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shanlax International Journal of Commerce
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OPEN ACCESS A Systematic Review of Various
Leadership Theories
Volume: 8 Vivek Deshwal
Research Scholar, Department of Commerce, Aligarh Muslim University, Uttar Pradesh, India
Issue: 1 Mohd. Ashraf Ali
Month: January Department of Commerce, Aligarh Muslim University, Uttar Pradesh, India
Abstract
Year: 2020 Leadership is an essential element in the success of any organization. The style of leadership used
has a great influence on the behavior of employees, and thus their productivity directly relates to it.
There are several theories developed which defines leadership in its way, and there is continuous
P-ISSN: 2320-4168 development in this field. The current study examines the theories that emerged in leadership lit-
erature. Various theories like trait, behavioral, contingency, and emerging theories are described
E-ISSN: 2582-0729 briefly in a systematic way. It is found that as time passed, the way to see leadership also changed,
styles like transformational, transactional, authentic, ethical, servant emerged as new dimensions
which suit to the changing business environment.
Received: 11.10.2019 Keywords: Trait theory, Behavioural theories, Contingency theories, Full Range Leadership
Model, Authentic leadership, Ethical Leadership, Servant Leadership.
Accepted: 15.11.2019 Introduction
Leadership has always been an evergreen topic in the field of organizational
Published: 01.01.2020 behavior. As time changed, there come various theories of leadership and its
style. An organization is a group of people; it always needs a leader to achieve
Citation: its goal efficiently and effectively. Yukl, 2002 defined leadership as a “process
Deshwal, Vivek, and Mohd. of influencing others to understand and agree about what needs to be done
Ashraf Ali. “A Systematic and how it can be done effectively…process of facilitating individual and
Review of Various collective efforts to accomplish the shared objectives.”(Gregoire & Arendt,
Leadership Theories.” 2014). “Leadership is a process where leaders use their skills and knowledge
Shanlax International to lead and bring a group of employees in the desired direction that is relevant
Journal of Commerce, to their organization’s goals and objectives. Additionally, an effective leader
vol. 8, no. 1, 2020, that has strong leadership skills should also have a certain characteristic, such
pp. 38–43. as, passion, consistency, trust, and vision; for only leaders who own these
characteristics can build trust in employees” (Domingo & Sa, 2017). The role
DOI: of a leader is vital, and thus it cannot be overlooked. As time passed, various
https://doi.org/10.34293/ theories of leadership emerged, but due to change in scenario and environment,
commerce.v8i1.916 these theories also needed to have some modification in that because one single
theory does not fit fully in different situations. The success or failure of an
organization directly relates to the effectiveness of the organization. There are
various stories in which even a sick organization revive it and move towards the
This work is licensed way of success, and it happened only because using the right style of leadership.
under a Creative Commons
Attribution-ShareAlike 4.0 Research Gap
International License After going through various research articles, it is found that all the theories
of leadership are not discussed collectively in a systematic way. Authentic,
Ethical, and Servant leadership styles are generally ignored or less discussed,
along with other styles. Different papers were found which were discussing
leadership styles differently, and all theories were not found under an umbrella.
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Research Objective Behavioral Theories
The objective of the study is to examine the After the criticism of trait theory, further research
literature of leadership theories so that it is found out was conducted in the area of leadership. It was found
how these theories emerged one by one. that the behavior of a leader is the factor that affects
leadership. Behavioral theories of leadership indicate
Research Methodology that leadership can be learned, unlike trait theory.
Secondary sources such as research papers, “Behavioural theories of leadership presuppose that
textbooks, articles, and internet sources are used to go particular behaviors are what distinguish leaders.
through the literature of the leadership and its various That is, these theories begin with the assumption that
styles. The study is done in the chronological order an effective leader in any achievement context is one
of the emergence of various theories. The theories who exhibits the behaviors that are most conducive to
which were made earlier studied thoroughly at first, group productivity and group psychosocial growth.”
and then only the next emerged theory is studied. In (Kovach, 2018). Ohio State Studies and Michigan
this way, the proper sequence is maintained, and step Study are the two main studies of behavioral
by step process is taken into consideration. Based on leadership that were conducted in 1945 and find out
a systematic and thorough study of various styles of two dimensions of leadership.
leadership, conclusions are drawn. 1. Ohio State Studies
Trait Theories The dimensions which were found in the study
The trait theory was inspired by the Great were classified into two main types of style, Initiating
Man Theory developed by Thomas Carlyle. Later Structure and Consideration.
Sir Francis Galton took this theory forward and • Initiating Structure- In this, a leader shows
concluded that leadership comprises a unique quality concern to the task and goal achievement. A
of extraordinary persons that cannot be imitated. behavior to organize work, work relationships,
In early 1900 the focus of leadership was on traits and goal achievement is shown by the leader,
only. Several theorists were inspired by Carlyle and and he assigns the task to the worker and assures
Galton, and they believed that leadership is a result a standard performance by giving proper
of personal characteristics, but they also thought attention to get the work done at the proper time.
that they do not reside in a selected number of • Consideration- This dimension is concerned
people only. Trait theory was very much accepted with the relationship between leader and
up to 1940 and early 1950s, but later new theories employee by creating mutual trust and respect.
started emerging, and it was believed that it was not This type of leader is approachable and friendly.
personal characteristics only which make leader, The feelings of employees are taken care of,
but there are other factors which affect it. John W. and they are given equal treatment, support, and
Gardner defined different attributes. He told that appreciation.
there are traits that make a successful person leader, 2. Michigan Studies
and these traits are physical fitness, decision-making These studies conducted in the 1950s by
ability, adaptability, awareness of employee need Rensis Likert, and he found two main dimensions
and motivating him, trustworthiness, etc. (John, first, employee-oriented leaders who give proper
2015) emphasize on interpersonal relation with employees
In 1948, Stogdill opined that leadership is a and take care of their needs, individual differences
mix of characteristics and situation both, a person are respected. Second, production oriented leader
who leads in one situation may not do it in another whose main emphasis is on technique and task of
situation, and it is the situation only which affect a job. It focuses on achieving group goal.
person to show his characteristics to lead. Later trait On the basis of behavioural theories Robert Blake
theory starts fading, and behavioral and situational and Jane Moulton made a model named Managerial
theories of leadership emerged. grid in 1964. Five leadership styles were suggested
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by it, which was based on concern for people and then a supportive and participative style is used.
concern for the achievement of the goal. These styles When followers are able and willing, then-leader
were impoverished, produce or perish, middle of the need not do much.
road, country club, and team style. c) Path-Goal Theory
Contingency Theories In 1971 Robert House developed path-goal
“Those theories argue that the best type of theory. He was a graduate at Ohio State University;
leadership depends on situational variables and later, this theory was and revised in 1996. It uses
that no one style of leadership pertains or should be initiating structure, consideration, and expectancy
followed to all given workplace situations. For this theory of motivation to make the theory. It defines
reason, effective leaders can adapt their leadership states that a leader should clarify the path of the
style based on the nature of the group, the situation, followers and lead him effectively towards goal by
and the objectives to be achieved.” (Kovach, 2018). reducing roadblocks. When a task is stressful and
ambiguous, directive leadership is preferable. In a
a) The Fielder Model structured task, supportive leadership yields high
In the year 1967, Fred Fiedler made the performance and satisfaction. “Path-goal leadership
Fiedler Contingency Model, which states that theory requires learning leaders, who are interested
the performance of the group depends upon the in spreading a learning culture to adopt directive,
match between leaders’ style of interaction with supportive, participative, and achievement-oriented
his subordinates and the level of degree which the behavior. Indeed, learning leaders can adopt one of
situation gives the leader control and influence. these behaviors to achieve the goal of influencing
Least Preferred Co-worker (LPC) is developed by subordinates’ knowledge and experiences. Also,
Fielder to identify whether a leader is a task-oriented the adoption of an appropriate style is required
leader or relationship oriented. Along with this, he to respond quickly to subordinates’ expectations,
also identified three contingency dimensions that are needs, and wants.” (Domingo & Sa, 2017).
leader-member relations, task structure, and position d) Leader Participation Model
power. The Vroom–Yetton contingency model is made
b) Situational Leadership Theory by Victor Vroom and Phillip Yetton in 1973 and
Paul Hersey and Ken Blanchard in 1969 later in 1988 with Arthur Jago. It concluded that the
defined situational leadership; it assumes that the best leadership style depends on the situation. Five
effective leadership style does not remain static, styles are suggested, and these are Autocratic Type
and it changes as per the situation, and to be an 1, in which leaders exercise decisions basis on the
effective and successful leader should adopt his style readily available information. Second, Autocratic
and approach to different situations. “Situational type 2 style, in which information is taken up by
leadership means that leaders have to change the the leader from followers but takes a decision on his
degree of supportiveness and directness to their own. The third style is Consultative Type 1, leaders
employees according to the given situation of share problems with only a few followers who are
subordinates and their level of motivation. “This relevant enough and not all, but one by one, and
type of Leadership demands that leaders vary their followers are not allowed to discuss among them.
behavior and leadership style according to their Fourth, Consultative Type 2, in this a leader consults
subordinate’s commitment.” (Ghazzawi, Shoughari, with followers in a group, but their ideas are heard,
& Osta, 2018). If followers are unable and unwilling but the decision is taken by leader only by his own,
to do work, then clear and specific directions must Fifth, Group based Type 2, in which problems are
be given by the leader. If a follower is not able to discussed by leader with followers, and that decision
do work b, ut he is willing to do it, a leader should is taken which is accepted by group.
show high orientation in both task and relationship
behavior. When the follower is able but unwilling,
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Leader-Member Exchange Theory (putting out the fires), and contingent rewards (let’s
Leader-member exchange theory originally make a deal)” (Barbuto & Leadership, 2014).
made in 1975 states that because of time pressure, a Bruce Avolio and Bernard Bass in 1991 defined
leader and some members build a special relation and a concept of three leadership styles, which are
this group is known as in-group, and those members transactional, transformational, and laissez-faire. A
who are not the part of this group come in out- transformational leader can influence their followers
group. Those followers who are the part of in-group so that they can give their full potential, which leads
get some favorable attitude from the employees in to better performance toward the achievement of
comparison to those members who are the part of goals. Transactional leadership is in contrast to
out-group. The focus of the leader-member theory the transformational style in which performance is
is on the relationship quality of a leader and his linked with the contingent rewards. “Transactional
subordinates. Based on relationships, two types of leadership is less focused on emotion and inspiration;
groups are made by the leader. Those who are in transactional leadership is sometimes afforded less
low-quality relationships form an “out-group,” and respect than transformational leadership. This is
those with higher quality relationships form an “in- unfortunate because most leadership positions require
group.” More influence and confidence are received elements of both transactional and transformational
by the subordinate of in-group from their leaders, leadership. Most commanders, for instance, not
and they are more dependable and communicative only lead people but are also responsible for
in comparison to out-group subordinates; those managing resources – budgets, facilities, vehicles,
who are in the in-group do extra tasks with more etc.”(Domingo & Sa, 2017).
responsibilities (Megheirkouni, 2019).
Authentic Leadership
Transformational and Transactional Leadership Bill George wrote about the authentic leadership
Transformational leadership was firstly in his book ‘Authentic Leadership’ in 2003,
described by James V. Downton, and later James although it was originated in 1960 to explain how
MacGregor Burns further described it. Bernard an organization presents itself authentically through
M. Bass (1985) later extended the work of Burns leadership. This style is influenced by the ethical
(1978). Transformational leadership is that form behavior of a leader. Authentic leadership comprises
of leadership in which a leader has an idealized with self-awareness of a leader; he knows his strengths
influence on followers; he motivates them, provides a and weaknesses, makes positive relationships with
challenging task, enhances their creativity, and pays employees by inspiring and encouraging them.
individual attention to the followers. In 1974 Max “Authentic leaders are those who are deeply aware
Weber defined transactional leadership, which is later of how they think and behave and are perceived by
defined by Bernard Bass in 1981. “Transformational others as being aware of their own and others’ values/
behaviors comprises Idealized Influence (walking the moral perspectives, knowledge, and strengths; aware
walk), Inspirational Motivation (exciting the masses of the context in which they operate; and who are
and sharing the vision), Intellectual Stimulation confident, hopeful, optimistic, resilient, and of
(thinking out of the box”), and Individualized high moral character” (T, Bruce J Avolio, Gardner,
Consideration (compassionate leadership)” (Barbuto William L, 2005). “According to George’s concept,
& Leadership, 2014). Transactional leadership uses several dimensions in authentic leadership include
a carrot and stick approach, which means contingent knowing the authentic self, learning from one’s life
rewards are used to take better performance from story, integrating all elements of life (work, family,
followers. Those employees who perform nicely are community and friends), building support teams,
rewarded, and those who perform below standard balancing the intrinsic and extrinsic motivations,
or unsatisfactorily are punished accordingly. practicing personal values and empowering people
“Transactional behaviors include laissez-faire to lead. “(Ghazzawi et al., 2018).
(hands-off leadership), management-by-exception
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