Contingency Leadership Theories Chapter 5 Copyright © 2010 by South-Western/Cengage Learning All rights reserved. PowerPoint Presentation by Rhonda S. Palladi Georgia State University

2  State the major difference between behavioral and contingency theories, and explain the behavioral contribution to contingency theories.  Describe the contingency leadership theory variables.  Identify the contingency leadership model styles and variables.  State the leadership continuum model major styles and variables.  Identify the path-goal leadership model styles and variables.  State the normative leadership model styles and the number of variables.  Discuss the major similarities and differences between the behavioral and contingency leadership theories.  Compare and contrast four major differences among the four contingency leadership models.  List which leadership models are prescriptive and descriptive, and explain why they are classified as such.  Explain substitutes and neutralizers of leadership.  Define the key terms listed at the end of the chapter. Chapter 5 Learning Outcomes

3  A leadership theory is an explanation of some aspect of leadership, which is used to better understand, predict, and control successful leadership  A leadership model is an example for emulation or use in a given situation Leadership Theories vs. Leadership Models

4 Contingency Leadership Theories  Attempt to explain the appropriate leadership style based on the leader, followers, and situation

5  Is influenced by: Styles groups prefer Contextual factors Demands and constraints confronting the leader Leadership Style

6 Framework for Contingency Leadership Variables FOLLOWERSLEADERSITUATION CapabilityPersonality traitsTask MotivationBehaviorStructure ExperienceEnvironment

7  Developed by William Ouchi  Is a combination of U.S. and Japanese leadership practices  Many American companies have adopted practices from the Japanese More collective decision-making responsibilities More shared-leadership responsibilities  Japanese companies have been influenced by American management practices Shorter employment Faster promotions Theory Z

8 Is Theory Z still relevant today? Discussion Question #1

9  Is used to determine if a person’s leadership style is task- or relationship- oriented, and if the situation (leader– member relationship, task structure, and position power) matches the leader’s style to maximize performance Contingency Leadership Model

10 Contingency Leadership Model Variables Within the Contingency Leadership Framework FOLLOWERSLEADERSITUATIONLeader–member relations Task structure Position power LEADERSHIP STYLES Task Relationship

11  Determine whether your dominant leadership style is task-oriented or relationship-oriented by completing the least preferred coworker (LPC) scales Leadership Style and the LPC “Are you more task-oriented or relationship-oriented?”

12  Refers to the degree to which a situation enables the leader to exert influence over the followers The more control, the more favorable the situation Situational Favorableness

13 Leader– member relations Task structure Position power Situational Favorableness Variables Situational Favorableness Variables Situational Favorableness (cont.)

14  Is the most powerful determinant of overall situational favorableness  Is the relationship good (cooperative and friendly) or poor (antagonistic and difficult)?  Do the followers trust, respect, accept, and have confidence in the leader?  Is there much tension?  Leaders with good relations have more influence  The better the relations, the more favorable the situation Situational Favorableness Variables: Leader–Member Relations

15  Is second in potency  Is the task structured or unstructured?  Do employees perform repetitive, routine, ambiguous, standard tasks that are easily understood?  Leaders in a structured situation have more influence  The more structured the jobs are, the more favorable the situation Situational Favorableness Variables: Task Structure

16  Is the weakest factor  Is position power strong or weak?  Does the leader have the power to assign work, reward and punish, hire and fire, give raises and promotions?  The leader with position power has more influence  The more power, the more favorable the situation Situational Favorableness Variables: Position Power

17  If the leadership style does not match the situation, the leader may be ineffective  The leader may need to change the situation Changing the Situation

18 Do you agree with Fiedler’s belief that people have one dominant leadership style and cannot change styles? Explain. Discussion Question #2

19  Is used to determine which one of seven styles to select, based on one’s use of boss-centered versus subordinate- centered leadership, to meet the situation (boss, subordinates, situation/time) in order to maximize performance Leadership Continuum Model

20 Leadership Continuum Model Variables Within the Contingency Leadership Framework FOLLOWERSLEADERSITUATION SubordinatesBossSituation (time) LEADERSHIP STYLES Boss-centered to subordinate- centered leadership with seven leadership styles along the leadership continuum model

21  The leader’s personality and behavioral preferred style is considered in selecting a leadership style  Is based on: Experience Expectation Values Background Knowledge Feeling of security Confidence in the subordinates Leadership Continuum Model Variables: Boss

22 Leadership Continuum Model Variables: Subordinates  The followers’ preferred style for the leader is based on: Personality Behavior

23  The environmental considerations are considered in selecting a leadership style  Includes the organization’s: Size Structure Climate Goals Technology  Upper-level managers also influence leadership styles Leadership Continuum Model Variables: Situation

24  The time available is another consideration  Participative decisions take more time  A lack of time can result in autocratic leadership Leadership Continuum Model Variables: Situation (cont.)

25 Tannenbaum and Schmidt’s Leadership Continuum Model 1. Leader makes decision and announces it to followers individually or without discussion. 2. Leader makes decision and sells it to followers. 3. Leader presents ideas and invites follower questions. 4. Leader presents tentative decision subject to change. 5. Leader presents problem, gets suggested solutions, and makes the decision. 6. Leader defines limits and asks the followers to make a decision. 7. Leader permits followers to make ongoing decisions within defined limits. Autocratic Style Participative Style Source: Adapted and reprinted by permission of Harvard Business Review From “How to Choose a Leadership Pattern” by Robert Tannenbaum and Warren H. Schmidt, May–June Copyright © 1973 by the Harvard Business School Publishing Corporation, all rights reserved. Tannenbaum and Schmidt’s Leadership Continuum Model

26  The factors used to select a leadership style are very subjective  Choosing which style to use is difficult using this model Criticisms of the Leadership Continuum Model

27  Is used to select the leadership style (directive, supportive, participative, or achievement-oriented) appropriate to the situation (subordinate and environment) to maximize both performance and job satisfaction Path-Goal Leadership Model

28  Attempts to explain how leader behavior influences performance and satisfaction of followers  Fits into the framework of contingency leadership variables but does not have a leader trait and behavior variable  Leader is supposed to use the appropriate leadership style, regardless of preferred traits and behavior Path-Goal Leadership Theory and Model

29 Source: Adapted from R.J. House, “A Path-Goal Theory of Leader Effectiveness,” Administrative Science Quarterly 16 (2), 1971: 321–329. House Path-Goal Leadership Model FOLLOWERSLEADERSITUATION SubordinatesNoneEnvironment (authoritarianism(task structure, locus of control,formal authority, ability)and work group) LEADERSHIP STYLES Directive Supportive Participative Achievement-oriented

30  Motivation is increased by: Clarifying the follower’s path to the rewards that are available Working with followers to identify and teach them behaviors which will lead to successful task accomplishment and organizational rewards Increasing the rewards that are valued and wanted by the followers Path-Goal Leadership Theory and Model

31 Situational Factors  Subordinate Authoritarianism –Is the degree to which employees defer to others, and want to be told what to do and how to do the job Locus of control –Is the extent to which employees believe they control goal achievement (internal) or if goal achievement is controlled by others (external) Ability –Is the extent of the employees’ ability to perform tasks to achieve goals

32 Situational Factors (cont.)  Environment Task structure –Is the extent of repetitiveness of the job Formal authority –Is the extent of the leader’s position power Work group –Is the extent to which coworkers contribute to job satisfaction or the relationship between followers

33 Leadership Styles  Directive The leader provides high structure Is appropriate when: –The followers want authority leadership –The followers have external locus of control –Follower ability is low –The environmental task is complex or ambiguous –Formal authority is strong –The work group provides job satisfaction

34 Leadership Styles (cont.)  Supportive The leader provides high consideration Is appropriate when: –The followers do not want authority leadership –The followers have internal locus of control –Follower ability is high –The environmental tasks are simple –Formal authority is weak –The work group does not provide job satisfaction

35 Leadership Styles (cont.)  Participative The leader includes employee input into decision making Is appropriate when: –Followers want to be involved –Followers have internal locus of control –Follower ability is high –The environmental task is complex –Authority is either strong or weak –Job satisfaction from coworkers is either high or low

36 Leadership Styles (cont.)  Achievement-oriented The leader provides both high directive (structure) and high supportive (consideration) behavior Is appropriate when: –Followers are open to autocratic leadership –Followers have external locus of control –Follower ability is high –The environmental task is simple –Authority is strong –Job satisfaction from coworkers is either high or low

37  Has a time-driven and development- driven decision tree  Enables a user to select one of five leadership styles (decide, consult individually, consult group, facilitate, and delegate) appropriate for the situation (seven questions/variables)  Maximizes decisions Normative Leadership Model

38 Normative Leadership Model Variables Within the Contingency Leadership Framework FOLLOWERSLEADERSITUATION Development-Driven3. Leader ExpertiseTime-DrivenDecision Model 2. Importance of commitment1. Decision significance 4. Likelihood of commitment 5. Group support for objectives 6. Group expertise 7. Team competence LEADERSHIP STYLES Directive Consult individually Consult group Facilitate Delegate

39  Decide The leader makes the decision alone and announces it, or sells it, to the followers  Consult individually The leader tells followers individually about the problem, gets information and suggestions, and then makes the decision  Consult group The leader holds a group meeting and tells followers the problem, gets information and suggestions, and then makes the decision Leadership Participation Styles

40  Facilitate The leader holds a group meeting and acts as a facilitator to define the problem and the limits within which a decision must be made The leader seeks participation and concurrence on the decision without pushing his or her own ideas  Delegate The leader lets the group diagnose the problem and make the decision within stated limits Leadership Participation Styles (cont.)

41 1.Decision Significance 2.Importance of Commitment 3.Leader Expertise 4.Likelihood of Commitment 5.Group Support for Objectives 6.Group Expertise 7.Team Competence Determining the Appropriate Leadership Style

42  Focus The model is concerned with making effective decisions with minimum costs Time is costly  Value Value is placed on time No value is placed on follower development  Orientation The model has a short-term horizon Characteristics of the Time-Driven Model

43  Focus The model is concerned with making effective decisions with maximum development of followers Follower development is worth the cost  Value Value is placed on follower development No value is placed on time  Orientation The model has a long-term horizon Development takes time Characteristics of the Development-Driven Model

44 Prescriptive: Tell users exactly which style to use in a given situation Descriptive: Identify contingency variables and leadership styles without directing which style to use in a given situation Prescriptive and Descriptive Models

45  There are factors outside the leader’s control  Have a larger impact on outcomes than do leadership actions  Include characteristics of the subordinate, task, and organization that replace the need for a leader  Can neutralize the leader’s behavior Leadership Substitutes Theory

46 Substitutes for Leadership Variables Within the Contingency Leadership Framework FOLLOWERSLEADERSITUATION SubordinatesNoneTask Organization

47  Characteristics of followers Ability Knowledge Experience Training Need for independence Professional orientation Indifference toward organizational rewards Substitutes and Neutralizers

48  Characteristics of the task Clarity Routine Invariant methodology Provision of own feedback concerning accomplishment Intrinsic satisfaction Substitutes and Neutralizers (cont.)

49 Substitutes and Neutralizers (cont.)  Characteristics of the organization Formalization Inflexibility Highly specified and active advisory and staff functions Closely knit, cohesive work groups Organizational rewards not within the leader’s control Spatial distance between leader and followers

50  Leaders can analyze to determine the most appropriate leadership style for the situation  The leader role is to provide direction and support not being provided by the task, group, or organization  The leader fills the gaps in leadership  Leaders can change the situation rather than their leadership style Leadership Style

51 Discussion Question #3 Which contingency leadership theory do you actually plan to use, and how? If you don’t plan to use any, give a detailed reason for not wanting to use any of the models.