Types of Leadership Theories and Their Impacts on Business

LEADERSHIP THEORIES

Table of Contents
INTRODUCTION...........................................................................................................................1
Types of leadership theories........................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................5

INTRODUCTION
Leaderships is an art used for motivating a group or workers to act for achieving an
common goal. Leadership is an practice by which an administrator can guide, direct and
influence the behaviours of people at workplace. It is the role of leader to develop future visions
for organisation and motivates the staff members for achieving the goal. Leadership theories are
the schools made to give recommendation to become successful leaders (Carnes, Houghton and
Ellison, 2015). The study will highlight the different types of theories (situational leadership,
participative leadership & contingency theory) and their positive and negatives impacts on
business.
ASSESSMENT
Types of leadership theories.
Leadership theories are the institutions of thoughts made to explain that how opne can
become successful leaders. Leadership theories lays emphasis on behaviour and traits which
individual can adopt to enhance their self leadership capabilities Gümüsay, 2019).
Situational leadership theory
As per the view of the author Amanchukwu, Stanley and Ololube, (2015) this theory says
that the style of leadership depends upon the situation in the organisation. This theory refers to
those types of leaders who changes their leadership style according to the condition and the level
of development of their group members. The author says that it is an very effective way of
leadership because it accepts the needs of teams and sets a fruitful balance for whole business.
This leadership theory is a model which is invented by Paul Hersey and Ken Blanchard. In year
1969 this theory was first introduced as “ Life cycle theory of leadership”. And in year 1970s the
life cycle theory is renamed as “Situational leadership theory”. This theory is also referred to
Hersey- Blanchard situational leadership theory. The author Amanchukwu, Stanley and Ololube,
(2015) argues that this leadership my not be suitable to those organisations who are task oriented
or have highly regimented managers. Some aspects of leadership theory is very difficult to define
and quantifying maturity, in this model maturity is referring to both job maturity and emotional
maturity and this some times results in an conflation between two.
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The leaders can move from one style to other, deepening upon the situation, the nature of
work to be performed and workers maturity. The benefit of this leadership style is that it creates
an comfortable environment for the staff as leaders makes efforts to create an style which is
based on readiness level of the group or the needs of the group members. The author
Amanchukwu, Stanley and Ololube, (2015) contradicts that this style focuses more on immediate
requirements rather than long term needs. As instead of being focused on overall objectives, the
situational leaders fall in the trap where they only focuses on evaluating and responding to the
immediate needs all the time.
As per the view of author Amanchukwu, Stanley and Ololube, (2015) this leadership
style takes various phases of development into account. As instead of putting all the workers in
an same category the manger looks the situation of each leader individually. The goal of the
leader is to analyse the competency of single workers individually, and assist in boosting
motivation level of the employee based on the style which are best suitable for them. The author
Carnes, Houghton and Ellison, (2015) argues that Situational leaders also have skills similar to
others employees. If the leaders has capability to adopt to understand the changes in situation and
what are the requirements of people, then only they can be beneficial for their role. If this skill of
the manager is not very well developed then their reactions will not be very much effective. The
author Clapp-Smith and et.al., (2019) says that this theory is very popular and used very
frequently to training the managers within the business. This theory is highly practical and very
easy to understand, it is an sensible theory and can be applicable to variety of situations and
settings. The author argues that Carnes, Houghton and Ellison, (2015) as it is not very easy to
make changes in leadership style it requires proper analyses of organisation's situations and it is
very time consuming procedure.
Contingency theory
The contingency theory is organisational theory which claims that there os not any best
way for organising an corporation, for making effective decisions and leading a company, It is
somewhat similar to the situational leadership theory as a contingent leader apply their own
leadership style which is best suitable for the situation. The contingency theory of leadership was
made by was developed by Austrian psychologist Fred Edward Fielder in 1964. This theory lays
emphasis on the importance of leaders personality as well as conditions in which they operates.
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