Leadership theories can be categorized as trait, behavioral, contingency, and transformational. Situational leadership theory focuses on the followers' readiness and suggests leaders adapt their style accordingly. Path-goal theory proposes that effective leaders clarify goals and remove obstacles. Leader-member exchange theory finds that leaders form different quality relationships ("ingroup" vs. "outgroup") with followers. Charismatic leadership may depend on the leader's traits and the situation. Transactional leadership guides followers toward goals using rewards and punishments, while transformational leadership inspires followers to transcend self-interest for the greater good through intellectual stimulation and individualized consideration.