Leadership

Session9 - Contingency Theory

Northouse, 5th edition

Overview
Contingency Theory Approach Perspective Leadership Styles Situational Variables
Research Findings of Leader Style Effectiveness

How Does the Contingency Theory Approach Work?

Contingency Theory Approach Description

Perspective

Contingency theory is a leader-match theory (Fiedler & Chemers, 1974) Tries to match leaders to appropriate situations Leaders effectiveness depends on how well the leaders style fits the context Fiedlers generalizations about which styles of leadership are best and worst are based on empirically grounded generalizations

Contingency Theory Approach Description

Definition

Effective leadership is contingent on matching a leaders style to the right setting Assessment based on: Leadership Styles Situational Variables

Leadership Styles
Leadership styles are described as: Task-motivated (Low LPCs)
Leaders are concerned primarily with reaching a goal

Relationship-motivated (High LPCs)

Leaders are concerned with developing close interpersonal relationships

Leader Style Measurement Scale (Fiedler) Least Preferred Co-Worker (LPC) Scale
High LPCs = Relationship-motivated Low LPCs = Task-motivated

Situational Variables/3 Factors

Leader-Member Relations
- Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers for leader Group atmosphere Good high degree of subordinate trust, liking, positive relationship Poor little or no subordinate trust, friction exists, unfriendly

Situational Variables/3 Factors

Task Structure
The degree to which requirements of a task are clear and spelled out
High Structure
requirements/rules - are clearly stated/known path to accomplish - has few alternatives task completion - can be clearly demonstrated limited number - correct solutions exist

Situational Variables/3 Factors

Task Structure, contd.
Low Structure
requirements/rules - not clearly stated/known path to accomplish - has many alternatives task completion - cannot be clearly demonstrated/verified unlimited number - correct solutions exist

Situational Variables/3 Factors

Position Power Designates the amount of authority a leader has to reward or punish followers
Strong Power authority to hire or fire, give raises in rank or pay Weak Power no authority to hire or fire, give raises in rank or pay

Situational Variables/3 Factors

3 Factors - determine the favorableness of various situations in organizations Situations that are rated:
Most Favorable good leader-follower relations, defined tasks (high structure), & strong leader position power

Situational Variables/3 Factors

Situations that are rated:
Least Favorable Poor leader-follower relations, unstructured tasks (low structure), & Weak leader position power Moderately Favorable Fall in between these extremes

Contingency Model

Research Findings of Leader Style Effectiveness

Favorableness of Situation
Very Favorable Very Unfavorable Moderately Favorable

LPC Score Low

Definition
Situations going smoothly Situations out of control Situations with some degree of certainty; not completely in or out of leaders control

High

Research Findings of Leader Style Effectiveness Reasons for leader mismatch, ineffectiveness:
LPC style doesnt match a particular situation; stress and anxiety result Under stress, leader reverts to less mature coping style learned in earlier development Leaders less mature coping style results in poor decision making and consequently negative work outcomes

How Does the Contingency Theory Approach Work?

Focus of Contingency Theory Strengths Criticisms Application

Contingency Theory Approach

Focus

By assessing the 3 situational variables, any organizational context can be placed in one of the 8 categories represented in the Contingency Theory Model
After the nature of a situation is determined, the fit between leaders style and the situation can be evaluated Overall Scope By measuring Leaders LPC score and the 3 situational variables, it is possible to predict whether a leader will be effective in a particular setting

How Does Contingency Theory Work?

Low LPCs Task-Oriented High LPCs Relationship-Oriented Effective in Categories 1, 2, 3, & 8 Effective in Categories 4, 5, 6, & 7 Effective in Categories 1, 2, & 3

Middle LPCs

If individuals style matches appropriate category in the model, leader will be effective If individuals style does not match appropriate category in the model, leader will not be effective

How Does Contingency Theory Work?

How Does it Work? Example: Situation LeaderMember Relation Good Task Structure High Position Power High Category 1 Low LPC (Individual who is task-oriented will be effective)
By measuring Leaders LPC score and the 3 situational variables, it is possible to predict whether a leader will be effective in a particular setting

Strengths
Empirical support. Contingency theory has been tested by many researchers and found to be a valid and reliable approach to explaining how to achieve effective leadership. Broadened understanding. Contingency theory has broadened the scope of leadership understanding from a focus on a single, best type of leadership (e.g., trait approach) to emphasizing the importance of a leaders style and the demands of different situations. Predictive. Because Contingency theory is predictive, it provides relevant information regarding the type of leadership that is most likely to be effective in particular contexts.

Strengths
Not an all-or-nothing approach. Contingency theory contends that leaders should not expect to be effective in every situation; thus companies should strive to place leaders in optimal situations according to their leadership style. Leadership profiles. Contingency theory supplies data on leadership styles that could be useful to organizations in developing leadership profiles for human resource planning.

Criticisms
Fails to fully explain why leaders with particular leadership styles are more effective in some situations than others Criticism of LPC scale validity as it does not correlate well with other standard leadership measures Cumbersome to use in real-world settings

Fails to adequately explain what should be done about a leader/situation mismatch in the workplace

Application
Useful in answering a multitude of questions about the leadership of individuals in various types of organizations Helpful tool to assist upper management in making changes to lower level positions to ensure a good fit between an existing manager and a certain work context

Activity1
Fill the LPC Questionnaire individually and share Your results in small groups. Compile a master list of the most commonly reported styles as each group reports its results in a large-group discussion. Discuss views on the accuracy of your own scores and to explain the scores meaning as related to their leadership ability.

Activity 2
Write a coherent paragraph using all of them: Fiedler, task motivation, relationship motivation, Least Preferred Coworker scale, leader-member relations, task structure, strong power, weak power, favorableness of situations, and effectiveness.