Behavioral Theory came into play to address issues that criticism to the
Trait approach brought to the fore. According to this theory, instead of
measuring traits such as self-assurance and loyalty, the behaviors which
incorporate these characteristics must be determined. Behavioral Theory
focuses on the behavior of leaders and their leadership style and advocates
that leaders are not born with specific traits but could learn how to become
efficient. It is the actions that define the leader. Numerous studies that
made this approach popular for many decades emphasized the importance
of the behavior of leaders towards subordinates, and the style with which
leadership tasks and functions are conducted5). Despite the wide
acceptance of the above, the model by itself was not enough to explain all
the perspectives of the term leadership. As a result, more theories have
been developed until today. Since the early 1970s, Burns6) and later Bass7)
came up with the term Transformational Theory. The main idea of this
theory is that people follow a leader who motivates and encourages. The
model introduces a leader who creates a vision, shares this vision with the
followers and creates a leader–mentor relationship resulting in the creation
of a strong bond with them. This leadership profile usually focuses on the
“big picture” and on the worries and needs of the people. The transactional
theory8), on the other hand, promoted the idea that people are mostly
motivated through the forces of reward and punishment. This profile is
characterized by the values and beliefs of the leader and not by his/her
personality traits. The leader is mainly focused on the work that has to be
done, giving special attention to detail and efficiency.