Leadership Theories and Their Impact in the Management Arena

Table of Contents

TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc107074906 \h 3

Literature Review PAGEREF _Toc107074907 \h 3

Leadership Theories PAGEREF _Toc107074908 \h 4

Trait theory PAGEREF _Toc107074909 \h 4

Trait Leadership Theory Model PAGEREF _Toc107074910 \h 4

Behavioral Leadership Theory PAGEREF _Toc107074911 \h 5

Behavioral Leadership Model PAGEREF _Toc107074912 \h 5

Ethical leadership PAGEREF _Toc107074913 \h 5

Contingency and Situational Leadership Theories PAGEREF _Toc107074914 \h 6

Fielder’s Contingency Model PAGEREF _Toc107074915 \h 7

The Least Preferred Co-Worker (LPC) PAGEREF _Toc107074916 \h 8

Situational Favorableness PAGEREF _Toc107074917 \h 9

Transformational Leadership Theory PAGEREF _Toc107074918 \h 9

Trust and leadership PAGEREF _Toc107074919 \h 9

Authentic Leadership PAGEREF _Toc107074920 \h 10

Distributed leadership PAGEREF _Toc107074921 \h 10

Emotional intelligence and leadership PAGEREF _Toc107074922 \h 10

Transactional Leadership Theory PAGEREF _Toc107074923 \h 11

McGregor’s Theory X PAGEREF _Toc107074924 \h 11

McGregor’s Theory Y PAGEREF _Toc107074925 \h 11

Leadership Styles PAGEREF _Toc107074926 \h 11

Leadership and delegation PAGEREF _Toc107074927 \h 11

Leadership and motivation PAGEREF _Toc107074928 \h 12

Charismatic Leadership Style PAGEREF _Toc107074929 \h 12

Bureaucratic Style PAGEREF _Toc107074930 \h 13

Autocratic Style PAGEREF _Toc107074931 \h 13

Evaluation of Leadership styles and theories PAGEREF _Toc107074932 \h 13

References PAGEREF _Toc107074933 \h 16

List of Figures and Tables

TOC \h \z \c "Figure 3.1" Figure 3.1 1 Situational Leadership – From Directing to Delegating. PAGEREF _Toc107060220 \h 7

Figure 3.1 2 Fielder’sContingency Model PAGEREF _Toc107060221 \h 8

TOC \h \z \c "Table 1" Table 1. 1 Least-Preferred Coworker Scale PAGEREF _Toc107059742 \h 9

Introduction

This study outlines leadership theories and examines the diversified perspectives on said theories in the corporate space. It also delves into transformational leadership and its implementation in practice to leadership within an organizational culture that ensures "best practice" in 360-degree feedback (Polat 2008, p. 2-27). Scholars have developed a timeline of theories that categories leadership into traits and skills, behaviors and styles approach, suggestions about alternative modern approaches, and transformational leadership, which this paper will explore.

Vries (2009) posits that traits and skills entail leadership qualities ranging from vitality and endurance, the ability of a leader to be decisive, persuasive, and responsible, and showcase intellectual capacity while carrying out the day-to-day activities in an organization. There are, however, many continuing ideas about characteristics; and mainly personal qualities, such as being honest and consistent, demonstrating integrity, making decisions, motivating staff, and solving complicated issues on the rise (Beverly Alimo-Matcalfe 2008, p. 586-598) that contribute to the leadership and its theories. Furthermore, studies suggest that distinctive traits such as authenticity, integrity, will, self-belief, and self-awareness determine how leaders function and approach those they lead (Victor Dulewicz 2003). In addition, personality factors such as Myers-Briggs Personality Type Indicator, MBIT, and the Big Five are also continuing ideas about leadership characteristics, including emotional intelligence characteristics such as empathy, social skill, self–regulation, and self–awareness (Goleman 2006).

Scholars have developed theories about the leadership adaptability development process for a long time, and there are many questions to go along with these theories. Such arise from the fact that some leaders with critical traits that have been said make good leaders effective have ended up being ineffective. Studies of leadership in the 1950s focused on behaviors and styles approaches grouped into task-orientated and people-orientated behaviors aimed at motivating employees. Various leadership styles applied within other theories to motivate employees and followers are; democratic, pacesetting, commanding, affiliative, autocratic, participative, laissez-faire, visionary, and coaching (Yukl 2010).

There is no general leadership style; each works best in separate domains and situations (Zakeer Ahmed Khan 2016). However, this introduction asserts that efficient leadership is essential in the running and viability of any organization. One of the reasons for gauging leadership styles and theories is the practical implementation in identifying the skills needed by leaders in various positions and organizations. In addition, this paper aims to evaluate the influence of leaders' behaviors on organizational performance and the moderation of leadership theories by researchers.

Literature Review

Leadership is a diverse subject that has been studied for a long time, yet only a few people comprehend it. Leadership is about influencing people’s perceptions of what is desired and feasible (Zaleznik 2004). Therefore, leaders are deemed proactive rather than reactive and can change moods, images, and expectations. Bass (1985) argues that various types of leadership exist, such as transformational leadership, which is described as leadership that inspires followers to a 'continuous pursuit of a greater objective,' lifting leaders and employees 'to greater heights of inspiration and ethics. Transactional leadership, on the other hand, entails the interchange of particular types of conduct on the side of followers in exchange for a leader’s incentives (such as advancement or commendation).

According to Stevenson (2019), leadership creates change by cultivating interpersonal relationships, setting direction, aligning people, and motivating and inspiring others. The most effective leaders display transactional and transformational qualities though transformational components of leadership tend to be stronger in effective leaders. Such leaders tend to encourage people to achieve more than they initially would and frequently more than they believed possible (Cherry 2022).

Transformational leadership is fundamentally visionary, where the leader articulates a captivating perception of the future, which is part of the emotional component of transformational leadership (Bass & Riggio 2006). Goleman (2006) argues that visionary leadership connects individual occupations to the organization's fundamental goal. People performing small tasks that may seem insignificant can understand how their part links to the company's greater goal. This literature review critically analyses leadership theories' applicability in the corporate space.

Leadership Theories

Leadership theories play a significant role in assisting individuals in understanding the traits of leaders and behaviors that can be used to improve an individual's leadership style (Cherry 2021). In contemporary society, organizations are looking to practice the best theory according to organizational management and setting (Zaccaro & Klimoski 2001).

According to leadership theories, leaders might have a variety of viewpoints or preferences on how they interpret leadership. These are critical in understanding why academics and authors, for example, struggle to agree on and define leadership. Attending to each of these distinct views implies that the essence of leadership is still being researched and debated (Barron et al., 2014).

Trait theory

Trait theory is an extension of 'great man theories,' implying that a leader may be defined by a collection of traits or inner attributes. We can all be successful leaders if we acquire these characteristics, while others can learn them via exposure or study. Likewise, some leaders are born with effective characteristics, while others can learn them via exposure or study. This type of theory is crucial to many training courses that provide opportunities to research such traits (Barron et al., 2014).

Trait Leadership Theory Model

To understand trait leadership theory and its impact on leaders' efficiency and performance, (Zaccaro & Klimoski 2001) created a trait leadership model. The first structure is the emergence of leadership qualities from the combined impacts of many attributes. According to Zaccaro and Klimoski (2001), trait leadership integrates social capabilities, cognitive abilities, and disposition tendencies to impact each other.

Scholars such as Northouse (2018) criticized this theory from numerous perspectives. According to Northouse (2018), a person's attributes cannot change over a short duration, so leaders cannot change in different circumstances. In addition, trait leadership theory is simplistic as it concentrates on leaders' efficiency based on how their followers observe them. Schein (2010) argues that this theory lowly clarifies personal attributes and low forecasting power over leaders' performance. As a result, the theory's effectiveness in assisting the selection of leaders in an organization is minimal. Moreover, this theory fails to predict a leader's consistency under different circumstances and cases.

Many human resources departments have recently applied various strategies to identify leaders. Personal and behavioral traits are the main selection tools in such departments to access leaders. However, it is critical to consider the applicability of the traits in organizations to evaluate leaders' effectiveness. Humphrey (2014) argues that managers can apply the trait theory to notice potential leaders by observing the most industrious, thoughtful, and extraversion employees.

Behavioral Leadership Theory

According to behavioral theories, leadership is incorporated into leaders' acts. This expands the characteristic theories from a leader’s intrinsic attribute to considering what leaders do. In addition, these ideas contend that leaders may be created, implying that leadership qualities can be learned and developed.

Behavioral Leadership Model

The behavioral leadership model is majorly concerned with tasks and individuals. It recognizes the five fundamental approaches of the leadership grid representing behavioral leadership theory. This leadership theory model was developed in 1964 by Blake and Mouton. The model addresses the perturbed rate for the people against concern for the results by using numbers 1-9. Number one represents the minimal concern, while number nine is the utmost concern. The behavioral theory recognizes continued development and learning in professional careers as the building blocks toward leadership. Additionally, the behavioral theory emphasizes inducing leadership through experience and drives the belief that leaders are made, not born (Barron et al., 2014).

This theory has been criticized for emphasizing that leadership is enhanced through experiences and learning. Learning and practicing leadership behaviors do not guarantee the proper execution of the theory (Bolden et al., 2011). However, a mastered behavior for a specific circumstance might be useless in a different setting. In addition, the behavioral theory managerial grid is criticized for focusing much on organizational development rather than the leaders (Bryman 2013).

Ethical leadership

According to Center (2014), ethics are standards of behavior that govern decisions and acts and are based on obligations drawn from values, beliefs, or principles that define what we believe to be right, good, fair, and just. Some leadership theories by scholars such as Beverly Alimo-Matcalfe (2008) emphasized the significance of leader integrity and honesty. In addition, Hope-Hailey (2014) emphasizes the seriousness of trust and how it is engendered by integrity. According to Northouse (2018), ethical leaders appreciate others, assist others, care about fairness and justice, are honest, and develop community work for the common good.

Karianne and Den Hartog (2011) argue that behaving fairly towards others, allowing others a say in decision-making, clarifying what is expected of others, caring about respect and supporting others, acting with integrity by keeping promises, being coherent, advocating and gratifying ethical conduct and caring about the environment and sustainability as qualities of ethical leadership all linked to trust in the leader and recognized leader efficacy.

Contingency and Situational Leadership Theories

This theory suggests that the external environment or specific situation determines the leadership style. For instance, where there is a mature, skilled team, a laissez-leadership style is preferable as opposed to an authoritarian leadership style (Barron et al., 2014). This set of leadership styles implies that various styles are preferable in divergent circumstances and that effective leaders must be adaptable enough to change their style based on the operational maturity of their followers. A successful situational leader may swiftly shift leadership styles as the scene changes.

Blanchard and Hershey (1969) defined situational leadership style as the degree of guidance and assistance a leader provides to subordinates (Cairns 1996). As demonstrated in Figure 1.1, this design follows a logical direction through the development of the follower into four behavior categories.

Figure 3.1 SEQ Figure_3.1 \* ARABIC 1 Situational Leadership – From Directing to Delegating.

"Telling" or "Directing" as a leadership style is excellent for followers who lack expertise but are eager and dedicated to the task. However, they require guidance and supervision (Barron et al., 2014).

Coaching rather than the 'selling' leadership approach is excellent for unskilled followers who lack dedication to the work. Since they are unskilled, these followers require instruction and supervision. They also need encouragement and appreciation to improve their self-esteem and participation in decision-making to strengthen their obligation (Barron et al., 2014).

Supporting leadership style is suitable for skilled followers who lack confidence or motivation. Because of their acquired talents, these followers do not require much guidance, but leader support is required to boost their confidence and drive (Barron et al., 2014).

Delegating leadership style is appropriate for followers who are both competent and committed. These followers have the motivation to work on a project alone, with minimal oversight or assistance from the leader (Barron et al., 2014).

According to the four situational leadership styles, leaders should focus more or less on the work at hand or the relationship linking the leader and the follower, depending on the follower's level of development (see Figure1.1).

Within the cognitive and situational theory are Fielder's and Contingency Models (1967) and Yulk (2002). These models examine the two elements of behavioral leadership theory that divide leaders into concerns with tasks and people. Situational theorists evaluate that powerful leadership is dependent on different discrete elements of an independent leader. They predict that strong leaders with personal attributes and behaviors ought to match the requirements of the circumstances to manage unruly and unconditional circumstances. Fielder's model integrates leadership and situational condition (Polat 2008).

Fielder’s Contingency Model

This leadership theory states that leadership efficacy relies on the relationship between the leader and the circumstance (Aamodt 2022). Fred Fielder made this contingency model by examining leaders' traits and personalities. The model points out that leaders' efficiency is portrayed in leadership approaches and situations. This model focuses on the leaders' personality, type of t.ask, leadership, and execution ability. The first step in implementing Fielder's model is identifying and understanding the leadership style. Fielder explains two factors in his model: Least Preferred Co-Worker (LPC) and Situational Favorableness (Scott 1975).

Figure 3.1 SEQ Figure_3.1 \* ARABIC 2 Fielder’s Contingency Model

The Least Preferred Co-Worker (LPC)

While determining leadership style and effectiveness, a test employing Fiedler's contingency model was employed. According to Fiedler's contingency model, every individual’s leadership style is only productive in particular setups. Thus, Fiedler suggested that rather than teaching individuals to modify their leadership styles, leadership coaching should focus on assisting individuals in recognizing their leadership styles and mastering how to influence a scenario such that the two complement one other. As a result, Fielder created the Least-Preferred Coworker (LPC) Scale to assist persons in identifying their leadership style (Aamodt 2022).

Table 1 SEQ Table_1 \* ARABIC 1 Least-Preferred Coworker Scale

Unfriendly

1

2

3

4

5

6

7

8

Friendly

Unpleasant

1

2

3

4

5

6

7

8

Pleasant

Rejecting

1

2

3

4

5

6

7

8

Accepting

Tense

1

2

3

4

5

6

7

8

Relaxed

Cold

1

2

3

4

5

6

7

8

Warm

Boring

1

2

3

4

5

6

7

8

Interesting

Backbiting

1

2

3

4

5

6

7

8

Loyal

Uncooperative

1

2

3

4

5

6

7

8

Cooperative

Hostile

1

2

3

4

5

6

7

8

Supportive

Guarded

1

2

3

4

5

6

7

8

Open

Insincere

1

2

3

4

5

6

7

8

Sincere

Unkind

1

2

3

4

5

6

7

8

Kind

Inconsiderate

1

2

3

4

5

6

7

8

Considerate

Table by Professor F.E. Fiedler’s “A Theory of Leadership Effectiveness.” © 1967 (Tools 2010).

Situational Favorableness

This concept is based on three factors: the leader-member relationship, work structure, and the leader's positional authority. Leader-member relation explains the association between the leader and the team based on the team's trust and confidence level in their leader. Task structure focuses on the nature of the tasks undertaken by the leader. Leadership is