1. MGT 450 – Spring 2019 Class 14 – Chapter 7
Contingency Theories and Adaptive Leadership

2. Thought Starter of the Day
Alone we can do so little; together we can do so much.
Helen Keller (1880 – 1968)

3. Chapter 7 Key Learning Concepts
General description of contingency theories Path-Goal Theory Leadership Substitute Theory Situational Leadership Theory LPC contingency Model Conceptual Weaknesses in Contingency Theories Guidelines for Adaptive Leadership
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations

4. General Descriptions of Contingency Theories
Contingency theories describe how aspects of the leadership situation can alter a leader's influence on an individual subordinate or a work group
Emphasizes that effective leadership is dependent upon matching a leader’s style to the right situation.
Inadvertently assumes that leadership styles are behaviors that cannot be influenced or modified.
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations

5. Early Contingency Theories
Path-Goal Theory
Situational Leadership Theory
LPC Contingency Model
Leader Substitutes Theory
Cognitive Resources Theory
Multiple-Linkage Model
Normative Decision Model
Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations

6. PATH-GOAL THEORY
Describes the way that leaders encourage and support their followers in achieving the goals that have been set by making the path that they should take clear and easy.
In particular, leaders should:
Clarify the path so subordinates know which way to go.
Remove roadblocks that are stopping them from going there.
Increasing the rewards along the route.
How does this work for you????

7. PATH-GOAL THEORY
Subordinates perform better when they have a clear and accurate role expectation:
They perceive that a high level of effort is necessary to attain task objectives
A good chance that their efforts will attain the task objectives
The task of the leader, therefore, is to modify these perceptions and beliefs

8. Leader Substitute Theory a.k.a. Self Managing Teams
The theory states that different situational factors can enhance, neutralize, or substitute for leader behaviors;
Empirical research has produced mixed results as to its ability to predict subordinate outcomes.
E.g. Well-designed jobs that provide clarity, meaning and intrinsic motivation should require little guidance and inspiration from a leader.
A highly cohesive group will also be capable of working without close supervision, i.e. self-managing teams;

9. Self-Managed Teams (Self-Directed Teams)
A self-organized, semiautonomous small group of employees whose members determine, plan and manage their day-to-day activities and duties under reduced or no supervision.
Self-management teams work toward goals that are defined by a staff person outside the team.

10. Self-Managed Teams - a.k.a. Self-Directed Teams
A self-directed team defines its own goals.
While the self-management team is independent, the team members are interdependent.
The team is self-regulating, operating with few external controls.
Team members determine schedules, procedures and the need to make adjustments.
Effective self-management team models are appropriate for certain types of work performed, the workplace environment and the structure of the business.

11. Cognitive Resources Theory Fred Fiedler & Joe Garcia
The theory focuses on the influence of the leader's intelligence and experience on his or her reaction to stress. (e.g. Calmness in the middle of a storm)
The essence of the theory is that stress is the enemy of rationality, damaging leaders' ability to think logically and analytically. However, the leader's experience and intelligence can lessen the influence of stress on his (or her) actions
Intelligence is the main factor in low-stress situations, while experience counts for more during high-stress moments.

12. Stress Impact on Leadership
HIGH STRESS
A boss who creates role conflicts with peers & subordinates
A boss that demands miracles without providing necessary resources and support
Frequent work crises
Serious conflicts with subordinates
Emotions disrupt intellectual thinking and makes intelligence difficult to apply
LOW STRESS
Leader intelligence facilitates information processing & problem solving
Likely to improve the quality of autocratic decision making

13. Paul Hersey & Ken Blanchard Situational Leadership Theory
The fundamental underpinning of the situational leadership theory is that there is no single "best" style of leadership, but rather a variety of leadership approaches based upon the situation and the capability of those who are being led.
Effective leadership is task-relevant, and the most successful leaders are those who adapt their leadership style to the maturity level of the individual or group

14. Situational Leadership Model

15. Situational Leadership
Directing (S1): High on directing behaviors, low on supporting behaviors.
Coaching (S2): High on both directing and supporting behaviors.
Supporting (S3): Low on directing behavior and high on supporting behaviors.
Delegating (S4): Low on both directing and supporting behaviors.

16. Situational Leadership Model
Leadership Styles
Telling - Directing (S1): The leader tells people what to do and how to do it.
Selling - coaching(S2): Leaders "sell" their ideas and message to get group members to buy into the process
Participating - supporting (S3): The leaders offers less direction and allow members of the group to take a more active role in coming up with ideas and making decisions.
Delegating (S4): Characterized by a less involved, hands-off approach to leadership. Group members tend to make most of the decisions and take most of the responsibility for what happens.

17. Situational Leadership Followership, Maturity or Development Levels of Subordinates
D1: Group members lack the knowledge, skills, and willingness to complete the task.
D2: Group members are willing and enthusiastic, but lack the ability.
D3: Group members have the skills and capability to complete the task, but are unwilling to take responsibility.
D4: Group members are highly skilled and willing to complete the task.

18. Situational Leadership Chart

19. Situational Leadership Activities
Textbook – page 171 – Table 7-2
Subordinates are apathetic or discouraged about work
Subordinates are confused about what to do or how to do their work
The Group is disorganized and/or it uses weak performance strategies
There is little cooperation and teamwork among members of the group
The group has inadequate resources to do the work
External coordination with other subunits or outsiders is weak.

20. Situational Leadership Activities Subordinates are apathetic or discouraged about the work
Set challenging goals and express confidence that the subordinates can attain them
Reward effective behavior
Use rational persuasion and inspirational appeals to influence commitment
Provide recognition

21. Situational Leadership Activities Subordinates are confused about what to do or how to do their work
Make clear assignments
Set specific goals and provide feedback about performance or about moving in the right direction
Identify skill deficiencies and arrange for necessary skills training
Provide coaching or instruction as needed

22. Situational Leadership Activities The group is disorganized and/or it uses weak performance strategies
Develop plans to accomplish objectives
Reorganize activities to make better use of people, resources and equipment
Identify and eliminate inefficient and unnecessary activities
Provide more decisive direction of on-going activities in a crisis.

23. Situational Leadership Activities There is little cooperation and teamwork among members of the group
Emphasize common interests and encourage cooperation
Encourage constructive resolution of conflict and help mediate conflicts
Increase group incentives and reduce competition
Use team building activities

24. Situational Leadership Activities The group has inadequate resources to do the work
Find more reliable or alternative sources of supplies
Ration available resources if necessary
Discuss with higher levels for a larger and more inclusive budget

25. Situational Leadership Activities External coordination with other subunits or outsiders is weak
Network with peers and outsiders to develop more cooperative relationships
Keep peers and outsiders informed about the changes
Monitor closely to detect coordination problems quickly
Meet with peers and outsiders to resolve coordination problems

26. Leadership Adaptations to Changing Situations
Understand your leadership situation and try to make it more favorable
Increase flexibility by learning how to use a wide range of relevant behaviors
Consult with people who have relevant knowledge
Monitor a critical task or unreliable person more closely
Provide more coaching to an inexperienced subordinate

27. Leadership Management of Crises or Unexpected Disruptions
E.g. Accidents, explosions, natural disasters, equipment breakdowns, product defects, sabotage, health emergencies, snow days, etc.
Do you have a Plan B – Plan C – Plan D, etc.
Anticipate potential problems and prepare for them
Learn to recognize early warning signs for an impending problem
Quickly identify the nature and scope of the problem
Keep people informed of the problem and what is being done about it.

28. PRACTICAL EXERCISE
L.E.A.D. QUESTIONNAIRE

29. End of Class 14
Homework Re-read Chapter 7 Read Chapter 8 Team 3 – Prepare for Chapter 6 Case Study Team 4 – Prepare for Chapter 6 Review and Discussion