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CONTIGENCY LEADERSHIP

By :


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Introduction

Contingency theory of leadership emphasizesthat effectiveness of leadership is dependenton matching a leader s style to right situation.This theory was originally developed byFiedler after studying various leaders indifferent contexts, but predominantly military.


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Introduction

Contingency theory inadvertently assumes thatstyles are behaviors that cannot be influenced ormodified. It is contradictory to situational-

leadership which stressed the need for leadersto 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 incontingency theory.


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Introduction

Fiedler and Chemers (1974) and Potter andFiedler (1993) argue that a combination of three separate factors determines a leader seffectiveness:

Leader-member relations Task structure Position power


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Situational Factors in ContigencyTheory (Cont d)

1. Leader-Member Relation It is a measure of leadership acceptance between theorganizational hierarchies. If the subordinateshave trust, confidence and feel adequatelymotivated by their superiors, it s positive.


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2. Task Structure It s a measure of the clarityof the project or tasks, their methodsto achieve the end product. There are clearguidelines to follow and progressed can beeasily tracked.


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3. P ositional P ower It s a measure of amountof authority the leader has to influence theproductivity of the followers, whether he canreward or punish them. The positional powercan be weak if the subordinates do notdirectly report to the leader, a matrix

organization or task that is sub-contracted toan external organization


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Contigency Leadership Theory -

How it works?By measuring a leader s LPC score and three

situational variables, one can predict whetherthe leader is going to be successful in aparticular setting.

It is important to note that contingency theory

stresses that leaders are NOT successful in allsituations.


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Least P referred Coworker Scale

Fiedler also created a Least P referred Co-worker ( LP C) scale todetermine the style of a leader. The LPC is a questionnaire for aleader that is directed to determining the kind of co-worker aleader would like to work with. It is indirectly aimed to reflect uponthe 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-orientedleaders perceive their least-preferred-coworker more negativelythan relationship-oriented leaders. Essentially they view them asunderachievers and people who are an obstacle to their ownperformance. While relationship-oriented leader will derive some

satisfaction out of interpersonal factors and give more positivefeedback.


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Fiedler s Contingency LeadershipModel


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Contigency Theory Model


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Contigency Leadership Theory

Assumptions: No one best way of leading Ability to lead contingent upon various situational factors:

Leader s preferred styleCapabilities and behaviors of followersVarious other situational factors

Effect: Leaders who are successful in one situation may become

unsuccessful if the factors around them change


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Common Observations onContingency Model

1. Building relationships matters most when there is significantmistrust and insecurities with leadership s intentions and methods.2. Highly structured tasks are relatively independent of eitherrelationship or positional power. It might be due to time testedmethods and process that normally accompany the highlystructured task, the leader s influence in minimal.3. Low structured task can be accomplished by either directive orparticipative 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-memberrelation, low task structure & weak positional power), only a strongtask-oriented leader can be effective.


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Strengths of ContingencyLeadership

Theory1. It is supported by vast amount of empirical studies

(~400) and has been tested extensively.2. The contingency model is predictive; there is a welldefined method to evaluate both LPC and Situations.3. The theory reduces the amount of expectations froma leader, instead it focuses on matching a leader totask.4. It can be used to create leadership profiles in an

organization, thus can be a valuable instrument duringa reorganization/management change. The neworganizational structure can then be matched toprofiles of the leaders.


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Criticsm of Contigency Leadership

Theory1. It fails to explain the model that is developed empirically; it isunable to provide reasons for leadership s effectiveness in varioussituations.2. The LPC scale is very debatable, it is hard to understand howevaluation 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 wellwith the career growth of a leader. If the leader doesn t adapt orchanges his style, he might never be productive at the higher levelsof organization. This is one of the most common problems in largeorganizations, managers are promoted since they perform well at aparticular level, but since they are not fit for the newresponsibilities, they lead to overall ineffectiveness of wholeorganization.


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It moves beyond the assumption of the best way tolead 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 theresearch on leadership.

Contributions of the Contingency Theory of Leadership


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Path Goal Theory

A theory whichdescribes how leaderscan motivate theirfollowers to achievegroup and organizationalgoals and the kinds of behaviors leaders canengage in to motivatefollowers.


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Basic Idea behind Path Goal theory


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Major Components in Path Goal

Theory


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Path Goal TheoryThe path-goal theory postulates that the most successful leadersare those who increase subordinate motivation by charting out andclarifying the paths to high performance.According to Robert House s path-goal theory, effective leaders:

Motivate their followers to achieve group and organizationalgoals.

Make sure that they have control over outcomes theirsubordinates desire.

Reward subordinates for performing at a high level orachieving their work goals by giving them desired outcomes.

Raise their subordinates beliefs about their ability to achievetheir work goals and perform at a high level. Take into account their subordinates characteristics and the

type of work they do.


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Path Goal Leadership Theory


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Path Goal Theory & Model

Attempts to explain how leader behaviorinfluences performance and satisfaction of followers

Fits into the framework of contingencyleadership variables but does not have aleader trait and behavior variable

Leader is supposed to use the appropriateleadership style, regardless of preferred traitsand behavior


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Path Goal Theory Leadership &

ModelMotivation is increased by: Clarifying the follower s path to the rewards

that are available Working with followers to identify and teachthem behaviors which will lead to successfultask accomplishment and organizationalrewards

Increasing the rewards that are valued andwanted by the followers


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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 controlgoal achievement (internal) or if goal achievement is

controlled by others (external) Ability

Is the extent of the employees ability to perform tasksto achieve goals


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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


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Leadership Behaviors

D irective leadership leader gives instructions, expectations,time lines, and performance standardsSupportive Leadership- leader is friendly and approachable,attends to the well being of subordinates, and treats everyoneas equalsP articipative Leadership- leader invites subordinates to giveideas, share opinions and integrates their suggestions into thedecision making processA chievement-Oriented Leadership- leader challengessubordinates to perform at the highest level possible. Leaderhas high standards of excellence and seeks continuousimprovement.


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Subordinate Characteristics Path

Goal TheoryN eed for affiliation- prefer supportiveleadershipP

references for structure prefer directiveleadershipD esires of control- prefer participativeleadership

Self-perceived level of task ability - preferachievement orientated leadership


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Four Style Leadership in Path Goal

TheoryHouse and Mitchell (1974) describe four styles of leadership:Supportive leadership

Considering the needs of the follower, showing concern for their welfareand creating a friendly working environment. This includes increasing the

follower's self-esteem and making the job more interesting. This approachis best when the work is stressful, boring or hazardous.D irective leadership

Telling followers what needs to be done and giving appropriate guidancealong the way. This includes giving them schedules of specific work to be

done at specific times. Rewards may also be increased as needed and roleambiguity decreased (by telling them what they should be doing).This may be used when the task is unstructured and complex and thefollower is inexperienced. This increases the follower's sense of securityand control and hence is appropriate to the situation.


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Four Style Leadership in Path GoalTheory (cont d)

P articipative leadership

Consulting with followers and taking their ideas into accountwhen making decisions and taking particular actions. This

approach is best when the followers are expert and theiradvice is both needed and they expect to be able to give it.A chievement-oriented leadership

Setting challenging goals, both in work and in self-improvement (and often together). High standards aredemonstrated and expected. The leader shows faith in thecapabilities of the follower to succeed. This approach is bestwhen the task is complex.


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Path Goal Theory Style : How itworks?


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Path-Goal Theory Approach

P ath-goal theory is a

complex but alsopragmatic approach

Leaders should choose aleadership style that best

fits the needs of subordinates and theirwork

P ath-goal theory provides a

set of assumptions abouthow different leadershipstyles will interact withsubordinate characteristicsand the work situation toaffect employee motivation

FocusFocusFocusFocus Overall ScopeOverall ScopeOverall ScopeOverall Scope


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Strengths Path Goal TheoryU seful theoretical framework . Path-goal theory is auseful theoretical framework for understanding howvarious leadership behaviors affect the satisfaction of subordinates and their work performance.

I ntegrates motivation. Path-goal theory attempts tointegrate the motivation principles of expectancytheory into a theory of leadership.

Practical model. Path-goal theory provides a practicalmodel that underscores and highlights the importantways leaders help subordinates.


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Criticisms Path Goal TheoryInterpreting the meaning of the theory can be confusingbecause it is so complex and incorporates so manydifferent aspects of leadership; consequently, it isdifficult to implement.

Empirical research studies have demonstrated only partial support for path-goal theory.

It fails to adequately explain the relationship betweenleadership behavior and worker motivation.

The path-goal theory approach treats leadership as aone-way event in which the leader affects thesubordinate.


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ApplicationPGT offers valuable insights thatcan be applied in ongoing settingsto improve one s leadership.

Informs leaders about when to bedirective, supportive, participative,or achievement orientedThe principles of PGT can beemployed by leaders at allorganizational levels and for alltypes of tasks


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Summary

Contingency theory of leadership assumes that thereis no one best way to lead. Effective leadershipdepends on the leader s and follower s

characteristics as well as other factors in theleadership situation.The theory that leader effectiveness is determinedby both the personal characteristics of leaders andby the situation in which leaders find themselves.


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Summary

The Path-Goal Theory of Leadership was developed todescribe the way that leaders encourage and support theirfollowers in achieving the goals they have been set by makingthe 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.


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Thank you

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