Contingency theory

PresentationPresentation

Presentation By:Shweta TalwarSakshi JainShubhangi MahajanShweta AgrawalSanjay SinghMBA (e.com) 1st Sem

Contingency TheoryContingency Theory

Under the Guidance of:

Miss. Bhawana Saun

Faculty IMS

Under the Guidance of:

Miss. Bhawana Saun

Faculty IMS

Contingency TheoryContingency Theory

Models in contingency leadership theoryModels in contingency leadership theory

The Fiedler Contingency model

Hersey & Blanchard's Situational Leadership model

Path-Goal theory

Charismatic Leadership

The Fiedler Contingency model

Hersey & Blanchard's Situational Leadership model

Path-Goal theory

Charismatic Leadership

Fred FiedlerFred Fiedler

Fiedler (1964, 1967)

Situation Moderates Leader Effectiveness and Subordinate Traits

Based on “Least Preferred Coworker” (LPC)

Indicates Leader’s Motive Hierarchy (nAFF)

High LPC is Considerate

Low LPC is Directive

Based on Situational Favorability

Leader-Member Relations, Position Power, Task Structure

Fiedler (1964, 1967)

Situation Moderates Leader Effectiveness and Subordinate Traits

Based on “Least Preferred Coworker” (LPC)

Indicates Leader’s Motive Hierarchy (nAFF)

High LPC is Considerate

Low LPC is Directive

Based on Situational Favorability

Leader-Member Relations, Position Power, Task Structure

Fred Fiedler

LPC – leadership instrumentsLPC – leadership instruments

To measure the leadership style

Least Preferred Co-Worker (LPC) Scale

High LPCs = Relationship-motivated Low LPCs = Task-motivated

Situational Variable FactorsSituational Variable Factors

Contingency theory suggest that situations can be characterized in

terms of three factors:

1.Leader - Member Relation

2.Task structure

3.Position power

Contingency theory suggest that situations can be characterized in

terms of three factors:

1.Leader - Member Relation

2.Task structure

3.Position power

Leader-member relationLeader-member relation

Consist of the group atmosphere and the degree of confidence, loyalty and attraction that followers fell for their leader.

The quality of the leader-member exchange relationship mediates the relationship between transformational leadership and innovative behavior, affective organizational commitment and employees’ satisfaction with Hr-practices.

Consist of the group atmosphere and the degree of confidence, loyalty and attraction that followers fell for their leader.

The quality of the leader-member exchange relationship mediates the relationship between transformational leadership and innovative behavior, affective organizational commitment and employees’ satisfaction with Hr-practices.

Task structureTask structure

Considered as structured when:

the performer know the requirement clearly

the path to accomplishing the task has few

alternatives

completion the task can be clearly demonstrated

only limited number of correct solutions to task exist

- Is the degree to which the requirements of a task are clear and

spelled out

- Task that are completely structured tend to give more control

to the leader, whereas vague and unclear tasks lessen the

leader’s control and influence.

Position PowerPosition Power

Position power: the amount of authority the leader has to reward or to punish followers

Includes the legitimate power

Strong: a person has the authority to hire and fire or give raises in rank or pay

Weak: vice versa

Position power: the amount of authority the leader has to reward or to punish followers

Includes the legitimate power

Strong: a person has the authority to hire and fire or give raises in rank or pay

Weak: vice versa

Situational VariablesSituational Variables

The most favorable situation are those having good leader-follower relations, defined tasks, and strong leader-position power. (task-motivated)

The least favorable situation are those having bad leader-follower relations, structured tasks and weak leader-position power. (task-motivated)

The moderately favorable fall b/w these two extremes. (relationship-motivated)

Situational Leadership modelSituational Leadership model

Hersey & Blanchard (1977) Leadership Depends of “Maturity” of Followers

Job Maturity (KSAs)Psychological Maturity (Self-Efficacy)

Minimal to Moderate Maturity = Supportive Moderate to Maximum Maturity = Directive Developmental Interventions

Simple vs. Contingency Contracting

Hersey & Blanchard (1977) Leadership Depends of “Maturity” of Followers

Job Maturity (KSAs)Psychological Maturity (Self-Efficacy)

Minimal to Moderate Maturity = Supportive Moderate to Maximum Maturity = Directive Developmental Interventions

Simple vs. Contingency Contracting

Path-Goal theory Path-Goal theory

Leaders Influence Satisfaction and Performance Increase Subordinate Outcomes By:

Clarifying Path to GoalsReducing Roadblocks to GoalsIncrease JS on the Way

Links to VIE

Leaders Influence Satisfaction and Performance Increase Subordinate Outcomes By:

Clarifying Path to GoalsReducing Roadblocks to GoalsIncrease JS on the Way

Links to VIE

Path-Goal theory (contd.)Path-Goal theory (contd.)

Inclusion of Task Characteristics and Subordinate Characteristics 4 Types of Leaders

Supportive (Boring)Directive (Unstructured)Participative (Complex)Achievement-Oriented (High nACH Employees)

Mixed Results

Inclusion of Task Characteristics and Subordinate Characteristics 4 Types of Leaders

Supportive (Boring)Directive (Unstructured)Participative (Complex)Achievement-Oriented (High nACH Employees)

Mixed Results

Charismatic LeadershipCharismatic Leadership

Charismatic leaders have the ability to inspire almost anyone.

Self-confidence is a key characteristic of the charismatic leader.

Taking risks and convincing others to take risks is a characteristic of the charismatic leader.

Charismatic leaders have the ability to connect with followers in such a way that the follower feels special and needed. These leaders are sensitive to the needs of others and are responsive to those needs.

Creativity is a characteristic of many leaders, especially the charismatic leader. These leaders take creative approaches to everything including solving problems, completing tasks or starting new projects.

Charismatic leaders have the ability to inspire almost anyone.

Self-confidence is a key characteristic of the charismatic leader.

Taking risks and convincing others to take risks is a characteristic of the charismatic leader.

Charismatic leaders have the ability to connect with followers in such a way that the follower feels special and needed. These leaders are sensitive to the needs of others and are responsive to those needs.

Creativity is a characteristic of many leaders, especially the charismatic leader. These leaders take creative approaches to everything including solving problems, completing tasks or starting new projects.

How to apply contingency theoryHow to apply contingency theory

Leaders should always be adaptable

This is a theory that lends itself to that adaptability.

If we recognize that success is a matter of having the right mix of skill and opportunity, you can evaluate what to bring to the table, and what to dismiss.

Leaders should always be adaptable

This is a theory that lends itself to that adaptability.

If we recognize that success is a matter of having the right mix of skill and opportunity, you can evaluate what to bring to the table, and what to dismiss.

StrengthStrength

Many researchers have tested it and was proven valid and reliable approach to explaining how leadership can be achieved

Has a broadened understanding

Predictive, so therefore provides useful information about the type of leadership

Does not require that people are effective in all situations.

Data collected from this theory can be useful

Many researchers have tested it and was proven valid and reliable approach to explaining how leadership can be achieved

Has a broadened understanding

Predictive, so therefore provides useful information about the type of leadership

Does not require that people are effective in all situations.

Data collected from this theory can be useful

LimitationsLimitations

It has been criticized because it has failed to explain fully why people with certain leadership styles are more effective in some situations then others

Sometimes mismatch between the leader and the situation in the workplace

Various aspects of environment has to be considered

It has been criticized because it has failed to explain fully why people with certain leadership styles are more effective in some situations then others

Sometimes mismatch between the leader and the situation in the workplace

Various aspects of environment has to be considered

ConclusionConclusion

- Natural leadership style, and the situations in which it will be most effective.

- The model says that leader are either task-focused, or relationship-focused.

- It doesn’t allow for leadership flexibility, and the LPC score might give an inaccurate picture of your leadership style.

ConclusionConclusion

•Its very important for a leader to possess the quality of taking decisions in different situations

•Acting differently in different situations

•Think differently in different situations

•Various factors

•Circumstances play important role in this theory

Thank you for your attention!! Thank you for your attention!!