CONTIGENCY LEADERSHIP

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 Introduction
• Contingency theory of leadership emphasizes
that effectiveness of leadership is dependent
on matching a leader’s style to right situation.
This theory was originally developed by
Fiedler after studying various leaders in
different contexts, but predominantly military.
 Introduction
• Contingency theory inadvertently assumes that
styles are behaviors that cannot be influenced or
modified. It is contradictory to “situational-
leadership” which stressed the need for leaders
to adapt to the situation. The definition of
“situation” is also different in the two theories,
while it implies the development/readiness level
of the organization in “situational-leadership” ,
it’s a complex combination of three factors in
contingency theory.
 Introduction
• Fiedler and Chemers (1974) and Potter and
Fiedler (1993) argue that a combination of
three separate factors determines a leader’s
effectiveness:
– Leader-member relations
– Task structure
– Position power
 Situational Factors in Contigency
Theory (Cont’d)
1. Leader-Member Relation – It is a measure of
leadership acceptance between the
organizational hierarchies. If the subordinates
have trust, confidence and feel adequately
motivated by their superiors, it’s positive.
 Situational Factors in Contigency
Theory (Cont’d)
2. Task Structure – It’s a measure of the clarity
of the project or tasks, their methods
toachieve the end product. There are clear
guidelines to follow and progressed can be
easily tracked.
 Situational Factors in Contigency
Theory (Cont’d)
3. Positional Power – It’s a measure of amount
of authority the leader has to influence the
productivity of the followers, whether he can
reward or punish them. The positional power
can be weak if the subordinates do not
directly report to the leader, a matrix
organization or task that is sub-contracted to
an external organization
 Contigency Leadership Theory
-How it works?

By measuring a leader’s LPC score and three

situational variables, one can predict whether
the leader is going to be successful in a
particular setting.
It is important to note that contingency theory
stresses that leaders are NOT successful in all
situations.
 Least Preferred Coworker Scale
• Fiedler also created a Least Preferred Co-worker (LPC) scale to
determine the style of a leader. The LPC is a questionnaire for a
leader that is directed to determining the kind of co-worker a
leader would like to work with. It is indirectly aimed to reflect upon
the leader’s own style of operations. A high score in LPC indicates a
“people-orientated” style while low score indicates “task-
oriented” style. The LPC is based on the assumption that a task-
oriented leaders perceive their least-preferred-coworker more
negatively than relationship-oriented leaders. Essentially they view
them as underachievers and people who are an obstacle to their
own performance. While relationship-oriented leader will derive
some satisfaction out of interpersonal factors and give more
positive feedback.
Fiedler’s Contingency Leadership
Model
Contigency Theory Model
 Contigency Leadership Theory
• Assumptions:
– No one best way of leading
– Ability to lead contingent upon various situational factors:
• Leader’s preferred style
• Capabilities and behaviors of followers
• Various other situational factors
• Effect:
– Leaders who are successful in one situation may become
unsuccessful if the factors around them change
 Common Observations on
Contingency Model
• 1. Building relationships matters most when there is significant
mistrust and insecurities with leadership’s intentions and methods.
• 2. Highly structured tasks are relatively independent of either
relationship or positional power. It might be due to time tested
methods and process that normally accompany the highly
structured task, the leader’s influence in minimal.
• 3. Low structured task can be accomplished by either directive or
participative leadership style.
• 4. Low positional power always requires leaders to use their
people-skills to influence the outcome.
• 5. When situations are really bad, like a crisis (poor leader-member
relation, low task structure & weak positional power), only a strong
task-oriented leader can be effective.
 Strengths of Contingency
Leadership Theory
• 1. It is supported by vast amount of empirical studies
(~400) and has been tested extensively.
• 2. The contingency model is predictive; there is a well
defined method to evaluate both LPC and Situations.
• 3. The theory reduces the amount of expectations
from a leader, instead it focuses on matching a leader
to task.
• 4. It can be used to create leadership profiles in an
organization, thus can be a valuable instrument during
a reorganization/management change. The new
organizational structure can then be matched to
profiles of the leaders.
 Criticsm of Contigency Leadership
Theory
• 1. It fails to explain the model that is developed empirically; it is
unable to provide reasons for leadership’s effectiveness in various
situations.
• 2. The LPC scale is very debatable, it is hard to understand how
evaluation of a coworker can reflect upon own leadership style.
• 3. The contingency theory is not a leadership development process,
while it is good to get the best out of a leader, it doesn’t blend well
with the career growth of a leader. If the leader doesn’t adapt or
changes his style, he might never be productive at the higher levels
of organization. This is one of the most common problems in large
organizations, managers are promoted since they perform well at a
particular level, but since they are not fit for the new
responsibilities, they lead to overall ineffectiveness of whole
organization.
 Contributions of the Contingency Theory of
Leadership
• It moves beyond the assumption of “the best way to
lead” and indicates that the effectiveness of
leadership is the match between leader’s style and
situational factors. It is an optimistic approach.
• It provides a useful framework to synthesize the
research on leadership.
 Path Goal Theory
A theory which
describes how leaders
can motivate their
followers to achieve
group and
organizational goals and
the kinds of behaviors
leaders can engage in to
motivate followers.
Basic Idea behind Path Goal theory
Major Components in Path Goal
Theory
 Path Goal Theory
• The path-goal theory postulates that the most successful leaders
are those who increase subordinate motivation by charting out and
clarifying the paths to high performance.
• According to Robert House’s path-goal theory, effective leaders:
• Motivate their followers to achieve group and organizational
goals.
• Make sure that they have control over outcomes their
subordinates desire.
• Reward subordinates for performing at a high level or
achieving their work goals by giving them desired outcomes.
• Raise their subordinates’ beliefs about their ability to
achieve their work goals and perform at a high level.
• Take into account their subordinates’ characteristics and the
type of work they do.
Path Goal Leadership Theory
 Path Goal Theory & Model
• Attempts to explain how leader behavior
influences performance and satisfaction of
followers
• Fits into the framework of contingency
leadership variables but does not have a leader
trait and behavior variable
• Leader is supposed to use the appropriate
leadership style, regardless of preferred traits
and behavior
 Path Goal Theory Leadership &
Model
• Motivation is increased by:
– Clarifying the follower’s path to the rewards
that are available
– Working with followers to identify and teach
them behaviors which will lead to successful task
accomplishment and organizational rewards
– Increasing the rewards that are valued and
wanted by the followers
 Situational Factors
• Subordinate
– Authoritarianism
– Is the degree to which employees defer to others, and
want to be told what to do and how to do the job
– Locus of control
– Is the extent to which employees believe they control goal
achievement (internal) or if goal achievement is controlled by
others (external)
– Ability
– Is the extent of the employees’ ability to perform tasks
to achieve goals
 Situational Factors (cont’d)
• Environment
– Task structure
– Is the extent of repetitiveness of the job
– Formal authority
– Is the extent of the leader’s position power
– Work group
– Is the extent to which coworkers contribute to job
satisfaction or the relationship between followers
 Leadership Behaviors
• Directive leadership – leader gives instructions, expectations,
time lines, and performance standards
• Supportive Leadership- leader is friendly and approachable,
attends to the well being of subordinates, and treats
everyone as equals
• Participative Leadership- leader invites subordinates to give
ideas, share opinions and integrates their suggestions into the
decision making process
• Achievement-Oriented Leadership- leader challenges
subordinates to perform at the highest level possible. Leader
has high standards of excellence and seeks continuous
improvement.
Subordinate Characteristics – Path
Goal Theory
• Need for affiliation- prefer supportive
leadership
• Preferences for structure – prefer directive
leadership
• Desires of control- prefer participative
leadership
• Self-perceived level of task ability- prefer
achievement orientated leadership
 Four Style Leadership in Path Goal
Theory
House and Mitchell (1974) describe four styles of leadership:
• Supportive leadership
Considering the needs of the follower, showing concern for their welfare and
creating a friendly working environment. This includes increasing the
follower's self-esteem and making the job more interesting. This approach is
best when the work is stressful, boring or hazardous.
• Directive leadership
Telling followers what needs to be done and giving appropriate guidance
along the way. This includes giving them schedules of specific work to be
done at specific times. Rewards may also be increased as needed and role
ambiguity decreased (by telling them what they should be doing).
This may be used when the task is unstructured and complex and the
follower is inexperienced. This increases the follower's sense of security and
control and hence is appropriate to the situation.
 Four Style Leadership in Path Goal
Theory (cont’d)
• Participative leadership
Consulting with followers and taking their ideas into account
when making decisions and taking particular actions. This
approach is best when the followers are expert and their
advice is both needed and they expect to be able to give it.
• Achievement-oriented leadership
Setting challenging goals, both in work and in self-
improvement (and often together). High standards are
demonstrated and expected. The leader shows faith in the
capabilities of the follower to succeed. This approach is best
when the task is complex.
Path Goal Theory Style : How it
works?
 Path-Goal Theory Approach
Focus
Focus Overall Scope

• Path-goal theory is a • Path-goal theory provides a

complex but also set of assumptions about
pragmatic approach how different leadership
• Leaders should choose a styles will interact with
leadership style that best subordinate characteristics
fits the needs of and the work situation to
subordinates and their affect employee motivation
work
 Strengths – Path Goal Theory
• Useful theoretical framework. Path-goal theory is a
useful theoretical framework for understanding how
various leadership behaviors affect the satisfaction of
subordinates and their work performance.
• Integrates motivation. Path-goal theory attempts to
integrate the motivation principles of expectancy
theory into a theory of leadership.
• Practical model. Path-goal theory provides a practical
model that underscores and highlights the important
ways leaders help subordinates.
 Criticisms – Path Goal Theory
• Interpreting the meaning of the theory can be confusing
because it is so complex and incorporates so many
different aspects of leadership; consequently, it is
difficult to implement.
• Empirical research studies have demonstrated only
partial support for path-goal theory.
• It fails to adequately explain the relationship between
leadership behavior and worker motivation.
• The path-goal theory approach treats leadership as a
one-way event in which the leader affects the
subordinate.
Application
• PGT offers valuable insights that
can be applied in ongoing settings
to improve one’s leadership.
• Informs leaders about when to be
directive, supportive, participative,
or achievement oriented
• The principles of PGT can be
employed by leaders at all
organizational levels and for all
types of tasks
 Summary
• Contingency theory of leadership assumes that there
is no one best way to lead. Effective leadership
depends on the leader’s and follower’s
characteristics as well as other factors in the
leadership situation.
• The theory that leader effectiveness is determined
by both the personal characteristics of leaders and
by the situation in which leaders find themselves.
 Summary
• The Path-Goal 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:
- Clarify the path so subordinates know which way to go.
- Remove roadblocks that are stopping them going there.
- Increasing the rewards along the route.
Thank you