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The Major Leadership Theories

The 8 Major Theories of Leadership

Verywell / Brianna Gilmartin 

• "Great Man"
• Contingency
• Situational
• Participative
• Relationship

What Kind of Leader Are You?

What is it that makes some people excel in leadership roles? Leadership theories seek to explain how and why certain people become leaders. Such theories often focus on the characteristics of leaders, but some attempt to identify the behaviors that people can adopt to improve their own leadership abilities in different situations.

Early debates on the psychology of leadership often suggested that such skills were simply abilities that people were born with. In other words, these theories proposed that certain people were simply "born leaders." Some more recent theories propose that possessing certain traits may help make people natural leaders, but experience and situational variables also play a critical role.

A Closer Look at Leadership Theories

As interest in the psychology of leadership has increased over the last 100 years, a number of different leadership theories have been introduced to explain exactly how and why certain people become great leaders.

What exactly makes a great leader? Do certain personality traits make people better suited to leadership roles, or do characteristics of the situation make it more likely that certain people will take charge? When we look at the leaders around us—be it our employer or the President—we might find ourselves wondering exactly why these individuals excel in such positions.

People have long been interested in leadership throughout human history, but a number of formal leadership theories have only emerged relatively recently. Interest in leadership increased during the early part of the twentieth century.

Early leadership theories focused on what qualities distinguished leaders from followers, while subsequent theories looked at other variables such as situational factors and skill levels. While many different leadership theories have emerged, most can be classified as one of eight major types.

"Great Man" Theories

Have you ever heard someone described as "born to lead?" According to this view, great leaders are simply born with the necessary internal characteristics, such as charisma, confidence, intelligence, and social skills, to be natural-born leaders.

Great man theories assume that the capacity for leadership is inherent—that great leaders are born, not made. These theories often portray great leaders as heroic, mythic, and destined to rise to leadership when needed. The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership.

Such theories suggest that people cannot really learn how to become strong leaders. Leadership is either something you are born with or born without. This is very much a nature ( as opposed to nurture ) approach to explaining leadership.

Trait Theories

Similar in some ways to Great Man theories, trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Trait theories often identify a particular personality or behavioral characteristics shared by leaders. For example, traits like extroversion , self-confidence, and courage are all traits that could potentially be linked to great leaders.

If particular traits are key features of leadership, then how do we explain people who possess those qualities but are not leaders? This question is one of the difficulties in using trait theories to explain leadership.

Plenty of people possess the personality traits associated with leadership, yet many of these people never seek out leadership positions. There are also people who lack some of the key traits often associated with effective leadership yet still excel at leading groups.

Contingency Theories

Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations.

Leadership researchers White and Hodgson suggest that truly effective leadership is not just about the qualities of the leader; it is about striking the right balance between behaviors, needs, and context.

Good leaders are able to assess the needs of their followers, take stock of the situation, and then adjust their behaviors accordingly. Success depends on a number of variables including the leadership style, qualities of the followers, and aspects of the situation.

Situational Theories

Situational theories propose that leaders choose the best course of action based upon situational variables. Different styles of leadership may be more appropriate for certain types of decision-making.

For example, in a situation where the leader is the most knowledgeable and experienced member of a group, an authoritarian style might be most appropriate. In other instances where group members are skilled experts, a democratic style would be more effective.

Behavioral Theories

Behavioral theories of leadership are based on the belief that great leaders are made, not born. Consider this the flip side of the Great Man theories. Rooted in  behaviorism , this leadership theory focuses on leaders' actions, not on their mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation.

Participative Theories

Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decision-making process. In participative theories, however, the leader retains the right to allow the input of others.

Management Theories

Management theories, also known as transactional theories , focus on the role of supervision, organization, and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when employees are successful, they are rewarded and when they fail, they are reprimanded or punished.

Relationship Theories

Relationship theories, also known as transformational theories, focus upon the connections formed between leaders and followers. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task.

These leaders are focused on the performance of group members, but also want every person to fulfill their potential. Leaders with this style often have high ethical and moral standards.

Try our fast and free quiz to find out your usual leadership style.

There are many different ways of thinking about leadership, ranging from focusing on the personality traits of outstanding leadership to emphasizing aspects of the situation that help determine how people lead.

Like most things, leadership is a highly multi-faceted subject and it is a mixture of many factors that help determine why some people become great leaders. Learning more about some of the things that make people strong leaders is one way of potentially improving your own skills.

Benmira S, Agboola M. Evolution of leadership theory . BMJ Leader . 2021;5(1):3-5. doi:10.1136/leader-2020-000296

Malakyan PG. Followership in leadership studies: A case of leader-follower trade approach . Journal of Leadership Studies . 2014;7(4):6-22. doi:10.1002/jls.21306

Mango E. Rethinking leadership theories . Open Journal of Leadership . 2018;07(01):57-88. doi:10.4236/ojl.2018.71005

Grant AM, Gino F, Hofmann DA. Reversing the extraverted leadership advantage: The role of employee proactivity . Academy of Management Journal. 2011;54(3):528-550. doi:10.5465/amj.2011.61968043

Khan ZA, Nawaz A, Khan IU. Leadership theories and styles: A literature review . Journal of Resources Development and Management . 2016;16:1-7.

Hodgson P, White R.  Leadership, learning, ambiguity and uncertainty and their significance to dynamic organizations . In: Peterson R, Mannix E, eds.  Leading and Managing People in the Dynamic Organization.  Routledge; 2003.

Cote R. A comparison of leadership theories in an organizational environment . International Journal of Business Administration . 2017;8(5):28. doi:10.5430/ijba.v8n5p28

Amanchukwu R, Stanley G, Ololube N. A review of leadership theories, principles and styles and their relevance to educational management . Management . 2015;5(1)(2162-8416):6-14. doi:10.5923/j.mm.20150501.02

Groves KS, LaRocca MA. An empirical study of leader ethical values, transformational and transactional leadership, and follower attitudes toward corporate social responsibility . J Bus Ethics. 2011;103:511. doi:10.1007/s10551-011-0877-y

Gill R. Theory and practice of leadership . SAGE Publications; 2011.

By Kendra Cherry, MSEd Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

What are Leadership Theories?

Leadership at a glance, key leadership theories, applying leadership theories at the workplace, key takeaways, related readings, leadership theories.

Schools of thought explaining how and why certain individuals become leaders

Leadership theories are schools of thought brought forward to explain how and why certain individuals become leaders. The theories emphasize the traits and behaviors that individuals can adopt to boost their own leadership abilities.

Early studies on the psychology of leadership pointed to the fact that leadership skills are inherent abilities that people are born with. It was not until recently that formal leadership theories emerged, despite leadership becoming a concept of interest at the beginning of time.

A leader is crucial to the success of every team. Take an orchestra, for instance, one that consists of all the best musicians in the world but lacks a conductor. Even though every member of the orchestra can play perfectly by themselves, they will only produce an incompatible melody in the absence of a conductor. The same concept applies to communities, companies , and countries. Without a leader, nothing will ever run smoothly.

So, what makes leaders who they are? Why are some people elected as managers and presidents while the rest remain followers? Leadership theories were developed to find answers to these questions.

1. Great Man Theory

According to the Great Man Theory (which should perhaps be called the Great Person Theory), leaders are born with just the right traits and abilities for leading – charisma, intellect, confidence, communication skills, and social skills .

The theory suggests that the ability to lead is inherent – that the best leaders are born, not made. It defines leaders as valiant, mythic, and ordained to rise to leadership when the situation arises. The term “Great Man” was adopted at the time because leadership was reserved for males, particularly in military leadership.

2. Trait Theory

The Trait Theory is very similar to the Great Man Theory. It is founded on the characteristics of different leaders – both the successful and unsuccessful ones. The theory is used to predict effective leadership. Usually, the identified characteristics are compared to those of potential leaders to determine their likelihood of leading effectively.

Scholars researching the trait theory try to identify leadership characteristics from different perspectives. They focus on the physiological attributes such as appearance, weight, and height; demographics such as age, education, and familial background; and intelligence, which encompasses decisiveness, judgment, and knowledge.

3. Contingency Theory

The Contingency Theory emphasizes different variables in a specific setting that determine the style of leadership best suited for the said situation. It is founded on the principle that no one leadership style is applicable to all situations.

Renowned leadership researchers Hodgson and White believe that the best form of leadership is one that finds the perfect balance between behaviors, needs, and context. Good leaders not only possess the right qualities but they’re also able to evaluate the needs of their followers and the situation at hand. In summary, the contingency theory suggests that great leadership is a combination of many key variables.

4. Situational Theory

The Situational Theory is similar to the Contingency Theory as it also proposes that no one leadership style supersedes others. As its name suggests, the theory implies that leadership depends on the situation at hand. Put simply, leaders should always correspond their leadership to the respective situation by assessing certain variables such as the type of task, nature of followers, and more.

As proposed by US professor Paul Hersey and leadership guru Ken Blanchard, the situational theory blends two key elements: the leadership style and the followers’ maturity levels. Hersey and Blanchard classified maturity into four different degrees:

• M1 – Team members do not possess the motivation or tactical skills to complete necessary jobs.
• M2 – Team members are willing and ambitious to achieve something, but they lack the necessary ability.
• M3 – Team members possess the skills and capacity to accomplish tasks, but they’re not willing to take accountability.
• M4 – Team members possess all the right talents and are motivated to complete projects.

According to situational theory, a leader exercises a particular form of leadership based on the maturity level of his or her team.

5. Behavioral Theory

In Behavioral Theory, the focus is on the specific behaviors and actions of leaders rather than their traits or characteristics. The theory suggests that effective leadership is the result of many learned skills.

Individuals need three primary skills to lead their followers – technical, human, and conceptual skills. Technical skills refer to a leader’s knowledge of the process or technique; human skills means that one is able to interact with other individuals; while conceptual skills enable the leader to come up with ideas for running the organization or society smoothly.

To a great extent, leadership theories have helped form and shape the kind of governance that exists today. Many aspects of these theories can be applied to help one improve his or her leadership skills.

1. Maximize Your Strengths

As proposed by the Trait Theory, effective leadership depends on the traits that one possesses. Leaders should strive to focus on their strengths rather than their weaknesses. The strengths vary from one leader to another and may include:

• A strong will is crucial to staying resilient and seeing leaders through difficult times. No matter how challenging the situation may be, a strong-willed leader is able to find inner strength and carry on until he or she overcomes all challenges.
• A decisive nature is another strength that some leaders possess. Decisiveness means that when others may be perplexed, a leader can calmly assess the situation and choose one action to unite everyone. But, since they may not always make the right decisions, they must also be willing to learn from their mistakes.

2. Be Inclusive Leaders

Some of the more complex situational theories emphasize focusing on people. It means that they acknowledge individual people to be their greatest assets and not just mere numbers in their workforce. Being an inclusive leader requires that one constantly involves other people in their leadership, whether it is by always welcoming the feedback of others or delegating more responsibility to others than other forms of leadership.

There are numerous ways of defining leadership. Some leadership theories attempt to explain what differentiates a leader, while some explain how great leaders come to be. The Great Man Theory believes that the inherent traits that one is born with contribute to great leadership. Situational Theory recommends leaders to adopt a leadership style depending on the situation at hand, while the Behavioral Theory is all about the learning the skills necessary to become a good leader.

Leadership theories don’t only exist in history. They are concepts with actionable advice that can be adopted by many, from executive managers to community leaders and government officials.

Thank you for reading CFI’s guide on Leadership Theories. To keep learning and advancing your career, the following resources will be helpful:

• Adaptive Leadership
• Leadership Styles
• Leading by Example
• Hofstede’s Cultural Dimensions Theory
• See all management & strategy resources

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Business: Management: Management & Leadership Theories

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Management Theories

• Behavioral assumption From The Penguin Dictionary of Economics The pattern of human motivation built into any economic theory.
• Bureaucracy: Topic Page Organization whose structure and operations are governed to a high degree by written rules and a hierarchy of offices; in its broadest sense, all forms of administration, and in its narrowest, rule by officials.
• Chaos theory From Business: The Ultimate Resource In management, a situation of unpredictability and rapid change. Chaos theory emerged in the 1970s as a mathematical concept that defied the theory of cause and effect to assert that behavior is essentially random.
• Contingency theory From Collins Dictionary of Business An approach to organizational analysis which emphasizes that the character and structure of organizations can take a number of forms, and may be related to the technology in use or the organization's environment. Organizational features can be said to be contingent on such factors.
• Decision theory From Britannica Concise Encyclopedia In statistics and related subfields of philosophy, the theory and method of formulating and solving general decision problems.
• Operations management From Business: The Ultimate Resource The maintenance, control, and improvement of organizational activities that are required to produce goods or services for consumers.
• Prospect theory From The New Penguin Business Dictionary A theory of individual decision-making under risk that became popular in management from the 1970s onwards.
• Scientific management From Collins Dictionary Of Sociology. A set of principles governing the design of jobs which entail the separation of mental from manual labour, subdivision of tasks, deskilling, close managerial control of work effort and incentive wage payments.
• Strategic management From The New Penguin Dictionary of Business The totality of management decisions that determine the purpose and direction of the firm. It involves strategic planning and eventually implementation.
• Systems approach From Business: The Ultimate Resource A technique employed for organizational decision making and problem solving involving the use of computer systems. The systems approach uses systems analysis to examine the interdependency, interconnections, and interrelations of a system’s components.
• Theory X and Theory Y From The New Penguin Dictionary of Business Two contrasting theories of employee motivation. Theory X assumes employees dislike work, will attempt to avoid it, dislike responsibility, have a strong desire for security and must be coerced to perform (a negative view of human motivation).

Leadership Theories

• Contingency Theory From Encyclopaedic Dictionary of Psychology A theory (Fiedler 1978) that leadership effects on group performance depend on three ‘contingencies’ (see s. 1) – leader–member relations (good–bad), task (structured–unstructured) and leader’s power (weak–strong) – and their moderating effect on leadership style.
• Expectancy theory From The New Penguin Business Dictionary A theory of motivation. An employee will exert more effort when he believes increased effort will result in a good performance appraisal, that a good appraisal will lead to some form of tangible reward (such as a pay rise), and that it will also satisfy personal goals.
• Extrinsic motivation From The Concise Corsini Encyclopedia of Psychology and Behavioral Science Intrinsic motivation is a type of motivation based in people’s inherent interest in activities that provide novelty and challenge. Intrinsically motivated behaviors are an expression of an individual’s self and do not depend on external reinforcements.
• Extrinsic motivation From The Penguin Dictionary of Psychology Lit., motivation that originates in factors outside the individual. Behaviour that is motivated by rewards and/or punishments administered by outside forces is extrinsically determined.
• Great man theory From The Penguin Dictionary of Psychology A point of view in historical investigations which contends that accomplishments in a field are due primarily to the efforts of great men.
• Reinforcement theory From Elsevier's Dictionary of Psychological Theories The term reinforcement contains a considerable amount of diversity of usage in psychology where most of the definitional variations stem from theoretical issues in learning theory concerning what reinforcement is and how it functions.
• Situational leadership theory From The New Penguin Business Dictionary A contingency theory of leadership that focuses on the readiness and maturity of followers. In essence, it says ‘leaders are as good as their followers’.
• Theories of leadership From Elsevier's Dictionary of Psychological Theories The earliest investigation of leadership that is regarded as uniquely psychological is attributed to the Italian statesman Niccolo Machiavelli (1469-1527) in his 16th century book “The Prince.”
• Trait theory From Business: The Ultimate Resource The belief that all leaders display the same key personality traits.
• Transactional leadership From Business: The Ultimate Resource A theory that describes sets of feelings, thoughts, and behavior or ego states that influence how individuals interact, communicate, and relate with each other.
• Transformational leadership From Business: The Ultimate Resource The idea that effective leadership is based on inspiring and enthusing subordinates with a corporate vision in order to gain their commitment.

Management Theorists & Consultants

• Peter Drucker (1909 - 2005): Topic Page Austrian-born management expert, who emigrated to the USA in 1937 and worked as an economist and political scientist before starting a career as a professor of management in 1950.
• Gary Hamel (1954 - ): Topic Page US management consultant and academic. After teaching at the London Business School for ten years from 1983, he moved back to California to found Strategos, an international consulting firm specializing in strategy.
• James McKinsey (1889 - 1937): Topic Page US management consultant and founder of the global company McKinsey & Co. He was a university professor and a member of an accountancy practice when he founded McKinsey in 1926 to give financial and management advice to corporations.
• Michael Porter (1947 - ): Topic Page Leading authority on competitive strategy. Michael Porter is a university professor at Harvard Business School, and an influential thinker on management strategy and economics. His ideas on strategy have become the basis for the required strategy course at the Harvard Business School, and his work is taught in virtually every business school around the world.
• Frederick Taylor (1856 - 1915): Topic Page US engineer, management consultant, and the founder of scientific management.
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BS4S16 Leadership & Management Theories Assignment Brief

You are required to complete one assignment to test the following module learning outcomes: 1. Critically evaluate the development of leadership and managementtheories; 2. Critically appreciate the nature of leadership and management theories and their application in a range of leadership and management settings.

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6 Common Leadership Styles — and How to Decide Which to Use When

• Rebecca Knight

Being a great leader means recognizing that different circumstances call for different approaches.

Research suggests that the most effective leaders adapt their style to different circumstances — be it a change in setting, a shift in organizational dynamics, or a turn in the business cycle. But what if you feel like you’re not equipped to take on a new and different leadership style — let alone more than one? In this article, the author outlines the six leadership styles Daniel Goleman first introduced in his 2000 HBR article, “Leadership That Gets Results,” and explains when to use each one. The good news is that personality is not destiny. Even if you’re naturally introverted or you tend to be driven by data and analysis rather than emotion, you can still learn how to adapt different leadership styles to organize, motivate, and direct your team.

Much has been written about common leadership styles and how to identify the right style for you, whether it’s transactional or transformational, bureaucratic or laissez-faire. But according to Daniel Goleman, a psychologist best known for his work on emotional intelligence, “Being a great leader means recognizing that different circumstances may call for different approaches.”

• RK Rebecca Knight is a journalist who writes about all things related to the changing nature of careers and the workplace. Her essays and reported stories have been featured in The Boston Globe, Business Insider, The New York Times, BBC, and The Christian Science Monitor. She was shortlisted as a Reuters Institute Fellow at Oxford University in 2023. Earlier in her career, she spent a decade as an editor and reporter at the Financial Times in New York, London, and Boston.

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