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.