Leadership Theories for Managers

Key Leadership Theories and Styles

For years, numerous studies have been concerned with leadership and have given an array of theories.

These include various theories put forward by scholars, philosophers, along cognitive specialists to help explain the development of a successful leader.

These theories provide insight into the traits and behaviors that help people develop their leadership skills.

In the meantime, there are a few main leadership concepts that every manager must be aware of to stay on top of their game. 

Here, we will be discussing the major important leadership theories that will guide you in leading or managing a team efficiently. 

1) Contingency Theory of Leadership

This leadership theory suggests that there is no single method or method of leadership that could be appropriate for all situations.

This means that it recognizes that various factors influence any given scenario and that a leader must decide on the best way to proceed by weighing the various elements.

In this sense, the leadership experts White and Hodgson declare, "Effective leadership is about finding the right balance of the context, needs, and behavior." The path-glory theory of leadership tells the same.

Effective leaders are those who possess not just the correct traits but also can evaluate the requirements of their followers and have the ability to analyze specific circumstances based on various circumstances and act accordingly, similar to what Fielder’s contingency theory states: “There is no one best style of leadership.”

Now, let's go through the other leadership theories that every business manager should follow. 

2) Situational Leadership Theory

Similar to Contingency Theory, the Situational Theory emphasizes the importance of the role of variables in a situation and doesn't consider anyone's leadership style superior to the 

It doesn't believe that any particular style of leadership is superior to the other. Paul Hersey, a US professor and guru of leadership, and Ken Blanchard feel that the theory of situational analysis consists of two key elements.

The level of maturity of followers as well as the leadership style. The theory of situational leadership states that different circumstances require different styles of leadership and decision-making.

A leader must be able to take action in a way that is based on the context they find themselves in. The behavioral theory of leadership of a leader matters.

Individuals can also opt for certain situational leadership skills to enrich their abilities even more. 

3) Transformational Leadership Theory

The transformational theory of leadership, or transformational leadership style, focuses on the relationship between leaders and their followers, and is among the most popular leadership theories.

This theory discusses the type of leader who is charismatic and inspiring in encouraging followers to improve and improve in their work.

Also called the Relationship theory, the transformational leadership theory is primarily focused on the relationships that are formed between the leaders and followers.

They also aim to make their followers realize the importance of a specific job. The leader who is transformed is not only concerned with team performance but also gives people in the group a chance to develop their talents. Along it helping them improve their leadership capabilities.

4) Transactional Leadership Theory

Transactional theories, sometimes known as management theories or exchange theories of leadership, are based on supervision as well as teamwork and organization. 

This is one of those leadership theories that focuses on reward and discipline as the primary reasons for leadership behavior. 

This is among the most frequently used theories in the business world, and the people who advocate this type of leadership employ punishments and rewards to encourage employees.

The theory of exchange, or management theories about leadership, refers to those theories that focus on supervision of teams, teamwork, and organization.

In this type of theory, the core of leadership is punishment and rewards. It is commonly employed in companies, and reward systems are offered to employees to inspire them to be more productive.

5) Behavioral Theory

In the behavioral theory, the focus shifts from the attributes or characteristics that leaders possess to their behavior and actions.

Contrary to theories like the Great Man Theory and the method of leadership that is based on traits, this theory considers successful leadership to come as the product of learning or acquiring capabilities.

In behavioral theories, the focus is on leaders' behavior and actions rather than their characteristics or traits. 

Along with this, leadership theories like this stand in stark contradiction to the Great Man Theory and consider that effective leadership is an outcome of learning various capabilities or learning them in time. 

6) Great Man Theory of Leadership

The great man theory is among the first theories of leadership, and it is founded on the idea of leadership being an inherent phenomenon. It is also of the belief that the best leaders are "born" and not "made."

As per this theory, someone competent in leading displays the characteristics of an effective leader, similar to leader-member exchange theory, such as charisma, confidence, intelligence, communication skills, and social skills that are present from birth and distinguish them.

The theory emphasizes leadership as something you possess or do not, and is not something you can acquire.

Although this theory might appear confusing to those aspiring to master leadership, take heart in knowing that most modern theorists reject both the theory and, in some cases, the leaders who support it.

This theory is an intriguing take on leadership that emphasizes the characteristics of leadership that have not changed throughout time.

7) Trait Theory of Leadership

The theory follows along the lines of the previous theory in assuming that leaders have characteristics that make them more appropriate for the job of the leader than those who do not possess those traits naturally.

This theory highlights certain traits like intelligence, accountability, a sense of responsibility, and the ability to think on their feet, among other things, which allow an individual to succeed in leadership.

In the tradition of the Great Man theory, the trait theory posits that the majority of leaders have characteristics that make them fit for leadership if you compare them with those with these traits.

The theory of trait leadership highlights certain characteristics or traits like responsibility, intelligence, feelings of accountability, creativity, and much more.

These characteristics allow an individual to succeed in the field of leadership. The most problematic aspect of this model is that it doesn't provide an exhaustive list of characteristics that are thought to be traits of leadership.

But it does show the importance of the traits that are backed by research that assist you in improving your leadership abilities.

Traits of a Good Leader

Since we have gained a thorough knowledge of the various leadership theories, now let's find out what some of the essential traits that a good and efficient leader must possess are. 

No matter if it's for some event organization or any corporate project, there are certain essential leadership traits that a good manager or any sincere individual must follow. 

Some of these are discussed here. 

1. Spirit of Resilience - 

Leaders must possess a strong spirit of resilience and learn to bounce back from certain setbacks while also maintaining a very positive attitude in the face of various difficult challenges. 

2. Integrity - 

Leaders who possess the quality of integrity are not only honest but also ethical and trustworthy, through which they are able to build a very strong foundation of respect and reliability within the team.

3. Decision-Making Abilities - 

A very efficient trait of leaders is to make smart and well-strategized decisions even in difficult circumstances or when they are overburdened with a lot of different tasks.

4. Building Trust - 

For any healthy team cooperation, trust is undoubtedly very important. Even in the sphere of business and management, leaders can earn trust by being approachable and expressing genuine concern for their team members. 

5. Efficient Communication Skills - 

One of the most important traits for a good leader and manager is efficient communication. 

Leaders must make sure that their flow of communication is very clear and concise and that the message they want to convey is clearly understood by the team members. 

Bottom Line

As you will see, theories of leadership or leadership theories are based on various approaches to thinking. Some are focused on traits and characteristics, while others emphasize the context's importance, which influences how leaders behave.

Different leadership theories and skills, such as Transformational Theory or  Transformational Theory Style, Situational Theory and Situational Theory Training, Trait Theory, etc, might apply or resonate with different kinds of managers. 

Thus, to become effective leaders, they need to identify the right leadership theories for themselves.

If you're looking to improve your managerial skills and increase your leadership skills, Sprintzeal’s Project Management Certification course can help you achieve that goal.

We are now at the end of our blog about the most effective theory of leadership that managers should be able to master in 2025. 

These leadership theories are built on various approaches to thinking. While some of the leadership theories are based on characteristics and characteristics, others focus on specific aspects of the environment that could influence a leader’s behavior.

FAQs

I. What do you understand by leadership theories?

A Leadership theory or leadership theories try to explain how and why some individuals become leaders while emphasizing on the various traits and characteristics that are important for effective leadership. 

These leadership theories also enlighten about the various necessary qualities along with certain situational factors that influence an individual’s potential and skills to lead in an effective manner.

II. What is the best among all the leadership theories

The Great Man theory of leadership explains how great leaders have certain inborn leadership skills such as courage, intuition, confidence,etc.

A very emerging concept that was popularized in the 19th century, it tries to emphasize how it’s not possible to develop leadership skills unless one is born with it. 

III. What are the names of the four leadership theories?

The four popular leadership theories are Trait theory, Behavioral Theory, Contingency Theory, and Transformational Theory.

These theories provide various perspectives through which we can understand what traits and skills determine a good and efficient leader.