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Abstract
Leadership and the numerous concepts on leadership styles have been subjects of both study and
debate for years. Every leader approaches challenges differently, and his or her personality traits
and life experiences greatly influence his or her leadership style and the organizations they lead.
Furthermore, leadership is a notion resulting from the interaction between a leader and followers,
and not a position or title within the organization. This essay examines some of the contemporary
theories of leadership, the leadership qualities and traits necessary to be successful in today’s
competitive environment, the impact of leadership to the organization, and the importance of
moral leadership in today’s world.
Keywords: Leadership, Leadership Traits, Moral Leadership, Leadership Theory

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A Contemporary View of Leadership
Leadership and the numerous concepts on leadership styles have been subjects of both
study and debate for years. Leadership practitioners around the globe believe there is nothing
more important to organizational success than leadership (Daft, 2008). Similar to the notion of
beauty, leadership is a concept that is difficult to describe accurately; yet we are all capable of
assigning the concept of beauty to objects and situations based on our interpretations (Danby,
2008). Leadership is a complex phenomenon that involves leaders, followers, and situations
within the organization (Hughes, Ginnet, & Curphy, 2009).
Some research on the subject of leadership has focused on the personality, physical traits,
or selected behaviors of the leader. Other scholars have focused on the relationship between
leaders and followers; while other researchers have studied the aspects of how different
situations affect the way leaders act and followers react (Hughes, Ginnet, & Curphy, 2009).
Although the focus of research on leadership varies among scholars; understanding how some
individuals stand separate from the rest and have the ability of knowing what to do, when to do
it, and how to do it, remains a vibrant scholarly quest to this day (Useem, 2010).
Research on leadership has also focused on finding out if the individuals who have
managed to become leaders are indeed smarter, more creative, more ambitious, or more outgoing
than their less successful counterparts. Nonetheless, the theoretical foundations of leadership
have substantially changed since the Great Man Theory, the earliest theory of leadership,
emerged in the 1900s. The Great Man Theory maintained that leaders and followers were
fundamentally different, and this original concept led to hundreds of research studies and the
subsequent leadership theories that exist nowadays (Hughes, Ginnet, & Curphy, 2009). There is
little research however on understanding the behavior of the subordinates, based on the

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perception that followers operate within the leader’s context (Kellerman, 2007). As a result,
leadership practitioners have given much focus to understand what makes leaders successful;
including the charismatic ones, the retiring ones, and even the crooked ones.
Successful leaders usually share a number of common skills. But, many individuals have
encountered leaders throughout many spheres of their lives without finding any of them sharing
all the same attributes (Bell & Smith, 2010). Several approaches to understanding leadership use
descriptions of different leadership traits and behaviors trying to prove that leaders can perhaps
be able to adopt the most appropriate behavior if they are properly trained (Daft, 2008).
Every leader approaches challenges differently, and his or her personality traits and life
experiences greatly influence his or her leadership style (Bell & Smith, 2010). Walter Isaacson,
the author of Steve Jobs’ best-selling biography, identified some of the unorthodox leadership
practices that Steve Jobs utilized when conducting business (Isaacson, 2012). His accounts of
Steve Jobs’ rebellious and countercultural approach to leadership illustrates how there is not a
particular mixture of leadership skills that can guarantee the success of an individual in an
organization.
As the demands of the world economy change, organizations have to remain highly
adaptive to changes in their external environment to ensure long-term competitiveness.
Additionally, as management and organizational behavior practices evolve, the way in which
leaders decide to influence the future of their companies and their employees also changes.
Recent literature suggests that contemporary leaders are switching to a new approach of
leadership, in which they find fulfillment by allowing those on the team accomplish their needs.
Consequently, researchers are considering the strategic value of leadership ethics for
greater economic efficiency (Becker, 2007). The remaining sections of this essay will examine

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some of the contemporary theories of leadership, the leadership qualities and traits necessary to
be successful in today’s competitive environment, the impact of leadership to the organization,
and the importance of moral leadership in today’s world.
Leadership Theories
Leadership is a notion resulting from the interaction between a leader and followers, and
not a position or title within the organization (Hughes, Ginnett, & Curphy, 2009). By looking at
leadership in this manner, leadership practitioners can see leadership as a process in which all
members of a group or organization perform different roles. Still, there are many other theories
of leadership that allow looking into this phenomenon from different perspectives, providing also
insight into the different characteristics of leaders and how they behave.
Researchers have also started to consider a theoretical link between practical wisdom,
derived from lived situations, and authenticity in leadership practice (Kupers & Statler, 2008).
This explains why many leaders are capable of contextualizing their experiences to manage
organizational events very effectively. The following ten modern leadership theories illustrate
the wide range of leadership theory and provides a framework to understand the new approaches
to leadership that are examined in the latter section of this article.
The Trait Theory
Under this theory, there are certain individuals that have the physical, emotional, and
personality traits that make them more likely, or predisposed, to be leaders (Rubenstein, 2005).
This theory holds the notion that some individuals are born with the necessary traits to become
leaders. This theory identifies physiological (appearance, height, and weight), personality, self-
confidence, intellective, task-related, and social characteristics with the effectiveness of an
individual as a leader (Rubenstein, 2005). Additionally, given that under this theory traits are

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relatively stable over time, the innate capabilities for leadership remain with the individual
throughout his or her life.
The Style Approach
Under this theory of leadership, the behavior adopted in a specific circumstance
determines the leadership approach. The style approach focuses on the behavior of the leader;
addressing what they do and how they act in any given situation (Rubenstein, 2005). The typical
leadership activity styles include Authority-Compliance, Team Management, Impoverish
Management, and Country Club Management (Rubenstein, 2005). This theory focuses on the
behavior that leaders follow in different situations, with the notion that leaders can choose to
respond with these specific styles of management.
The Situational Approach
Under this theory, individuals in leadership positions are capable of reading into
situations to decide if they need to use supportive or directive behaviors (Rubenstein, 2005).
Some of the behaviors that leaders can select are supporting, coaching, and directing. This
theory supports the idea that leaders adapt their leadership behaviors based on the situation and
their leadership role (Rubenstein, 2005). Effective leaders can act as a coach to an
underperforming team-member, while they can also offer clear and decisive direction to a group
or business unit struggling to define objectives.
The Contingency Theory
Under this theory, leaders select a particular leadership style based on three types of
leadership situations: the relationship between members and the leader, the structure of the tasks,
and the leader’s position of power in relation to the group (Rubenstein, 2005). This theory
focuses on the impact that the successful use of a certain style of leadership has on each

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situation. Effective leadership demands reflection on the dynamic relationships between the
leader and the followers when aiming towards a future outcome (Ahn, Ettner, & Loupin, 2011).
Path Goal Theory
Considered the motivational theory of leadership; this theory is based in the assumption
that leaders’ major goals are to provide satisfaction and stimulate performance among the
members of a group (Rubenstein, 2005). Some of the behaviors leaders follow under this theory
include setting goals and ensuring subordinate buy-in; allocation of resources and training;
monitoring of all activities while providing strategic outlook, and the establishment of new goals
and continuous process improvement.
Leader-Member Exchange Theory
Under this theory, followers determine the status of a leader and his or her
responsibilities. Followers not only share power within the group, but their ability also
influences the effectiveness of the leader to exert authority and lead (Rubenstein, 2005). Leaders
under this theory have characteristics that allow them to effectively meet goals through teams as
they pay attention to group norms, juggle managerial duties, and manage market demands
efficiently (Rooke & Torbert, 2009).
Transformational Leadership
Under this theory, researchers perceive leadership as a process that transforms individuals
and groups. Under this theory, the role of leaders is to assess the needs of their followers and ask
for input from the group throughout all stages of the relationship (Rubenstein, 2005). Leaders
are agents of change and can promote transformation and improvement for the benefit of the
organization and the followers as whole. This theory allows leadership practitioners to see

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leadership as a process that initiates with the self and projects outwards to influence other
individuals and organizations towards improvement (Sen, 2010).
Team Leadership
Under this theory, leaders help the group or team determine which goals and tasks they
want to achieve while also enabling processes that keep the group supplied with appropriate
resources, adequate development and training, and work supplies. Leaders also diagnose and
remedy group deficiencies, while coordinating the internal functioning of the group in relation to
other groups within the organization (Rubenstein, 2005).
Psychodynamic Approach
Under this theory, leaders understand the psychological makeup of their followers as well
as their own. According to this theory, leaders should be able to understand the impact of
psychological factors such as family origin, level of maturity, and personal desires on the
followers’ attitude and responses to leadership actions. Leaders must also understand the
psychological relationship and psychodynamic interplay that exists between them and their
followers (Rubenstein, 2005). This theory deals with emotional intelligence and the attempt to
create feelings of safety on followers. When followers feel unsafe they create walls around them
and withhold their talents, instead of using them for the greater good of the team or organization
(Sen, 2010). By understanding the psychological relationship they have with their followers,
leaders can guide them in ways that are more effective.
Leaders of Leaders
This theory centers in making a distinction between regular leaders and those leaders who
lead other individuals with leadership characteristics. Leaders of leaders are visionary
individuals who create a vision that guides other leaders to act as leaders within their respective

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environments. Leaders of leaders, help their followers to solve their own problems while making
decisions that are sound and in alignment with the overall vision of the organization (Rubenstein,
2005). The types of leaders under this theory act much more differently when creating and
communicating a vision to others. A great example of these types of leaders was Arthur
Houghton Jr., CEO of Corning Glass. Houghton was trying to announce the world that he did
not want his company to be perceived as a specialized art glass company but instead as an
industrial producer of common cookware and glass-based manufacturing materials. In order to
do so, he grabbed a lead pipe and smashed more than $100,000 worth of fine crystal in front of
cameras, reporters, and company stockholders (Bell & Smith, 2010). He was a leader of leaders,
and he communicated his message loud and clear.
Leadership Traits
Different backgrounds heavily influence leaders as they often shape their values, norms,
and attitudes. Cultural, economic, and social backgrounds play an important role in shaping the
personalities of individuals and their corresponding actions and behaviors (Hughes, Ginnett, &
Curphy, 2009). The term personality can be interpreted in two different ways (Hughes, Ginnett,
& Curphy, 2009). The first one relates to social reputation or the impression individuals make
on others. The second one relates to the behavioral processes occurring inside individuals that
affect how they behave and what they do (Hughes, Ginnett, & Curphy, 2009). Although
individuals may select either one or both of the aforementioned meanings to understand
leadership, personality traits have a significant impact in the effectiveness of leaders.
For instance, dominance is the tendency by some individuals to be assertive, self-aware,
and forceful when dealing with face-to-face situations (Anderson & Kilduff, 2009). Moreover,
there are certain combinations of leadership traits that, based on a particular situation, prove to

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be more effective than other combinations. The importance of leadership traits and tendencies
comes from the idea that leaders can be self-aware and can use personality information to create
strong work relationships and build organizational success. Jack Welch, the former chairman of
General Electric, believed that leaders needed specific skills through which they could translate
their vision into reality (Becker, 2007). AS a result, and notwithstanding his approach to
management was drastic and unforgiving, he managed to make General Electric one of the most
successful companies known to this day.
Understanding their own personality traits can allow individuals decide if they fit best as
team members or as team leaders depending on the situation (Bell & Smith, 2010). It is
important for followers to be able to determine which role to assume when becoming part of a
team or an organization, but it is also important and highly beneficial to understand the traits and
behaviors of the leaders they follow. Correspondingly, it is important for leaders to be able to
discern the personality traits of other group members because they often assume leadership roles.
Leaders can enhance the culture of the organization more effectively by knowing the leadership
styles of their followers and counterparts.
The number of trait-like terms can be an issue when trying to describe cross-situational
behavioral patterns through personality traits. As early as 1936, researchers identified over
18,000 trait-related adjectives in the English language (Hughes, Ginnett, & Curphy, 2009).
Nonetheless, due to robust research findings, evidence supports the Five Factor Model of
personality. The Five Factor Model of personality provides researchers and leadership
practitioners with an explanation for both leaders’ and follower’s tendencies to act in a consistent
way over time. The five major dimensions include surgency, agreeableness, dependability,
adjustment, and intelectance. Surgency, also referred to as dominance, refers to behavioral

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patterns that appear when someone is trying to influence or control others (Hughes, Ginnett, &
Curphy, 2009). Agreeableness, also known as interpersonal sensitivity, explains how individuals
get along with, instead of getting ahead of, other members in a team or an organization. Leaders
with high agreeableness tend to build better teams but can also struggle getting results from
followers (Hughes, Ginnett, & Curphy, 2009). Dependability, also referred to as
conscientiousness or prudence, deals with people’s behavior towards work. Leaders with high
level of dependability are great managers, because they are planful, organized, and goal oriented
(Hughes, Ginnett, & Curphy, 2009). The adjustment dimension, also referred to as emotional
stability, deals with how individuals respond to failure, personal criticism, or stress. Leaders
who remain calm under pressure affect their followers positively, as followers often tend to
mimic their leader’s behavior under periods of high stress (Hughes, Ginnett, & Curphy, 2009).
Finally, openness to experience, also referred to as intelectance, deals with how individuals learn
new information, react to new experiences, and react to problems. Leaders that are dominant in
this dimension tend to be curious, broad-minded, and more strategic (Hughes, Ginnett, &
Curphy, 2009).
The qualities of good leadership transcend geographical barriers and are similar in many
successful leaders across the globe. A great example is N. R. Narayana Murthy, the founder of
Infosys, and renowned business leader in India. Murthy founded Infosys with other six
colleagues in 1981 with only $250, and the company is now a global leader in consulting,
technology, and outsourcing, with revenues of roughly $6.9MM (www.infosys.com). When
discussing the vision of the organization with the founding members, Murthy’s goal was to aim
at becoming India’s most respected company (Morris, 2011). Murthy’s goal of aiming to be a
respected company preceded all the other financial and operational goals that the other founding

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members established. As a result, Infosys thrived and became a powerful organization in an era
where conducting ethical business was practically unheard of in India.
The Organizational Impact of Leadership
Modern organizations have an interdependent network of functions and employees;
where some employees have autonomy and can be free to exploit their skills with soft ties to
management systems and hierarchy, and where the rest of employees have direct lines to
supervisions (Daft, 2008). Whether by inspirational approaches in times of crisis, or simple
charismatic leadership to inspire necessary change, leadership is the spark that can ignite the fire
of sustainable change in any organization. Pat McGovern, CEO of International Data Group, a
technology publishing and research firm that owns magazines such as Computerworld, and PC
World, takes every employee to lunch at the Ritz on his or her tenth anniversary (Daft, 2008).
He requests a list of accomplishments, provided by managers, and memorizes them so that he
can congratulate employees when celebrating their anniversary (Daft, 2010). There is not a
specific way to correlate the success of International Data Group to McGovern’s approach to
leadership, but the motivation and sense of belonging that is derived by his employees can be
seen in the quality of the products that company delivers.
Nonetheless, measuring the organizational impact of effective leadership is not a simple
task. Some commonly used measures include employees’ self-ratings of their job satisfaction
and morale, work-unit performance indices, and superiors’ ratings of their employees’ morale
(Hughes, Ginnett, & Curphy, 2009). Employees’ ratings have the advantage of having a large
pool of raters, but one of their biggest disadvantages is that unmotivated employees’ biases can
skew the results of the survey (Hughes, Ginnett, & Curphy, 2009). Work-unit performances
indices are quantifiable ways to measure leadership results, but the disadvantage of such methods

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is the possibility that the results are due to factors beyond the leader’s control (Hughes, Ginnett,
& Curphy, 2009). Lastly, superiors’ ratings are one of the most frequently used methods, but
this approach is subject to the rater’s biases or their inability to provide rough feedback (Hughes,
Ginnett, & Curphy, 2009).
The organizational results of effective leadership are often organizations with thriving
cultures and sustainable performance. After rescuing Apple from innovation inertia in 1997,
Steve Jobs began taking his top 100 employees on a retreat each year. At the end of the retreat,
he would ask them for new products or ideas to implement the next year (Isaacson, 2012). After
crossing off the ones the whole group considered insignificant, he would narrow the ideas to the
top ten, and finally announced to his team that the company could only focus on the top three
(Isaacson, 2012). Focus was an idea ingrained in Jobs’ leadership style and Apple became an
enduring organization because of this approach to business development. There are countless
accounts of leaders who changed the course of their organizations; Steve Jobs’ is merely one of
them. Effective leadership has a significant impact on the make-up of an organization, but most
importantly, leadership can shape the company’s culture is such way that the approach leaders
take can become the cornerstone of the ongoing success for any organization.
Leadership and Ethics
The current world economy requires leaders who behave ethically and foster
organizational cultures in which employees are encouraged to behave ethically in their daily
work (Stouten, Dijke, & De Cremer, 2012). Moral leadership refers to an individual’s ability to
distinguish right from wrong and choosing to do right within the concept of business
management (Daft, 2008). Moral leaders are those that manage to conduct business
remembering that the success of an organization is also dependent on values, not only on

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financial performance. A report issued by the European Commission found that ethics are the
best predictor of trust in leaders, accounting for 62 percent of what followers value as important
when defining a successful leader (Stouten, Dijke, & De Cremer, 2012). The perception that
followers have about their leader’s ethical behavior determines how a leader’s moral values are
measured (Daft, 2008). Although ethical leadership has a more direct impact on the ability of the
leader to influence organizational members, there is also financial negative impact experienced
by the company when or if a leader decides to behave unethically.
The concept of moral leadership is more relevant in contemporary organizations as
management teams are no longer only interested in employees who are easy to manage, but
instead, they are highly interested on individuals that can distinguish themselves by the use of
ethical values in their daily work (Becker, 2007). Value-based organizations are the new
approach in business, and companies strive to have cultures in which all employees share the
company’s core values (Stouten, Dijke, & De Cremer, 2012). Moral leadership deals with values
ranging from behaviors with legal repercussions to simple values such as treating coworkers and
subordinates right. Ralph Larsen, retired CEO of Johnson & Johnson, stated that one of the
major qualities he looked for in potential employees was their ability to show respect for human
dignity (Becker, 2007). He considered someone who treated a subordinate badly a bad person,
advocating respect not only among employees but also among business leaders.
Moral leadership is more than a simple technique for financial efficiency. It requires a
clear value commitment, moral character, and moral common sense (Becker, 2007). Examples
of morally committed companies range from manufactures like Levi Strauss to the consulting
and technology companies such as Infosys. Levi Strauss’ leaders offered departing employees
generous notice and severance packages, including money for education, job training, and

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moving expenses when the company had to close 51 plants in the 1990s (Becker, 2007).
Similarly, the leaders of Infosys showed their moral commitment to become a respected
company in India when they refused to bribe a government official when trying to import a super
minicomputer into their country. Instead, they decided to pay for a custom duty of 135 percent
its regular value with borrowed money and appealed for a refund after (Morris, 2011). The result
for both companies’ ethical leadership and moral approach to business has been a financial
performance that is not only ethically committed, but it is also respected by customers and
competitors alike.
Conclusion
The organizational members of today’s world expect a degree of predictability from the
leaders they follow and they expect to see qualities, such as vision and ethical integrity, that
reassure their leaders’ effectiveness (Griffin, Parker, & Mason, 2010). The quality and nature of
leaders in today’s world is more important than ever before; especially in environments in which
the proficiency of individuals in leadership positions is judged by more than just the financial
performance of the organizations they lead (Griffin, Parker, & Mason, 2010). Unavoidably, the
success of leaders requires the support of all the organizational members that follow them and
work with them as counterparts. Leaders must understand the importance of managing their
emotions, select the best leadership strategy based on the situation, but most importantly, they
must realize the importance of understanding the emotions, personalities, and expectations of the
ones they lead. As the demand and understanding of leadership evolves, leadership practitioners
must continue to focus on the fundamental basis of leadership; that is, accomplishing
organizational success by effectively influencing those around them.

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