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Shanlax shanlax International Journal of Commerce #SINCE1990 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. 38 http://www.shanlaxjournals.com Shanlax International Journal of Commerce shanlax #SINCE1990 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 http://www.shanlaxjournals.com 39 Shanlax shanlax International Journal of Commerce #SINCE1990 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, 40 http://www.shanlaxjournals.com Shanlax International Journal of Commerce shanlax #SINCE1990 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 http://www.shanlaxjournals.com 41
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