Contemporary theories of leadership consider leadership as a socially constructed process. Charismatic leadership theory was given by Robert House. Charismatic leader is the one who has a vision, is willing to take personal risk, and shows extraordinary or heroic behaviour. Charismatic leaders often rely on charm and ability to persuade people. They have a long term strategy and they develop a vision statement. They set an example for the followers. Charismatic leadership has high correlation with high performance. However, situational factors influence charismatic leadership.
Transactional leaders guide the followers to achieve the goals and visions of the organization. Characteristics of transactional leader are: contingent reward, management by exception and laissaz-faire. Transformational leader inspires the followers to go beyond their self-interests and help achieve organization its goals. They have a phenomenal effect on the followers. Transformational leaders have the following characteristics: idealized influence, inspirational motivation, intellectual stimulus and individualized consideration. Transformational leadership influences self-efficacy of the followers. It is most effective when leader directly interacts with the followers.
Authentic leadership is a form of leadership which focuses on building integrity of the leader through genuine and reliable relationship with the followers. Authentic leaders know who they are and what their values are. They act on their values openly (Gardner, Cogliser, Davis, and Dickens, 2011).
Workplaces and organizations have become diverse. The workplace now hase people from different cultures, race, age group, gender, etc. For an organization to work effectively, demands and needs of the diversity should be handled carefully. There are several implications of diversity for the organization.
The construct of leadership is gendered. Work practices, reward systems, power distribution, norms reflect masculine values.
Earlier, organizations did not have women as leaders. However, with changing trends, women have acquired the positions of leader. Studies reveal that there are small but significant differences between men and women leaders. There is a difference in the way they perceive leadership roles, leadership styles and effectiveness and efficiency in such positions. Men generally adopt directive and transactional style of leadership. They are more task-oriented. Women emphasize on the importance of cooperation, communication, nurturing and affiliation. They are more relationship oriented (Eagly, Johannesen-Schmidt and Van Engen, 2003).