Trait theories
Trait theories of leadership identify the specific personality traits that distinguish leaders from non-leaders. The trait model of leadership is based on the traits or characteristics of leaders that make them successful in their leading role. These theories use heritable attributes to predict leadership effectiveness.
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McGregor's Theory X and Theory Y
McGregor created Theory X and Theory Y of human work motivation and explained two styles of management known as authoritarian (Theory X) and participative (Theory Y). Theory X management assumes most people will attempt to avoid work whereas Theory Y managers trust their people to take ownership of their work.
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The four theory of leadership was formulated after studying hundreds of leaders and the model includes four basic dimensions of effective leadership - support; interaction; facilitation; goal emphasis, and work facilitation. This model was tested as a predictor of an organization's effectiveness.
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Theory Z also called the "Japanese Management" style is a leadership theory of human motivation focused on organizational behavior, communication, and development. It assumes that employees want to enter into long term partnerships with their employers and peers. Offering stable jobs with an associated focus on the well-being of employees results in increased employee loyalty to the company.
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Participative Leadership Theories
Participative leadership theories rely on the involvement of different participants and suggest that the ideal leadership style is one that takes the inputs of others into account. Participative leaders encourage participation and contributions from group members and involve them in the decision-making process. Participative leadership tries to achieve through people, teamwork and collaboration.
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Continuum of leadership is a leadership theory based on the relationship between the level of freedom given to the team and the level of authority used by the manager. The chosen leadership style will depend on multiple factors, including the leader's personality.
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The Psychodynamic Approach to leadership focuses on leaders building an understanding of their personality characteristics to know why they act or react in certain ways. Psychodynamics theory aims to explain the dynamics of human behavior in which lies the essence of leadership, by analyzing various motives that govern a person's behavior. This information can be used to develop leaders and followers by understanding their responses based on their personalities.
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Reciprocal influence theory also known as reciprocal determinism is authored by Albert Bandura and states that an individual's behavior influences and is influenced by both the social world and personal characteristics. Three factors that influence behavior are the environment, the individual, and the behavior itself. Certain leader behaviors can cause subordinate behaviors and reciprocal influence on the leader by the group.
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Rensis Likert studied the patterns and styles of managers and developed four management systems known as Likert's management systems. These styles developed by him are known as Likert management systems. System 1 - Exploitative Authoritative; System 2 - Benevolent Authoritative; System 3 - Consultative and System 4 - Participative.
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Transformational Theories of Leadership
Transformational leadership theories focus on the leadership approach where the leader encourages, inspires employees to innovate and create positive and valuable organizational change. A transformational leader works towards “transforming” the culture to one that cultivates trust, mutual admiration, loyalty, and respect with the end goal of developing followers into leaders. Transformational leaders are known to be visionary, inspiring, daring, risk-takers, and thoughtful.
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The multiple linkage model states that leadership effectiveness is based on six variables. Multiple variables of a leader's behavior and situation have a linkage to the performance of the individual follower and work unit performance. The theory is based on the notion of the link between the organization process and managerial influence.
