Leadership Tools for Managers: The Theory Behind the Practice – Testkings

The relationship between leadership and management has long been a subject of discussion. Many people assume they are the same or use the terms interchangeably, but in practice, they are distinct yet complementary. Leadership is about influencing, motivating, and inspiring people. Management is focused on planning, organizing, and coordinating tasks. For a business to run effectively, especially in today’s rapidly evolving landscape, both skills must be present—and ideally in the same individual.

Managers often rise to their roles based on technical competence or years of experience, but not all of them are natural leaders. This disconnect can become a problem when those managers are expected to lead teams through complex projects, organizational change, or cultural shifts. While leaders create the vision, managers are tasked with executing that vision. However, when a manager can also lead effectively, they serve as a more valuable asset to their organization.

The idea that leadership and management are two sides of the same coin is becoming more widely accepted. Leadership is not confined to top-level executives or visionary founders. It must exist at all levels, including middle and operational management. That is because today’s employees expect more than just instructions—they look for purpose, clarity, recognition, and someone who believes in their potential.

This is where leadership theories come into play. These frameworks offer valuable insights into what makes leadership effective. They give managers tools to understand human behavior, adapt their styles to different team dynamics, and develop strategies to motivate and engage their staff.

Why Managers Need to Think Like Leaders

The business world is changing faster than ever. Remote teams, digital tools, cultural shifts, and global competition all demand managers who can adapt quickly. This adaptation is not only about process and workflow—it also involves human factors like morale, engagement, communication, and vision. That’s why leadership skills are no longer optional for managers.

An effective manager today needs to do more than delegate tasks or hit quarterly numbers. They must inspire trust, empower others, and lead by example. Their influence needs to extend beyond logistics and operations into areas like emotional support, conflict resolution, and strategic thinking. And for that, they need a deep understanding of leadership.

Being a leader also means guiding people through uncertainty. When change happens—whether through a new business direction, a change in structure, or an external crisis—employees look to their managers for guidance. A manager who lacks leadership capability may struggle to communicate effectively, make timely decisions, or maintain team cohesion. Those who have studied leadership theories, on the other hand, will have frameworks to lean on during difficult times.

The Value of Leadership Theories

Leadership theories are not abstract academic ideas. They are practical models based on years of observation, research, and application in real-world settings. They help us answer fundamental questions: What makes a good leader? Is leadership learned or innate? How do circumstances influence leadership behavior?

These theories help break down the complexity of leadership into digestible parts—traits, behaviors, contexts, and relationships. Each theory offers a different lens through which managers can understand themselves and their teams.

For example:

Some theories focus on personality traits—helpful for understanding natural tendencies.
Others focus on behavioral patterns—useful for training and habit-building.
Still others look at how different situations demand different styles—practical for dynamic workplaces.

Understanding these theories helps managers choose the best approach for the situation at hand. It also gives them a vocabulary to communicate their leadership style and understand the styles of others. Just as importantly, it encourages self-reflection and ongoing development—two essentials for any leader aiming to grow.

Leadership and Human Behavior

Effective leadership begins with an understanding of people. All leadership, at its core, is about influence—and you cannot influence effectively without grasping how people think, feel, and act. Leadership theories draw heavily on behavioral science, psychology, and sociology for this reason.

A manager who knows how different people respond to authority, motivation, feedback, and responsibility can create stronger, more aligned teams. They can see early signs of disengagement and act proactively. They can spot potential leaders within their teams and start nurturing their growth.

Some managers might default to a one-size-fits-all approach to leadership, but that rarely works. Different team members have different needs, backgrounds, motivations, and work styles. Leadership theories allow managers to break free from rigid habits and instead tailor their approach based on a deeper understanding of human behavior.

Moreover, this understanding helps managers reflect on their own tendencies. Are they too authoritarian? Too hands-off? Do they prefer routine over risk? These questions, rooted in leadership theory, can drive personal growth and maturity in leadership roles.

Setting the Stage for Leadership Mastery

Before diving into individual leadership theories, it’s essential to recognize that no single theory is a magic bullet. Each has its strengths and limitations. Managers should view them as tools to be used selectively based on context, team composition, and goals.

The seven leadership theories we will explore provide a well-rounded understanding of leadership from multiple perspectives. Each one offers different insights that, when combined, equip managers with the flexibility and judgment required to lead in any environment.

Theories such as Contingency, Situational, Transformational, Transactional, Behavioral, Great Man, and Trait Theory cover a wide spectrum—from learned behaviors to inherent traits, from adaptive methods to structured systems. Together, they form a solid foundation upon which any manager can build their leadership competence.

Contingency Theory of Leadership

Contingency Theory suggests that there is no single best way to lead a team or organization. Instead, the most effective leadership style depends on the specific situation. The core idea is that leadership success is contingent upon a match between the leader’s style and the demands of the situation. Developed by Fred Fiedler, this theory emphasizes the importance of both the leader’s personality and the context in which they operate.

Fiedler introduced two primary styles of leadership: task-oriented and relationship-oriented. Task-oriented leaders focus on getting the job done, maintaining structure, and meeting deadlines. Relationship-oriented leaders prioritize team morale, communication, and personal connection. Neither style is inherently better; each can be more effective depending on the circumstances.

According to Fiedler’s model, three main factors determine the favorableness of a situation:

Leader-member relations: the degree of trust and respect between the leader and the team
Task structure: how clearly the task is defined
Position power: the authority the leader has to direct team members

When all three factors are high—strong relationships, structured tasks, and significant position power—task-oriented leaders tend to perform better. In contrast, when the situation is less favorable or more ambiguous, relationship-oriented leaders often achieve better results by focusing on trust and team cohesion.

For managers, understanding Contingency Theory means recognizing that leadership flexibility isn’t always about changing their own style. Sometimes, it’s about changing the situation—clarifying goals, building trust, or seeking more authority. The theory encourages managers to assess both their strengths and the needs of the environment, then act accordingly.

Managers who rely on this approach often ask themselves key questions before deciding how to lead:

How much authority do I have in this setting?
What is the current relationship dynamic with my team?
Are the goals and tasks clearly defined?

This awareness enables them to adjust their approach, seek support where needed, or delegate to others who may be better suited for a particular situation.

Situational Leadership Theory

Situational Leadership Theory builds on the idea that no one-size-fits-all approach to leadership exists. Developed by Paul Hersey and Ken Blanchard, this model emphasizes that effective leadership depends on the readiness, competence, and commitment of the followers. It introduces a dynamic model where the leader adapts their style to the maturity level of the team members.

Unlike Contingency Theory, which categorizes leadership style as a relatively fixed trait, Situational Leadership suggests that leaders can and should adjust their style based on the development level of their team. Hersey and Blanchard outlined four main leadership styles:

Directing: high directive, low supportive behavior. This style is most effective when followers lack competence but are enthusiastic.
Coaching: high directive, high supportive behavior. Useful when followers have some competence but still need motivation and guidance.
Supporting: low directive, high supportive behavior. Best for team members with competence but lacking confidence or commitment.
Delegating: low directive, low supportive behavior. Ideal for high-performing, confident, and experienced team members.

The model encourages leaders to diagnose the readiness level of their team members across two dimensions:

Competence: the knowledge and skills to perform the task
Commitment: the motivation and confidence to complete it

By aligning their style with the followers’ readiness level, leaders can provide the right balance of support and direction. For instance, a new employee who is eager but inexperienced may need clear guidance and instruction. A seasoned team member, however, may only require occasional check-ins and full autonomy.

Situational Leadership Theory is especially valuable in environments where team dynamics are constantly changing. Project-based teams, cross-functional collaborations, or fast-growing companies often see people at different readiness stages. This theory helps managers develop the flexibility to respond to each individual’s needs while still driving team performance.

Managers can apply this theory by regularly assessing their team members and asking:

What does this person need from me to succeed?
Am I offering too much control or not enough support?
How has their readiness level changed over time?

By continually adjusting their leadership style, managers can accelerate development, improve job satisfaction, and reduce turnover.

Transformational Leadership Theory

Transformational Leadership is one of the most widely researched and applied theories in modern leadership studies. It focuses on how leaders inspire and motivate followers to exceed expectations, embrace change, and realize their full potential. This theory is especially effective in driving innovation, change, and cultural evolution in organizations.

Transformational leaders are characterized by their ability to connect deeply with followers, communicate a compelling vision, and create an environment where people feel empowered and engaged. These leaders go beyond transactional exchanges of rewards for performance. They aim to develop followers into future leaders and promote long-term growth—both personal and organizational.

Bernard Bass, one of the key contributors to the theory, identified four components of transformational leadership:

Idealized influence: leaders act as role models with high ethical standards, gaining admiration and respect
Inspirational motivation: leaders articulate a vision that inspires commitment and optimism
Intellectual stimulation: leaders encourage creativity, questioning, and problem-solving
Individualized consideration: leaders provide personal support and mentorship to each follower

Transformational leaders build trust by demonstrating consistency, authenticity, and empathy. They help team members see their work as part of a greater purpose, often linking tasks to values or broader goals. This emotional connection drives motivation far beyond external rewards.

Managers who practice transformational leadership focus on people first. They invest time in mentoring, recognize individual achievements, and foster a collaborative culture. They’re open to new ideas and encourage constructive feedback, even when it challenges the status quo.

In a business context, this theory is particularly useful for:

Leading through change or uncertainty
Revitalizing underperforming teams
Building strong company culture
Driving innovation and creativity

Managers adopting this approach can reflect on key behaviors:

Am I clearly communicating a compelling vision?
Do I challenge my team to think differently and grow?
Am I recognizing each person’s unique strengths and supporting their development?

By developing these habits, managers can move from simply directing work to truly inspiring and empowering their teams. The result is often higher engagement, increased innovation, and better performance outcomes across the board.

Transactional Leadership Theory

Transactional Leadership Theory is based on a structured, rule-bound system where leaders use rewards and penalties to motivate followers. Often referred to as a managerial style, transactional leadership focuses on maintaining order, increasing efficiency, and achieving performance targets through established procedures. It assumes that people are primarily motivated by extrinsic rewards—such as salary, bonuses, or promotion—and the avoidance of punishment.

This leadership model operates on a clear chain of command and formal authority. Leaders set specific goals, monitor performance, and use standardized systems to evaluate results. In exchange for meeting expectations, followers receive agreed-upon rewards. If they fall short, consequences follow. While this approach may appear rigid, it is highly effective in certain environments, especially those requiring consistency, structure, and compliance.

Transactional leadership involves two key components:

Contingent reward: leaders provide rewards for meeting agreed performance objectives. These rewards are explicitly stated and tied to clear outcomes.
Management-by-exception: leaders intervene only when standards are not met. This can be either passive (responding after mistakes occur) or active (closely monitoring performance to prevent errors).

This theory is commonly applied in industries where processes must be followed meticulously, such as manufacturing, logistics, finance, and law enforcement. It is also useful in project management environments where tasks are time-sensitive and closely monitored.

One of the main strengths of transactional leadership is its focus on clarity. Team members know what is expected, how their performance will be measured, and what they will receive in return. This predictability can boost short-term performance and reduce confusion or conflict. However, it may not encourage innovation or long-term personal development.

For managers, adopting a transactional approach may be appropriate when:

Team members are new and require strict guidelines
Tasks are repetitive, time-sensitive, or highly regulated
Performance must be measured and incentivized clearly

To use this model effectively, managers should ask themselves:

Are expectations and consequences clearly communicated?
Are performance metrics objective and fair?
Is the system encouraging the right kind of behaviors?

While transactional leadership is often contrasted with transformational leadership, the two are not mutually exclusive. Many effective leaders use elements of both, depending on the context and goals of their organization.

Behavioral Theory of Leadership

Behavioral Theory shifts the focus from inherent traits or situational factors to what leaders actually do—their actions, decisions, and communication patterns. Unlike earlier theories that suggested leadership was about being born with certain qualities, Behavioral Theory argues that leadership can be learned and developed through practice.

This perspective emerged in the mid-20th century, with researchers aiming to identify patterns in leadership behavior that lead to success. One of the foundational studies in this area came from the Ohio State University and the University of Michigan. These studies categorized leadership behaviors into two primary dimensions:

Task-oriented behaviors: leaders focus on setting goals, defining roles, and ensuring productivity
Relationship-oriented behaviors: leaders build trust, promote collaboration, and support individual team members

These two types of behavior are not mutually exclusive. In fact, the most effective leaders often demonstrate a balanced approach, adapting their behavior based on what the team needs at a given moment. For example, in times of crisis, a task-oriented approach may be necessary to regain focus. In contrast, during team-building or creative phases, relationship-oriented behaviors may take precedence.

A significant contribution of Behavioral Theory is the idea that leadership can be developed through education, feedback, and self-awareness. Managers can study their own behavior, observe the impact on team dynamics, and make conscious changes to improve their leadership effectiveness.

This theory also underpins many modern leadership development programs, which focus on developing specific competencies such as active listening, clear communication, conflict resolution, and performance coaching. Behavioral Theory encourages managers to continuously refine how they act, not just what they believe or how they feel.

Managers applying this theory can reflect on questions like:

How often do I check in with my team on both tasks and morale?
Do I adjust my communication style based on individual needs?
Am I balancing structure and support appropriately?

By developing both task and relationship behaviors, managers become more versatile and capable of responding to diverse team dynamics. This adaptability is a hallmark of effective leadership.

Great Man Theory of Leadership

The Great Man Theory is one of the earliest explanations of leadership and remains one of the most widely referenced, even if largely outdated in practice. It posits that leaders are born, not made—that certain individuals possess innate qualities that make them natural leaders. This theory is rooted in historical narratives that celebrate influential figures like military generals, political rulers, or corporate founders as inherently gifted individuals who rise to leadership through destiny or extraordinary ability.

According to this theory, traits such as charisma, intelligence, courage, and decisiveness are fixed and distinguish leaders from others. In this view, leadership is less about behavior or context and more about who the person is at their core. There is an emphasis on greatness as a rare, almost mythical quality that cannot be taught or replicated.

While the Great Man Theory has historical value and cultural appeal, it has been largely dismissed in contemporary leadership thinking. It offers little practical guidance for developing leadership skills and may discourage people from striving to improve, under the belief that leadership cannot be learned.

That said, the theory still influences how leadership is perceived in some environments. Charismatic leaders are often celebrated in the media, and their success is frequently attributed to personality rather than effort, learning, or team support. In some cases, organizations still recruit based on perceived “natural leadership” potential, which may inadvertently reinforce this outdated perspective.

For modern managers, understanding the Great Man Theory is useful primarily as a contrast to more flexible and inclusive leadership models. It raises important questions about how society recognizes and rewards leadership and challenges managers to think more critically about what true leadership looks like.

When managers reflect on this theory, they can ask themselves:

Do I believe leadership is something I can develop?
Am I overlooking potential leaders who don’t fit a certain image?
How can I foster leadership qualities in myself and others?

Rejecting the limitations of the Great Man Theory can open the door to a more empowering approach—one that sees leadership as a skill, not a birthright.

Trait Theory of Leadership

Trait Theory is one of the foundational concepts in leadership studies. Like the Great Man Theory, it is based on the idea that certain individuals possess qualities that predispose them to be effective leaders. However, unlike the Great Man Theory—which views these traits as rare and possibly divine—Trait Theory is grounded in observable and measurable characteristics that can be studied across a broader population.

Trait theorists believe that by identifying the common traits shared by successful leaders, it is possible to predict leadership potential in others. These traits often include intelligence, self-confidence, determination, integrity, and sociability. The theory implies that individuals with a particular combination of traits are more likely to be effective leaders, regardless of the context or situation.

Over time, researchers have developed extensive lists of traits that may contribute to leadership success. While no single list has gained universal acceptance, some traits consistently appear across studies:

drive and ambition
emotional stability
willingness to accept responsibility
creativity and problem-solving ability
interpersonal and communication skills

A strength of Trait Theory is its focus on personal attributes. This makes it easy to relate to, especially for managers trying to assess their own leadership potential or that of team members. The idea that leadership qualities can be identified and cultivated is encouraging for those aiming to grow.

However, the theory has limitations. It often fails to account for context—someone with excellent traits may still struggle in a mismatched environment. It also does not explain how or why these traits influence performance or how they interact with follower behavior. Furthermore, focusing solely on traits may lead to biased decisions in hiring or promotions, as subjective judgments about personality can be influenced by unconscious stereotypes.

For managers, the takeaway from Trait Theory is to be self-aware and reflective. By identifying their own strengths and weaknesses, they can focus on developing traits that support their leadership goals. Additionally, it encourages recognizing potential leaders based on observable attributes and supporting their development through training, mentoring, and experience.

Questions for application may include:
which leadership traits come naturally to me?
which traits can I strengthen to become more effective?
how do I assess and support the traits of potential leaders on my team?

Trait Theory remains relevant as a tool for self-assessment and talent development, even if it must be used alongside more dynamic leadership models.

Comparing the Seven Major Leadership Theories

Each leadership theory we have explored offers unique insights, and each can be valuable in different organizational situations. Understanding how they compare helps managers decide when and how to apply them effectively.

Contingency Theory emphasizes the importance of matching leadership style with situational variables. It is useful for managers who need to adapt based on external conditions and team dynamics. This theory highlights the need for flexibility and diagnostic skills.

Situational Leadership Theory focuses on the maturity and readiness of followers. It encourages managers to adjust their directive and supportive behaviors depending on each employee’s level of competence and commitment. It’s especially practical for coaching, training, and team development.

Transformational Leadership centers on inspiring and motivating followers to exceed expectations. It involves a strong vision, emotional connection, and long-term focus on growth. It is best suited for environments that value innovation, cultural development, or significant organizational change.

Transactional Leadership is built on clear structures, rewards, and penalties. It’s highly effective in rule-based or performance-driven environments where consistency and accountability are critical. This theory helps managers drive performance through formal systems and metrics.

Behavioral Theory identifies what leaders do rather than who they are or what situation they are in. It suggests that effective leadership behaviors can be learned and refined. This theory supports training and development initiatives and provides a roadmap for daily leadership practice.

Great Man Theory views leadership as an innate quality, often romanticizing charismatic figures. While largely outdated, it still influences how leadership is portrayed in culture. For managers, this theory serves more as a cautionary tale about making assumptions and overlooking the value of development.

Trait Theory focuses on identifying personality traits common among effective leaders. It provides a useful framework for self-reflection and leadership assessment, although it lacks the adaptability of other models. Managers can use it to guide personal growth and team development.

Each theory offers a piece of the puzzle. When combined, they form a more complete understanding of leadership and provide a well-rounded toolkit for managers in diverse roles and industries.

Integrating Leadership Theories into Managerial Practice

Understanding leadership theories is just the beginning. To become effective leaders, managers must apply this knowledge intentionally and consistently in their day-to-day work. The first step is self-awareness. Managers need to know their strengths, weaknesses, values, and default styles. This helps them decide which theories or approaches align best with their personal leadership journey.

The next step is understanding their team. Just as leadership is not one-size-fits-all, neither is followership. Some employees respond well to structure and rewards, others to autonomy and inspiration. Managers should evaluate team members’ needs, motivations, and behaviors regularly. Leadership is relational, not transactional, and success often depends on how well a manager can adjust their approach to build strong, trusting relationships.

Managers can begin integrating leadership theories by:

practicing flexibility: adapting their style depending on the situation and individual team members
creating a feedback loop: inviting regular feedback and being open to making changes
focusing on both task and people: balancing the need to achieve goals with the need to support and develop people
investing in continuous learning: attending workshops, reading leadership literature, and observing successful leaders
leading by example: embodying the values and behaviors they want to see in their teams

Real-world leadership also involves making tough decisions, handling conflict, and maintaining focus under pressure. The more prepared a manager is with theoretical knowledge, the better equipped they are to act with clarity and confidence.

Leadership is not reserved for the few; it is a skill that can be cultivated by anyone committed to growth and impact. The theories explored—Contingency, Situational, Transformational, Transactional, Behavioral, Great Man, and Trait—offer diverse lenses through which leadership can be understood and practiced. Rather than choosing one as the best, managers should aim to learn from each and apply them contextually.

As organizations grow more complex and the workplace becomes more diverse, the demand for adaptable, thoughtful, and principled leadership will only increase. Managers who study these theories are not just building academic knowledge—they are preparing themselves to face real-world challenges with insight, compassion, and strategic clarity.

By developing a leadership philosophy rooted in both theory and experience, managers position themselves to create lasting impact—for their teams, their organizations, and their own careers.

Final Thoughts

By developing a leadership philosophy rooted in both theory and experience, managers position themselves to create lasting impact for their teams, their organizations, and their own careers.