The group and exchange theories of leadership are derived from social psychology. These have their roots in the exchange theory. Leaders from different kinds of relationships with various groups of subordinates. Group theories describe how leaders need to maintain their position in group dynamics.
Social exchange theory proposes that social behavior is the result of an exchange process. The purpose of this exchange is to maximize benefits and minimize costs. Social Exchange Theory is a social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties. Social Exchange Theory posits that all human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.
Costs are the elements of relational life that have negative value to a person, like time, money, effort etc. and on the other hand rewards are the elements of a relationship that have positive value like sense of acceptance, support, and companionship etc. The Social Exchange perspective argues that people calculate the overall worth of a particular relationship by subtracting its costs from the rewards it provides. If worth is a positive number, it is positive relationship. On the contrary, negative number indicates a negative relationship. The worth of a relationship influences its outcome, or whether people will continue with a relationship or terminate it. Positive relationships are expected to endure, whereas negative relationships will probably terminate.
Social exchange theory can also be applied to leadership studies as reported by Hollandder and Julian (1969). They propose that the leader provides more benefits or regards than burden or costs to the followers who in exchange help him achieve the goals of the organization. There must be a positive exchange between the leader and followers in order for group goals to be accomplished. According to this group of theories, a leader provides more benefits/rewards than burdens/costs for followers.
In a group, members make contributions at a cost to themselves and receive benefits at a cost to the group or other members. The leader can give rewards to his followers in the form of appreciation or monetary increments or promotion for accomplishment of the organizational goals or tasks. These rewards have positive impact on attitudes, satisfaction and performance of the followers.
In return of these awards, followers respect the leader and give him due regard for his status and esteem and believe in his heightened influence. The leader tends to follow initiating structure when followers do not perform very well and increases his emphasis on consideration when the followers do a good job.
In this balancing act, the perception of his followers of his being an effective leader increases and this equation is mutually beneficial for both the leader and the follower. Interaction continues because members find the social exchange mutually rewarding.
According to Environmental theories of leadership, a leader needs to deal effectively with environmental complexities and lead in a certain style as a result of environmental responses. Environmental influenced leadership demand leaders to learn how to adjust environmental factors. Leaders also have the responsibility of creating the right kind of environment for their followers by focusing on environmental factors and pressures.
Lewin’s Change Management Model
Lewin's change management model is a framework for managing organizational change. Lewin's methodology of different Leadership Styles recognizes three distinct stages of change - creating the perception; moving toward the new desired level of behavior and, ensuring new behavior as the norm.
The Hersey and Blanchard Situational Theory model suggests that a leader must adapt his leadership style based on task and relationship behaviors appropriate to the situation. Leadership style is dependent on the maturity level and abilities of followers. Under this model, successful leadership is both task-relevant and relationship-relevant.
Symbolic Interaction and Social Change
George Herbert Mead, an American philosopher, affiliated with the University of Chicago founded the theory of symbolic interactionism. A major aspect of this is that people interact by symbols both verbal and non-verbal signals and every interaction makes a contribution to the mental make-up of the mind thus every interaction with someone, changes you and you go away a different person signifying that humans and change go together.
Contingency Theories of Leadership
Contingency theories of leadership focus on both the leader's persona as well as the situation/environment in which that leader operates. These theories consider the context of leadership which means whether or not the leadership style suits a particular situation and states that a leader can be effective in one circumstance and a failure in another one. A leader will be most effective when he applies the right leadership style to a given situation and environment around him. Contingent leaders are flexible and adaptable.
Burns Transformational Leadership Theory
Transformational leadership theory has been defined by James MacGregor Burns as a process where both leaders and followers mutually raise one another to higher levels of morality and motivation. The concept of transforming leader works with teams to garner trust, respect, and admiration while reaching to higher moral positions. The transformational theory of leadership was developed while studying political leaders and how they use charismatic methods to attract people to the values.
In emergent leadership, the leader is not appointed or elected to the leadership role but emerges as the leader as he is perceived by others over time as a result of the group's interaction. A person steps up as the leader over time by taking on tasks voluntarily, helping others complete their tasks better, and building consensus among groups.
In the field of communication studies, there are numerous models. No one model is suitable for all purposes and all levels of analysis. Some common models are known as Lasswell Model, George Gerbner Model, David Berlo Model, Shanon and Weaver Model, Osgoods Model, and Schramm Model. All these describe the four components of the communication process, namely, the source (communicator), the message, the channel, the receiver (audience).
Team leadership theory is a recent leadership theory that does not discriminate between the leader and the other team members. The approach considers contributions from each team member to be critical for organizational success. This approach focused on the overall team effectiveness and team problems are diagnosed and action is taken to remediate weakness. This approach provides for taking corrective action when the leader deems necessary.
The two-factor theory also known as Herzberg's motivation-hygiene theory and dual-factor theory. This motivator-hygiene theory states that certain factors cause job satisfaction whereas certain separate factors cause dissatisfaction in the workplace. An organization can adjust these factors to influence motivation. These factors are respectively termed as motivators and hygiene factors.
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