Chapter 3 Slide 3-1 Contingency Theories of Leadership Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Chapter Goals Slide 3-2 The goal of this chapter is to review the four better known contingency theories of leadership, as well as show their similarities. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Normative Decision Model Slide 3-3 The Normative Decision Model, developed by Vroom and Yetton, is solely directed at determining how much input subordinates should have in the decisions making process. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Decision-making processes Slide 3-4 To determine which situational and follower factors affect the level of participation and group performance, Vroom and Yetton investigated the decision-making processes leaders use in group settings. They discovered a continuum of decision-as seen in the next slide. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Continuum of decision-making processes Slide 3-5 Leader Followers Decision Outcomes: process Decision B. Does leader have sufficient information? quality Decision acceptance D. Acceptance important for implementation? E. If decision made is solely by leader, will it be accepted by subordinates? F. Do subordinates share organizational goals? G. Is conflict over preferred solution likely? Irwin/McGraw-Hill Subordinate development A. Quality requirement? C. Is problem structured? Situation The McGraw-Hill Companies, Inc. © 1999 The Situational Leadership Theory, developed by Hersey and Blanchard, answers the following questions: Slide 3-6 Is there an optimum way for leaders to adjust their behavior with different followers and thereby increase their likelihood of success? If so, then what factors should the leader base his behavior on? Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Situational Leadership Theory and the Interactional Framework Slide 3-7 Leader Telling: high task, low relationiship Selling: high task, high relationship Participating: low task, low relationship Delegating: low task, low relationship Decision to use developmental intervention Outcomes: Task accomplishment Increased follower maturity What is the followers job maturity? Followers Psychological maturity? What is the task to be accomplished? Situation Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 The Contingency Model Slide 3-8 The Contingency Model, developed by Fiedler, recognizes that leaders have general behavioral tendencies and thereby specifies situations where certain leaders (or behavioral dispositions) may be more effective than others. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Fiedler’s Contingency Theory and the Interactional Framework Slide 3-9 Leader Motivation hierarchy (as determined by LPC score) Leadermember relations Outcomes: Effective or ineffective group performance based upon match or mismatch between leader and overall favorability of the leadership situation Task structure Position Power Followers Irwin/McGraw-Hill Situation The McGraw-Hill Companies, Inc. © 1999 The Path-Goal Theory Slide 3-10 The Path-Goal Theory, the most sophisticated of the four contingency models, deals with expectancy, performance-to-outcome probabilities, and assigned valences or values to outcome. Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 The Path-Goal Theory Slide 3-11 Cont. Expectancy - If I study for 12 hours, what is the probability I will get an A on the exam? Performance-to-outcome probabilities - If I get an A on the final, what is the probability of getting an A in the course? Assigned valences or values to outcome - How much do I value a higher GPA Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Path-Goal Theory and Interactional Framework Slide 3-12 Leader Leader behavior: Directive, Supportive, Participative, Achievement-oriented Outcomes: Acceptance of leader Follower motivation Follower satisfaction Followers Irwin/McGraw-Hill Traits Skills and abilities expectations and work perceptions of own group abilities Situation The McGraw-Hill Companies, Inc. © 1999