1
Comparative Analysis of Business Leadership Theories
Student’s Name
Institutional Affiliation
Course
Professor’s Name
Date
2
Introduction
Business leadership is a very important topic to learn about. This has led to the
development of different theories that give unique views on how to be a good leader. This essay
focuses on exploring, comparing, and critically analyzing three significant leadership theories:
Transformational Leadership, Servant Leadership, and Situational Leadership are different kinds
of ways to be a good leader. These theories are picked because they have made a big difference
in the study of leadership and use different ways. The study includes a close study of each
theory's past, growth and main features (Deshwal & Ali, 2020). The essay wants to show both
alike and different parts of these theories by following where they came from and how they
changed. This side-by-side look tries to give a clearer picture of how each idea can be used in
business. It stresses their importance and usefulness in shaping a company's culture and
success. The aim is to combine all these theories into a big view. This will show that they are all
important for both studying in school and running a business well.
Overview of Leadership Theories
Transformational Leadership
Leadership that changes things is all about encouraging and getting others to do better for
their team and company. Pioneered by James MacGregor Burns and later expanded by Bernard
M. Bass, this theory is underpinned by four key components: Idealized Influence, Inspirational
Motivation, Intellectual Stimulation, and Individualized Consideration (Wolor et al.,
2021). Leaders who bring change are known for making plans, building trust, promoting new
ideas and helping followers to grow personally. They show the way, standing for the beliefs and
rules they want to teach their group. This method not only wants to raise follower's happiness
3
and desire more, but also tries making them leaders too. It helps create a place where everyone
can constantly improve and work together for success.
Servant Leadership
This idea by Robert K. Greenleaf, says that the leader should serve their team first and
foremost. This theory posits that effective leadership stems from a desire to serve others, with a
focus on empathy, listening, stewardship, and the growth of people. Leaders who serve focus
first on their team members' needs and health. They stress personal growth, building friendships,
and making decisions together with coworkers (Dias et al., 2023). Servant Leadership changes
the usual boss style to make it more friendly and good. This gives leaders who listen and care
more power. This giving way of thinking makes for a strong workplace culture. It helps build
trust and commitment among workers, leading to their active involvement in the company.
Situational Leadership
It was developed by Paul Hersey and Ken Blanchard; it says there is no best way to lead.
Instead, leaders must change their style based on different situations. Rather, it says that good
leadership changes based on the circumstances and growth of followers. This theory categorizes
leadership styles into four types: Telling, Selling, Participating, and Delegating (Cinnioğlu,
2020). Leaders should check how ready and skilled their team members are, and change their
approach to match. It focuses on being flexible and changing with the situation. It says you
should use a different way of leading depending on how people act. It knows that human
behavior can change a lot. This useful theory is often praised because it can be used in a lot of
different work places.
Historical Origins of Each Theory
Transformational Leadership Origins
4
The origins of the concept trace back to the late 1970s, primarily attributed to James
MacGregor Burns. In 1978, Burns introduced a distinction in leadership styles, differentiating
between transaction-oriented leaders and those who are change-oriented. Transactional leaders
work under the existing rules and rewards while transformational leaders motivate and change
their followers (Verma & Mehta, 2022). At first, his main aim was on politicians. But later on,
Bernard M. Bass changed the idea for use in business situations. Bass's work in the 1980s made
the theory bigger to include how people behave in organizations and manage staff. This made it
very important in understanding how leaders work well different places, especially in businesses
and big companies.
Servant Leadership Origins
Robert K. Greenleaf first created the idea in his 1970 writing called "The Servant as
Leader." He got the idea from reading Hermann Hesse's book "Journey to the East," where a
character's leadership comes from helping others. Greenleaf said that real leadership comes from
taking care of people under you instead of using power to control them (Deshwal & Ali,
2020). This idea was very new; it went against old ways of thinking about how people lead
others. The idea has become popular, especially for people who want a better and kinder way to
lead. It focuses on the importance of leaders caring for their team's health and progress.
Situational Leadership Origins
In the late 1960s, Paul Hersey and Ken Blanchard developed the concept, culminating in
their 1969 publication "Management of Organizational Behavior." They recognized that effective
leadership varied and was not a one-size-fits-all approach. It fits the situation and how
experienced and ready to follow people are. It used ideas from behavioral science and took ideas
from older theories like Tannenbaum and Schmidt's Leadership Scale (Wolor et al.,
5
2021). Hersey and Blanchard said that leaders need to change their way of leading based on their
team's ability and skills. This makes their idea very flexible and easy to use in different
companies.
Evolution of Theories
The evolution of leadership theories reflects ongoing scholarly discourse and adaptations
to changing organizational landscapes.
Transformational Leadership
Bernard M. Bass greatly expanded this idea in the 1980s. He added the idea of
transactional leadership, which was different. He formed a complete model that included both
transformational and transactional parts. Bass made changes that could be measured. This led to
the creation of the Multifactor Leadership Questionnaire (MLQ), a main tool for looking at
different ways of leading (Dias et al., 2023). His work made this theory of leadership popular in
business and organization settings. It wasn't just for politics anymore.
Timeline
1978: Introduced by James MacGregor Burns.
1980s: Expanded and refined by Bernard M. Bass.
Servant Leadership
Larry Spears, the CEO at the Greenleaf Center for Servant Leadership, was very
important in developing this idea. Spears took Greenleaf's first writings and turned them into ten
main traits of servant leaders. These include understanding others, responsibility for what's given
to us, and working on growing more. It gives a more clear structure. (Cinnioğlu, 2020) This
growth made it easier to do experiments and use them in different places where organizations
are.
6
Timeline
1970: Introduced by Robert K. Greenleaf in "The Servant as Leader."
Post-1970s: Further developed and structured by Larry Spears and others.
Situational Leadership
Hersey and Blanchard worked on improving their model. They made important changes
in the late 1970s to put more focus on how much people were growing or developing. This
change resulted in the Situational Leadership II model. This gave a more detailed plan for seeing
how leader behavior and follower preparedness interact. (Verma & Mehta, 2022) Their job
shows how important it is to change in leadership. This connects the theory with the needs and
problems of modern organizations.
Timeline
Late 1960s: Conceptualized by Paul Hersey and Ken Blanchard.
Late 1970s: Revised to focus more on follower maturity levels.
Comparison Matrix
Leadership Theory Transformational Servant Leadership Situational
Leadership Leadership
Focus Inspiring and Serving the team, Adapting style to the
motivating for higher prioritizing their situation and follower
goals needs maturity
Key Components Idealized Influence, Empathy, Listening, Telling, Selling,
Inspirational Stewardship, Growth Participating,
Motivation, of People Delegating
Intellectual
7
Stimulation,
Individualized
Consideration
Ideal Context Dynamic, change- Community-oriented, Varied, depending on
oriented ethical cultures team dynamics and
environments maturity
Leadership Visionary and Altruistic and Flexible and
Approach change-centric nurturing adaptable
Conclusion
To sum it up, by comparing Servant, Situational and Transformational Leadership
theories, we see that they have different yet helpful ways for leadership in business. Leadership
that transforms is very important in changing areas. It focuses on vision and motivation to help a
group or company change. Servant Leadership, which emphasizes feeling for others and helping
them grow, is perfect for creating a culture focused on the community. This helps make people at
work more involved. On the other hand, Situational Leadership is flexible and can be used in all
kinds of situations. It's especially good when the team has many different members. These ideas
show how important it is to think about the situation and what each person needs for good
leadership. In today's busy and many types of business world, understanding and using these
ideas can very much improve a leader's job. Each method gives important strategy tips for
encouraging, directing, and growing teams. These ideas help a lot with company success and
staying strong. Knowing about different ways to lead is very important for today's leaders. They
need this understanding to manage the complications of the modern company world well.
8
Reference
Cinnioğlu, H. (2020). A review of modern leadership styles in perspective of industry 4.0. Agile
Business Leadership Methods for Industry 4.0, 1-23.
Deshwal, V., & Ali, M. A. (2020). A systematic review of various leadership theories. Shanlax
International Journal of Commerce, 8(1), 38-43.
Dias, M., Vieira, P., Pereira, L., Quintão, H., & Lafraia, J. (2023). leadership theories: a
systematic review based on bibliometric and content analysis methods. GPH-
International Journal of Business Management, 6(05), 01-16.
Verma, S., & Mehta, M. (2022). Corporate entrepreneurship and leadership theories: Conceptual
review. Journal of Entrepreneurship in Emerging Economies, 14(5), 902-925.
Wolor, C. W., Nurkhin, A., & Citriadin, Y. (2021). Leadership style for millennial generation,
five leadership theories, systematic literature review. Calitatea, 22(184), 105-110.