Leadership Theories

This essay summarizes three leadership theories and explains how they can be used to influence others and build trust. Examples are provided for their application in the community and workplace.

Running head: LEADERSHIP THEORIES
LEADERSHIP THEORIES
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Introduction
In this essay, the main aim of the discussion will be to summarize three leadership
theories, and explain about how the theories can be used in order to influence other people as
well as help in building the trust. Examples will be given through which the theories can be
used as strategies in the community or on the workplaces.
Leadership Theories
To discuss about the leadership theories, it is vital to understand the meaning of
leadership. The term leadership can be termed as both an area of research and practical skill
including the capability of a company or individual to lead or mentor other teams, individuals
or entire companies. It includes a type of responsibility which is focused at accomplishing
specified topics by the application of the available resources like material and human as well
as assuring a coherent and cohesive company in the throughout process. It is the influential
power which the leader uses to influence their employees or the team members in a group, to
achieve a common set target. Leadership affects the accomplishment of the objectives of an
organization as well as the well-being of the employees and the organization. There are
different views of leadership, which helps to develop different theories.
Situational Theory
This theory helps to propose the leaders to select the best flow of action which are
established upon circumstances or situational cases. Paul Hersey and Kenneth Blanchard
developed and studied this theory of leadership in the year of 1979. Different approaches or
styles of leadership may be more appropriate in taking various types of process of the
decision making. Each and every situation needs a response, in order to convey any message
to the peers and the colleagues of the company. It can be termed as the leadership theory

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which refers to that time when the leader of a company need to adjust their style in order to
fit the development level of the employees or colleagues whom they want to get influenced. It
includes four types of leadership styles, namely directing/telling, coaching/selling, supporting
and delegating. In this theory, it is very important to be flexible and adapt to the situations.
Directing style of leadership style can be used by the leader for the employees who are high
in commitment but low in competency, or to those employees who are at the lowest level of
maturity, lack the skill sets, and are not fully confident. For example, a leader needs to be
authoritative in an emergency room in a hospital. The leader needs to direct the subordinates
considering the extent of the emergency situation, by taking the help of the skills and
expertise. The leader has to take decisions according to the situations of the case.
Transactional or Management Theory
In this theory, the focus is on the role of business entity, supervision and team
performances as well as the exchanges that happens in between the leaders and admirers.
These theories are based on the rewards system and punishments. When the employees are
performing or successful, they are rewarded, and when they are unable to perform anything,
they are punished or reprimanded. It was first developed by Max Weber in the year 1947.
This style is mainly used by the managers of different organizations. It aims on the basic
process of management which includes organizing, controlling and short-term planning. This
theory helps to motivate as well as direct the admirers mainly by appealing to the self-interest
of their own. The potentiality of the transactional leaders comes from the formal authorities
as well as the responsibilities in the companies. The main focus of the admirer is to follow the
instructions of the leader. The exchange between the leaders and the admirers include four
dimensions, namely contingent rewards, active management by exception, passive
management by exception and Laissez-faire. This leadership is responsive and works within
the culture of the organization. Transactional leaders help the employees to accomplish the

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objectives of the companies through rewards and punishment. For example, this theory is
used by the company of Hewlett-Packard. In person, Bill Gates is a great transactional leader.
Another example is Howard Schultz, the owner of Starbucks. As a transactional leader, he
possesses good vision for the company and is successful for making a niche for the brand.
Relationship or Transformational Theory
Relationship theories, or the transformational theory aims on the networks formed
between the admirers and the leaders. Leadership can be termed as the process or the way
through which the people engages with other people and is able to create a network which
results to increase the motivation and honesty of the leaders and the followers together. These
theories are mainly distinguished to appealing theories of leadership in which leaders with
specific qualities like extroversion, confidence and certainly established values, which helps
to motivate or inspire the people or employees by helping the group members. These leaders
aim on the performance of the team members, as well as on each employee in order to fulfill
their potential. In this styles or approaches of leadership, the leaders along with their group is
capable to point out the challenges ahead, the available resources and to construct a long term
vision for the group and is continuously attracting as well as involving the people or the
employees on order to act at their best level or abilities and advance personally and
professionally throughout the process. Steve Jobs is a great example of this kind of leadership
theory. He can be termed as one of the most iconic transformational leaders throughout the
world. He continuously challenged his peers and colleagues to think further what has been
performed already and to manufacture products that nobody has ever seen.
Leadership Theories and Interpersonal Skills
Leadership theories helps to describe the effectiveness of a leader. A good leader can
help to build the interpersonal skills within the employees of the organization, or in the

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community of people in the society. For example, Steve Jobs not only helped to increase the
interpersonal skills between the employees of Apple, but also set an example to the society
globally, where people from other fields also followed his principles to lead others in the
society. Bill gates or Howard Schultz also influenced to increase the interpersonal skills like
healthy communication and building trust among the employees and the leaders, which will
help to sustain a healthy work culture and grow the organization through is length and
breadth.
Conclusion
From the above discussed essay, it can be concluded that there are many leadership
theories which can be implemented according to the situations in the organizations in the
world. The market scenario also affects to select what leadership they need to be taken and
what not. The qualities of the leadership also face some challenging situations and apply their
leadership style to overcome those situations by the help of leadership theories and leadership
styles.

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