Leadership: Types, Theories, Components, and Challenges

Leadership: 1
LEADERSHIP
By,
Course
Tutor
School
Address
Date

Leadership: 2
Introduction
Leadership is the art and/or ability to direct people to act in certain ways that will lead to the
achievement of pre-set goals. While managers are more focused on doing things right, leaders
dedicate their efforts on doing the right things (Northouse, 2012). Leaders should have the ability
to create future visions that will inspire their followers. In business or organizational context,
visions are attractive, convincing and realistic depictions of where an organization or specific
department aims to be in the future. Visions subsequently enable leaders to set priorities, give
directions and provide markers to indicate what has already been achieved. There are various
tools used by leaders to focus on organizational strengths and needs when creating visions. Such
tools include SWOT analysis, PEST analysis, and core competence analysis, all which are used
to review the current position and aid in determining the next move (Cole, 2018). Such analyses
are also used by leaders to predict the possible evolutions in the industries as well as possible
behaviors of various competitors. As such, successful innovations are coined. Discussed
henceforth are the various types of leadership, theories of leadership, the components of
leadership, and the challenges facing leadership. While inscribing all discussions, leadership
theories will also be consistently consulted.
Types of leadership
Leadership styles applied in various organizational settings are determined by a variety of factors
such as the number of followers, the followers themselves, the functions of the leader and the
prevailing situation. Whereas some leaders prefer active participation of their followers in
decision-making processes, other leaders are of the idea that the decision-making process be
solely theirs. Discussed below are some of the common types of leadership styles that are
commonly applied in today’s organizations

Leadership: 3
1. Autocratic leadership
This is a leadership style whereby a leader exercises the supreme decision making power without
seeking the opinions or input of the subordinates. Upon evaluating the prevailing situation, an
autocratic leader arrives at a final decision, communicates it to the subordinates and expects
them to implement it promptly (Iqbal, 2011). Little or no feedback is expected from the
subordinates. Procedures, guidelines, and policies are supposed to be followed to the letter. This
style proves non-effective in many organizations. It is however perfect for production lines
where maximum output is expected through conducting simple and repetitive tasks. Where this
leadership style is employed, the levels of creativity and innovation among employees are
extremely low (Walker, 2011). Autocrat leaders do not get long-term commitments and loyalty
from employees. Consequently, high rates of turnover and low satisfaction are eminent in
organizations practicing this style. A good example of application is in military institutions
where orders must be followed.
2. Democratic leadership
Democratic leaders always seek the input and contribution of their subordinates in decision-
making affairs. Even though the leader has the final say on the decision to be implemented, all
employees are given the opportunity to participate in the decision-making process whether
directly or indirectly (Kane, et al., 2011). A democratic leader also occasionally delegates power
to potential subordinate leaders who guide their colleagues in performing certain tasks in the
workplace. Communication occurs in both upward and downward directions where employees
are allowed to send feedbacks and suggestions related to work affairs. Creativity and innovations
are also nurtured greatly. This style is the most effective, a factor that is largely contributed by
competence, fairness, honesty, intelligence and courage (Kane & Patapan, 2014). Unlike in

Leadership: 4
autocratic leadership, democratic leaders enjoy loyalty and long-term commitment of their
followers. This style is common in countries exercising democratic leadership.
3. Transformative leadership
Transformational leadership, unlike other styles of leadership, focuses more on introducing
change in groups, organizations as well as for leaders themselves. Transformational leaders are
well known for motivating their followers to do more than they were aiming and even more than
they thought it was possibly achievable. They are also known to set expectations that are more
challenging and the performance achieved is usually typically higher. Charisma, hard work, self-
drive, and big visions are common traits that are possessed by transformational leaders (Shelton,
2012). This is in line with trait theory originally coined by Thomas Carlyle. The theory revolves
around the fact that followers are positively driven by positive traits portrayed by their leaders.
Statistical data have revealed that this style of leadership molds employees who are more
committed to performing their tasks. Such employees are also satisfied mainly due to
empowerment derived from their leaders.
4. Transactional leadership
In transactional leadership style, employees are rewarded for the work that they do. This style
focuses more on results, conforms to the organizational structure in place and weighs realization
of preset goals and targets based on the organization’s system of penalties and rewards
(Kuckartz, 2010). Transactional leaders possess formal authority and responsibility positions
within the organization. As such, it is their responsibility to maintain routines through the
facilitation of group performance and management of individual employee performance. Based
on requirements that had been previously defined, a transactional leader sets the working criteria