominance, self-confidence, integrity, creativity, and charismatic personalities.
While trait theory provides valuable insights into leadership attributes, it overlooks the role of situational factors and the dynamic nature of leadership.
Behavioural leadership theory: Decoding leadership actions
The behavioural theory of leadership shifts the focus from innate traits to observable behaviours, emphasising the actions and decisions of leaders. Unlike the great man theory and trait theory, the behavioural leadership theory is based on the belief that leaders are made, not born.
Task-oriented and people-oriented behaviours are central to this theory, with leaders categorised based on their approach to problem-solving and interaction with team members.
Naylor (1999) noted that the behaviour of leaders has been stimulated by a systematic comparison of autocratic and democratic leadership styles. Autocratic-led groups work well so long as the leader is present, though group members tend to be unhappy and hostile. Democratically-led groups do nearly as well as the autocratic-led group in group performance, but group members have more positive feelings and their efforts continue when the leader is absent.
Contingency theory: Adapting to changing circumstances
Contingency theory suggests that there are multiple types of leadership, and that effective leadership depends on the specific circumstances or contingencies present in a given situation.
This management theory emphasises the importance of adapting leadership styles and behaviours to match the unique needs of the environment, task, or followers.
By embracing the principles of contingency theory, leaders can enhance their flexibility and responsiveness, thereby increasing their effectiveness in navigating diverse challenges and maximising team performance.
Situational leadership theory: Mixing and matching
The situational theory of leadership proposes that effective leaders adjust their style based on the readiness or maturity level of their followers.
Situational leaders may adopt a mentor position when dealing with inexperienced or uncertain followers, providing clear guidance and structure. They may also employ a supportive style when working with capable and motivated individuals, offering encouragement and empowerment.
By recognising the varying levels of readiness among team members, managers following this leadership model can adapt and change their leadership abilities to foster growth, maximise performance, and achieve organisational goals effectively.
Exploring leadership styles: A wide spectrum of possibility
When it comes to leadership, there is no one-size-fits-all. Employees like different management styles for themselves, but there are also a range of ways that leaders can decide to manage their teams. Creating a happy and productive workplace depends on the careful balance of effective communication skills and willingness to compromise when an employee and their manager have differing preferences.
Autocratic leadership: The power of authority
The autocratic style of leadership entails centralised decision-making and strict control over team activities. In this style, leaders act as authoritarian figures without seeking input from subordinates, relying on their judgement to drive organisational outcomes.
While autocratic leadership can expedite decision-making processes, it may stifle creativity and diminish employee morale in the long run.
Democratic leadership: Fostering collaboration and participation
The democratic leadership approach prioritises inclusivity and participative decision-making, soliciting input from team members and fostering a sense of ownership. Leaders in this style encourage open communication and empower individuals to contribute to the decision-making process.
By promoting collaboration, democratic leaders cultivate a supportive work environment and enhance team morale.
Laissez-faire leadership: Navigating freedom and autonomy
A laissez-faire leader operates on the basis of delegating authority to team members, granting them the freedom to make decisions and manage their tasks independently. Leaders in this style provide minimal guidance, allowing individuals to operate with freedom and flexibility.
While laissez-faire leadership can promote innovation and creativity, it requires self-motivated team members capable of working autonomously.
Transactional leadership: Balancing rewards and expectations
Transactional leadership operates on a system of rewards and incentives, where leaders establish clear expectations and rewards compliant with organisational goals. This style emphasises performance-based outcomes and holds individuals accountable for their actions.
While transactional leadership can drive short-term results, it may lack the visionary approach necessary for long-term growth and innovation.
Transformational leadership: Inspiring change and growth
The transformational theory of leadership transcends transactional exchanges, focusing on inspiring change and fostering growth within organisations. Transformational leaders exhibit charisma, vision, and a passion for empowering their team members.
By articulating a compelling vision and motivating individuals to exceed expectations, transformational leaders drive organisational innovation and cultivate a culture of continuous improvement.
Blending leadership theories and styles within complex realities
Effective leadership encompasses a nuanced understanding of both theories and styles, recognising the interplay between individual traits, behaviours, and situational dynamics.
Successful leaders possess the flexibility to adapt their approach to different situations, leveraging diverse styles to maximise team performance and achieve organisational objectives. By embracing participative decision-making, fostering collaboration, and inspiring transformational change, leaders can create environments conducive to innovation, employee well-being, and sustainable growth of an organisation.
Become an effective leader
By embracing diverse leadership styles, cultivating essential leadership skills, and fostering a culture of empowerment and innovation, organisations can navigate complex realities and chart a course towards sustainable success.
Start your journey to becoming a great leader with Abertay University’s 100% online MBA programme. On this part-time master’s degree, you will discover how to adapt to changing workplaces and how to inspire growth in yourself and the team you lead.
By studying with us, you will gain a thorough grounding in core management topics including people management, strategic development, and financial decision-making. Through the lens of international business and leading business transformation, you will be empowered to respond strategically to the changing business environment, and steer teams and organisations to success.