Contingency Theories of

Leadership
Theories that explain leadership effectiveness in
terms of situational moderator variables, aspects of
the situation that enhance or nullify the effects of a
leader’s traits or behavior, are called contingency
theories of leadership. These types of theories are
most useful when they include intervening variables
to explain why the effect of behavior on outcomes
varies across situations.
 Fiedler Contingency Model

• Effective group performance depends upon the

proper match between the leader’s style and the
degree to which the situation gives control to the
leader
• Least preferred co-worker (LPC) questionnaire
determined whether individuals were primarily
interested in
– good personal relations with co-workers, and thus
relationship oriented
– productivity, and thus task oriented
 Fiedler Contingency Model

• Fiedler’s contingency situations

– Leader member relations
• Degree of confidence, trust and respect members
have for leader
– Task structure
• Degree to which jobs are structured
– Position power
• Degree to which leader has control over “power”:
hiring, firing, discipline, promotions, salary
 Fiedler Contingency Model
High

People-Oriented
Performance

Task-Oriented

Low
Favourable Moderate Unfavourable

Category I II III IV V VI VII VIII

Leader-Member Good Good Good Good Poor Poor Poor Poor
Relations
Task StructureHigh High Low High High High Low Low
Position Power
StrongWeakStrongWeakStrongWeakStrongWeak
 Cognitive Resource Theory
Interpersonal Stress of the Leader moderates the relation
between leader intelligence and decision quality.

Under low stress, high intelligence results in good plans and

decisions.

Under high stress, there is no relationship between leader

intelligence and decision quality.

Interpersonal stress also moderates the relationship between

leader experience and decision quality.

Experience will be positively related to quality of leader

decisions under high stress, but it is not related to decision
quality under low stress.

Leader intelligence and expertise contribute to group

performance only when the leader is directive and subordinates
 Cognitive Resource Theory

Social stress
For leader

Leader Intelligence
Decision
Quality
Leader Experience

Primary Causal Relationships in Cognitive Resource

Theory
Hersey and Blanchard’s Situational Theory

 Leaders adjust their styles depending

on the readiness of their followers to
perform in a given situation.
 Readiness — how able, willing and
confident followers are in performing
tasks.
Hersey and Blanchard’s Situational Theory

 Hersey-Blanchard leadership
styles:
 Delegating.
 Low-task, low-relationship style.
 Works best in high readiness-situations
 Participating.
 Low-task, high-relationship style.
 Works best in low- to moderate-readiness
situations.
Hersey and Blanchard’s Situational Theory

 Selling.
 High-task, high-relationship style.
 Work best in moderate- to high-readiness
situations.
 Telling.
 High-task, low-relationship style.
 Work best in low-readiness situations.
Hersey and Blanchard’s Situational Theory
 Path-Goal Theory( Robert House)

The essence of this theory is that its leader’s job to provide

subordinates with information, support and other resources
necessary for them to achieve their goals.
House identified four leadership characteristics:
Directive Leader
Supportive Leader
Participative Leader
Achievement-Oriented Leader
 Path-Goal Theory( Robert House)

Two types of contingency variables are identified:

Personal characteristics of subordinates (locus of control,
perceived ability and experience)
Environmental demands (task structure, the formal authority
system, and the work group)
Environmental factors determine the type of leader behavior
required as a complement if follower outcomes are to be
maximized, while personal characteristics of the employee
determine how the environment and leader behavior are
interpreted.
 Path-Goal Theory
CONTINGENCY FACTORS

Environmental

• Task Structure
• Formal Authority System
• Work Group

Leader Behaviour Outcomes

• Directive • Performance
• Achievement-oriented • Satisfaction
• Participative
• Supportive
Subordinate

• Locus of control
• Experience
• Perceived ability
 Path-Goal Theory

Directive leadership leads to greater satisfaction when the task is

ambiguous or stressful.
Supportive leadership leads to high employee performance and
satisfaction when the task is structured.
Directive leadership is not effective with employees who have
high perceived ability and considerable experience.
Employee with internal locus of control will be more satisfied
with participative style.
Achievement oriented leadership will increase employees’
expectancies that effort will lead to high performance when tasks
are ambiguously structured.
 Guidelines for Managers

 Maintain situational awareness

 Use more planning for a long, complex task
 Consult more with people who have relevant
knowledge
 Provide more direction to people with
interdependent roles
 Provide more direction and briefings when a crisis
occurs
 Monitor a critical task or unreliable person more
closely
 Provide more coaching to an inexperienced
subordinate
 Be more supportive to someone with a highly