CONTINGENCY
THEORIES
Presented by:
Lillie Ramage
07/22/03
Leadership Styles

Leadership is the ability to influence others
toward the achievement of goals.
 Ability to influence others
 Dealing with others
 Use a variety of interpersonal skills
 Why
did Martin
Luther King
have charisma
in the eyes of
his followers?
CONTINEGENCY THEORY

Definition:
“Basically, it’s the approach that ‘it depends.’ The
continuing effort to identify the best leadership or
management style might now conclude that the best style
depends on the situation. If one is leading troops in the
Persian Gulf, an autocratic style is probably best (of
course,many might argue here, too). If one is
leading a hospital or university, a more participative and
facilitative leadership style is probably best.

http://www.mapnp.org/library/mgmnt/cntmpory.htm
Contingency Theories of
Leadership
Fiedler Contingency Model
 Hersey & Blanchard’s Situational Theory
 Leader-Member Exchange Theory
 Path-Goal Model
 Leader-Participation Models

Fiedler Contingency Model

Effective group performance depends on
both the leader’s personality and the situation.
Certain leaders are effective in one situation but
not in others.
LPC Scale (least preferred co-worker
questionnaire measures whether a leader is task
motivated or relationship motivated)
Fiedler Contingency Model

Three factors determine the favorableness of the
situation:

Leader-Member Relations - Degree of mutual trust
and respect between the leader and subordinates

Task Structure -Degree to which the task at hand is
low in municipality and high in verifiability, specificity
and clarity

Leader Position Power - The power inherent in the
leader’s position itself.
Fiedler’s Contingency Model
Task motivated
Performance
Good
Relationship motivated
Favorable
Poor
Category
I
II
Moderate
III
IV
V
Unfavorable
VI
VII
VIII
Leader Member Relations Good
Good
Good
Good
Poor
Poor
Poor
Poor
Task Structure
High
High
Low
Low
High
High
Low
Low
Position power
Strong
Weak
Strong
Weak
Strong
Weak
Strong
Weak
Hersey and Blanchard’s
Situational Theory (SLT)
A contingency theory that focuses on follower’s
readiness
Based on an interplay among:
• Amount of guidance and direction (task behavior)
a leader gives
•Amount of guidance and socioemotional
support (relationship behavior) a leader provides
•The readiness level that followers exhibit in
performing a specific task, function or objective
Hersey-Blanchard's
Graen’s Leader-Member
Exchange (LMX) Theory

Leaders create in-groups & out-groups.

Subordinates with in-group status will have >
performance ratings, < turnover, & > satisfaction
with their supervisor.

How are in-group members chosen?
LMX Theory

Leaders establish one-on-one relationships
with each follower

Relationships vary in quality
LMX Theory

In-Group – high-quality relationship
 Mutual trust, liking, and respect
 Members given interesting and challenging
assignments
 Members work hard, are loyal, and support
the leader
LMX Theory

Out Group – low-quality relationship
 Leaders consider them as lacking
motivation or loyalty
 Given fewer chances to show their
capabilities
 Members may “live down” to expectations
 Carry out tasks defined in their job
descriptions
 No loyalty, creativity or high performance
LMX Practical Implications




In-groups and out-groups lead to self-fulfilling
prophecies
Having in-groups and out-groups may not be
avoided.
Base group status on ability and motivation,
not favoritism or prejudice
Ensure that members can move between
groups
House's Path-Goal Theory
It’s the leader’s job to assist followers in
attaining their goals and to provide the
necessary direction and/or support to
ensure that their goals are compatible
with the overall objectives of the group or
organization

House’s Path-Goal Theory
House's Path-Goal Theory

Leader-Situation Match
 Directive
Behavior - Use when the task
is unstructured and employees need
direction.
 Supportive
Behavior - Use when
employees lack self-confidence or work
motivation.
House's Path-Goal Theory

Leader-Situation Match
 Participative
Behavior - Use when
employees know better or when they
desire involvement in decision making.
 Achievement-Oriented
Behavior - Use
when goals are not clear or employees
are not committed to realizing desired
outcomes.
Leader-Participation Model
•Victor Vroom and associates - relate leadership
behavior and participation to decision making
•Provides a sequential set of rules to follow in
determining the form and amount of participation in
decision making
•rule selection determined by the situation
•Provides an excellent guide to help managers
choose an appropriate leadership style to
fit the situation
Leader Participation Model
Decide - leader makes decision alone, either
announcing or selling to group
Consult Individually - leader makes decision after
obtaining feedback from group members individually
Consult Group - leader makes decision after obtaining
feedback from group members in meeting
Facilitate - leader, acting as facilitator, defines problem
and boundaries for decision-making after presenting it
to group
Delegate - leader permits group to make decision
within prescribed limits
Things to Remember



Identify the needs of the leadership situation
based on your goals and strategies, the
motivation and skill of your employees, and the
complexity of the task.
Timing is critical. You only have a certain
“window of opportunity” to establish the
credibility of your leadership within an
organization.
There is no single leadership style that is
universally effective – effective leadership
depends on the situation
“Jack Welch: Case Incident p. 330
•
Would you describe Jack Welch as a
successful leader at GE?
•
What theories do you think he uses?