In the current economic climate, filled with uncertainties and intricacies, leadership is more essential than ever. Many institutes include core leadership fundamentals in their curriculum to increase interest in the topic and lay a solid foundation for future leaders. However, the unpredictability of the business environment has emphasized the necessity of adopting a leadership theory that can withstand the test of time. As a result, both new and veteran leaders must be familiar with various leadership theories and select one that fits their leadership style.
We will look at various leadership theories to help managers stay relevant in today’s business environment. These theories are adaptable and can be used by leaders of all styles.
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Over the last half-century, the study of leadership has expanded, introducing numerous new theories and frameworks for examining what it means to be a leader and how to lead effectively. We outline five current leadership theories in this article, as well as resources and suggestions for incorporating the theories into your own leadership practice. We will investigate:
- Transformational Leadership
- Leader-Member Exchange Theory
- Adaptive Leadership
- Strengths-Based Leadership
- Servant Leadership
What is Leadership
Before delving into contemporary leadership theories, we must first define the term. Dr. Peter Northouse, a leadership theory scholar, defines leadership as “a process by which an individual influences a group of individuals to achieve a common goal.” This definition makes it clear that leadership is neither a trait nor a position. You are not a leader because of your job title; you are a leader because of your influence.
Understand the concept of Leadership Theory
Leadership theories are well-researched hypotheses about the psychology of a specific type of leader. To identify different leadership styles, theorists have developed a plethora of leadership theories. Furthermore, they conducted behavior analysis and consulted various literature to develop pre-existing leadership theories that are consistent with the definition of leadership. The five leadership theories listed below are essential for every manager in 2022.
Transformational Leadership
Transformational leadership is a management philosophy that inspires and motivates employees to innovate and create new ways for a company to grow and improve its future success. Using this method, executives delegate decision-making authority to trusted employees and encourage new problem-solving approaches.
Transformational leaders are enthusiastic about their work and the company’s mission, and they strive to help all employees succeed. Another important characteristic is their ability to identify outdated business processes and focus on streamlining or changing them as needed.
Transformational leaders have a set of unique character traits that, in a best-case scenario, construct on and play off one another to produce the most efficient leadership approach. Among these characteristics are the following:
Accepting change
Transformational leaders embrace the future and anticipate its impact on an organization so that they are prepared to deal with challenges.
Emotional intelligence
Transformational leaders must be willing to collaborate, have empathy, and be emotionally intelligent. They are self-motivated, adaptable, and capable of gaining the trust and respect of those around them.
Adaptability
Transformational leaders in information technology (IT) can deal with rapid industry change and implement complex technologies. They also understand the implications of how these changes will affect other technologies, allowing them to anticipate problems before they occur.
Outstanding team player
Transformational managers concentrate on the wellness of employees and the company instead of taking a me-first approach. When the team achieves success, they celebrate together and give credit where credit is due.
Promoting communication and participation
Transformational leaders absorb ideas from all around them without bias or prejudice. They can communicate openly and honestly with employees, which fosters long-term trust.
Leader-Member Exchange Theory
Individualized concern has some relevance to our second theory, Leader-Member Exchange Theory (LMX). To understand this theory, think back to junior high: almost every student could be classified as either popular or unpopular.
Any group or organization has in-group and out-group members, according to LMX theory. Members of the in-group get along well with the leader, have a personality that complements the leader’s, and are often eager to take on extra tasks or responsibilities. Out-group members are less congruent with the leader; they may hold opposing views, have conflicting personalities, or be less willing to take on additional responsibilities. In-group members are more likely to advance, while out-group members are more likely to leave.
According to the Leader-Member Exchange Theory (LMX), all relationships between managers and their subordinates go through three stages. They are as follows:
Role-Taking
It occurs when team members initially join the group, and assume roles. Managers use this time to evaluate the skills and abilities of new members.
Role-Making
New team members are then assigned tasks and assignments as part of the team. Managers generally expect new team members to work hard, be loyal, and prove trustworthy as they adjust to their new roles.
According to the theory, managers categorize new team members (often subconsciously) into either of two groups during this stage:
In-Group: If team members demonstrate loyalty, trustworthiness, and skill, they are placed in the In-Group. This group consists of the team members in whom the manager has the most faith. Managers devote the majority of their attention to this group, providing challenging and interesting work as well as opportunities for additional training and advancement. Additionally, this group receives more one-on-one time with the manager. People in this group frequently share the same personality and work ethic as their manager.
Out-Group: If team members betray the manager’s trust or demonstrate that they are unmotivated or incompetent, they are placed in the Out-Group. The work of this group is frequently restricted and unchallenging. Out-Group members have less access to the manager and are less likely to be given opportunities for growth or advancement.
Routinization
Routines between team members and their managers are established during this final phase.
In-Group team members work hard to keep their managers’ trust by demonstrating trust, respect, empathy, patience, and persistence.
Members of the Out-Group may begin to dislike or distrust their managers. Out-Group members may have to change departments or organizations to “start over” because it is so difficult to leave the Out-Group once the perception has been established.
Once team members are classified as In-Group or Out-Group, that classification affects how their managers connect to them in the future, and it can become self-fulfilling.
Adaptive Leadership
Adaptive leadership is an important leadership framework that can assist both individuals and organizations in remaining agile and resilient in difficult situations. This type of work frequently entails challenging the status quo and implementing drastic but necessary changes. This leadership style requires managers to be bold and make calculated, but occasionally unexpected, decisions.
These decisions are made out of necessity rather than on the spur of the moment. They are for the organization’s benefit. And, while they may appear rash at times, they must be designed to adapt to the changing environment.
CODE is a useful acronym for remembering the four characteristics of Adaptive Leadership:
Emotional Intelligence
Starting at the bottom, Emotional Intelligence is possibly the most important trait that an adaptive leader must have. Emotional Intelligence, also known as Emotional Quotient, is essentially a combination of being both highly self-aware and aware of others. It is the ability to control one’s own emotions as well as the way one reacts to the emotions of others. Emotionally intelligent leaders are empathetic, calm, fair, and true team players.
Development
This adaptive leadership characteristic occurs when a leader is willing to constantly explore new methods to accomplish the desired outcome. Rather than repeatedly failing with an archaic idea, the adaptive leader seeks innovation and development to propel a company forward.
Organizational Justice
In adaptive leadership, organizational justice could be defined as an open-door policy. It is all about maintaining open and truthful lines of communication with all employees and genuinely caring about their questions, concerns, and even criticisms.
Character
It is an essential component of adaptive leadership because leaders are destined to fail without it. Employees in any industry are acutely aware of dishonest leaders. Strong character does not eliminate the possibility of making mistakes; however, how a leader manages mistakes can help them gain the trust and respect of their employees. Leaders with strong characters who admit mistakes can correct the ship’s course; those who claim the moral high ground or engage in the blame game will sink the ship to the ocean floor.
Strengths-Based Leadership
Flowing as an undercurrent through many of these theories is the idea of strengths: a characteristic or quality that makes an individual or group successful. The leader frequently values in-group members for their specific strengths. When an adaptive leader “returns the work to the people,” the leader expresses faith in the people’s abilities and competencies.
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Strengths-Based Leadership is the notion of recognizing and leveraging one’s own and others’ strengths to achieve results. The concept is based on positive psychology and the work of the Gallup Organization.
Servant Leadership
Servant leadership is a leadership style and philosophy in which an individual communicates with others—either in a management or fellow employee capacity—to obtain authority rather than power. The system is designed to be decentralized. This leadership style involves customer-facing employees in company decision-making. These employees have a close relationship with the customer and can make informed choices to retain and attract new customers.
To be effective, it is beneficial to understand the following characteristics of a leader:
Listening
Listening entails being receptive and nonjudgmental. They are far more interested in hearing the perspectives of others than in having the loudest voice in the room. Strive to comprehend first, then to be understood.
Appreciation
It entails valuing and appreciating people for who they are rather than what they contribute to the organization. They are dedicated to their people first and foremost.
Humility
Humility means putting others first. They are modest. They understand that leadership is not all about them; things are accomplished through the efforts of others.
Trust
Trust means having faith in others. They are willing to take this risk for the sake of the people they serve. They are trusted because they are genuine and reliable.
Caring
Caring people are those who have people and a purpose in their hearts. They show compassion and concern for others. These p are not here to be served but to serve. They genuinely care about the people they serve.
In a nutshell
You may have noticed that many of the theories are related and that practicing one does not preclude practicing another. It is possible, for example, to be a truly revolutionary and adaptive leader who recognizes the strengths of out-group members and uses servant leadership to bring them into the in-group. Trying to do all of that, on the other hand, sounds exhausting. Perhaps it is better to choose one theory to use as a lens to examine your own leadership. Find what is useful, try out new applications, and adapt to your professional circumstances.
[To share your insights with us, please write to sghosh@martechseries.com]