CONTINGENCY THEORY OF LEADERSHIP NUPUR KHULLAR 1

WHAT MAKES LEADERSHIP EFFECTIVE IN A GROUP OR ORGANIZATION? Contingency theories hold that leadership effectiveness is related to the interplay of a leader's traits or behaviors and situational factors. The contingency theory of leadership was proposed by the Austrian psychologist Fred Edward Fiedler in his landmark 1964 article, "A Contingency Model of Leadership Effectiveness." The contingency theory emphasizes the importance of both the leader's personality and the situation in which that leader operates. Fiedler studied leaders in a variety of contexts but mostly in military context and their model is based on their research findings. 2

TWO STYLES OF LEADERSHIP Task-motivated –Task accomplishment Relationship-motivated –Interpersonal relationships Identifying leadership style is the first step in using the model. Fiedler believed that leadership style is fixed, and it can be measured using a scale he developed called Least-Preferred Co-Worker (LPC) Scale. Once you understand your style, it says that you can match it to situations in which that style is most effective. 3

TWO STYLES OF LEADERSHIP The scale asks you to think about the person who you've least enjoyed working with. This can be a person who you've worked with in your job, or in education or training. You then rate how you feel about this person for each factor (cooperative, unkind, rejecting, tense, etc.), and add up your scores. If your total score is high, you're likely to be a relationship-orientated leader. If your total score is low, you're more likely to be task- orientated leader. The model says that task-oriented leaders usually view their LPCs more negatively, resulting in a lower score. These task-oriented leaders are very effective at completing tasks. They're quick to organize a group to get tasks and projects done. Relationship-building is a low priority. However, relationship-oriented leaders usually view their LPCs more positively, giving them a higher score. Relationship-oriented leaders focus more on personal connections, and they're good at avoiding and managing conflict. They're better able to make complex decisions. 4

THE “SITUATION” Next, you determine the "situational favorableness" of your particular situation. This depends on three distinct factors: Leader-Member Relations – This is the level of trust and confidence that your team has in you. A leader who is more trusted and has more influence with the group is in a more favorable situation than a leader who is not trusted. Task Structure – This refers to the type of task you're doing: clear and structured, or vague and unstructured. Unstructured tasks, or tasks where the team and leader have little knowledge of how to achieve them, are viewed unfavorably. Leader's Position Power – This is the amount of power you have to direct the group, and provide reward or punishment. The more power you have, the more favorable your situation. Fiedler identifies power as being either strong or weak. 5

THE “SITUATION” "Situations that are rated most favorable are those having good leader-follower relations, defined tasks, and strong leader position power. Situations that are rated least favorable have poor leader-follower relations, unstructured tasks, and weak leader position power. Situations that are rated moderately favorable fall betweeb these two extremes" (Northouse, 2007, p.115). 6

BREAKDOWN OF MOST EFFECTIVE LEADER STYLE 7

CRITICISMS Lack of flexibility. –Fiedler believed that because our natural leadership style is fixed, the most effective way to handle situations is to change the leader. If you fall near the middle of the scoring range on the LPC scale, then it could be unclear which style of leader you are. Possible that your least preferred co-worker is a genuinely confused, unpleasant or just a bad person—scoring low on the LPC scale because of this person forever brands you as a task- oriented leader no matter how relationship oriented you are. 8

PATH-GOAL THEORY Developed by Martin Evans in 1970 and expanded on by Robert House in Holds that the leader should help form the path for followers to achieve group goals. This involves the leader employing particular behaviors in specific situations to increase follower satisfaction and motivate others toward task accomplishment. The theory identifies four types of leader behavior that include supportive (relations oriented), directive (task oriented), achievement oriented, participative leader behavior, as well as two aspects of the situation, namely, follower characteristics and task characteristics. 9

NORMATIVE DECISION MODEL Originally developed by Victor Vroom and Phillip Yetton in 1973 and later revised by Victor Vroom and Arthur Jago. This model states that there is a variety of ways to make decisions and that a manager should choose the way that is most appropriate given the nature of the problem to be solved and the context in which the decision is to be made. Emphasizes situational factors more than leadership behaviors—outlines a set of five different decision-making strategies that range on a continuum from directive to participative decision making. The optimal strategy for decision-making situations may be reached by answering “yes” or “no” to seven questions on a decision tree. Some examples of these situational considerations include the importance of decision quality, the likelihood that followers' would accept and implement the decision, and the amount of available information needed for the decision. The decision tree takes into account seven decision rules that eliminate decision options that would jeopardize decision quality or hinder decision acceptance. In this way, decision-strategy options are realized from a feasible set that purports to optimize effective decision making. 10

SITUATIONAL LEADERSHIP THEORY Paul Hersey and Ken Blanchard in 1969 Leadership effectiveness depends on the leader's ability to tailor his or her behavior to the demands of the situation, namely, the subordinate's level of maturity. Four different types of leadership behavior based on combining directive and supportive behavior: telling (high directive, low support), selling (high directive, high supporting), participating (low directive, high supportive), and delegating (low directive, low supportive). The leader's function is to continually evaluate and adapt his or her behavior to each follower's task maturity (i.e., ability) and psychological maturity (i.e., willingness) to complete the task at hand. 11

SUMMARY All contingency theories hold that leadership effectiveness is related to the interplay of a leader's traits or behaviors and situational factors. Fielder: leadership effectiveness (in terms of group performance) depends on the interaction of two factors: the leader's task or relations motivations and aspects of the situation. Path-Goal Theory: leader employing particular behaviors in specific situations to increase follower satisfaction and motivate others toward task accomplishment. Normative Decision Model: Emphasizes decision making strategies Situational Leadership Theory: Leadership effectiveness depends on the leader's ability to tailor his or her behavior to the demands of the situation, namely, the subordinate's level of maturity. 12

REFERENCES "Fiedler's Contingency Model: Matching Leadership Style to a Situation." Fiedler's Contingency Model. Accessed June 15, Seyranian, Viviane. "Contingency Theories of Leadership." Encyclopedia of Group Processes & Intergroup Relations. Ed. John M. Levine and Michael A. Hogg. Thousand Oaks, CA: SAGE, SAGE Reference Online. Web. 30 Jan Virkus, Sirje. "Contingency Theory." Contingency Theory Accessed June 15, Models/contingency_theory.html. 13