1. MGT 450 – Spring 2016 Class 14 – Chapter 7 Contingency Theories and Adaptive Leadership

2. Learning Objectives After studying this chapter, you should be able to: Understand how aspects of the situation can enhance or diminish effects of leader behavior. Understand the benefits and limitations of contingency theories. Understand how to adapt leader behavior to the situation. Understand how to manage disruptions and other crises. 7-2 Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations

3. General Descriptions of Contingency Theories Contingency theories describe how aspects of the leadership situation 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 7-3

4. Contingency Theory Benefits Contingency theories take into account: Task requirements Situational constraints Interpersonal processes Copyright© 2013 Pearson Education Inc. publishing as Prentice Hall Leadership in Organizations 7-4

5. Situations defined by contingency theories Leader-Member Relation A measure of leadership acceptance between the organizational hierarchies. It is desirable that the subordinates have trust, confidence and feel adequately motivated by their superiors Task Structure A measure of the clarity of the project or tasks and their methods to achieve the end results. There are clear guidelines to follow and progress can be easily tracked.

6. Situations Defined By Contingency Theories Positional Power A measure of amount of authority a leader has to influence the productivity of the followers (rewards vs. punishment) Positional power can be weak if the subordinates do not directly report to the leader (e.g. 3 rd shift workers), matrix or virtual organizations, or tasks that are sub-contracted to an external organization.

7. 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 7-7

8. PATH-GOAL THEORY This theory of leadership was developed to describe the way that leaders encourage and support their followers in achieving the goals they 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????

9. Situational Leadership Theory The fundamental underpinning of the situational leadership theory is that there is no single "best" style of leadership. 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, i.e. “The capacity to set high but attainable goals, willingness and ability to take responsibility for the task, and relevant education and/or experience of an individual or a group for the task. Effective leadership varies, not only with the person or group that is being influenced, but it also depends on the task, job or function that needs to be accomplished”.

10. Situational Leadership Model Leadership Styles Telling (S1): The leader tells people what to do and how to do it. Selling (S2): Leaders "sell" their ideas and message to get group members to buy into the process Participating (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.

11. Situational Leadership Followership or Maturity Levels of Subordinates M1: Group members lack the knowledge, skills, and willingness to complete the task. M2: Group members are willing and enthusiastic, but lack the ability. M3: Group members have the skills and capability to complete the task, but are unwilling to take responsibility. M4: Group members are highly skilled and willing to complete the task.

12. 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.

13. Situational Leadership Chart

14. 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.

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

16. 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

17. 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.

18. 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