Organizational leadership theory defines how an entity is governed through an individual who dedicates their life to its functioning. Trait, behavioral, and participatory theories are common types, with owners, managers, and board members setting the tone. Trait theory focuses on the characteristics needed to be a great leader, while behavioral theory suggests that an organization acts based on the behavior of its leaders. Participatory theory allows for more input into how leaders govern the entity.
Organizational leadership theory is a concept that defines how an entity governs itself through that individual who dedicates their life to its functioning. In some cases, it can be argued that organizational leadership is simply an extension of individual leadership traits or styles. Most often, this is true because an organization is simply a legal entity that has no morals or internal beliefs to guide it, save for the people who work for and believe in the organization. Common types of organizational leadership theory include trait, behavior, and participation theories, although many other theories may exist. Owners, managers, and board members are typically those individuals who set the tone for organizational leadership.
Trait leadership theory surrounds itself with the characteristics or traits needed to be a great leader. Unfortunately, there is no set list of traits that simply define a great leader, although several traits overlap with those individuals who are called great leaders. Some common traits include charisma, negotiation skills, and strength of character along with moral orientation and communication skills, among others. Through skill, a leader infuses an organization with his leadership style and belief system. Thus, organizational leadership theory of traits can vary as any leader has and uses a set of skills for their immediate environment.
Behavioral organizational leadership theory is slightly different from trait leadership theory. According to this theory, an organization acts in a way based on the behavior of the people who work in it. For example, a company may be ruthless in its actions and focus only on profits if that is how the leader – owners, executives or board members – acts and believes. All employees typically act in the same way they see this behavior as normal, regardless of what society at large believes or defines how a business should act. Again, there is no single answer for organizational leadership theory here as well.
Participatory organizational leadership theory is a bit more involved than other types. In this style, an organization allows for more input into how leaders choose to operate and govern the entity. Both internal and external sources can be used in creating a theory of global leadership. In some cases, this allows an entity to infuse itself with society’s morals or beliefs, thereby naturally allowing it to be more accepted as an organization. This theory is dangerous, however, as less guidance may be possible in terms of allowing too many individual beliefs to guide the actions of the organization.
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