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Nearly all leadership theory pinpoints some main key terms that are common to all effective leaders. For instance, all leaders must have emotional intelligence and this means understanding how persons behave and react on an emotional level. Self-regulation is another important trait of leaders, which is a leader's ability to think things through before acting. Similar to this is also self-awareness, or a leader's understanding of his or her abilities and limitations. Other key leadership traits include:
1. Leadership theories in business stress social skills or the ability to build rapport quickly.
2. Empathy or the ability to see another point of view is also essential for leaders.
3. Motivation is also a necessary means for leaders to create action.
Action Steps
The best contacts and resources to help you get it done
Understand how modern leadership theory works overall
Before choosing a leadership theory to apply to your company's practices, gain an understanding of the general knowledge and concepts that all leadership theories use. Doing this will allow you to have a better, more in depth understanding of a specific theory and leadership theory key terms is an important aspect of this understanding.
I recommend: North Georgia College and State University has a quick and easy to read overview of leadership theory, including definitions of some related key terms. Money-Zine.com also has a good overview, but offers a more detailed look at some of the most popular theories and some related key term definitions.
Choose a theory of leadership that is best for your business
Once you have an idea of what leadership theory is all about, assess your leadership needs and then pick a leadership theory that best suits those needs. Do this by learning more about specific theories and the key terms required to understand these theories.
I recommend: Syque’s Changing Minds website has a comprehensive list of leadership theories and a ton of information on each and detailed descriptions to help you understand all the terms. Pearson Education has a handy outline of several different theories and criteria terms for each.
Find more information about leadership and management theory
Consider buying books or other media for yourself, your management staff or any employer who would benefit from greater leadership skills.
I recommend: Simon & Schuster sells a book by Bernard M. Bass and Ruth Bass that details specific ways to implement and reinforce leadership theory in business. The book includes concepts and key definitions regarding leadership. Onepine also sells a book that focuses solely on leadership skills for managers and the site offers some definitions of what certain theories are.
Tips & Tactics
Helpful advice for making the most of this Guide
- • If you have a business that deals heavily with cross cultural differences, it is important to keep in mind that even most modern day leadership theories are of North America origin, and unfortunately do not account for such differences.
Leadership theorists have identified what makes an effective leader and what leadership styles work best in certain situations. Some of the most well-known theories of leadership are:
- Situational leadership theory
- Transactional leadership
- Transformational leadership
- Trait theory of leadership
- Great events theory of leadership
Action Steps
The best contacts and resources to help you get it done
Choose the right leadership theory for you
There's a theory of leadership suited to every personality, situation and corporate culture. Understanding popular business leadership theories, such as situational leadership theory, transformation theory and transactional theory, helps you determine which is suited to your needs. Then, you can begin developing your leadership skills.
I recommend: Take a Leadership Seminar through the American Management Association to get the basics of leadership theory. Check out Mindtools' Career Coaching or take their How to Lead self-study program.
Choose a theory of leadership by assessing your current leadership style
Knowing how you currently lead can help you determine strengths and weaknesses in your leadership style, and what practices you should keep or discard. It can help you determine which style is best suited to your personality, and if your personality is naturally inclined toward leadership. By looking to leadership theorists, you can also learn what motivates you to lead. Is it a desire to effect significant change, or an interest in leading your staff toward achieving their highest potential?
I recommend: Identify your instinctive leadership style with the web-based test at Your Leadership Legacy, and determine whether you're a natural leader through the Leadership Self Test at Schuler Solutions.
Learn about leadership and management theory through a seminar, course or workshop
Books and websites are a great way to get started learning about business leadership theories, but for more intensive training, you may want to consider a seminar or workshop. You can learn directly from leadership experts, and you can bring the training to your company, helping strengthen the skills of your current leaders, and develop the skills of your potential leaders.
I recommend: Legacee offers training in transformational leadership, and OptimalThinking offers leadership workshops for executives, small business owners or entrepreneurs, and employees who want to develop their leadership potential.
Tips & Tactics
Helpful advice for making the most of this Guide
- • Effective leadership requires the trust of those you lead. In addition to learning how to inspire or manage your employees, also focus on your communication skills. Your staff needs to understand how you lead and what is expected of them, or they won't feel valued and involved. By sharing with them your vision and strategy's future, you can enlist them as willing and enthusiastic participants in your mission.
There are many different theories of leadership to choose from. A wise person can analyze a particular office environment and decide which leadership theory is the right one to use. Obviously, this varies from company to company. What may work very well for one company, may fail at another.
You may want to get leadership theory education and training in order to:
1. Adjust your style from company to company. If you want to change jobs, you'll find that you're better able to change companies when you understand the business leadership theories that the new company operates under.
2. Improve your skills as a leader. Most leadership theorists have at least one thing that you can take and apply to your day. This adds up to making you a better leader.
3. Adjust your style for your employees. Different types of people prefer different types of leadership. Knowing a variety of leadership theories helps you to fit your leadership to your employees' needs.
Action Steps
The best contacts and resources to help you get it done
Research modern leadership theory online
You don't need to go far to learn about business leadership theory. In fact, there are a number of online resources that may just give you the information that you need.
I recommend: ChangingMinds.org has easy-to-understand explanations of a variety of modern leadership theories. Free Management Library also discusses leadership theory. These sites should help you to gain a basic understanding so that you can decide where to research further.
Study theory of leadership in college to stand out
A college degree in psychology or business will help you to understand leadership and management theory. Whether you get a Bachelor's Degree or an MBA, having that degree will also help you to gain employment.
I recommend: BusinessWeek lists the top business schools in the country. However, you can look for schools in your area or online through BusinessSchools.com.
Attend short seminars on leadership theory in management to get ahead
For people that don't have the time to attend college full-time, seminars and workshops are a great alternative. You can learn skills that will improve your career in a matter of days.
I recommend: The Center for Leadership Studies focuses on situational leadership theory and offers a number of workshops. The Center for Management and Organization Effectiveness offers workshops that will help you to learn business leadership theory.
Tips & Tactics
Helpful advice for making the most of this Guide
- • Purchase a small library of books by famous leadership theorists such as Weber and Covey. You can then use these as a reference whenever you need some additional help.
- • Check to see if your company will cover the cost of leadership theory education and training. Many companies have a special fund to pay for this type of training.


