1. Chapter 5: Contingency Leadership Theories
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2. Chapter 5 Learning Objectives
Differences between behavioral and contingency leadership theories.
Contingency leadership variables and styles.
Leadership models:
Contingency —Prescriptive
Leadership continuum — Descriptive
Path-goal — Substitutes
Normative — Situational
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4. Contingency Leadership Theories: “It Depends”
explain that the appropriate leadership style based on the (1) leader, (2) followers, and (3) situation.
If managers can properly diagnose a situation and followers so that they can then use the appropriate leadership style, successful outcomes are highly likely.
“Leadership is largely shaped by contextual factors”

5. Global Contingency Leadership
Global companies, like McDonald’s realize that successful leadership styles can vary greatly from place to place.
“Companies are now looking for graduates with an international openness and flexibility who can master the complexity of the global economy.”

6. Global Contingency Leadership: Professor William Ouchi’s Findings: Theory Z
observed that Japanese firms were managed and led differently than U.S. organizations.
7 Differences…Japanese found to have: longer employment, collective decision making, collective responsibility, slower promotion, more implicit controls, more unspecialized career paths, and more holistic concern for employees.

7. Contingency Leadership
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Contingency Leadership
Framework Variables
Summary
Heading. Text.
Followers
Capability
Motivation
Leader
Personality traits
Behavior
Experience
Situation
Task
Structure
Environment
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8. Contingency Leadership Model: Fiedler
Is a leader’s style more task or relationship oriented? Does the situation match the leader’s style? If so it will maximize performance.
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9. The Contingency Leadership Model Variables Within
Framework
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Summary
Heading. Text.
Leader
Situation
Task Structure
Position Power
Leader/Follower
Relations*
Followers
Leader / Member
Relations*
Situation
Task Structure
Position Power
Leadership
Styles
Task
Relationship
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10. 3 Variables of Situational Favorableness.
This slide relates to XX-XX.
Leader-member
Relations, #1 3
Variables of
Situational
Favorableness.
Task structure, #2
Summary Overview
XXXX
Major Title
Heading.
Position power, #3
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11. Situational Favorableness
Leader-member relations—good or poor?
Task structure—repetitive or non-repetitive?
Position power—strong or weak?

12. Fiedler’s Recommendations: Change the Situation to Fit Your Style
How to change the situation:
Analyze each variable and then either:
Improve relations,
Create or lessen task structure by either stating more or less specific standards,
Downplay position power or get more and act more powerful.

13. Form Small Groups: Analyze This Class From The Leader’s Standpoint
What is the situation? (This is probably similar for most classes).
What is the leader’s predominant style? This may be a tricky question?
Should the leader change one of the situational variables? If so, which one?

14. The Leadership Continuum Model
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.
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15. Tannenbaum and Schmidt’s Leadership Continuum Model
Autocratic
Participative 1.
Leader makes decision and announces it to employees
without discussion. 2.
Leader makes a decision and sells it to employees. 3.
Leader presents ideas and invites employee questions. 4.
Leader presents tentative decision subject to change. 5.
Leader presents problem, gets suggestions, and makes decision. 6.
Leader defines limits and asks employees to make a decision. 7.
Leader permits employees to make ongoing decisions within defined limits.
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16. COMPARATIVE ANALYSIS OF THE 4 SYSTEMS
1. In a few words, describe each of the four systems:
System 1
System 2
System 3
System 4

17. Case Study Small Group Exercise
System
Action taken?
Attitude/ Behavior
Perfor-mance?
System 1
System 2
System 3
System 4

18. The Situational Leadership Model The Contingency Leadership
Variables Within
The Contingency Leadership
Framework Variables
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Summary
Heading. Text.
Leader
None
Followers
Follower
Maturity
Situation
Task
L’Ship Styles
Telling
Selling
Participating
Delegating
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19. Situational Leadership Theory
Readiness
of Followers
Behavior
of Leaders
Unable and Unwilling
Clear, Specific Directions
Unable and Willing
High Task Orientation
Able and Unwilling
Support & Participation
Able and Willing
Let Followers Perform

20. House Path-Goal Leadership Model Achievement-oriented
Situational
Factors
Subordinate
authoritative
locus of control
ability
Environment
task structure
formal     authority
work group
Leadership Styles
Directive
Supportive
Participative
Achievement-oriented
Goal Achievement
Performance
Satisfaction
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21. Leader Participation Model
Employee Involvement Continuum
Increased Leader Control 1 2 3 4 5
A comprehensive framework related to leader behavior and participation in decision making is the leader-participation model (Vroom & Yetton, 1973). This model identifies five leadership behaviors:
1. The leader makes the decision alone.
2. The leader asks for information from group members but makes the decision alone. Group members may or may not be informed about the decision.
3. The leader shares the situation with each group member and asks for information and evaluation. Members do not meet as a group, and the leader makes the decision.
4. The leader and group members discuss the situation, but the leader makes the decision.
5. The leader and group members discuss the situation, and the group makes the decision.
This model originally used seven contingencies (the relevance of which could be identified by making a series of “yes” or “no” choices) to determine the best leadership style from among the five alternatives.
Increased Employee Involvement

22. Contingency Variables in the Revised Leader-Participation Model
Importance of the decision
Importance of subordinate commitment
Whether leader has enough information
The structural nature of the problem
Acceptability of autocratic decisions
Commitment of subordinates to the organization
More recent work by Vroom and Jago has revised the Leader-Participation Model. The new model retains the same five alternative leadership styles which range from the leader making the decision alone to sharing the problem with the group and obtaining a consensus decision. But it expands contingency variables to twelve (see the slide above and the one that follows).

23. Contingency Variables in the Revised Leader-Participation Model
Subordinates’ opinions about alternatives
Knowledge level of subordinates
Time constraints on involvement of subordinates
Cost of arranging for subordinates to meet
Time constraints on making a decision
Importance of participation

24. Leader-Member Exchange Model
Personal
Compatibility
and/or
Subordinate
Competence
Leader
Formal
Relations
Trust
High
Interactions
The leader-member exchange model asserts that leaders differentiate between followers. The result is a dichotomy: an in-group and an out-group.
In-group members are trusted, get extra attention, and receive special privileges. Out-group members get less attention, fewer rewards, and participate in a formal superior-subordinate relationship. In-group members are chosen because they are highly competent, extroverted, and have personal characteristics that are similar to the leader’s. As a result, in-group subordinates have higher performance ratings, less turnover, and greater satisfaction with the leader-subordinate relationship.
Subordinate A B C
In-Group
Subordinate D E F
Out-Group

25. Substitute for Leadership Variables Within the Contingency
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Substitute for Leadership
Variables Within the Contingency
Leadership Framework Variables
Summary
Heading. Text.
Followers
Subordinates
Leader
None
Situation
Task
Organization
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26. Substitutes and Neutralizers for Leadership
Defining
Characteristics
Relationship-
Oriented Leadership
Task-
Oriented Leadership
Individual
Experience/training
Professionalism
Indifference to rewards
No effect
Substitutes
Neutralizes
Substitutes
Neutralizes
Job
Highly structured task
Provides own feedback
Intrinsically satisfying
No effect
Substitutes
Substitutes
No effect
Organization
Explicit formal goals
Rigid rules & procedures
Cohesive work groups
No effect
Substitutes
Substitutes