Contingency Theories in Leadership CHAPTER 4 Anugrahayu Krisna 0131121051 ◦ Andika Adidharma 0131121309 ◦ Thea Samantha 0131121085 ◦ William 0131121110 ◦ Richie Bestianto 0131121121 25th September 2013

Contingency Theory and Model Variables Attempt to explain the appropriate leadership style based on the leader, followers, and situation. Framework for Contingency Leadership Variables: Followers Capability Motivation Leader Personal Traits Behavior Experience Situation Task Structure Environment

Global Contingency Leadership McDonald, realize that successful leadership styles can vary greatly from place to place Ex: Employees in Europe (domineering, self-centered, autocratic leaders) in Other countries (democratic and participative leadership style) Companies are now looking for graduates with an international openness and flexibility (can deal with the global economy) Need for leaders with multicultural background and experiences

Contingency Leadership Theory and 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 the performance Framework for Contingency Leadership Variables by Fiedler Followers Leader-member relation Leader Situation Task Structure Position Power Leadership Style Task Relationship

Situational Favorableness The degree of which a situation enables the leader to exert influence over the followers. The tree variables: Leader-member relation: this is the most powerful determinant of overall situational favorableness Task structure: this is second in importance Position power: this is the weakest factor

Changing the Situation If the leadership style doesn’t match the situation, the leader may be ineffective. Fiedler recommend to change the situation. Ex: Relation (poor), the leader (improve) by (showing interest) in followers Task (more/less structured) by stating (more/less specific standards) and (giving/not) deadlines Leader (strong position power) don’t have to use it, they can downplay it. Leader (weak position power) play up the power by being more autocratic

Leadership Continuum Theory and Model Robert Tannenbaum & Warren Schmidt Leadership Behavior is on a continuum from boss-centered to subordinate-centered leadership. The model focuses on who makes decisions. A leader’s choice of a leadership pattern based on forces in the boss, subordinates, and situation.

Leadership continuum model Used to determined which one of seven styles to select, based on the use of boss-centered versus subordinated-centered leadership, to meet the situation in order to maximize performance The Leader have to consider the following three forces or variables Boss. Experience, Expectation, Values, Background, Knowledge, Feeling of Security, & Confidence in the Subordinates. More Autocratic and others more participative. Subordinates. Style for the leader is based on personality and behavior. Participate, Freedom, and Vice versa. Situation (time). The environmental considerations.

The time available is another consideration The time available is another consideration. If there is no time, the leader uses an Autocratic Leadership Style.

Tannenbaum & Schmidt recommended 1. The leader become a group member when allowing the group to make decisions 2. The leader clearly state the style being used 3. The leader not try to trick the followers into thinking they made a decision that was actually made by the leader 4. It’s not the number of decision the followers make, but their significance that counts.

Leadership Continuum Model

The criticism The three factors to consider when selecting a leadership style are very subjective. The Situational Leadership Model and Normative Leadership Model clearly identified which leadership style to use in a given, clearly defined situation.

Path-Goal Leadership Theory and Model Developed by Robert House House’s model does not have a leader trait and behavior variable The leader is supposed to use the appropriate leadership style from one of four, regardless of preferred traits and behavior to motivate employees to enhance their performance

Path-Goal Leadership Model Directive, supportive, participative, and achievement-oriented Is used to select the leadership style appropriate to the situation to maximize both performance and job satisfaction.

Path-Goal Model Is used to determine employee objectives and to clarify how to achieve them using one of four leadership styles. It focuses on how leaders influence employees’ perceptions of their goals and the paths they follow toward goal attainment.

House Path-Goal Leadership Model As shown in here, the situational factors are used to determine the leadership style that affects goal achievement through performance and satisfaction

Situational Factors Subordinate Environment

Subordinate Characteristics Authoritarianism: the degree to which employees defer to others, and want to be told what to do and how to do the job. Locus of Control: the extent to which employees believe they control goal achievement (internal) or if goal achievement is controlled by others (external). Ability: the extent of the employees’ ability to perform tasks to achieve goals.

Environment Factors Task Structure: the extent of repetitiveness of the job. Formal authority: the extent of the leader’s position power. Work group: the extent to which coworkers contribute to job satisfaction or the relationship between followers.

Leadership Styles The original model: Directive (based on initiating structure, job-centered style) and Supportive (based on consideration and employee style) leadership styles (from the Ohio State and University of Michigan behavioral leadership studies) The Participative and Achievement-Oriented leadership styles were added in 1974 publication by House and Mitchell.

Directive Leadership Style Subordinates Authority leadership External locus of control Low ability Environment Complex or ambiguous tasks Strong formal authority Work group provides job satisfcation

Supportive Leadership Style Subordinates Non autocratic leadership Internal locus of control High ability Environment Simple tasks Weak formal authority Work group does not provide job satisfaction

Participative Leadership Style Subordinates Want to be involved Internal locus of control High Ability Environment Complex tasks Strong or weak authority High or low job satisfaction from coworkers

Achievement-Oriented Leadership Style Subordinates Open to autocratic leadership External locus of control High ability Environment Simple tasks Strong authority High or low job satisfaction from coworkers

Normative Leadership Theory and Models Answers the question “When should the manager take charge and when should the group take charge” 4 models ( 2 factors) Individual (manager) or group decision Based on time or development

5 Leadership styles Decide Consult Individually Consult Group Leader makes decision alone Consult Individually Tells followers the problems individually Consult Group Leader holds group meeting Facilitate Leader holds group meeting as facilitator (similar to path-goal participative style) Delegate Leader lets the group diagnose the problem. Leader just answers questions.

7 variables Decision significance Importance of commitment How important the decision is Importance of commitment How important follower commitment is Leader expertise How much knowledge and expertise the leader have Likelihood of commitment Will the followers be committed to leader’s decision? Group support for objectives Do the followers support the objectives? Group Expertixe How much knowledge and expertise the followers have Team competence Can the team work together?

Time driven or development driven? Focus : effective decision with minimum cost Value : time Orientation : short-term Development driven Focus : effective decision with maximum development cost Value : follower development Orientation : long-term

Empirical research have supported the model However, decisions do not occur at one point in time, rather than multiple points at a time and leader’s skills are unknown

Putting The Behavioral And Contingency Leadership Theories Together Prescriptive Leadership Model: Contingency Leadership Normative Leadership “They tell the user exactly which style to use in a given situation.”

Descriptive Leadership Model: Continuum Leadership Path-Goal Leadership “They identify contingency variables and leadership styles without specifying which style to use in a given situation.”

Leadership Substitutes Theory Substitutes for Leadership Include characteristics of the subordinate, task, and organization that replace the need for a leader or neutralize the leader’s behaviour. Substitutes and Neutralizers Substitutes for leadership make a leadership style unnecessary or redundant. Neutralizer reduce or limit the effectiveness of a leader’s behavior. Characteristics of followers. Characteristics of the task. Characteristics of the organization.

Leadership Substitutes Theory Leadership Style Leaders can analyze their situation and better understand how these characteristics substitute or neutralize their leadership style. Changing the Situation Leaders can change the situation rather than their leadership style. Research, Criticism, and Application