Leadership Theories

Running head: LEADERSHIP THEORIES
LEADERSHIP THEORIES
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LEADERSHIP THEORIES1
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

LEADERSHIP THEORIES2
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