An Overview of Leadership Theories in the Business Environment

This essay examines the evolution of leadership theories from the 19th century, tracing their impact on organizational structures and management strategies. It begins by exploring early theories like the Great Man Hypothesis and Trait Theory, which focused on individual characteristics. The discussion then progresses to the Behavioral Theory and the Contingency Leadership style, highlighting the shift towards situational and pragmatic approaches. The essay further delves into theories like the Participatory Leadership and Relationship Theory, emphasizing collaboration and employee development. By analyzing these theories, the paper provides a comprehensive overview of how leadership concepts have shaped modern business practices and organizational design. The essay concludes by summarizing the dynamic changes in theoretical approaches during the 19th century and their lasting influence on contemporary leadership.

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Running Head: LEADERSHIP IN BUSINESS
Leadership in Business
Name of the Student: -
Name of the University: -
Author’s Note: -

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Introduction
The post-industrial revolution era has witnessed an enormous rise in science and
technology. With the advent of Nineteenth century, a huge development in the field of
organizational structure was witnessed. A more pragmatic approach to the organizational
structure was adopted by the then entrepreneurs. Several theories were developed in this time
frame (Suddaby & Foster 2017). The idea of this paper is to focus its light on various aspects of
organizational theories that have been developed in nineteenth century.
Discussion
The early managerial or organizational theories were chiefly based on the individual
characteristic traits. This idea of early organizational theories were chiefly based on individual
attributions (Garel 2013). It can be observed that early theoreticians have somehow overlooked
the historical progress of the society as a whole, rather they emphasized upon the individual
characteristics.
It can be deduced from the structural analysis of an organization that the hierarchy
prevailing in an organization often reflects the hierarchy or authoritarian attributions of the
higher leadership. The higher level managerial post will have a more authoritarian approach than
a subordinate office-bearer.

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One of the most pertinent organizational theories that have been developed in 19th century
was The Great Man Hypothesis. It can be said there were or there are no certain human
characteristics that can lead to this conclusion that pioneers have some special humane
characteristics. It is quite impossible to deduce that which characteristics of a said individual can
lead him or her to a leadership post. According to the great man hypothesis a great leader inherits
the inborn talent of becoming a leader. As been opined by the great man theory a leader is born
with the capability of leading that has been inherited historically. This hypothesis somehow
rejects the scientific evolution of a society. Moreover according to this hypothesis to become a
pioneer one had to take a different unusual path to rise to the power. Something unconventional,
something that was against the fitting circumstances were welcomed by the pioneer. This theory
was developed by Thomas Carlyle. In his book "On Heroes, Hero-Worship, and Courageous in
History", Carlyle intricately discussed on several aspects of the hero archetype. In 1860, Herbert
Spencer, an English logician argued that the hero archetype attributed to the persons were a
fatalistic approach, as all these people were from a set social conditions, and they were nothing
but a part of the historically evolving society.
Another theory that played a pivotal role in re-shaping the organizational concept in 19th
century was the Trait Theory. According to this theory, it is assumed that a potential leader
inherits certain qualities that eventually leads him to surpass desires. The qualities like vast
knowledge, commitment to the responsibilities, innovativeness often makes someone a pioneer.
The problem of trait theory is that it cannot distinguish the potential leaders from normal people.
Often it can be seen that people with extraordinary leading skill cannot assume to power, and
people with lesser qualities often rises to power. Both having same characteristics often creates a

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confusion that whom should we consider as a leader. There were various difficulties with the
characteristic organization speculation. Be that as it may, from a brain research of identities
approach, Gordon Allport's ideas are among the primary ones and have brought into
consideration, the behavioral approach (Manning 2017).
The behavioral theory revolves around the central idea that leaders are made, not born. It
can be said that Behavioral Theory is the polar opposite of the Great man theory. Centrally and
chiefly based on behaviorism, this theory assumes that people can learn how to be a leader. This
theory focuses on the qualities of the leader, and hardly takes into consideration the inner state or
the quality possessed by a person.
The contingency leadership style can be treated as the most pragmatic theory amongst all.
This theory revolves around the concept of pragmatic approach. According to this theory, there is
no leadership style. The leadership approaches can be variable depending on the situation. Based
on circumstantial decisions, this theory believes in the absolute power of a leader, with a more
pragmatic approach to a situation. Leadership researchers White and Hodgson suggest that truly
effective leadership is not just about the qualities of the leader, it is about striking the right
balance between behaviors, needs, and context. The leader should have the ability to assess the
needs of his or her followers. After assessing all the needs the leader should determine his or her
leadership style and aim.

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Situational theory is one of the most important theories that plays a pivotal role in
reshaping an organization. According to this theory, a leadership style should be based on the
situational demand of an organization. Apparently one can find similarities between the
contingency theory and the situational theory (Zhao & Zhang 2013). But there lay certain
differences between them. In case of situational theories, the leadership style is solely based on
the situational demand. For example it can be said, in an organization, if the leader is the most
knowledgeable person then the organization should opt for authoritarian leadership style. On the
other hand this can be said that an organization believing in collective decision and collaborative
working system should opt for a democratic leadership style.
The most important theory that plays a pivotal role in today’s world is the participatory
theory. In the nineteenth century, this theory played a pivotal role in impacting an organizational
structure in the most effective way. The participatory leadership theory encompasses the idea of
participation of the sub-ordinates in the processing or decision making system. As been said
earlier that a leader should possess the concept of pragmatic approach to a said situation. A
leader should incorporate the ideas proposed by the sub-ordinates and should involve them into
the decision making process (Wherren 2013). This overall collaborative process often determines
the leadership style. However though the entire theory comprises a little amount of democratic
approach, however in this theory the leader does retain the absolute right to exclude or include
any input.

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Managerial theories are directly based on the organizational structures. This theory
revolves around the concept of supervision, organization and group performances. This theory
encompasses the idea of appraisal as well as reprimand.
Relationship theory is another key theory that revolves around the key concepts of
organizational structure. The basic idea of this theory is to establish a positive relationship in
between the leader and his or her sub-ordinates. According to this theory, the leader should
develop a healthy relationship with his or her sub-ordinates. He or She should be approachable
by their colleagues. The leader who possess the quality of pragmatic outlook often finds the way
to serve the organization in most effective way. This theory suggests that a leader should be
helpful and should believe in collaborative or collective effort. By helping a group of employees
or an individual employee, a leader eventually ends up in motivating an employee. This kind of
leadership is most appropriate in terms of long-run managerial outlook. These kind of leadership
believes in the absolute achievement of a group. The collaborative approach to the organization
is the utmost important thing, although this kind of leadership believes in collaborative effort,
still it plays a pivotal role in re-shaping individual improvement. This kind of leadership style
emphasizes on the individual development of an employee.
It can be concluded that with various aspects of organizational and structural theories, the
nineteenth century has seen a dynamic change in the theoretical approach. The changes brought
into the organizational as well as managerial strategies played a pivotal role in re-shaping the
modern era’s organizational theories. As a predecessor to the modern era theories, these theories
have succeeded in preparing a profound base of organizational concepts.

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Reference List
Garel, G. (2013). A history of project management models: From pre-models to the standard
models. International Journal of Project Management, 31(5), 663-669.
Manning, K. (2017). Organizational theory in higher education. Routledge.
Suddaby, R., & Foster, W. M. (2017). History and organizational change.
Wherren, D. A. (2013). Organizational effectiveness: Old models and new constructs. In
Organizational Behavior (pp. 145-164). Routledge.
Zhao, Y., & Zhang, W. (2013). Organizational theory: With its applications in biology and
ecology. Network Biology, 3(1), 45.