Overview of Leadership Theories

Overview of Leadership Theories

• Focuses on the evolution of leadership theories as well as contemporary and emerging approaches.
• Includes Level 5 leadership, rockstar vs. humble CEO comparisons, and AI-augmented leadership.

Leadership Theories

• Great Man Theory (1840): Leadership is genetically inherited; leaders are born, not made. Associated with Thomas Carlyle and Galton.
• Leaders shape their nation according to their abilities and are intelligent, energetic, and superior to followers.
• Trait Theory (1930-1940): Leaders possess a permanent set of individual qualities, like courage, intelligence and empathy, which can be acquired. Stogdill is associated with this theory (1940).
• Limitations of Trait theory involve a lack of universally accepted traits and the fact that not all leaders have all traits.
• Behavioral Theory (1950): Examines leader-follower relationships and leadership styles.
• University of Iowa studies identified autocratic, democratic, and laissez-faire styles.
• University of Michigan studies identified employee-oriented and task-oriented leadership.
• Contingency and Situational Theory (1960): Leadership adapts to the situation. The Hersey-Blanchard Theory is associated with this.
• Interaction/Expectation Theory (1967): Includes McGregor's Theory X & Theory Y.
• Contemporary/Integrative Theory (Late 1970s): Focuses on transactional, transformational and charismatic leadership.
• Emerging Approaches: Includes strategic, cross-cultural, Level 5, servant, and bureaucratic leadership.
• AI-Augmented Leadership is also an emerging leadership theory.

Behavioral Theory Styles

• Autocratic: The leader is the sole authority who expects compliance and controls outcomes.
• Democratic: The leader allows team input, encourages participation, and acts as a guide.
• Laissez-Faire (Free Rein): The leader allows freedom in decision-making with minimal interference; offers support.

Autocratic Leadership

• Advantages: Enables quick decisions and suits less competent employees.
• Disadvantages: Can cause a lack of spirit, commitment, and limited skill development for subordinates.

Democratic Leadership

• Advantages: Highly motivating, increases job satisfaction and productivity, and helps develop leadership skills.
• Disadvantages: Is less effective when quick decisions are needed or when employees are less skilled.

Laissez-faire leadership

• Advantages: It is suitable where close oversight isn't required and helps in developing skills, plus quicker decision making.
• Disadvantages: Lacks leader input, may not yield the best results if employees are less skilled, and could damage followers' motivation.

Managerial/Leadership Grid (Blake-Moulton)

• Concern for People: The extent to which a leader considers team member needs and development.
• Concern for Task/Production: The degree to which a leader emphasizes objectives and productivity.

Situational/Contingency Theory (Hersey-Blanchard)

• Leadership behavior depends on the capability and motivation of followers.
• Capability Indicators: Previous experience, training, task understanding, and role awareness.
• Motivation Indicators: Confidence, responsibility, wish to accomplish tasks, and incentives.

Theory X & Y

• Theory X (Authoritarian): Assumes employees dislike work, leading to strict control.
• Theory Y (Participative): Assumes employees enjoy work, promoting empowerment.
• Theory X relies on extrinsic motivation (punishment/reward), while Theory Y relies on intrinsic motiviation (growth/fulfilment).

Contemporary Approaches to Leadership

• Transactional Leadership: Focuses on short-term goals, rewards, and structure.
• Transformational Leadership: Focuses on long-term vision, change, and inspiring motivation.

Emerging Approaches to Leadership

• Cross-Cultural Leadership: Adapts to diverse cultural backgrounds, ensuring inclusivity, for example, a multinational company CEO.
• Servant Leadership: Puts employees' and society's needs first for growth, for example, Sir Fazle Hasan Abed (BRAC).
• Bureaucratic Leadership: Follows strict rules and hierarchy for efficiency, for example, government bank executives.
• Strategic Leadership: Focuses on long-term vision, adaptability, and aligning goals, for example, leadership at BEXIMCO.

Level 4 vs Level 5 Leadership

• Level 4 (Rock-star CEO): Concerned with personal image, not succession; blames others for failures; and imposes their vision.
• Level 5 (Humble CEO): Concerned for the company's image, having a succession plan; takes responsibility; facilitates discussion.

AI-Augmented Leadership

• The practice of enhancing leadership with AI technologies for better decision-making and productivity.
• AI acts as a co-pilot, providing insights and automating tasks rather than replacing human leaders.
• AI enhances awareness by improving perceptual abilities of the mind.
• AI enhances wisdom by assisting leaders in making informed decisions and problem solving.
• AI promotes compassion by supporting empathy and compassion in leadership interactions.
• Core Benefits:
  • Enhanced Decision-Making: AI provides data-driven insights, to help leaders make informed decisions.
  • Operational Efficiency: AI's automation of repetitive tasks allows leaders to focus on strategy and innovation.
  • Personalization: Improves engagement and productivity, as AI tailors leadership approaches to individual team needs.
  • Future-Readiness: AI allows leaders to anticipate trends, disruptions, and opportunities through predictive analytics.