Are Some Born to Lead? 8 Leadership Theories Explained

What Exactly Are Leadership Theories?

Leadership theories are different schools of thought that aim to explain things like why people become leaders and what characteristics leaders typically have. In recent years, more and more leaders have become curious to learn about leadership theories and styles. This is likely due to the fact that workplaces are becoming more flexible, people-focused, and centred around wellbeing, resulting in leaders seeking ways to better support their staff. 

According to one study, 82% of employees would leave their jobs because of poor leadership. This just goes to show the kind of impact one leader can have on the people around them.

8 Major Leadership Theories to Know About

Ever wondered whether there are innate characteristics or traits that make some people natural-born leaders? Maybe you’re curious to know more about different leadership approaches? Here are eight common theories on leadership:

Who Leads?

Firstly, there are different schools of thought around the types of people who lead. While some suggest certain types of people are ‘born to be leaders’, others aren’t so sure… 

Great Man Theory

Popularised by Scottish historian and philosopher Thomas Carlyle, ‘Great Man’ theory proposes that leadership qualities are something people are born with. This perspective rejects the idea that leadership is taught and suggests that great leaders (most notably, men) are innately heroic individuals with charisma and confidence. Although elements of Carlyle’s theory laid the groundwork for early leadership thinking, it is generally considered to be an outdated stance, based on bias and a lack of context.

Trait Theory

Trait theory is somewhat similar to ‘Great Man’ theory in the sense that it views innate personality traits as central to effective leadership. The theory, which was proposed by Francis Galton after being inspired by Thomas Carlyle, suggests that certain personality traits are genetic and can predispose individuals to becoming great leaders. Although we do recognise that some traits or qualities can be helpful for certain leadership styles, we also know that leadership isn’t guaranteed by personality alone. Many people possess these traits without ever stepping into leadership roles, while others lead effectively without fitting the mould.

Contingency Theory

Contingency theory takes a slightly more flexible approach, suggesting that multiple factors affect leadership. Rather than arguing that there’s one type of leader or universal way to lead, contingency theory puts forward the idea that the most effective leaders are those who can assess the situation and adapt accordingly. It takes into account things like team dynamics, organisational culture, and the nature of the task, recognising that all play a role.

How Do People Lead?

So, how does leadership actually show up in practice? The following leadership theories focus on behaviour, decision-making, and the relationships leaders build with others:

Situational Theory

​​Situational theory builds on the idea that leadership is context-dependent. It suggests that effective leaders tailor their approach based on the needs of their team and the demands of the situation. For example, a directive style might work well in a crisis, while a more collaborative approach might suit creative or strategic projects. This theory encourages leaders to stay flexible and responsive, rather than relying on a fixed style.

Behavioural Theory

Behavioural theory is pretty much the opposite of trait-based thinking. Instead of focusing on who a leader is, it looks at what they do. According to this theory, leadership is learnt through experience, observation, and feedback. It’s rooted in the idea that anyone can become a leader by developing the right behaviours. This makes behavioural theory especially popular in leadership coaching and training.

Participative Theory

Introduced by American social psychologist Rensis Likert in the 60s, participative theory centres around shared decision-making. This approach is all about leading by actively seeking input from a team, encouraging collaboration and collective ownership. While the leader still makes the final call, they create space for others to contribute ideas and shape outcomes. This style is often linked to democratic leadership and is particularly effective in environments that value innovation, autonomy, and trust.

Management (Transactional) Theory

Management theory, also known as transactional leadership, is built around structure, performance, and accountability. It’s based upon the idea that leaders should set clear goals, monitor progress, and use rewards or consequences to drive results. This approach is common in corporate settings where efficiency and output are key. 

Relationship (Transformational) Theory

Relationship theory, often referred to as transformational leadership, focuses on the emotional and motivational connection between leaders and their teams. These leaders put a huge focus on inspiring and uplifting staff in a way that benefits the whole team or business. Transformational leaders often have strong values, a clear vision, and a genuine interest in helping others reach their potential. This style is increasingly valued in people-focused workplaces where wellbeing, purpose, and long-term development matter.

Why Identify Your Leadership Style? 

The benefit of identifying your own leadership style is that you gain a deeper understanding of how you interact with your team and can improve and develop where needed. You might find there are certain parts of your leadership style that staff love, while others that aren’t working so well. And that’s okay. Being aware of your behaviour and focusing on improvement will help you to lead better and show staff you respect them.

Finding Your Leadership Style

Curious to explore your own approach? Start by asking yourself the following questions:

• Do I lead through inspiration or structure?
• Am I more focused on outcomes or relationships?
• How do I respond to change or challenge?
• Do I invite collaboration or prefer to take charge?

After asking yourself these questions, consider which theory you align with best. There’s no single ‘correct’ way to lead, but understanding these different leadership stances can help you to find a style that feels authentic and effective. Many leaders blend elements from several approaches, depending on their team and context.

Once you’ve identified an approach or mix of approaches you resonate with, have a think about how that opens up potential areas for improvement. If you fall rigidly into one category, what could you learn from the others? Perhaps you lean heavily towards participative leadership but notice your team don’t appear very motivated. Maybe some transformational leadership habits could help to lift them up?

Ultimately, the best way to understand what works is to ask your team what they need. Although a strong team requires teamwork and a unified vision, it’s important to not forget that within a team, you have individuals with varying needs and experiences. For example, an inclusive leader can leverage assistive communication tools like Caption.Ed to ensure that every team member’s voice is heard. The more you can cater to these differences, the more likely you are to get the best out of them.

FAQs

Are leadership theories still relevant today? 

Absolutely! As workplaces evolve, leadership theories can be used as valuable frameworks for understanding how to support, motivate, and guide others. 

Can leadership be learnt, or is it innate? 

Most modern theories suggest that leadership can be developed. While certain traits may help, behaviours, mindset, and adaptability play a huge role.

Which leadership theory is best? 

There’s no universal answer. The most effective leaders are those who understand their environment, know their team, and choose the right approach for the moment.