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Contingency Approaches

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1 Contingency Approaches
Chapter 3 Contingency Approaches

2 Chapter Objectives Understand how leadership is often contingent on people and situations. Apply Fiedler’s contingency model to key relationships among leader style, situational favorability, and group task performance. Apply Hersey and Blanchard’s situational theory of leader style to the level of follower readiness. Explain the path-goal theory of leadership. Use the Vroom-Jago model to identify the correct amount of follower participation in specific decision situations. Know how to use the power of situational variables to substitute for or neutralize the need for leadership. Note all action memos in the chapter

3 Leader’s bookshelf - Wheatley
Nurture relationships with a clear vision, statements of values, expressions of caring, sharing of information, and freedom from strict rules and controls Focus on the whole, not on the parts in isolation Reduce boundaries between departments to allow new patterns of relationships Become comfortable with uncertainty and recognize that any solutions are only temporary Recognize that healthy growth of people and organizations is found in disequilibrium, not in stability

4 Ex. 3.1 Comparing the Universalistic and Contingency Approaches to Leadership
Outcomes (Performance, satisfaction, etc.) Universalistic Approach Leadership Traits/behaviors Leader Style Traits Behavior Position Contingency Approach Outcomes (Performance, satisfaction, etc.) Needs Maturity Training Cohesion Task Structure Systems Env. Followers Situation

5 Ex. 3.2 Metacategories of Leader Behavior and Four Leader Styles
High High Task-Low Relationship High Task-High Relationship BEHAVIOR TASK Low Task-Low Relationship High Relationship -Low Task Low Low RELATIONSHIP BEHAVIOR High

6 Contingency Approaches
Contingency approaches: approaches that seek to delineate the characteristics of situations and followers and examine the leadership styles that can be used effectively Fiedler’s contingency model: a model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation

7 Fiedler’s Contingency Theory
Fiedler’s Contingency Theory - classifies the favorableness of the leader’s situation Least Preferred Coworker (LPC) - the person a leader has least preferred to work with over his or her career Task Structure - degree of clarity, or ambiguity, in the group’s work activities Position Power - authority associated with the leader’s formal position in the organization Leader-Member Relations – quality of interpersonal relationships among a leader and group members

8 Unfavorable for leader
Leadership Effectiveness in the Contingency Theory High LPC relations oriented 1.00 .80 .60 .40 .20 -.20 -.40 -.60 -.80 I II III IV V VI VII VIII Correlations between leader LPC & group performance Low LPC task oriented Favorable for leader Unfavorable for leader

9 Fiedler’s theory Fit between leader’s style (task or relationship) and the situation (favorable or unfavorable) Both relations and task oriented leaders can be effective in the right situation.

10 Situational Theory Hersey and Blanchard’s extension of the Leadership Grid focusing on the characteristics of followers as the important element of the situation, and consequently, of determining effective leader behavior

11 Ex. 3.4 Hersey and Blanchard’s Situational Theory of Leadership
Follower Characteristics Appropriate Leader Style Low readiness level Moderate readiness level High readiness level Very high readiness level Telling (high task-low relationship) Selling (high task-high relationship) Participating (low task-high rel.) Delegating (low task-low relationship) Can be tailored to individual followers

12 Leader’s concern with task
Hersey-Blanchard Situational Leadership Model Leader’s concern with task Low High High Leader’s concern with relationship Low Mature Employees Immature Employees Willing/Able Unwilling/able Willing/unable Unwilling/unable

13 Hersey-Blanchard Situational Leadership® Model
Follower Readiness High Moderate Low R4 R3 R2 R1 Able and willing or confident Able but unwilling or insecure Unable but willing or confident Unable and unwilling or insecure Follower Directed Leader Directed

14 Path-Goal Theory A contingency approach to leadership in which the leader’s responsibility is to increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment and rewards

15 Situational Contingencies (p.77)
Personal Characteristics of group members Ability, skills, needs, and motivations The work environment Degree of task structure, formal authority system, work group itself (e.g. quality of relationships and educational level of members)

16 Ex. 3.5 Leader Roles in the Path-Goal Model
Path Clarification Increase Rewards Leader defines what follower must do to attain work outcomes Leader learns follower’s needs Leader clarifies follower’s work role Leader matches follower’s needs to rewards if work outcomes are accomplished Follower has increased knowledge & confidence to accomplish outcomes Leader increases value of work outcomes for follower Follower displays increased effort and motivation Organizational work outcomes are accomplished

17 Ex. 3.6 Path-Goal Situations and Preferred Leader Behaviors
Impact on Follower Outcome Followers lack self-confidence Supportive Leadership Increases confidence to achieve work outcomes Directive Leadership Increased effort; improved satisfaction and performance Ambiguous job Clarifies path to reward Achievement-Oriented Leadership Lack of job challenge Set and strive for high goals Participative Leadership Clarifies followers’ needs to change rewards Incorrect reward

18 The Vroom-Jago Contingency Model
A contingency model that focuses on varying degrees of participative leadership, and how each level of participation influences quality and accountability of decisions

19 Ex. 3.7 Five Leader Decision Styles
Area of Freedom for Group Area of Influence by Leader Decide Consult Individually Consult Group Facilitate Delegate See page 81-85

20 Substitute and Neutralizer
Substitute: a situational variable that makes leadership unnecessary or redundant Neutralizer: a situational characteristic that counteracts the leadership style and prevents the leader from displaying certain behaviors

21 Ex. 3.10 Substitutes and Neutralizers for Leadership
Variable Task-Oriented Leadership People-Oriented Leadership Organizational variables Group cohesiveness Formalization Inflexibility Low positional power Physical separation Substitutes for Neutralizes No effect on Task characteristics Highly struct. task Automatic feedback Intrinsic satisfaction Follower characteristics Professionalism Training/experience Low value of rewards

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