Significance of Leadership Theories in Business Organisations

The report provides information about the significance, structuring, and implications of leadership theories that leaders must address to become effective. It critically analyzes two major leadership theories: Great Man Theory and Path-Goal Theory. The report highlights that both theories have their strengths and weaknesses, with some researchers supporting the concept of inherent leadership qualities while others argue that leadership can be developed through training and experience. The report concludes that the concept of entire leadership theories is to implement effective dimensions among leaders to achieve greater set of achievements and overall business success.

LEADING BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
Critically analyse the leadership theories....................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The report is providing information about the significance, structuring and implication of
leadership theories that are to be addressed and evaluated by a leader in order to become an
effective person to direct the business to a greater level of achievements.
Critically analyse the leadership theories
As per the research of Selznick (2011), which depicts that the rising importance of
becoming an effective leader has emphasized pressure on the entire kinds of leaders to adopt the
most productive and profitable leadership trait for attaining greater set of success and overall
achievements. There are various theories and approaches that are defined under the aspect of
leadership which are to adopted by the leader to become effective, proficient and skilled in
leading their team.
Great Man Theory
According to the study of Allio (2013), it is addressed that the theoretical model of Great
Man theory was explained on the basis of leadership which specifies that activity of leading a
team is highly confined only to the aristocratic people who are bound to escort the team
members. As per the study, it was ascertained that the people belonging to upper or higher class
were treated differently and were generally imagined as exceptional or qualities among the
society. It was assumed that such qualities and effectiveness are god-gifted and this belief made
them a good leader. The set of abilities, expertness and traits helps such leaders to attain the
attention of rest of the individuals in the team and are bound to follow them.
However, it was assessed from the information provided by the Tracy, (2014) which
critically depicted that Great Man theory was an imagination and blind conviction which was
based on beliefs that the attributes of leadership comes with the person, thus, can be never attain,
inherited and developed by any person. In addition to this, they agreed that the leadership
theories explained under the Great Man theory was somehow true which depicts that the
personalties and concepts defined under an effective leader is acquirable by any person. The
belief of Great Man Model is generally implemented to the contemporary organisational
structure which results in diversification among the working environment and overall business
operations. However, the globalised form of working environment has gained with an innovative

set of results that includes changes in employees' performance and their working abilities,
developing innovative characteristics in their behaviour.
Path Goal Theory
As per the explanation of DuBrin (2013) stated that there are some assorted variables for
leadership in Path Goal theory which are highly contingent and based on specific situation. The
theory helps a person to identify and determine effective set of approaches to become a good
leader. The main concept of this theory is to develop flexibility and adaptability among the
person in order to lead the team by addressing their working issues and factors. Along with this,
the theory specified a path for a person in order to attain personal achievements and to result in
high level of productivity and proficiency. The theory evaluated that leader in organisation are
responsible to increase motivation by explaining the route to rewards or making the rewards
more attractive. For this, they have to select a specific set of behaviours that are best suited to
their team members.
Illustration 1: Path- Goal Theory
(Source:Williams and Wilson, 2011)

According to the study of McDermott, Kidney and Flood, (2011) which added the
strategical implication of Path goal theory that clears an effective leader has to analyse the
business conditions and working situation in a manner to plan and implement best dimensions of
working environment. The leaders as per the concepts and approaches of Path Goal theory
specified that they have to take actions by determining the goals to the subordinates and
accordingly implement the strategies. In that context, the leader has to define specific path for
accomplishing the business function and share this path with their team members. Moreover, this
information was contradicted by Guay (2013), which stated that Path-Goal theory is extremely
centred on a leader, thus, the practices, functions, existence and actions are directly linked with
the organisation working and progress. This level of dependency should affect the organisation's
sustainability and survival in the market. In addition to this, the Path Goal theory is mainly
focused on implementing a good working environment and overall dimensions so that the team
members are able to perform well.
CONCLUSION
From the report, it has been articulated that the concept of entire leadership theories is to
implement and develop effective dimensions among the leaders. This process would help them in
attaining greater set of achievements and overall business success.

REFERENCES
Books and Journals
Allio, R., 2013. Leaders and leadership – many theories, but what advice is reliable. Strategy &
Leadership. 41(1). pp.4 – 14.
DuBrin, A., 2013. Leadership: Research Findings, Practice, and Skills. Cengage Learning.
Guay, R., 2013. The relationship between leader fit and transformational leadership. Journal of
Managerial Psychology. 28(1). pp.55 – 73.
McDermott, A., Kidney, R. and Flood, P., 2011. Understanding leader development: learning
from leaders. Leadership & Organization Development Journal. 32(4). pp.358 – 378.
Selznick, P., 2011. Leadership in administration: A sociological interpretation. Quid Pro Books.
Tracy, B., 2014. Leadership (The Brian Tracy Success Library. AMACOM Div American Mgmt
Assn.
Williams, P. and Wilson, R., 2011. Bobby Bowden on Leadership: Life Lessons from a Two-Time
National Championship Coach. Advantage Media Group.