Leadership
Leadership is a multifaceted concept primarily characterized by the ability to organize and motivate individuals towards achieving a common goal. In the business context, effective leadership combines practical skills—such as defining objectives and overcoming obstacles—with emotional intelligence, inspiring team members to see their contributions as part of a larger mission. Historically, perspectives on leadership have evolved from the idea of inherent traits—often thought to be divinely bestowed—to a recognition that leadership qualities can be nurtured and developed.
Various leadership styles have emerged, including authoritarian, democratic, laissez-faire, and transformational leadership, each with distinct approaches to managing teams and decision-making. Authoritarian leaders dictate orders and maintain strict oversight, while democratic leaders promote shared decision-making, fostering engagement among team members. Laissez-faire leaders take a hands-off approach, allowing subordinates significant autonomy, which can sometimes lead to decreased productivity. Transformational leaders focus on personal development, helping followers align their goals with the organization’s mission.
Understanding these styles and the contexts in which they thrive is crucial, as effective leadership often varies based on specific circumstances and the needs of individuals. Overall, contemporary leadership emphasizes adaptability, personal connection, and the capacity to inspire, making it a dynamic topic relevant across various cultural and organizational settings.
Leadership
Abstract
Leadership can be defined in many different ways, but in the business world it consists primarily of the ability to organize and inspire others to work together to accomplish a common goal. This definition contains a practical component—the ability to define objectives, marshal resources, understand obstacles, and take steps to overcome them. It also includes an emotional and intellectual aspect, because a truly effective leader must convey to his or her team that they are part of something bigger than themselves, and that they are engaged in important work that is worth devoting their utmost efforts to.
Overview
Much of the early thinking about leadership, which dates back to the ancient world, was an attempt at finding out what causes a particular individual to excel at leading others. People wanted to understand what it is that is different about leaders and makes them able to command respect and convince others to follow them. Most felt that leadership is not something one can learn or study to acquire; rather, it was seen as an ability that a select few individuals are born with. This type of belief is known as trait-based leadership because it views leadership as a characteristic that one either possesses or does not possess.

This type of thinking about leadership was common in antiquity, in part due to the widespread belief that kings, emperors, nobles, and other rulers held their positions of power because they were descended from or otherwise related to gods and other supernatural beings. This idea was known as the divine right of kings, and it held that rulers have been chosen by the gods to have power over their people and therefore should not be challenged or even questioned, but simply obeyed. This view of kings inspired a similar, though more general, belief about leaders and their abilities. This belief persisted for many years, even after monarchies came to be viewed as secular and fallible institutions.
Trait Theory of Leadership. The trait theory of leadership, however, did not disappear as societies secularized. Instead, it underwent a transformation and took on a different form. Leadership qualities went from being perceived as divinely distributed to being viewed as characteristics, like black hair or blue eyes, that were inherited from previous generations (Kozłowski, 2016). The belief that leadership was something inborn that could not be learned remained intact; all that changed in people’s minds was the source of a person’s leadership qualities.
Further Insights
Trait leadership theory prevailed until the late nineteenth and early twentieth centuries. At that time, there gradually developed a sense among some scholars that while many of the qualities of a leader were inherited, this did not mean that people could not be trained in such a way that their individual leadership capacities would be emphasized and nurtured. To put it another way, it began to seem that while some people are simply better natural leaders than others are, it is still possible to encourage any person to be a better leader than they might otherwise be, bringing out their hidden gifts (Dunne, Aaron, McDowell, Urban & Geho, 2016).
According to the leadership style theory, people who exhibit leadership characteristics tend to have a particular leadership style that is the approach they are most successful with and which they therefore tend to adopt by default when presented with a new situation that demands leadership.
Situational Leadership. Various character building programs were developed, designed to turn average leaders into better leaders. Eventually, the understanding that people could become better leaders through training led to the realization that some leaders were more effective in particular contexts than in others. That is, a person might be a great leader at work, but a poor leader in his or her personal life or family. This became known as the situational theory of leadership, which holds that some people seem to be better leaders in particular situations than others (Garavan, Watson, Carbery & O’Brien, 2016).
According to this situational leadership theory, it is not the case that a person gifted with leadership abilities will express those abilities in every situation. Indeed, were this to happen, the leader would often be unsuccessful. This is because to a large extent, what a leader needs to do in order to be successful depends on the situation. If the situation is a battlefield in the middle of heated combat, then there may be a need for a leader to boldly charge forward and lead the troops to victory. On the other hand, if the situation is a high stakes negotiation taking place in a corporate boardroom, boldness and brashness may be the last thing one should try; it is often the case that patience and subtlety of communication are the essential qualities for a leader to possess in this context (Sinar, 2016).
Another way of describing this situation, in which a person is a more effective leader in certain situations than others, is to think not of the situation itself—describing a person as a battlefield leader, a boardroom leader, or a sports team leader—but to think of the set of leadership behaviors that each of these contexts requires. For example, a battlefield leader might need to possess bravery, decisiveness, intelligence, and cunning. This set of behaviors could then be labeled as a certain kind of style, such as aggressive. Devising leadership styles and categorizing leaders as belonging to this style or that style was the next stage in the development of how people think about leadership.
Laissez-Faire Leadership. Laissez-faire is named for a phrase in French that means, “to let people do as they please.” The phrase is most often heard in the context of economic policy, but when it is used to describe a leadership style, it means that the leader takes a hands off approach and allows subordinates to exercise most of the decision-making power that is required. Because a leader using the laissez-faire style essentially delegates his or her authority to those who report to him or her, this style is also known as delegative leadership. Some who voice support for laissez-faire leadership do so because they feel it is a better option than to have a leader constantly peering over subordinates’ shoulder to monitor performance or offer criticism. Studies show, however, that worker productivity tends to decline when the laissez-faire leadership style is used, because people are required to monitor and motivate themselves for much of the time, and therefore do not push themselves to perform at their highest level (Witt & Stahl, 2016).
Democratic Leadership. Democratic leadership represents a moderated form of laisssez-faire leadership. Democratic leadership is not completely hands off, but it does involve the leader sharing power with followers to a certain extent. Usually this takes the form of shared decision making, with the leader developing a framework through which followers may participate in setting the direction the team will take.
Democratic leaders may include everyone in this process, or they may develop a means of selecting certain individuals to participate. There is some variation in the types of decisions that followers will be allowed to participate in. Most often, followers are asked to decide which strategies will be used to meet a particular goal. Less frequently, followers may be consulted during the goal development process. The idea behind democratic leadership is for followers to have a role in deciding how the team’s work gets done, in the hope that this will encourage them to take a more engaged approach and commit themselves to the success of the organization, instead of doing the bare minimum (Aga, Noorderhaven & Vallejo, 2016).
Authoritarian Leadership. Authoritarian leadership is a style that many employees are familiar with, but few are fond of. A leader with an authoritarian style believes that it is the responsibility of a leader to give orders to subordinates and to then monitor the subordinates to make sure that the order is carried out correctly and on time. This style places little value on people as unique individuals with their own wants and needs, and instead views most members of the organization as little more than small parts in a large organizational machine—parts that can easily be replaced if they do not perform as they are expected to.
Many workplaces follow the authoritarian style, with various levels of success. It is not uncommon for offices with authoritarian leaders to function with a high level of efficiency but to have low levels of employee morale and high rates of turnover, because people do their jobs diligently in order to avoid being chastised or fired, but they leave for different employers as soon as they can (Murnieks, Cardon, Sudek, White & Brooks, 2016).
Paternalistic/Maternalistic Leadership. Somewhat related to the authoritarian style is the paternalistic/maternalistic style. In this style, the relationship between the leader and the subordinates is similar to that between a parent and a child. Because this style places most of the power in the hands of a single individual (the leader), it is similar to the authoritarian style. Where these two styles differ is in the character of the relationship between leader and follower. Whereas authoritarian leadership keeps this interaction formal and professional, paternalistic/maternalistic leadership values a strong bond of affection and respect between leaders and followers, and uses this bond to motivate both parties to do their best for themselves and for one another.
Transactional Leadership. Transactional leadership is very mechanistic compared with the other leadership styles. In this it is somewhat similar to authoritarian leadership, but the difference is that authoritarian leaders motivate by saying “Do it because I said so,” while transactional leaders motivate by offering systems of specific rewards and punishments that will be triggered depending on a person’s level of achievement.
Transactional leadership is based on the assumption that if people know what the expectations are and can easily measure their own performance against those benchmarks, then they will naturally seek to avoid punishment and earn praise. There is not much attention paid to employees as human beings with unique motivations, because the focus is on creating and maintaining a generic system of motivations that will work for all employees, regardless of their personalities or circumstances (Brinck & Tanggaard, 2016).
Transformational Leadership. Transformational leadership is rapidly growing in popularity. The leader who follows this style takes the time to get to know each employee as an individual and to find out what that person’s plans for the future are, so that the leader can help guide and mold the employee into becoming what he or she wants to be. Transformational leaders encourage their subordinates to examine their own strengths and goals in the context of the organization to which they belong to find out if they are on the right path, and if they are not, to make the changes that are necessary to align themselves with their true purpose.
Issues
Much has been said about different leadership styles and theories, but another aspect of the leadership literature is that of what qualities leaders typically possess. There are many different views on this subject, and most tend to focus on stereotypes of leaders as so-called alphas who are loud, opinionated, overbearing, and arrogant. Some of these characterizations may be accurate, while others appear to be motivated at least in part by jealousy on the part of the commentator who is observing the leader, and who may wish to change places with that leader (Fischer et al., 2016).
Less controversial are qualities such as extroversion, meaning that leaders tend to be outgoing and comfortable speaking with other individuals and even giving speeches to groups. Much of a leader’s work consists of interacting with other people to find out what they are doing, if they need help, and so on. Extroverts thrive on this type of interpersonal interaction, so it is little surprise that many leaders are extroverts. Oddly, there are sometimes situations in which a person becomes a de facto leader in a group solely because he or she is an extrovert. The person may be entirely unsuited to leadership in every other respect, but their extroversion thrusts the role upon them.
It is also common for leaders to be optimists rather than pessimists. They tend to look on the bright side of life and assume that there is always a way to move forward, even if circumstances interfere from time to time and make it difficult to see the path. Pessimists, who have a negative outlook on the future and think of problems as insurmountable, often have to devote all of their energy to force themselves to keep moving forward, meaning that they have little left to use in motivating others to cope with adversity. Optimists frequently find that their positive perspective is contagious. Those around them see it, and are heartened by it. This can bring the optimist into a leadership role by virtue of the fact that he or she is a person others rally around and look to for guidance (Hamrin, 2016).
Strong leaders are also often proactive. In the twenty-first-century business landscape, where organizations are often innovating, changing, and subsequently restructuring, it has become especially crucial for those in leadership positions, both high in the business heirarchy and at lower levels, to remain proactive. Some research has found that leaders who are new to a team can better gain their teammembers' confidence and support through a proactive attitude that leads to positive identification (Lam, Lee, Taylor, & Zhao, 2018).
Other experts have noted that in the case of start-up businesses, which have become increasingly common, leaders may have to adapt their approaches as the company changes and grows. Leadership practices used during the early period of the company may not be as effective for balancing employee satisfaction and business advancement in later stages (Hull, 2016).
Terms & Concepts
Authoritarian Leadership Style: A leadership style that is top-down, and based on issuing orders and having them obeyed.
Democratic Leadership Style: A leadership style in which followers are allowed to participate in some decision making.
Laissez-faire Leadership Style: A hands off leadership style in which followers are left to guide themselves and only minimal supervision is provided by the leader.
Situational Leadership Theory: A leadership theory based on the idea that leaders perform more effectively in some situations than in others.
Trait-Based Leadership: A leadership theory that asserts leaders are born rather than made—that is, people become leaders because they naturally have the qualities that a leader needs.
Transformational Leadership Style: A leadership style in which the leader seeks to guide himself or herself and followers to greater self-understanding and more meaningful connections in their personal and professional lives.
Bibliography
Aga, D., Noorderhaven, N., & Vallejo, B. (2016). Transformational leadership and project success: The mediating role of team-building. International Journal of Project Management, 34(5), 806–818. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=114901032&site=ehost-live
Brinck, L., & Tanggaard, L. (2016). Embracing the unpredictable. Leadership, learning, changing practice. Human Resource Development International, 19(5), 374–387. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=117876729&site=ehost-live
Dunne, T. C., Aaron, J. R., McDowell, W. C., Urban, D. J., & Geho, P. R. (2016). The impact of leadership on small business innovativeness. Journal of Business Research, 69(11), 4876–4881. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=117914906&site=ehost-live
Fischer, M. D., Dopson, S., Fitzgerald, L., Bennett, C., Ferlie, E., Ledger, J., & McGivern, G. (2016). Knowledge leadership: Mobilizing management research by becoming the knowledge object. Human Relations, 69(7), 1563–1585. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=116381217&site=ehost-live
Garavan, T., Watson, S., Carbery, R., & O’Brien, F. (2016). The antecedents of leadership development practices in SMEs: The influence of HRM strategy and practice. International Small Business Journal, 34(6), 870–890. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=117704213&site=ehost-live
Hamrin, S. (2016). Communicative leadership and context. Corporate Communications: An International Journal, 21(3), 371–387. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=116979445&site=ehost-live
Hull, J. W. (2016, May 5). How your leadership has to change as your startup scales. Harvard Business Review Digital Articles, 2–5. Retrieved October 17, 2018, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=118686195&site=ehost-live&scope=site
Kozłowski, R. (2016). Different faces of passion in the context of leadership. Management, 20(1), 71–80. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=116100807&site=ehost-live
Lam, W., Lee, C., Taylor, M. S., & Zhao, H. H. (2018). Does proactive personality matter in leadership transitions? Effects of proactive personality on new leader identification and responses to new leaders and their change agendas. Academy of Management Journal, 61(1), 245–263. Retrieved October 17, 2018, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=128057428&site=ehost-live&scope=site
Murnieks, C. Y., Cardon, M. S., Sudek, R., White, T. D., & Brooks, W. T. (2016). Drawn to the fire: The role of passion, tenacity and inspirational leadership in angel investing. Journal of Business Venturing, 31(4), 468–484. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=116188302&site=ehost-live
Sinar, E. F. (2016). Spoiler alert: Leadership secrets of best-in-class companies revealed. Employment Relations Today (Wiley), 43(1), 47–54. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=114515270&site=ehost-live
Witt, M., & Stahl, G. (2016). Foundations of responsible leadership: Asian versus western executive responsibility orientations toward key stakeholders. Journal of Business Ethics, 136(3), 623–638. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=116815985&site=ehost-live
Suggested Reading
Anderson, R. J., & Adams, W. A. (2016). Mastering leadership: An integrated framework for breakthrough performance and extraordinary business results. Hoboken, NJ: John Wiley & Sons.
Fischer, K. J., & Schultz, J. (2016). How does a covenantal approach to developing organizational leadership affect innovation? Journal of Leadership Studies, 10(1), 53–54. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=117041458&site=ehost-live
McLaughlin, L. L., & Ziskin, I. (2016). A cross-functional, cross-organizational model for leadership development. Employment Relations Today (Wiley), 42(4), 5–11. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=112262649&site=ehost-live
Norbom, H. M., & Lopez, P. D. (2016). Leadership and innovation: Informal power and its relationship to innovative culture. Journal of Leadership Studies, 10(1), 18–31. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=117041447&site=ehost-live
Rubens, A., Leah, J., & Schoenfeld, J. (2016). Using biographies to teach leadership skills: A classroom example. Journal of the Academy of Business Education, 17, 116–133. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=117006640&site=ehost-live
Scott Zimmer, JD