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LEADERSHIP THEORIES – PART 2, Exams of Leadership and Team Management

University of Wales, SwanseaLeadership and Team Management

The Situational Leadership Theory is quite similar to the contingency leadership theory, meaning that leadership depends on the situation. This theory claims ...

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2021/2022

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LEADERSHIP THEORIES – PART 2
LEARNING OBJECTIVES
1. Gain a deeper understanding of the seven main theories of leadership.
2. Compare the differences, strengths and limitations of the seven theories of leadership.
1. Contingency Leadership Theory
Contingency means that one thing depends on other things. The Contingency Leadership
Theory argues that there is no single way of leading. It states that a leader's effectiveness depends on
how his or her leadership style matches the situation. In addition, this theory claims that people’s
behaviour is related to certain situations and the situations will determine the style of leadership that
is needed (Luenendonk, 2019). Successful and enduring leaders will use different styles according to
the nature of the situation and the followers. Furthermore, it suggests that great leadership is a
combination of many key variables. The best form of leadership is one that finds the perfect balance
between behaviours, needs and context.
The Contingency Leadership Theory has some strengths and limitations.
Strengths:
• A strength is that this theory helps to explain the importance of the situation.
• This theory expands the concept and understanding of leadership (Luenendonk, 2019) by
connecting leaders to situations.
• In other words, it helps to know what kind of leaders are needed for different situations. In
that way an organization can predict who could become a suitable leader in certain situations
(Luenendonk, 2019).
Limitations:
• It does not account for the position of the leader or how styles change (Luenendonk, 2019).
This leadership theory focuses too much on the situation and does not take the leader
personally into account (Luenendonk, 2019).
• They do not explain the processes behind how leadership styles vary according to factors such
as the organization or the position of the leader within the structure (Cherry, 2017).
• Another limitation is the complexity of the contextual factors that have to be studied in order
to select the appropriate leadership style to a certain situation.
RECOMMENDED READINGS:
Cherry, K. (2017, January 30). What is the Contingency Theory of Leadership? Retrieved from:
https://www.explorepsychology.com/contingency-theory-leadership/.
Luenendonk, M. (2019, September 25). Leadership and The Contingency Theory. Retrieved from:
https://www.cleverism.com/leadership-and-the-contingency-theory/.
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LEADERSHIP THEORIES – PART 2

LEARNING OBJECTIVES

  1. Gain a deeper understanding of the seven main theories of leadership.
  2. Compare the differences, strengths and limitations of the seven theories of leadership. 1. Contingency Leadership Theory Contingency means that one thing depends on other things. The Contingency Leadership Theory argues that there is no single way of leading. It states that a leader's effectiveness depends on how his or her leadership style matches the situation. In addition, this theory claims that people’s behaviour is related to certain situations and the situations will determine the style of leadership that is needed (Luenendonk, 2019). Successful and enduring leaders will use different styles according to the nature of the situation and the followers. Furthermore, it suggests that great leadership is a combination of many key variables. The best form of leadership is one that finds the perfect balance between behaviours, needs and context. The Contingency Leadership Theory has some strengths and limitations. Strengths:
    • A strength is that this theory helps to explain the importance of the situation.
    • This theory expands the concept and understanding of leadership (Luenendonk, 2019) by connecting leaders to situations.
    • In other words, it helps to know what kind of leaders are needed for different situations. In that way an organization can predict who could become a suitable leader in certain situations (Luenendonk, 2019). Limitations:
    • It does not account for the position of the leader or how styles change (Luenendonk, 2019). This leadership theory focuses too much on the situation and does not take the leader personally into account (Luenendonk, 2019).
    • They do not explain the processes behind how leadership styles vary according to factors such as the organization or the position of the leader within the structure (Cherry, 2017).
    • Another limitation is the complexity of the contextual factors that have to be studied in order to select the appropriate leadership style to a certain situation. RECOMMENDED READINGS : Cherry, K. (2017, January 30). What is the Contingency Theory of Leadership? Retrieved from: https://www.explorepsychology.com/contingency-theory-leadership/. Luenendonk, M. (2019, September 25). Leadership and The Contingency Theory. Retrieved from: https://www.cleverism.com/leadership-and-the-contingency-theory/.

2. Situational Leadership Theory The Situational Leadership Theory is quite similar to the contingency leadership theory, meaning that leadership depends on the situation. This theory claims that there is not a single leadership style that can be applied in all situations, because a leadership style that works in one situation might not work in another situation. It all depends on the situation you face and the type of leadership strategy you choose for the situation (Piyu, 2019). Based on this theory, a leader has to adapt his or her leadership style to fit the situation at hand. Therefore, this leadership theory focuses on adaptability. (Piyu, 2019). Strengths: - A strength is that this leadership theory recognizes the need for flexibility and adaptability. - It increases the awareness of the leader and they create a comfortable environment for workers. Limitations: - A limitation is that this theory mainly relies on the skills of the leader in managing and leading the situation. - Moreover, this theory focuses more on short-term needs instead of long-term needs. - Another disadvantage is the fact that people respond in different ways to various leadership styles. Meaning that this theory, does not provide enough information for some leaders. RECOMMENDED READINGS : Cherry, K. (2019, October 1). The Situational Theory of Leadership. Retrieved from: https://www.verywellmind.com/what-is-the-situational-theory-of-leadership- 2795321. Gaille, B. (2018, December 10). 13 Situational Leadership Advantages and Disadvantages. Retrieved from: https://brandongaille.com/13-situational-leadership-advantages-and-disadvantages/ Piyu. (2019, June 12). Difference Between Contingency and Situational Leadership. Retrieved from: https://www.differencebetween.com/difference-between-contingency-and-situational-leadership/.

4. Transformational Leadership Theory The Transformational Leadership Theory is the most popular and well-researched theory during the last 20 years. It states that leadership is a process in which a person interacts with others and is able to create a solid relationship that results in a high percentage of trust, which will later result in an increase of motivation in both leaders and followers. The core of transformational theories is that leaders transform their followers through their inspirational nature and charismatic personalities. According to this theory, it is important that leaders facilitate a sense of belonging for the followers, and the followers are aware of the purposes or aims of the leaders. Strengths: - A strength is that the followers are intrinsically motivated (Thompson, 2019). - Transformational leaders treat people as individuals and consider their followers as equals, each with their own skills and experiences, and they try to bring out the best in them through coaching and encouragement (Thompson, 2019). - Moreover, these leaders have high expectations for themselves and others (Thompson, 2019) and they foster creativity and innovation through collaboration (Staff, 2019). Limitations: - A limitation is that transformational leadership is not universally applicable. It is, for example, less useful in emergency or situations that require quick decision-making (Staff, 2019). - Furthermore, a transformational approach can put too much pressure on followers. Some individuals find leadership roles and responsibilities too demanding (Staff, 2019). RECOMMENDED READINGS : Staff, K. (2019, January 12). Transformational Leadership: Strengths and Weaknesses. Retrieved from: https://www.konsyse.com/articles/transformational-leadership-strengths-and-weaknesses/. Miller, K. (n.d.). 6 Pros and Cons of Transformational Leadership. Retrieved from: https://futureofworking.com/6-pros-and-cons-of-transformational-leadership/. Thompson, J. (2019, May 13). Advantages and Disadvantages of Transformational Leadership. Retrieved from: https://smallbusiness.chron.com/advantages-disadvantages-transformational- leadership-20979.html.

5. Main differences Contingency Leadership Theory vs. Situational Leadership Theory There are a lot of similarities between contingency and situational leadership theory, but there are also differences. The contingency leadership theory states that the effectiveness of a leader depends on how his or her leadership style relates to the situation. It considers that a leader’s leadership style should match the right situation. In addition, the relationship between the leader and the co-worker decides whether the leader is a relationship-oriented or a task-oriented person. The situational leadership theory states that a leader should adapt his or her leadership style to match the situation. It considers that a leader should adapt his/her style to the situation at hand. Furthermore, the situation decides whether the leader is a relationship-oriented or a task-oriented person. Transactional Leadership Theory vs. Transformational Leadership Theory Transactional Leadership Theory focuses on the role of supervision, organization, and group performance. They can address small operational details quickly. It is effective in crisis and emergency situations. Furthermore, transactional leaders tend to be directive and action-oriented. They tell group members what to do and when to do it (Cherry, 2020). Transformational leaders, on the other hand, inspire, stimulate and motivate followers to achieve results greater than originally planned. Besides, they try to sell their ideas and vision to followers (Cherry, 2020). The Transformational Leadership Theory focuses on change within the organization. It can be helpful to the strategic development of an organization.