THEORIES OF LEADERSHIP & MANAGEMENT

Trait theory

Trait theory was derived by Hans Eysenck, who was a famous and leading personalist in the 20th century. He combines the theories while measuring different individuals using different psychological experiments. With the use of questionnaires, Hans Eysenck first studied about genetics and physiology. From that study he found out a theory and he named it as “Temperamant”. He believed that the differences in the personality happens before the birth. After that he developed three independent dimensions from his studies as “E, N and P”.

• xtraversion/Introversion: in the extraversion/introversion he describes the persons with positive thinking and the persons with high stimulation. He also detailed that it can be measured by using brain waves, skin conductance and sweating.

• N-Neuroticism/Stability: In this he mainly highlights the persons with negative aspects or the persons with depression and anxiety. According to Hans Eysenck, neuroticism starts from the visceral brain and sympathetic nervous system.

• P-Psychoticism/Socialisation: It is described about the persons with aggressive, arrogance and tough minded. He also describes it as a physiological personality behavior. He describes that it is rooted due to the increase in hormones named testosteron.

Situational theory

The situational theory developed by Paul Hersey and Kenneth Blanchard. In this theory they explain that a leader or a manager chooses their style on the basis of organization’s development and also which can influence their followers. They also argue that the leader should not stick to a single style, it should change according to the behavior of employees.

Paul Hersey and Kenneth Blanchard suggests that there are four types of leadership styles, they are:

1. Telling / Low readiness level:

In this type of leadership style the leader guides or tells the followers how to do and what to do.

2. Selling / Moderate readiness level:

It is a kind of leadership style which involves a coaching leadership style or a back and forth between the followers and leader.

3. Participating / High readiness level:

In this style the group members have to take a more active role in making new

ideas and decisions, due to the leaders offering only less directions. The leaders try to boost the group members confidence level to accomplish their task.

4. Delegating / Very high readiness level:

This leaderstyle shows a less involvement of leaders. The group members have to take out most of the decisions and also will have more responsibility on what is happening. The supervision level will be low.

Transformational leadership

Transformational leadership theory was derived by James V.Downton in 1973 but the researcher Bernard M.Bass brought up some measurement concepts in 1985.

Transformational theory describes the interaction of an individual with others which helps for creating relationships and to increase trust. It also helps to change the organizational culture and also the team structure. The employees on the transformational leadership track are prepared to be transformational leaders themselves due to training and mentorship.

Characteristics of transformational leadership:

1. It encourages the positive and motivational factors in the followers.

2. It creates a positive work environment with clear standards and values.

3. It balances the short term and long term goals in a better

There are four components of transformational leadership:

Intellectual Stimulation: The leaders encourage the creativity of their followers, and also encourage them to explore new ways of completing tasks.

Individualized Consideration: The transformational leadership support and encourage individual followers.

Idealized Influence: In transformational leadership style, the leaders will be a role model for all the followers and they respect and keep trust on their leaders.

Inspirational Motivation: Transformational leaders always have clear cut about their vision which should be talked with their followers. The leaders also help their followers to experience the motivation and passion which help to achieve the goals.

Transactional leadership

Transactional leadership theory was derived by Max Weber in 1980. Transactional leadership also known as exchange theory. It describes or explains the relationship

between the followers and leader. It is structured with better and favorable policies and procedures. The leaders also offer rewards to the followers on the basis of loyalty, exchange of service and compliance. It also argues that the employees perform better when the command chain is clear and definite. The workers can also be motivated with rewards and punishments. Better rules, standards and procedures are important in transactional leadership. It helps to adapt changes and also to achieve short-term objectives.

Autocratic leadership

Autocratic leadership is that an individual only has the authority to take decisions.

Autocratic leadership is also known as authoritarian leadership. In this leadership style the leader will not ask any opinion or idea from their subordinates or employees. All the decisions are taken on the basis of the leader’s own judgement and idea. Leader tells his/her subordinate what to do and will not ask advice from them. In this leadership style it mainly focuses on the control of followers and the command done by the leaders. The autocratic is good when there comes a situation for a rapid decision making or decisive actions. It helps to get a clear command chain.

Participative /Democratic leadership

In a Participative or Democratic leadership style the leader involves all the subordinates or employees as part of the organization’s decision making process. It also motivates the employee due to whether they get respect or gets a position in the decision making process. This type of leadership style also results in increased employee retention. This leadership also helps to encourage and also feel the followers that they are important to the firm. Each and every member in the team gives opportunity to participate in the decision making process and also exchange their ideas.

Characteristics of participative/democratic leadership

• The team members are encouraged to share their ideas and opinions.
• The creativity of the team will be positively treated and encouraged.
• Team members feel a complete engagement in the overall process of the

Laissez-faire / Delegative leadership

Laissez-faire is also known as delegative leadership. In this leadership style the leader gives authority to their subordinates or employees to take decisions. This leadership style is used if the employees are efficient or are able to identify the situation. This

leadership style is most suitable for the situation in which there came a need of an expert. It also reduces the lack of direction and also reduces blaming each other for mistakes. Some of the researchers argue that this leadership style may cause less productivity among the employees and also cannot be used in every situation .

Characteristics of Delegative / Laissez- faire leadership style:

1. It is considered as a hand-off
2. The followers are well trained and supported by the leaders.
3. All the decisions can be taken by the employees.
4. It also helps to develop personal growth.

Power and influence theory

Power and influence was developed by Bertram Raven and John French in 1959. The power and influence theory mainly focuses on how the team is motivated by their

leaders using their influence and power. Power and influence act as the main motivating factor which can attract the subordinates and followers which have a similar vision.

There are five types of powers such as, coercive power, reward power, expert power, legitimate power and referent power.