7.3.2 Theories of leadership

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Today we are going to talk about theories of leadership. These theories help us understand what makes someone a good leader, how they influence others, and how their style can affect a business. Every organisation needs effective leadership, so understanding these theories can really help us see why some leaders succeed while others struggle.

Let’s start with the Trait Theory of Leadership. This theory suggests that leaders are born, not made. It says that some people naturally have certain traits that make them good leaders, such as confidence, intelligence, determination, and charisma. For example, people often say that leaders like Winston Churchill or Elon Musk were born with strong leadership qualities. They are confident, inspiring, and determined. However, this theory has its weaknesses because it ignores the fact that people can develop leadership skills through experience and training.

Next is the Behavioural Theory of Leadership. This one focuses on what leaders actually do rather than what traits they have. It looks at their behaviour. Some leaders focus more on getting tasks done, while others focus on people and relationships. A good leader often balances both. For example, imagine a manager who sets clear goals for their team but also takes time to listen to their problems. That shows both task-oriented and people-oriented behaviour. The main limitation here is that this theory doesn’t always take into account the situation or the personalities of employees, which can also affect how well a leader performs.

Now let’s move on to the Contingency Theory of Leadership. This theory says that there is no single best leadership style. The most effective style depends on the situation. For example, in a crisis, a task-focused leader who makes quick decisions might be more effective. But in a stable environment, a leader who builds relationships and motivates people might do better. Fiedler’s model is one example of this theory, as it matches leadership style to the situation. One problem with this idea, though, is that it assumes leaders can’t easily change their style, and in real life, most good leaders can adapt.

The next one is the Power and Influence Theory of Leadership. This theory looks at how leaders use power to influence others. There are different types of power. Legitimate power comes from a person’s position, like a manager. Reward power is the ability to give bonuses or promotions. Coercive power is about punishment. Expert power comes from knowledge or skill. And referent power is based on personal charisma or respect. For example, Steve Jobs had strong referent power because people admired and believed in his vision. However, relying too much on power can sometimes lead to authoritarian leadership, which can lower morale and cause ethical issues.

Finally, we have the Transformational Leadership Theory. This is one of the most modern and inspiring theories. Transformational leaders motivate and inspire people to go beyond their own expectations. They focus on vision, innovation, and personal growth. These leaders encourage creativity and care about developing their team members. For instance, Satya Nadella, the CEO of Microsoft, transformed the company’s culture by focusing on teamwork, innovation, and empathy. This type of leadership is very effective in dynamic and creative environments, but it may not work as well in organisations that are too rigid or structured.

So, to sum up, each theory explains leadership in a different way. Trait theory focuses on who leaders are. Behavioural theory focuses on what leaders do. Contingency theory says the right style depends on the situation. Power and influence theory explains how leaders use authority and charisma. And transformational leadership shows how leaders can inspire others to achieve a shared vision.

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