1. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-1 Chapter 3 Contingency Theories of Leadership

2. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-2 Chapter Goals  The goal of this chapter is to review the four better known contingency theories of leadership, as well as show their similarities.

3. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-3 Normative Decision Model  The Normative Decision Model, developed by Vroom and Yetton, is solely directed at determining how much input subordinates should have in the decisions making process.

4. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-4 Decision-making processes  To determine which situational and follower factors affect the level of participation and group performance, Vroom and Yetton investigated the decision-making processes leaders use in group settings. They discovered a continuum of decision-as seen in the next slide.

5. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-5 Continuum of decision-making processes Leader Followers Situation Decision process B. Does leader have sufficient information? A. Quality requirement? C. Is problem structured? D. Acceptance important for implementation? E. If decision made is solely by leader, will it be accepted by subordinates? F. Do subordinates share organizational goals? G. Is conflict over preferred solution likely? Outcomes: Decision quality Decision acceptance Subordinate development

6. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-6 The Situational Leadership Theory, developed by Hersey and Blanchard, answers the following questions:  Is there an optimum way for leaders to adjust their behavior with different followers and thereby increase their likelihood of success?  If so, then what factors should the leader base his behavior on?

7. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-7 Situational Leadership Theory and the Interactional Framework What is the task to be accomplished? What is the followers job maturity? Followers Situation Psychological maturity? Leader Outcomes: Task accomplishment Increased follower maturity Telling:high task, low relationiship Selling:high task, high relationship Participating: low task, low relationship Delegating: low task, low relationship Decision to use developmental intervention

8. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-8 The Contingency Model  The Contingency Model, developed by Fiedler, recognizes that leaders have general behavioral tendencies and thereby specifies situations where certain leaders (or behavioral dispositions) may be more effective than others.

9. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-9 Fiedler’s Contingency Theory and the Interactional Framework Followers Situation Leader Task structure Position Power Leader- member relations Motivation hierarchy (as determined by LPC score) Outcomes: Effective or ineffective group performance based upon match or mismatch between leader and overall favorability of the leadership situation

10. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-10 The Path-Goal Theory  The Path-Goal Theory, the most sophisticated of the four contingency models, deals with expectancy, performance-to-outcome probabilities, and assigned valences or values to outcome.

11. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-11 The Path-Goal Theory  Expectancy - If I study for 12 hours, what is the probability I will get an A on the exam?  Performance-to-outcome probabilities - If I get an A on the final, what is the probability of getting an A in the course?  Assigned valences or values to outcome - How much do I value a higher GPA Cont.

12. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 3-12 Path-Goal Theory and Interactional Framework Outcomes: Acceptance of leader Follower motivation Follower satisfaction Leader Followers Situation Traits Skills and abilities expectations and work perceptions of own group abilities Leader behavior: Directive, Supportive, Participative, Achievement-oriented