Leadership Theory explores how leaders influence and guide their teams. It examines different styles, such as transformational leadership, where leaders inspire and motivate their followers, and transactional leadership, which focuses on rewards and punishments. Understanding these theories helps organizations identify effective leadership practices that can enhance team performance and morale. Additionally, Leadership Theory considers the traits and behaviors that make a successful leader. For instance, qualities like empathy, communication skills, and decisiveness are often highlighted. By studying these characteristics, individuals can develop their own leadership abilities and create a positive impact within their organizations.