Table 3. Eight major theories of leadership109 Participative theory
• Assumptions: - Involvement in decision-making improves the understanding of issues by those who must act on decisions - People are more committed to actions where they have been involved in decision-making; when people make decisions together, social commitment is greater, thereby increasing commitment to decision and task - People are less competitive and more collaborative when working towards shared goals - ‘More heads are better than one’ when it comes to decision-making • Participative theories posit that the ‘ideal’ leadership style is one that takes input of others into account • Leaders encourage participation and contributions from group members; help group members feel more relevant and committed to decision-making process – but leader does retain the right to allow the input of others.
Transactional theory
• Assumptions: - People are motivated by reward and punishment - Social systems work best with a clear chain of command – stress on contracts and authority • Also known as ‘Management/Managerial theories’ – often used in business • Focus on role of supervision, organisation and group performance • Transactional leader works through creating clear structures whereby it is clear what is required of subordinates, and rewards they get by following orders • Leadership based on system of reward and punishment – whereby reward or punishment are contingent on performance • Limitations: assumption of ‘rational man’ – a person who is motivated by reward and punishment, and behaviour predictable.
Transformational theory
• Assumptions: - People will follow a person who inspires them; a person with a vision can achieve great things - People can be motivated by a leader who injects them with enthusiasm and energy • Also known as ‘Relationship theories’ • Focus on connections formed between leaders and followers • Transformational leaders: - Motivate and inspire people by helping group members see the importance of the higher good of the task; leadership involves developing and ‘selling’ a vision - Focus both on performance of group members, but also on helping each member realise his/her potential - Are often charismatic, and embody high ethical and moral standards, and seek to transform.
Appendix B - Theories of Leadership | 61