In the 21st century, leadership forms to be an important asset for the organization. Leadership development is the primary need for the organizations. The present organizations works in a highly diversified teams. There are different kinds of matrix, structures and global organizations which forms a key for the building of an organization. Thus, the role of a leader is significant. Thus it is important the perfect leader should be there for the success of the organization and in order to develop the proper relationship with the organizational environment (Bass, 1985). A leader is someone who helps him or her in order to do the correct things in a correct manner. A leader is someone who sets directors for the other people, create a vision which inspires the employees and managers and tends to do new things.
According to the study conducted in 1950’s by the University of Michigan, task based leadership wasn’t of major importance within the world. However, later the concept of participative leadership was included. After this the associated theories were introduced including the role theories included the role theory which states that role playing is an act which is based upon the stimulation of the behavior which provides the essential details (Epitropaki, 2004).
Transactional leadership theories were introduced around 1970’s and it is termed as the exchange theories for the leadership and is characterized by the transaction which has been established amongst the leader and the follower. Thus the theory is something which values a person who is not only positive and but is mutually beneficial. In order to have transitional theories effective, ut is important that the leader must be aligned in an adequate manner to reward his or her followers in order to perform the required tasks assigned for the leader. Thus, the transactional leadership is something which is very essential in order to develop a reinforcing environment which leads to the synchronization among the goals of the organization. The transformation theories includes the burns theory, the bass transformational theory and the Kouzes and Posner’s transformational theory. A large number of theories of leadership are available in the world.