Various appropriate leadership theories are there for globalized business environments. Three of these major theories are the Transactional or Management Theory, Relationship or Transformational Theory and Skills Theory. The major focus of Transactional or Management theory is the leader’s role in the performance of the organizational and the relationship between the leaders and followers. This theory is also known as Management theory as this theory is highly applicable in the globalized business organizations (Odumeru and Ogbonna 2013).
The aim and objective of Relationship or Transformational theory is to develop cordial relationship between the leaders and followers in the multinational organizations. This theory helps to develop motivation and morale among the employees of the multinational organizations (Zhu et al. 2012). As per this theory, the organizational leaders are highly ethical and motivational. According to the skills theory, knowledge, skills, abilities and experience play an integral part in the process of effective leadership. This theory denies the connection between inherent traits and effective leadership. As per this theory, skills, styles and knowledge are the key factors in the development of leadership styles (Northouse 2015). There are some specific ways of developing leadership strategies. The leaders need to have the power to motivate the organizational people. Motivation is an important factor in the development of leadership strategies. In addition, the leaders need to be well qualified and they must have enough experience to develop the leadership strategie The leaders need to have the mentality to include their followers in the achievement of organizational goals and objectives. All these factors need to be there to develop the leadership strategies.
Northouse, P.G., 2015. Leadership: Theory and practice. Sage publications.
Odumeru, J.A. and Ogbonna, I.G., 2013. Transformational vs. transactional leadership theories: Evidence in literature. International Review of Management and Business Research, 2(2), p.355.
Zhu, W., Sosik, J.J., Riggio, R.E. and Yang, B., 2012. Relationships between transformational and active transactional leadership and followers' organizational identification: The role of psychological empowerment. Journal of Behavioral and Applied Management, 13(3), p.186.