Leadership has become somewhat more essential than ever before in this complex and uncertain commercial climate of today.  A capable leader inspires the team to give their best effort, which leads to positive outcomes.  To stimulate interest in the subject and build a solid basis for future leaders, several institutes incorporate key leadership programmes in their curricula.  Which will basically help both novice and established leaders to be familiar with several leadership theories and pick one that suits their leadership styles.

Here we have gathered the seven leadership theories that all managers must know.  To know each of them in detail, keep reading!

What Is A Leadership Theory?

Theories of leadership address how and why particular people emerge to be leaders.  They place emphasis on the personality attributes that people potentially adopt to enhance their leadership abilities.  Theories of leadership are quite well presumptions regarding the mentality of a specific kind of leader.  While many of these theories concentrate on the qualities of effective leaders, others look for the actions that individuals may do to enhance their own leadership skills in various contexts.

7 Leadership Theories All Managers Should Know

To function efficiently in the organization, it is necessary to implement leadership principles and theories in the working style.  Some of them are quite important to apply.  Here are the top seven leadership theories explained. 

  1. Theory of  Transactional 

The fundamental structure of this style of leadership thought is based on rewards and penalties.  It is a leadership strategy that places a strong emphasis on the importance of hierarchy for boosting organizational effectiveness.  So when a team member meets the goal outlined by the leader, they are rewarded, and the opposite is also true.  Typically, the objective of transactional leadership theory is to achieve the corporate goal.

  1. Theory of Transformation

According to this leadership philosophy, effective leaders motivate their teams to perform more than what they’re capable of.  For their team members, leaders set a goal and inspire them to fulfill it.  Transactional leadership theory can be utilized in the contemporary business context to pursue organizational improvement.  Additionally, it can foster a solid relationship between team leaders and their teams.

  1. Theory of contingency

 The contingency hypothesis states that there is no one ideal approach to running a business.  One of the many leadership theories contends that various leadership philosophies are appropriate in various circumstances.  These theories of leadership emphasize the need for leaders to modify their approach according to the circumstances, which fosters creativity and efficiency.

  1. Theory Of Great Man 

One of the earliest theories on leadership operates under the premise that these characteristics are innate, proving that leaders are born, not made and that they cannot be taught.  Charm, self-assurance, intelligence, and social ability are just a few of the characteristics of excellent leaders, according to this theory.  This approach emphasizes leaders who can transform their organizations for the better and empathizes with them.

  1. Theory of Behavioral Leadership

This theory argues that a person’s environment influences their capacity for leadership.  Efficient management depends on a variety of learning abilities.  This school of thought on leadership places more emphasis on a leader’s actions and behavior.  The theory also takes into account the fact that someone can gain the abilities necessary to become an effective leader.

  1. Theory Of Functional Leadership 

Instead of focusing on who has been formally named as the leader, the functional theory of leadership stresses how a job or organization is being led.  In the functional leadership method, the potential to accomplish desired goals and objectives is backed by a group of people’s perspectives rather than by a single individual.

  1. Theory Of Situational Leadership

To accomplish goals and form judgments, a leader should adapt to the changing circumstances, according to this theory, which highlights the importance of context.  How these leaders choose to lead may be influenced by the degree of skill and commitment of the team members.  A team manager must have a few key qualities, according to the theory, including the capacity for problem-solving, trustworthiness, flexibility, vision, and mentorship.


You must have noticed that many modes of thinking constitute the foundation of various leadership ideas.  Some of these leadership theories concentrate on traits and qualities, while others discuss the significance of situational factors that affect how leaders act.  If you wish to improve your management efficacy and your capacity for leadership, then do enroll in Emeritus India’s top-notch online leadership programme, which is provided in cooperation with different prestigious institutions.


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