Contingency Approaches 3 Contingency Approaches

Chapter Objectives Understand how leadership is often contingent on people and situations. Apply Fiedler’s contingency model to key relationships among leader style, situational favorability, and group task performance. Apply Hersey and Blanchard’s situational theory of leader style to the level of follower readiness. Explain the path-goal theory of leadership. Use the Vroom-Jago model to identify the correct amount of follower participation in specific decision situations. Know how to use the power of situational variables to substitute for or neutralize the need for leadership.

Ex. 3.1 Comparing the Universalistic and Contingency Approaches to Leadership Outcomes (Performance, satisfaction, etc.) Universalistic Approach Leadership Traits/behaviors Leader Style Traits Behavior Position Contingency Approach Outcomes (Performance, satisfaction, etc.) Needs Maturity Training Cohesion Task Structure Systems Env. Followers Situation

Contingency Approaches Contingency approaches: approaches that seek to delineate the characteristics of situations and followers and examine the leadership styles that can be used effectively Fiedler’s contingency model: a model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation

Fiedler’s contingency model In this model, first the leader’s dominant style is determined – whether it is task-oriented or leader- oriented (thru questionaire) Situation defined in terms of 3 elements (whether favorable or unfavorable to the leader) Leader-member relations Task structure Position power Task orientation works best when situation is highly favorable or unfavorable; relationship orientation favorable when situation is moderate

Situational Theory Hersey and Blanchard’s extension of the Leadership Grid focusing on the characteristics of followers as the important element of the situation, and consequently, of determining effective leader behavior

Hersey and Blanchard’s Situational Theory of Leadership Follower characteristics: Low readiness level – poor ability and skills, low experience, unwillingness to take responsibility High readiness level - opposite

Ex. 3.4 Hersey and Blanchard’s Situational Theory of Leadership Follower Characteristics Appropriate Leader Style Low readiness level Moderate readiness level High readiness level Very high readiness level Telling (high task-low relationship) Selling (high task-high relationship) Participating (low task-high rel.) Delegating (low task-low relationship)

Ex. 3.2 Metacategories of Leader Behavior and Four Leader Styles High High Task-Low Relationship High Task-High Relationship BEHAVIOR TASK Low Task-Low Relationship High Relationship -Low Task Low Low RELATIONSHIP BEHAVIOR High

Hersey and Blanchard’s Situational Theory of Leadership Telling – directive style (high concern for task and low for relationship) Selling – leader explains decisions and gives followers chance to ask questions (high for task and high for relationship) Participating – leader shares ideas with followers and facilitates decision-making (low for task and high for relationship) Delegating – hand-off approach (low for task and low for relationship)

Path-Goal Theory A contingency approach to leadership in which the leader’s responsibility is to increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment and rewards Three sets of contingencies – Leader-style Followers & situation Rewards

Ex. 3.5 Leader Roles in the Path-Goal Model Path Clarification Increase Rewards Leader defines what follower must do to attain work outcomes Leader learns follower’s needs Leader clarifies follower’s work role Leader matches follower’s needs to rewards if work outcomes are accomplished Follower has increased knowledge & confidence to accomplish outcomes Leader increases value of work outcomes for follower Follower displays increased effort and motivation Organizational work outcomes are accomplished

Ex. 3.6 Path-Goal Situations and Preferred Leader Behaviors Impact on Follower Outcome Followers lack self-confidence Supportive Leadership Increases confidence to achieve work outcomes Directive Leadership Increased effort; improved satisfaction and performance Ambiguous job Clarifies path to reward Achievement-Oriented Leadership Lack of job challenge Set and strive for high goals Participative Leadership Clarifies followers’ needs to change rewards Incorrect reward

The Vroom-Jago Contingency Model A contingency model that focuses on varying degrees of participative leadership, and how each level of participation influences quality and accountability of decisions

Calls for 5 different leadership styles, ranging from highly autocratic to democratic - depending on situation Decided by asking 7 diagnostic questions Further added time and concern for follower development Uses matrix

Ex. 3.7 Five Leader Decision Styles Area of Freedom for Group Area of Influence by Leader Decide Consult Individually Consult Group Facilitate Delegate

Substitute and Neutralizer Substitute: a situational variable that makes leadership unnecessary or redundant Neutralizer: a situational characteristic that counteracts the leadership style and prevents the leader from displaying certain behaviors

Ex. 3.10 Substitutes and Neutralizers for Leadership Substitutes for No effect on Neutralizes Professionalism Training/experience Low value of rewards Follower characteristics Highly struct. task Automatic feedback Intrinsic satisfaction Task characteristics Group cohesiveness Formalization Inflexibility Low positional power Physical separation Organizational variables People-Oriented Leadership Task-Oriented Leadership Variable