What is New Leadership Theory?

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  • 0:03 Defining New Leadership Theory
  • 0:45 Transformational Leadership
  • 1:07 Charismatic Leadership
  • 1:59 Traditional Vs. New
  • 3:19 Lesson Summary
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Lesson Transcript
Instructor: LeRon Haire
In this lesson, we will discuss new leadership theory and define its meaning. The lesson will also review the different types of new leadership theories as well.

Defining New Leadership Theory

Has there ever been a time in your professional career when you worked for a company that had just one person as the sole position of authority? Did that person believe that any and all decisions came from them, without any input from any employees? If you have, then you were part of the old traditional leadership theory, which was based upon one person having the ultimate power and authority without having to consult others. The new leadership theory, on the other hand, is a concept that is focused on subordinates or employees having more of a voice when it comes to resolving problems. This fosters a shared leadership type of work culture. Let's take a look at two primary forms of new leadership theory.

Transformational Leadership

The first form is transformational leadership, which can be defined as a type of leadership which encourages interactions between a manager and their subordinates, who help the manager decide what changes, if any, need to be made to help the organization. This form of leadership motivates employees which, in turn, helps to raise productivity and employee morale.

Charismatic Leadership

The second form of leadership in new leadership theory has to do with charisma. What is the first thing that comes to your mind when you hear the term 'charismatic'? Is it picturing an individual that displays an exuberant attitude and enthusiasm? Well, a charismatic leadership style holds some of those same characteristics. The charismatic leadership style centers around leaders that have the ability to influence others through behaviors, such as displaying positive enthusiasm along with a pleasant attitude. The concept behind the charismatic leadership theory is that by exhibiting positive attitudes and vibes, leaders have an edge in motivating employees without using their position of power. Those employees that follow the leader in this particular style are known to perform at higher levels, because they are self-engaged and interested, without having someone twist their arm to do so.

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