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Leadership Theories

Business Studies Year 10

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9 views3 pages

Leadership Theories

Business Studies Year 10

Uploaded by

joanchoong6
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Leadership Theories

Theories used in the context of Business Studies include:

traits and behaviour that individuals can focus on to improve their leadership skills and
abilities.

Great man (Great person) theory


The key ideas are:

• The ability to lead is inherent and cannot be taught.


• Leaders are just born with the right traits and abilities for leading: charisma, intellect,
confidence, ncommunication skills and social skills.

• Leaders are viewed as heroic, intelligent and destined to rise to leadership when the
situation arises.

• The term ‘great man’ was originally used because leadership was reserved for males,
particularly in terms of military leadership. In recent years, the term ‘great person’ has
become more appropriate.

Trait theory

This is similar to the great person theory. It believes that people are either born with the
personality characteristics (or traits) required for leadership, or they are not. Traditionally, the
most determined supporters of trait theory see these leadership characteristics as innate –
some people are born as future leaders due to their psychological makeup.

Some of the most common leadership traits identified by researchers are:

• initiative
• determination and energy
• good judgement and decision-making skills
• flexibility
• creativity
• charisma
• emotional intelligence
• drive and motivation to succeed
• confidence, honesty and integrity.
Traditionally, the theory is used to predict whether someone will make an effective leader or
not. The identified characteristics of successful leaders are compared to those of potential
leaders to determine their likelihood of leading effectively.

A more modern approach is to suggest that the above traits can be possessed naturally, but
that some can also be learned and developed. So, for example, flexibility and decision-
making skills can be developed and built into a person’s behaviour and thinking. This would
improve their leadership potential. This approach led to behavioural theory.

Behavioural theory

Behavioural theory is very different from traditional trait theory. It assumes that capable
leaders can learn the skills needed rather than having inherent qualities. Rather than analysing
inborn traits, this theo. theory. It assumes that capable leaders can learn
the skills needed rather than having inherent qualities. Rather than analysing inborn traits,
this theory looks at what leaders actually do by studying their behaviour in response to
different situations.

Leadership effectiveness is assessed by analysing a leader’s actions and then recording


whether this behaviour leads to success. The practical application of the theory is that a
leader’s behaviour affects business performance and different leadership behaviours could be
appropriate at different times. The best leaders are those who can change their behaviour by
choosing the most suitable style for each situation.

Behavioural theory suggests that a leader uses three sets of skills to lead their followers:
• technical skills (knowledge of the business process or technique)
• human skills (ability to interact with people)
• conceptual skills (ability to create new ideas to solve problems).

This approach assumes that a particular behaviour of a manager makes them a good leader.

Determining goals, motivating employees towards achieving the goals, effective


communication, the ability to interact effectively and building team spirit are examples of the
behaviour of a successful leader.

Contingency theory
Put simply, this theory suggests that the most successful leaders adapt their leadership style to
differentsituations. Just because one leadership style has worked well before, does not mean
that it will be effective in a different situation. It is not easy for some managers/leaders, who
may be set in their ways, to adapt their style to very different situations. This is why some
businesses fail to adapt quickly enough to changing circumstances.

Changing situations that can create a need for a different approach to leadership include:
• Levels of experience and maturity of the subordinates – if these are high, then a more
relaxed approach to leadership should be possible.

• The relationship between leader and followers – if this is a positive one, then the leader has
already established an excellent foundation for working together.
• Amount of time needed to complete the task – if time is very limited, then the leader may
have to lead and direct employees more closely to ensure deadlines are met.
• The level of power of the leader’s position – the higher the authority level, the greater the
chance that subordinates will want to impress and perform to expectations.

Transformational leadership
This style of leadership has much greater focus on
leading, rather than managing workers, which is the main feature of transactional leadership.

Transformational leadership is most effective during periods of significant change for the
business.

Transformational leaders attempt to change or transform the culture of the organisation to


achieve improved performance. The new culture should focus on employee satisfaction,
productivity and working for success through motivated employees. By concentrating on the
needs of employees, the transformational leader demonstrates the importance of:
• charisma in influencing subordinates
• inspiring workers towards achieving the leader’s vision
• stimulation in the working environment by offering new challenges for employees
• understanding individual needs of each team member

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