Seven Leadership Theories You Might Not Know Of

EZRA
Mar 22 2023 | Insights
Two men sitting at a desk with a laptop between them

The way we think about work, our professional lives, and collaboration has changed, and continues to change, making leadership a flexible and developmental progress.


The behavioural theory of leadership, also known as the style theory, focuses on actions rather than the traits of leaders. The theory is built on the idea that no single, particular style of leadership is effective in a given situation, but there are actions effective leaders take that improve leadership effectiveness.

These are task behaviours and relationship behaviours.

One example of a task behaviour that would display leadership effectiveness is efficient delegation.

A relationship behaviour that would be shown by an effective leader may be the encouragement of communication.

The Behavioral theory suggests that employing particular behaviours in a given situation is what makes a great leader.

Transformational Leadership

Picture this. You’re working in a group to come up with a solution to a problem you have been tasked to solve. One individual takes charge, identifying what the group’s goals are, what path you could take to achieve those goals, who could do what to affiliate this path. Ideas are then thrown around in the group, and you feel inspired and motivated to solve the problem. That individual might be described as a transformational leader.

Transformational leadership is a leadership theory based on inspiring positive change.

Some typical characteristics of a transformational leader include:

  • Active listening skills

  • Emotional intelligence

  • The ability to encourage others to collaborate and communicate.

  • Inspiring and self-aware

There are ways of acquiring these skills and characteristics, it’s not an innate theory of leadership. With a leadership coach, becoming a transformational leader can be easily achieved through growth and development.

Transactional Leadership

As the name suggests, transactional leadership theory is based on the idea that effective leadership comes from utilising rewards and punishments in order to motivate a team.

This theory is based on the idea that a leader should be clear, and a chain of command should be transparent and known. Monitoring should be in place to ensure employees are hitting expectations and in order to get these expectations hit, reinforcements are made.

Although it sounds authoritarian, this leadership theory is often used in everyday business. If employees do well, they are commonly rewarded with bonuses, pay-rises, or awards. If employees underperform, they are more closely monitored, they do not receive rewards, and at times even fired. This is the very basic beginnings of a motivational system.

Laissez Faire Theory

‘Let it be’.

This theory suggests that the most effective leaders are those that have a ‘hands-off’ approach. They leave things to take their own course and frown upon micromanagement. These leaders are delegative and allow employees and team members to complete tasks in their own way.

This leadership style is often referred to as the most laid-back approach, and gives team members autonomy over workflows, strategy, and more.

It is used to instil a sense of self-motivation and build a self-sufficient workforce.

However, it can be criticised, as some suggest that this actually leads to ineffective leadership as employees become detached, demotivated, and unproductive when they perceive a leader as disengaged.


It’s safe to say that effective leadership can’t be defined by one specific type of leadership theory, especially in the current fast-paced, ever-changing, and unpredictable world. Other external factors play their part, and reacting to that or taking different approaches in different situations is likely going to lead to far more success for leaders.


Leadership theories are important for understanding the multiple approaches leaders may adopt, spanning from transactional to transformational models. This understanding not only helps you broaden your knowledge but also empowers you to tailor your leadership style to suit various situations and contexts. By exploring these theories, you gain insights into effective strategies and techniques improving your capacity to inspire and guide others towards shared goals.

In order to understand theories of leadership more, and how you can grow and develop the leadership skills within your organisation, EZRA’s expert coaches can help you navigate the approaches to leadership, help you set and manage goals in developing leadership skills, and help your organisation thrive under good, effective leaders – all with your own work environment, style, and goals in mind.

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