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The Great Man theory claims that some men are naturally born to be great leaders. This theory based its findings on leader characteristics by studying great leaders of the past. Meanwhile, the Trait theory observes general characteristics of great leaders and studies how these traits are significant contributing factors to effective leadership. This theory assumes that people with the right combination of traits are bound to be good leaders.

Behavioural Theories

In contrast to the Great Man theory, behavioural theories concentrate on the development of leadership skills in specific situations. For instance, the studies of role theory illustrate the effects of social learning on our roles and the role of other people in certain situations. Another behavioural theory called the Managerial Grid theory examines how the leader's concern for subordinates relates to efficiency and productivity.

Participative Leadership Theories

Participative leadership theories proclaim that the participation of team members when making decision is important. Based on these theories, participation of team members in decision making process results in greater understanding of issues and ownership of the decisions that have been made.

Situational Leadership and Contingency Theories

According to situational leadership theories, the style of leadership should suit particular situations. These theories analyse the structure of organisations as well as employees' capabilities, motivations and internal relationships with superiors. Similarly, contingency theories also study styles of leadership in specific situations but greater emphasis is placed on leadership capabilities and nature of organisations.

Transactional Leadership Theories

Transactional leadership theories study the effects of reward and punishment system on people's behaviour. These theories proclaim that leaders can psychologically control the performance of employees by rewarding those who complete their task and punishing those who do not finish their work without considering factors which hamper their performance. The target of the reward and punishment system is to correct areas which malfunction in an organisation.

Transformational Leadership Theories

Transformational leadership theories analyse how followers are inspired by leaders. These theories emphasize on building a team's passion and enthusiasm. They also take a closer look at how leaders manage to create a vision for an organisation, get the employees to accept the vision and then execute the vision as directed.

Leadership Styles and Approaches

As a result of different leadership theories, a variety of leadership styles have been observed and identified.

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