Two main styles of leadership, which are; transactional and transformational leadership. According to which, the former style has a result and task-oriented approach; whereas, the later one has the capability of providing great leaders and followers and has a people-based approach. Different styles of leadership associated with culture also revealed that leadership is majorly and directly influenced by culture.

He also mentioned that when it comes to transformational or transactional leadership, different preferences associated with culture can be found.
Subsequently, results can be influenced through the means of self-fulfilling prophesies, when realistic, concise and clear expectations have been outlined by the leader to the followers. He further referred to this specific relationship of expectations between the leader and the follower as the Pygmalion effect in the theoretical light of management.

Along with this, he also described how this significant effect can effectively be used by the leaders, in order to acquire successful leadership. It can be argued that huge amounts of various leadership theories were presented in the academic literature. In the 1970s, the trend of highlighting the behavioral theory emerged; while, the leadership theories were contributed by path-goal theory and normative decision theory.

However, researches based on the transformational theories were contributed by different theorists, in the late 1980s. The rational procedures were highlighted by most of the theories of conventional leadership. On the other hand, the transformational theory is based on values and emotions and focused more on making the leader meaningful for the followers. This study further focuses critically on the transformational behavior of a leader.

The transactional theory is also referred to as the exchange theory of leadership. The relationship of exchange, that is, give and take amongst two people is perceived as a transaction. Thereby, the transaction between the followers and the leader has been emphasized by this theory. There is a significant mutual advantageous relation between the followers and their leaders. Moreover, in order to transactional theories to be more efficient and to gain motivational values as results, a method of alignment between the follower and the punishment/reward must be sorted out by the leader. This can be done by performing tasks assigned by the leader.

In other words, when a mutually reinforcing atmosphere is developed in which both the organizational and the individual objectives are in synchronization, this is where the transactional leaders are most effective. As per this theory, to decrease the experiences that are un-pleasurable and to increase the experiences that are pleasurable is the basic necessity of individuals. Thereby, a leader is most likely to link him/herself with those followers through which more strengths can be added to the group/