Introduction. Leadership is one of the most important concepts in the study of organisational behaviour. It may be defined as the ability to influence the behaviour of others in order to achieve group and organisational goals. While management relies on authority, rules and formal structure, leadership emphasises influence, inspiration, guidance and persuasion. Because of its importance, many theories have been developed to explain what makes an effective leader. Each theory highlights certain aspects of leadership and provides useful, but partial, understanding. In this answer we shall briefly explain and critically examine the main theories of leadership usually discussed at B.Com level – trait theory, behavioural theories, situational/contingency theories and modern approaches.
1. Trait Theory of Leadership
Basic idea. Trait theory is one of the earliest approaches. It assumes that leaders are born, not made, and that effective leaders possess certain inherent personal qualities or traits which distinguish them from non-leaders.
(a) Important leadership traits
Various studies identified traits such as:
- Physical traits – energy, stamina, good health, sometimes height and appearance.
- Mental traits – intelligence, judgement, foresight, decisiveness.
- Social traits – tact, cooperativeness, ability to inspire, communication skills.
- Personal traits – self-confidence, integrity, emotional stability, initiative.
(b) Contributions / merits
- Trait theory emphasised that personal qualities of leaders matter; leadership is not purely mechanical.
- It helped in the development of selection and training programmes by identifying desirable characteristics.
- Some traits like honesty, intelligence and self-confidence do show a consistent association with leadership success.
(c) Limitations / critical evaluation
- Different studies produced different lists of traits; there is no universally agreed set of leadership traits.
- Possession of traits does not guarantee leadership success; it also depends on situation, followers and organisational culture.
- Trait approach ignores the possibility that many leadership qualities can be developed through training and experience, not only inherited.
- Some traits are very general (e.g., intelligence) and may be found in many non-leaders as well.
Conclusion on trait theory: It is useful in highlighting the role of personal qualities but is insufficient and incomplete as an explanation of leadership.
2. Behavioural Theories of Leadership
Behavioural theories shifted attention from “what leaders are” (traits) to “what leaders do” (behaviour). They attempt to identify patterns of leadership behaviour that are associated with effective performance.
2.1 Ohio State Studies
- Ohio State University researchers identified two independent dimensions of leader behaviour:
- Initiating structure: extent to which the leader defines and structures his own role and that of subordinates towards goal achievement (task orientation).
- Consideration: extent to which the leader shows concern for subordinates’ welfare, respect and support (people orientation).
- Leaders can be high or low on each dimension, producing various combinations.
2.2 Michigan Studies
- Researchers at University of Michigan distinguished between:
- Production-centred (job-centred) leadership: focus on technical aspects of job and output.
- Employee-centred leadership: focus on human relations, participation and support.
- Employee-centred style was generally associated with higher productivity and satisfaction.
2.3 Managerial Grid (Blake and Mouton)
- This model presents leadership styles on a grid based on:
- Concern for production (task) – x-axis, and
- Concern for people – y-axis.
- Five basic styles are:
- 1,1 Impoverished: low concern for both people and production.
- 9,1 Task / Authority–obedience: high production, low people.
- 1,9 Country club: high people, low production.
- 5,5 Middle-of-the-road: moderate concern for both.
- 9,9 Team style: high concern for both – considered most effective.
Behavioural theories – merits
- They emphasise that leadership behaviours can be learned, not just inherited.
- They provided concrete dimensions (task vs. people orientation) useful for training and evaluating leaders.
- They shifted attention from personality to observable behaviour, which is easier to measure and change.
Behavioural theories – limitations / criticism
- They tend to search for one best style (such as 9,9 team style), ignoring that effectiveness may depend on the situational context.
- Empirical results are not always consistent; sometimes task-oriented style is more effective, sometimes people-oriented.
- Behavioural theories give limited guidance about how to adapt style across different types of subordinates and tasks.
Conclusion: Behavioural theories are more realistic than trait theory and provide a useful framework, but they still do not fully explain leadership effectiveness without considering the situation.
3. Situational / Contingency Theories of Leadership
Situational theories argue that no single style is best in all situations. The effectiveness of a leadership style depends on the interaction between the leader, the followers and the situation. The leader must adapt his style according to situational variables.
3.1 Fiedler’s Contingency Model
- Fiedler suggested that leadership effectiveness depends on the match between:
- Leader’s basic style – measured as task-oriented or relationship-oriented, and
- Situational favourableness – determined by three factors:
- Leader–member relations (good or poor),
- Task structure (structured or unstructured),
- Position power (strong or weak).
- Findings:
- Task-oriented leaders perform better in very favourable and very unfavourable situations.
- Relationship-oriented leaders perform better in moderately favourable situations.
Evaluation of Fiedler
- Merits:
- First major theory to emphasise the interaction of style and situation.
- Encourages careful analysis of situational factors before judging a leader.
- Limitations:
- Assumes leader’s style is fixed and cannot be changed; instead, situation must be changed or leader replaced.
- Measurement of leader style through LPC (Least Preferred Co-worker) scale is complex and controversial.
3.2 Tannenbaum and Schmidt’s Leadership Continuum (brief)
- Shows a continuum of styles from boss-centred to subordinate-centred leadership.
- Suggests that the choice of style depends on forces in the manager, subordinates and situation.
3.3 Hersey and Blanchard’s Situational Leadership Theory (conceptual)
- This theory states that appropriate leadership style depends on follower maturity (ability and willingness).
- Four basic styles:
- Telling (high task – low relationship): for followers with low maturity.
- Selling (high task – high relationship): for some ability but lack of willingness.
- Participating (low task – high relationship): for high ability but low confidence.
- Delegating (low task – low relationship): for high maturity followers.
Evaluation of situational theories (overall)
- Contributions:
- Recognise that leadership is a dynamic process and must vary with the situation.
- Encourage leaders to diagnose follower characteristics and task demands before choosing a style.
- Limitations:
- Some models are complex and difficult to apply precisely in day-to-day practice.
- Measurement of situational variables (follower maturity, favourableness) is often subjective.
4. Modern Theories: Transactional and Transformational Leadership
4.1 Transactional Leadership
- Transactional leaders focus on exchange relationships with followers – performance is rewarded, poor performance may be punished.
- Key tools are clarifying roles and tasks, setting goals, using rewards and corrective actions.
- It is based on the traditional idea of “you do this, you get that”.
4.2 Transformational Leadership
- Transformational leaders inspire followers to transcend their self-interest for the sake of the organisation or a higher cause.
- They:
- Develop and communicate a compelling vision,
- Act as role models with high integrity,
- Provide intellectual stimulation (encouraging creativity),
- Give individualised consideration to followers.
- Such leaders are often associated with major organisational change and high levels of motivation.
Evaluation of transactional vs transformational leadership
- Transactional leadership is effective for maintaining routine performance, but may not be enough in times of change, competition and crisis.
- Transformational leadership is powerful in inspiring high performance, but it requires strong personal qualities and may sometimes lead to dependence on a charismatic individual.
- Modern organisations need a combination – transactional tools for stability and transformational qualities for change.
Overall Critical Examination of Leadership Theories
1. No single theory is complete
- Trait, behavioural, situational and modern theories each highlight different aspects of leadership – who the leader is, what he does, when he does it and how he influences.
- Human behaviour is too complex to be fully captured by any one theory. Therefore, an integrated view is necessary.
2. Increasing refinement over time
- Earlier theories (trait and behavioural) tried to find universal characteristics or styles; later theories (situational, transformational) recognise contingency and context.
- This reflects a gradual shift from “one best way” to “best way depends on situation”.
3. Practical implications for managers
- From trait theory – managers should recognise the importance of traits like integrity, emotional stability, intelligence and self-confidence, and try to develop these qualities in themselves.
- From behavioural theories – effective leaders need an appropriate balance between task orientation and people orientation; they should pay attention to both performance and human relations.
- From situational theories – leaders must learn to diagnose situational variables (nature of task, follower characteristics, organisational environment) and adapt their style accordingly.
- From transformational leadership – leaders should provide vision, inspiration, role modelling and personalised support to bring out the best in followers.
4. Limitations of research and application
- Many theories are based on research in Western cultures and may not fully reflect the values and expectations of Indian organisations.
- Measurement problems (of traits, leadership style, situation and effectiveness) make it difficult to test theories perfectly.
- In real life, leaders operate under constraints of time, information, hierarchy and politics, which theories often simplify.
Conclusion. To conclude, various theories of leadership – trait, behavioural, situational/contingency and modern approaches like transactional and transformational leadership – have together enriched our understanding of how leaders influence followers and achieve organisational goals. Trait theory highlights the role of personal qualities but ignores situational demands. Behavioural theories focus on task and people orientation but search for a universal style. Situational theories rightly stress that different situations require different styles, while modern theories emphasise vision, inspiration and change management. No single theory is perfect, yet each provides valuable insights. An effective manager, therefore, does not blindly follow any one theory; rather, he combines the useful elements of all theories, develops appropriate traits, adopts flexible behaviour, analyses situational demands and, where possible, provides transformational leadership to guide his team towards higher performance and satisfaction.