The Everyday Leader's Journal

Foundational Leadership Theories Explained

Written by Gavin Brown | Feb 27, 2025 3:19:44 PM

Have you ever wondered why some people seem to just naturally know how to lead and inspire others?

It turns out that there are scientific theories that can help explain why this is, and how leaders can learn to follow their example.

There are many different leadership theories out there that help explain why a leader is successful.

By understanding them, you can learn how to improve your leadership skills and create a positive, inspiring work environment for your team.

Let's dive in and explore the key theories that have shaped our understanding of leadership over the years.

Leadership Theories Throughout the Years

Leadership theories have been categorized into what are known as “generations,” which describe how these theories have changed over time.

  • First Generation theories are old-fashioned ideas about leaders being born with certain skills or traits. People believed that leaders were born, not made. These ideas were popular over 100 years ago.
  • Second Generation theories suggest that leadership is learned based on the situation. By learning how to motivate team members in different situations and using feedback to improve leadership skills, leaders can adapt their style to fit the needs of their followers.
  • Third Generation theories focus on the relationship between a leader and their followers. Leaders who build professional relationships with their teams are able to influence them more effectively.

Leadership Theories vs Leadership Styles

Though leadership styles and leadership theories are closely related, they are not the same.

Leadership theories are ideas that help us understand why and how people become leaders and what makes them effective. They offer insights into the traits, actions, and circumstances that make leadership work well.

Leadership styles, on the other hand, are the actual ways leaders manage and inspire their teams. These styles come from leadership theories but are more about how leaders act in real life.

Many leadership styles are based on leadership theories.

 

First Generation Leadership Theories

First generation leadership theories, including the “great man” theory and trait theory, propose that certain people are born with traits that make them natural leaders. The “great man” theory suggests that some people are born with courage, confidence, and will, while trait theory identifies specific traits associated with leaders, such as intelligence, ambition, and energy.

The "Great Man" Theory

The notion of the “Great Man” theory suggests that leaders are born, not made, with inherent traits that destined them for leadership roles. Under this framework, leaders are often seen as exceptional figures who rise to prominence in times of need. However, this theory falls short as it fails to consider the potential for leadership development and the influence of situational factors.

Trait Leadership Theory

Trait leadership theory expands on the “Great Man” concept, focusing on specific characteristics and personality traits associated with effective leaders. According to McCall and Lombardo, four core traits set leaders apart: emotional stability, honesty, humility, and strong mental and social abilities. While this theory provides valuable insights, it doesn’t account for the growth of leadership skills over time or transferring skills across different scenarios.

Second Generation Leadership Theories

Second generation leadership theories developed in the mid-20th century, as people began to question whether traits alone could determine leadership success. These theories suggest that leadership is situational, forming a bridge between the early trait theories and modern theories.

Theory X & Y

Douglas McGregor's Theory X & Y explores two different views of human motivation in the workplace. Theory X assumes that people inherently dislike work and need constant supervision, while Theory Y believes that people are inherently self-motivated to complete their work and thrive under less stringent management. This theory helped shift the focus from managers’ perceptions of leadership to how people need to be led.

Transactional Leadership Theory

Grounded in reward and punishment, transactional leadership theory sees the relationship between leader and team member as a series of exchanges to foster productivity. Though effective in revealing the dynamics of power and responsibility, it should be balanced with the consideration of personal growth and long-term engagement.

Transformational Leadership Theory

The transformational leadership theory is a more emotionally intelligent approach aimed at motivating and inspiring teams. These leaders lead by example and foster a supportive environment, inspiring employees to follow suit. Characteristics include humility, sympathy, honesty, ambition, and self-awareness. This theory focuses on moving beyond personal goals for the greater good of the team.

Servant Leadership Theory

Serving is at the heart of servant leadership. Proposed by Robert Greenleaf, servant leadership theory emphasizes the leader’s role as a steward of the resources provided by the organization. Key characteristics include empathy, self-awareness, and strong communication skills. This approach encourages leaders to prioritize their team’s needs before considering their own.

Situational Leadership Theory

The simplistic situational leadership theory states that different situations call for different leadership styles. This idea counters the notion of a universal leadership style, focusing on choosing the right style for the specific context. It factors in the confidence and competence of subordinates and the intentions and competence of the leader.

Contingency Leadership Theory

Like situational leadership, contingency theory suggests that leadership style should change with the context. It emphasizes the fit between the leader's style and the demands of the situation. This theory considers the leader’s personality and the specific circumstances to create an optimal match for effective leadership.

 

Third Generation Leadership Theories

Third generation leadership theories emerged in the 1960s and emphasize the relationship between leaders and their followers. These theories suggest that it is the quality of interaction between leaders and their followers that drives leadership success, rather than leaders using specific situational approaches.

Theory U

Introduced by Otto Scharmer, Theory U explores the journey to the bottom of the U by letting go of past paradigms and meeting the future with an open mind. The thinking process involves three stages: Sensing, Presencing, and Realising. These stages help teams gain initial momentum, prepare for organizational change, and crystallize a shared team vision for the future, fostering a culture of adaptability and innovation in the work environment.

Adaptive Leadership Styles

Adaptive leadership styles focus on helping individuals and organizations adapt to change. This approach views leadership as a resource for constructing new ways of seeing and doing things. It emphasizes resilience in the face of challenges and harnesses collective intelligence to overcome obstacles.

Implicit Leadership Theory

Implicit Leadership Theory explains that people have preconceived notions of what a leader 'should' look like and how they 'should' act. This means that the characteristics that leaders display have less to do with the success of the leader than the acceptance and conviction by the followers that the individual should be assigned or accepted as the leader. This fact challenges hierarchical models that emphasize some individuals should be the leader regardless of the circumstance.

Path-Goal Theory

The Path-Goal Theory emphasizes that a leader should make their team member's journey as easy as an everyday sidewalk walk. This means that the leader provides what is needed to help the subordinates achieve their main directive and will periodically reward extra effort. This may include offering incentives to the subordinates to achieve extra results, removing obstacles that might hinder their progress, or providing additional support when needed. The key role of the leader is to clarify and set realistic goals and provide a path for their team to follow, providing support when needed until the goal is accomplished.

Authentic Leadership

Authentic Leadership requires leaders to be true to their own values and convictions, being genuine, transparent, and ethical. It means leaders build trust and relationships with their employees by showing authenticity and consistency in their actions, emphasizing self-awareness and authentic relationships.

Relational Leadership Theory

Relational Leadership Theory [RLT] emphases the relationship between leaders and their followers, proposing leadership is a process constructed through social and relational interactions. It suggests leadership is a collective process, not limited to a single leader, and that effective leadership in organizations depends on quality relationships.

Leader-Member Exchange Theory

Leader-Member Exchange Theory suggests the relationship between a leader and a follower is the primary focus of leadership effectiveness. It proposes that leaders use different relationship styles with their followers, which leads to different outcomes and emphasizes building high-quality, trust-based relationships.

 

Conclusion: Finding Your Leadership Path

Whether you're a natural leader (Trait Theory), learning how to act (Behavioral Theory), adjusting to new situations (Contingency Theory), making fair trades (Transactional Theory), or inspiring big dreams (Transformational Theory), there's a leadership style for you.

By understanding these leadership theories, you can craft a leadership style that is thoughtful, inclusive, and responsive. Remember that effective leadership is not about following a fixed formula but rather adapting to the needs of the people and situations around you.