The LPC theory, the path-goal theory, and Vroom’s decision tree approach together redirected the study of leadership. Not surprisingly, then, other situational theories have also been developed. Moreover, there continue to be changes and refinements to the original situational models. The leader-member exchange model (LMX) (of leadership) stresses the importance of variable relationships between supervisors and each of their subordinates.

The Hersey and Blanchard model is based on the notion that appropriate leader behavior depends on the “readiness” of the leader’s followers. In this instance, readiness refers to the subordinate’s degree of motivation, competence, experience, and interest in accepting responsibility. The Hersey and Blanchard theory suggests that leader behaviors should vary in response to the readiness of followers.

Transactional leadership is essentially the same as management in that it involves routine, regimented activities. Transformational leadership focuses on the basic distinction between leading for change and leading for stability. According to this viewpoint, much of what a leader does occurs in the course of normal, routine, work-related transactions - assigning work, evaluating performance, making decisions, and so forth.

Closer to the general notion of leadership, however, is transformational leadership, the set of abilities that allows the leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively. Only a leader with tremendous influence can hope to perform these functions successfully. Some experts believe that change is such a vital organizational function that even successful firms need to change regularly to a void complacency and stagnation; accordingly, leadership for change is also important.

Transformational leadership is the set of abilities that allows the leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively. Charisma is a form of interpersonal attraction that inspires support and acceptance. Charismatic leadership is accordingly a type of influence based on the leader’s personal charisma.

Leaders are increasingly being called upon to serve as coaches rather than supervisors. Strategic leadership is the capability to understand the complexities of both the organization and its environment and to lead change in the organization so as to achieve and maintain a superior alignment between the organization and its environment.

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