Leadership Theories Pros and Cons

Leadership theories in management, have evolved over time into various types, with their own lines of thought. Each theory provides a model of effectively steering an organization. This article discusses leadership theories - pros and cons and makes a comparison between the ones applied in managing businesses. This includes the three basic theories of business leadership. There exist many more specialized theories that have evolved from the basic principles of these three ones, which blend leadership and management in to a coherent whole.

Leadership Theories: Pros and Cons - Transactional Leadership
The transactional leadership theory is one, which is most widespread and commonly used in most organizations. It is based on transactions or deals made between an employee and an organization or between followers and leaders. A transactional leadership is based on a military like clear chain of command with a 'Carrot and Stick' philosophy. In short, it is a proven method of running an organization wherein, through reward and punishment, things get done! If one is familiar with Maslov's hierarchy of needs, then one will understand that this transactional leadership theory will work on people, whose needs in the bottom half of the pyramid (food, shelter, security), are not satisfied. The basic assumptions of transactional leadership are the following:

• Rewards and punishment are the things that motivate people.
• A clear chain of command works best in running an organization
• Once employees agree to do a job, they are entirely in the hands of a manager. That is, they cede complete authority to the manager.
• Once they cede complete authority to a manager, employees must do as told. An employee must comply to the work demands of the management, in return for which he is adequately rewarded monetarily.

Pros: This method works in most of the cases, where it's applied, provided the employees are motivated by rewards. It is a proven compliance strategy, which works best if the top most leader in the hierarchy is capable of making most of the important decisions and is a strong personality.

Cons: A powerful and assertive leader will find the transactional model conducive to his way of running things. However, though he will create great followers, he will stunt their growth as leaders. When people get used to doing just what they are told and only as much they are told, they stop thinking 'out of the box'. Original thinking is not really promoted in this system, because of which, an obedient workforce will be created with a lack of imagination. New leaders will be tough to find from the lower strata of power hierarchy. This leadership model will create a stressful work environment. Productivity will be maintained but innovations and breakthroughs will be tough to find.

Leadership Theories: Pros and Cons - Transformational Leadership
Before we go into transformational leadership - pros and cons, let us get the basic ideas of this theory. Transformational leadership is a more humane leadership theory, as compared to the militaristic transactional theory. It believes in inspiring employees to do great work through example and the force of a leader's personality. This theory believes that people rise higher through positive motivation, than negative motivation. It is a leadership theory which appeals to the higher need of an individual in the Maslov's hierarchy of needs, which is self-actualization! The basic assumptions of transformational leadership theory are the following:

• The prime assumption is, that people will willingly follow a leader who inspires them.
• The vision and passion of one man can transform his followers and together they can achieve great things.
• Energy and enthusiasm are the tonics that get things done.

Pros: This effective leadership model will create an enthusiastic work atmosphere and it will drive the organization with innovations. The fact that people are working through self motivation, will certainly guarantee higher output and efficiency. It will naturally develop future leaders from the lot of followers. People will work for the leader, even if the monetary and other benefits offered are lesser, as they will be inspired by his vision.

Cons: This theory is totally based on the ability of the leader, to inspire the work force to put their best in. Leaders of organizations may not have the force of character to achieve that.

Leadership Theories: Pros and Cons - Situational Leadership
This is a leadership theory which says that neither a transactional leadership model, nor a transformational model of leadership will work in all situations and all the time. The philosophy of a leader should be flexible enough to adapt to situations and changing times. We need a mixture of transactional and transformational leadership techniques to get the job done. The basic idea behind situational leadership theory is that one must adapt strategy with changing conditions!

Pros: The situational leadership model adopts the best from the transactional and transformational models and so, is better suited for a world which constantly puts new leadership challenges. There may be some followers on whom the transactional theory will work and some who could be motivated by transformational theory methods. A mixture of both techniques will work better.

Cons: With constantly changing strategies with time, a leader will find it difficult to implement new strategies on the go. A long term vision may elude him due to constant changes.

The leadership theories - pros and cons discussed here, are based on research carried out by management think tanks all over the world. Hope, the pros and cons of leadership theories discussed here, have illuminated the merits and demerits of each one of these leadership theories. The leadership styles - pros and cons must be studied by every individual, who dreams of building an organization and leading people.