Leadership Theories: Must Know Concept for RBI Grade B Exam

By Amrit Gouda|Updated : December 9th, 2022

In the RBI Grade B exam, management plays an important role in the Phase 2 exam. Leadership Theory is an important chapter in the Management syllabus of RBI Grade B. You can expect around 3-5 marks from this chapter based on the previous year's exam trends.

In the RBI Grade B exam 2022, you can easily score full marks in this section with a good approach. We will be covering the whole leadership chapter in-depth, for better preparation for the RBI Grade B exam. 

Table of Content

What is Leadership Theory?

What makes a leader effective? Is his success due to his behavior or personality or the situation he works or a combination of all these? The researchers have carried out studies but could not find a satisfactory answer but yes they gave some theories of leadership. The prominent theories are Trait theory, behavior theory, situational theory, and system theory. Each theory has its own advantage and disadvantage.

In this post, we will discuss Trait Theory in depth. 

All About Trait Theory

  • The trait theory suggests that a person who has traits relevant to leadership emerges as an effective leader.
  • A trait is defined as the relatively enduring quality of an individual.
  • The traits theory seeks to determine ‘what makes a successful leader from his own personal characteristic.
  • A study was conducted in which eminent leaders were selected and their characteristics were studied and it was believed that a person possessing certain traits or characteristics can become a successful leader.
  • The traits can be classified into:
    • Innate qualities are also called God-gifted qualities.
    • Acquirable qualities as the name suggest which are acquired and enhanced through various process.
  • Let's discuss them one by one.

(a) Innate Qualities

  • These qualities are possessed by individuals since birth.
  • These qualities are natural and because of such qualities we say “leaders are born not made.
  • It's tough for individuals to acquire such qualities.

The following are the major innate qualities:-

Physical features:-

  1. These features are determined by heredity factors.
  2. They talk about the physical appearance of an individual.
  3. Physical characteristics determine personality formation which is an important factor in determining leadership success.


  1. A higher level of intelligence is required for leadership.
  2. Intelligence is generally expressed in terms of mental ability.
  3. Intelligence to a great extent is a natural quality in individuals.

(b) Acquirable Qualities

  • These qualities can be acquired and increased through various processes.
  • These traits can be increased through training programs, socialization, and the identification process
  • The following are the major acquirable qualities:-

Emotional Stability:-

  1. A higher level of emotional stability is required for a leader.
  2. He should be self-confident, free from bias, consistent in action, and should refrain from anger.
  3. He should be well adjusted and should not possess anti-social attitudes.

Human Relation:-

  1. He should have adequate knowledge of how to deal with human beings.
  2. He should have intimate knowledge of people and their relationship with each other.
  3. The knowledge of how human being behaves and how they react to various situation is meaningful to a leader.


  1. It refers to observing and understanding things from others’ points of view.
  2. When one is empathetic, he knows what makes the other fellow think as they do.


  1. It implies whatever a leader does should be based on facts and information.
  2. He must be objective and should not permit himself to get emotionally involved.

Motivating and Communicative Skills:-

  1. Not only a leader should be self-motivated but he has the requisite qualities to motivate his followers.
  2. The leader can play a major role in stimulating the inner drives of his followers.
  3. A leader uses communication skillfully for persuasive, informative, and stimulating purposes.

Hindrances in the applicability of Traits:-

  1. Leadership is a process of influence reflected in the leader's behavior and not in his traits.
  2. A person has specific traits but sometimes they fail to be an effective leader.
  3. The situational variables are not incorporated in trait theory.

You can go through the following links for RBI Grade B 2022 preparation:

S. No Important Articles for RBI Grade B 2022
1Prepare for RBI Grade B officer 2022 with Complete Study Material
2How should Beginners prepare for RBI Grade B Exam 2022?
3How Working Professionals Should Prepare for RBI Grade B 2022?
4How to Crack RBI Grade B Phase I Exam?
5Prepare for RBI Grade B officer 2022 with Complete Study Material

This is all about the Leadership theory of the RBI Grade B Management syllabus, its study notes, and the preparation approach to handling it. Kindly go through the whole study note and practice MCQs for better results.

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  • Leadership Theory is an important chapter for RBI Grade B. In this chapter, you will learn all about the different traits of leadership, various theories about leadership, the psychology behind leadership, the types of leadership, and the skills needed to acquire to be a great leader.

  • Our experts have provided a quality note on the Leadership theory in this blog which you should go through to start your preparation. You should make your own hand-written notes also for last-minute revision.

  • You should first go through the past two year's question paper to understand the weightage of this chapter and the types of questions asked. Then go for the core concepts and theories from any standard book and practice as many questions as possible.

  • You can expect around 3-4 questions from Leadership theory in the RBI Grade B exam. You can easily get full marks in this chapter if you have practiced well.

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