1. 4 - 1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Contingency Leadership Theories Chapter 4 Part One: Individuals As Leaders

2. 4 - 2 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Outcomes 1 – 5 1)State the major difference between behavioral and contingency leadership theories, and explain the behavioral contribution to contingency theories. 2)Describe the contingency leadership theory variables. 3)Identify the contingency leadership model styles and variables. 4)State the leadership continuum model major styles and variables. 5)Identify the path-goal leadership model styles and variables.

3. 4 - 3 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Outcomes 6 – 10 6)State the normative leadership model styles and the number of variables. 7)Discuss the major similarities and differences between the behavioral and contingency leadership theories. 8)Compare and contrast four major differences among the four contingency leadership models. 9)List which leadership models are prescriptive and descriptive, and explain why they are classified as such. 10)Explain substitutes and neutralizers of leadership.

4. 4 - 4 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leadership Theories versus Leadership Models Recall, a leadership theory is an explanation of some aspect of leadership. > Theories have practical value because they help us better understand, predict, and control successful leadership. A leadership model is an example for emulation or use in a given situation. > All of the contingency leadership theories in this chapter have a leadership model. Also, see exhibit 4.1.

5. 4 - 5 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Global Contingency Leadership Contingency leadership is important to today’s global economy. > Global companies realize successful leadership styles vary greatly from place to place. > Effective leaders of today need multicultural backgrounds and experiences. > This reinforces the message of the global contingency leadership.

6. 4 - 6 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. In 1951, Fred E. Fiedler developed the first situational leadership theory called “Contingency Theory of Leader Effectiveness”. o He believed leadership style is a reflection of personality and behavior, and that leadership styles are basically constant. The contingency leadership model is used to determine if a person’s leadership style is task- or relationship-oriented, and if the situation (leader-member relationship, task structure, and position power) matches the leader’s style to maximize performance. See Exhibit 4.2. Contingency Leadership Theory and Model

7. 4 - 7 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leadership Style and the LPC When using Fiedler’s model, first determine if your dominate leadership style is: > Task-motivated, or o Gain satisfaction from task completion. > Relationship motivated. o Gain satisfaction through forming and maintaining relationships with followers. To determine leadership style, complete the least-preferred coworker (LPC) scales.

8. 4 - 8 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Situational Favorableness Situational favorableness refers to the degree to which a situation enables the leader to exert influence over the followers. 1. Leader-member relations: Better relations lead to more favorable situations. 2. Task structure: Structured jobs mean more favorable situations. 3. Position power: The more power, the more favorable the situation.

9. 4 - 9 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Determining the Appropriate Leadership Style Use Fiedler’s contingency theory model to determine which style is appropriate. See Exhibit 4.3. > If your LPC matches appropriate style, do nothing. > If you need to change styles, some examples: o Improve relations – show more interest in followers. o Structure the task – give clear deadlines. o Empower followers – leaders can pass along power. o Autocrat – leaders with weak power can gain power.

10. 4 - 10 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Research, Criticism, and Applications Critics say research supports the model in most situations but not as strongly in field studies as in lab studies. Fiedler’s view of changing the job context is not always easy say critics. But the model has application as it can explain why some managers are ineffective – no match of style to context.

11. 4 - 11 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leadership Continuum Theory and Model Robert Tannenbaum and Warren Schmidt developed a contingency theory – 1950’s. > Focus is on who makes the decisions. See Exhibit 4.4. The leadership continuum model is used to determine which one of seven styles to select, based on the use of boss-centered versus subordinate-centered leadership, to meet the situation (boss, subordinates, situation/time) to maximize performance.

12. 4 - 12 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leadership Continuum Model Before selecting one of the seven leadership styles, consider three variables: See Exhibit 4.5. > Boss – based on personality and behavior, some bosses are autocrats, some participative. > Subordinates – the more willing/able followers are to participate, the more participation should be used – and vice versa. > Situation (time) – size, etc. of organization is considered, time is needed for participation. Criticism – unclear when/how to use the model.

13. 4 - 13 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Path-Goal Leadership Theory and Model Developed by Robert House. > Behavior of the leader influences performance and satisfaction of the followers. The path-goal leadership model is used to select the leadership style (directive, supportive, participative, or achievement- oriented) appropriate to the situation (subordinate and environment) to maximize both performance and job satisfaction.

14. 4 - 14 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Path-Goal Leadership Theory and Model The leader is responsible for motivating followers to attain organizational goals. Motivation is increased by: 1.Clarifying follower’s path to the rewards, or 2.Increasing the rewards followers value/desire. o Path clarification means the leader works with followers to identify and learn behaviors that lead to accomplishment and reward. See Exhibit 4.6.

15. 4 - 15 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Situational Factors – Subordinate Subordinate situational characteristics are: 1. Authoritarianism – extent employees defer to others. 2. Locus of control – extent employees believe they control goal achievement (internal) or it is controlled by others (external). 3. Ability – extent of employees’ ability to perform tasks to achieve goals. See Exhibit 4.7.

16. 4 - 16 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Situational Factors – Environment Environmental situational factors are: 1. Task structure – extent of job repetitiveness, 2. Formal authority – extent of leader’s position power, 3. Work group – extent coworkers contribute to job satisfaction or the relationship between followers.

17. 4 - 17 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Path-Goal Leadership Styles Directive: o Leader provides high structure. Supportive: o Leaders provides high consideration. Participative: o Leader includes employee input into decision-making. Achievement-Oriented: o Leader sets difficult but achievable goals, and o Makes the job challenging.

18. 4 - 18 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Research, Criticism, and Applications Research supports path-goal theory but with mixed results – inadequately tested due to complexity. Criticized by managers because it is difficult to know which style to use. Led to the theory of charismatic leadership. House broadened his theory and now calls it value-based leadership theory.

19. 4 - 19 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Normative Leadership Theory and Models Victor Vroom and Philip Yetton asked: > When should the manager take charge and when should the manager let the group make the decision? See Exhibit 4.8. The normative leadership model has a time- driven and development-driven decision tree that enables the user to select one of five leadership styles (decide, consult individually, consult group, facilitate, and delegate) appropriate for the situation (seven questions/variables) to maximize decisions.

20. 4 - 20 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leadership Participation Styles Decide: o Leader makes the decision and announces it. Consult Individually: o Leader individually tells followers the problem, gets suggestions, and then decides. Consult Group: o Leader holds group meeting, tells followers the problem, gets suggestions, and then decides. Facilitate: o Leader facilitates group meeting, seeking participation and concurrence, without pushing his/her ideas. Delegate: o Lets the group diagnose problem and make the decision.

21. 4 - 21 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Model Questions 1. Decision Significance: Is the decision critical to the project or organization? 2. Importance of Commitment: Is follower commitment vital for implementation? 3. Leader Expertise: Is the leader experienced in this type of decision? 4. Likelihood of Commitment: Are followers already committed to the decision? 5. Group Support for Objectives: Do followers support the organizational goals? 6. Group Expertise: Are group members experienced in this type of decision? 7. Team Competence: Ability of individuals to work together as a team

22. 4 - 22 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Normative Leadership Models Normative leadership time-driven model: 1. Focus – making effective decisions with minimum cost, 2. Value – is placed on time, no value on follower development, 3. Orientation – short-term. Normative leadership development-driven model: 1. Focus – making effective decisions with maximum follower development, 2. Value – is placed on follower development, no value on time, 3. Orientation – long-term. See Exhibits 4.9 and 4.10.

23. 4 - 23 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Appropriate Leadership Style To use the normative model, you must have a specific decision to make, the authority to make the decision and followers to participate in the decision. Use the best model for the situation and ask appropriate questions. > Some questions may be skipped. Follow the decision tree to find best style.

24. 4 - 24 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Research, Criticism, and Applications Research supports the model with a move toward higher levels of participation, greater empowerment, and use of teams. Critics say the model treats decisions as single episodes and assumes leaders can effectively use all five leadership styles. Not popular with managers who find it too cumbersome. Popular in the academic community.

25. 4 - 25 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Prescriptive and Descriptive Models Prescriptive leadership models tell the user exactly which style to use in a given situation. o Contingency and normative leadership models. Descriptive leadership models identify contingency variables and leadership styles without specifying which style to use in a given situation. o Continuum and path-goal leadership models. See Exhibits 4.11 and 4.12.

26. 4 - 26 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leadership Substitute Theory Substitutes for leadership include characteristics of the subordinate, task, and organization that replace the need for a leader or neutralize the leader’s behavior. Variables which substitute or neutralize leadership: 1. Characteristics of followers, Ability, knowledge, experience, training, etc. 2. Characteristics of the task, Clarity and routine, intrinsic satisfaction, etc. 3. Characteristics of the organization, Formalization, flexibility, cohesive work groups, etc.

27. 4 - 27 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Leadership Style and Situation Leaders can analyze how these characteristics substitute or neutralize their leadership style. Leaders can change the situation rather than their style. Substitute leadership can be used to complement existing leadership.

28. 4 - 28 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Research, Criticism, and Applications Research supports some aspects of the theory, other aspects remain untested. Critics say for many substitutes, the formal leader is merely replaced by similar leadership behavior – so it still exists. Applications include strong evidence that situational variables directly affect job satisfaction and motivation.

29. 4 - 29 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Key Terms contingency leadership model descriptive leadership models leadership continuum model leadership model normative leadership model path-goal leadership model prescriptive leadership models substitutes for leadership