Chapter 4

Part One: Individuals As Leaders

Contingency
Leadership Theories

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 Learning Outcomes 1 – 5
1) State the major difference between behavioral and
contingency leadership theories, and explain the
behavioral contribution to contingency theories.
2) Describe the contingency leadership theory variables.
3) Identify the contingency leadership model styles and
variables.
4) State the leadership continuum model major styles and
variables.
5) Identify the path-goal leadership model styles and
variables.

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 Learning Outcomes 6 – 10
6) State the normative leadership model styles and the
number of variables.
7) Discuss the major similarities and differences between
the behavioral and contingency leadership theories.
8) Compare and contrast four major differences among
the four contingency leadership models.
9) List which leadership models are prescriptive and
descriptive, and explain why they are classified as such.
10) Explain substitutes and neutralizers of leadership.

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 Leadership Theories
versus Leadership Models
• Recall, a leadership theory is an
explanation of some aspect of leadership.
> Theories have practical value because they
help us better understand, predict, and control
successful leadership.
• A leadership model is an example for
emulation or use in a given situation.
> All of the contingency leadership theories in
this chapter have a leadership model.

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 Exhibit 4.1
Framework for Contingency Leadership Variables

Effective leaders have an appropriate fit between the leader’s

behavior and style and the followers and the situation.

This list of general contingency leadership variables can be

used as a framework to place all the contingency leadership
model variables for analyzing leadership.

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 Global Contingency Leadership
• Contingency leadership is important to
today’s global economy.
> Global companies realize successful leadership
styles vary greatly from place to place.
> Effective leaders of today need multicultural
backgrounds and experiences.
> This reinforces the message of the global
contingency leadership.

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 Contingency Leadership Theory
• In 1951, Fred E. Fiedler developed the
first situational leadership theory.
• Fiedler called the theory “Contingency
Theory of Leader Effectiveness”.
> He was the first to develop a model to match
the leadership style to the job.
> He believed leadership style is a reflection of
personality and behavior, and that leadership
styles are basically constant.

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 Discussion Question

• Do you agree with Fiedler’s belief that

people have one dominant leadership style
and cannot change styles? Explain

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 Exhibit 4.2
Contingency Leadership Model Variables within the
Contingency Leadership Framework

The contingency leadership model is used to determine if a

person’s leadership style is task- or relationship-oriented, and if the
situation (leader-member relationship, task structure, and position
power) matches the leader’s style to maximize performance.

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 Leadership Style and the LPC
• When using Fiedler’s model, first determine
if your dominate leadership style is:
> Task-motivated,
o Gain satisfaction from task completion.
> Relationship motivated.
o Gain satisfaction through forming and maintaining
relationships with followers.
• To determine leadership style, complete
the least-preferred coworker (LPC) scales.
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 Situational Favorableness
• Situational favorableness refers to the
degree to which a situation enables the
leader to exert influence over the followers.
1. Leader-member relations:
Better relations lead to more favorable situations.
2. Task structure:
Structured jobs mean more favorable situations.
3. Position power:
The more power, the more favorable the situation.

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 Determining the Appropriate
Leadership Style
Use Fiedler’s contingency theory model to
determine which style is appropriate.
> If your LPC matches appropriate style, do
nothing.
> If you need to change styles, some examples:
o Improve relations – show more interest in followers.
o Structure the task – give clear deadlines.
o Empower followers – leaders can pass along power.
o Autocrat – leaders with weak power can gain power.

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 Exhibit 4.3
Fiedler Contingency Leadership Model

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 Research, Criticism, and Applications
• Critics say research supports the model in
most situations but not as strongly in field
studies as in lab studies.
• Fiedler’s view of changing the job context
is not always easy say critics.
• But the model has application as it can
explain why some managers are
ineffective – no match of style to context.

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 Exhibit 4.4
Leadership Continuum Model Variables within the
Contingency Leadership Framework

Robert Tannenbaum and Warren Schmidt

developed a contingency theory – 1950’s.
Focus is on who makes the decisions.

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 Exhibit 4.5
Tannenbaum and Schmidt’s Leadership Continuum
Model
The leadership continuum model is used to determine which one
of seven styles to select, based on the use of boss-centered versus
subordinate-centered leadership, to meet the situation (boss,
subordinates, situation/time) to maximize performance.

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 Leadership Continuum Model
Before selecting one of the seven leadership
styles, consider three variables:
> Boss – based on personality and behavior, some
bosses are autocrats, some participative.
> Subordinates – the more willing/able followers are
to participate, the more participation should be
used – and vice versa.
> Situation (time) – size, etc. of organization is
considered, time is needed for participation.
Criticism – unclear when/how to use the model.
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 Discussion Question

• Do you believe that managers today are

using more boss- or subordinate-centered
leadership styles?

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 Exhibit 4.6
Path-Goal Leadership Model Variables within the
Contingency Leadership Framework

Developed by Robert House.

Behavior of the leader influences performance
and satisfaction of the followers.

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 Exhibit 4.7
House Path-Goal Leadership Model
The path-goal leadership model is used to select the leadership
style (directive, supportive, participative, or achievement-oriented)
appropriate to the situation (subordinate and environment) to
maximize both performance and job satisfaction.

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 Path-Goal Leadership Theory
and Model
• The leader is responsible for motivating
followers to attain organizational goals.
• Motivation is increased by:
1. Clarifying follower’s path to the rewards, or
2. Increasing the rewards followers value/desire.
o Path clarification means the leader works with
followers to identify and learn behaviors that lead
to accomplishment and reward.

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 Situational Factors - Subordinate

(external).
controlled by others
(internal) or it is goals.
goal achievement tasks and achieve
defer to others. believe they control ability to perform
• Extent employees • Extent employees • Extent of employees’
Authoritarianism Locus of Control Ability

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 Situational Factors - Environment

satisfaction.
repetitiveness. position power. contribute to job
• Extent of job • Extent of leader’s • Extent coworkers
Task Structure Formal Authority Work Group

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 Path-Goal Leadership Styles
• Directive:
o Leader provides high structure.
• Supportive:
o Leaders provides high consideration.
• Participative:
o Leader includes employee input into decision-
making.
• Achievement-Oriented:
o Leader sets difficult but achievable goals, and
o Makes the job challenging.
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 Research, Criticism, and Applications
• Research supports path-goal theory but
with mixed results – inadequately tested
due to complexity.
• Criticized by managers because it is difficult
to know which style to use.
• Led to the theory of charismatic leadership.
• House broadened his theory and now calls
it value-based leadership theory.

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 Exhibit 4.8
Normative Leadership Model Variables within the
Contingency Leadership Framework

Victor Vroom and Philip Yetton asked:

When should the manager take charge and when should the
manager let the group make the decision?

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 Normative Leadership Model
• The normative leadership model has a time-
driven and development-driven decision tree
that enables the user to select one of five
leadership styles (decide, consult individually,
consult group, facilitate, and delegate)
appropriate for the situation (seven
questions/variables) to maximize decisions.
> Called normative model as it provides a sequential
set of questions that are rules (norms) that help
determine the best leadership style for the situation.

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 Leadership Participation Styles
• Decide:
o Leader makes the decision and announces it.
• Consult Individually:
o Leader individually tells followers the problem, gets suggestions, and then
decides.
• Consult Group:
o Leader holds group meeting, tells followers the problem, gets
suggestions, and then decides.
• Facilitate:
o Leader facilitates group meeting, seeking participation and concurrence,
without pushing his/her ideas.
• Delegate:
o Lets the group diagnose problem and make the decision.

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 Model Questions
1. Decision Significance:
Is the decision critical to the project or organization?
2. Importance of Commitment:
Is follower commitment vital for implementation?
3. Leader Expertise:
Is the leader experienced in this type of decision?
4. Likelihood of Commitment:
Are followers already committed to the decision?
5. Group Support for Objectives:
Do followers support the organizational goals?
6. Group Expertise:
Are group members experienced in this type of decision?
7. Team Competence:
Ability of individuals to work together as a team.
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 Exhibit 4.9
Normative Leadership Time-Driven Model

Instructions: The model is a decision tree that

works like a funnel. Define the problem
statement and then answer the questions from
left to right as high (H) or low (L), skipping
questions when not appropriate to the situation
and avoiding crossing any horizontal lines. The
last column you come to contains the
appropriate leadership participation decision-
making style for the situation.
1. Focus – making effective
decisions with minimum cost.
2. Value – is placed on time, no
value on follower development.
3. Orientation – short-term.

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 Discussion Question

• Do you agree that time is an important

situational factor to consider in selecting a
leadership style for the situation?
> Explain.

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 Exhibit 4.10
Normative Leadership
Development-Driven Model
Instructions: The model is a decision tree
that works like a funnel. Define the
problem statement, then answer the
questions from left to right as high (H) or
low (L), skipping questions when not
appropriate to the situation and avoiding
crossing any horizontal lines. The last
column you come to contains the
appropriate leadership participation
decision-making style for the situation.

1. Focus – effective decisions and

maximum follower development.
2. Value – follower development,
no value on time.
3. Orientation – long-term.

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 Discussion Question

• The normative leadership model is the

most complex.
> Do more variables improve the model?

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 Appropriate Leadership Style
• To use the normative model:
o you must have a specific decision to make,
o the authority to make the decision, and
o followers to participate in the decision.

• Use the best model for the situation and

ask appropriate questions.
> Some questions may be skipped.
• Follow the decision tree to find best style.

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 Research, Criticism, and Applications
• Research supports the model with a move
toward higher levels of participation, greater
empowerment, and use of teams.
• Critics say the model treats decisions as
single episodes and assumes leaders can
effectively use all five leadership styles.
• Not popular with managers who find it too
cumbersome.
• Popular in the academic community.
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 Discussion Question

• One group of authors believes that

Fiedler’s contingency leadership model is
the model best supported by research.
• However, a different author believes that
it is the normative leadership model.
> Which model do you believe is best supported
by research? Why?

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 Exhibit 4.11
Names Given to the Same Two Leadership Behavior
Concepts

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 Exhibit
Exhibit 4.12
4.12
Putting the Behavioral and Contingency Leadership
Theories Together

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 Prescriptive and Descriptive Models
• Prescriptive leadership models tell the user
exactly which style to use in a given
situation.
o Contingency and normative leadership models.
• Descriptive leadership models identify
contingency variables and leadership
styles without specifying which style to
use in a given situation.
o Continuum and path-goal leadership models.

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 Exhibit 4.13
Substitutes for Leadership Variables within the
Contingency Leadership Framework

Substitutes for leadership include

characteristics of the subordinate, task, and
organization that replace the need for a
leader or neutralize the leader’s behavior.

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 Substitutes and Neutralizers
• Variables which substitute or neutralize
leadership:
1. Characteristics of followers,
Ability, knowledge, experience, training, etc.
2. Characteristics of the task,
Clarity and routine, intrinsic satisfaction, etc.
3. Characteristics of the organization,
Formalization, flexibility, cohesive work groups, etc.

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 Leadership Style and Situation
• Leaders can analyze how these
characteristics substitute or neutralize
their leadership style.
• Leaders can change the situation rather
than their style.
• Substitute leadership can be used to
complement existing leadership.

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 Research, Criticism, and Applications
• Research supports some aspects of the
theory, other aspects remain untested.
• Critics say for many substitutes, the formal
leader is merely replaced by similar
leadership behavior – so it still exists.
• Applications include strong evidence that
situational variables directly affect job
satisfaction and motivation.

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 Discussion Questions

• Which contingency leadership theory do

you think is the best?
• Which contingency leadership theory do
you actually plan to use, and how?
> If you don’t plan to use any, give a detailed
reason for not wanting to use any of the
models.

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 Key Terms
• contingency • normative
leadership model leadership model
• descriptive • path-goal leadership
leadership models model
• leadership • prescriptive
continuum model leadership models
• leadership model • substitutes for
leadership

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