1. Leadership
Chapter 6 - Contingency Theory
Northouse, 4th edition

2. Overview Contingency Theory Approach Perspective Leadership Styles
Situational Variables
Research Findings of Leader Style Effectiveness
How Does the Contingency Theory Approach Work?

3. Contingency Theory Approach Description
Perspective
Contingency theory is a leader-match theory (Fiedler & Chemers, 1974)
Tries to match leaders to appropriate situations
Leader’s effectiveness depends on how well the leader’s style fits the context
Fiedler’s generalizations about which styles of leadership are best and worst are based on empirically grounded generalizations

4. Contingency Theory Approach Description
Definition
Effective leadership is contingent on matching a leader’s style to the right setting
Assessment based on:
Leadership Styles
Situational Variables

5. Leadership Styles Leadership styles are described as:
Task-motivated (Low LPCs)
Leaders are concerned primarily with reaching a goal
Relationship-motivated (High LPCs)
Leaders are concerned with developing close interpersonal relationships
Leader Style Measurement Scale (Fiedler)
Least Preferred Co-Worker (LPC) Scale
High LPCs = Relationship-motivated
Low LPCs = Task-motivated

6. Situational Variables/3 Factors
Leader-Member Relations
- Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers for leader
Group atmosphere –
Good – high degree of subordinate trust, liking, positive relationship
Poor – little or no subordinate trust, friction exists, unfriendly

7. Situational Variables/3 Factors
Task Structure
Concerns the degree to which requirements of a task are clear and spelled out
High Structure –
requirements/rules - are clearly stated/known
path to accomplish - has few alternatives
task completion - can be clearly demonstrated
limited number - correct solutions exist

8. Situational Variables/3 Factors
Task Structure, cont’d.
Concerns the degree to which requirements of a task are clear and spelled out
Low Structure –
requirements/rules - not clearly stated/known
path to accomplish - has many alternatives
task completion - cannot be clearly demonstrated/verified
unlimited number - correct solutions exist

9. Situational Variables/3 Factors
Position Power
Designates the amount of authority a leader has to reward or punish followers
Strong Power –
authority to hire or fire, give raises in rank or pay
Weak Power –
no authority to hire or fire, give raises in rank or pay

10. Situational Variables/3 Factors
3 Factors - determine the favorableness of various situations in organizations
Situations that are rated:
Most Favorable -
good leader-follower relations,
defined tasks (high structure), &
strong leader position power

11. Situational Variables/3 Factors
3 Factors - determine the favorableness of various situations in organizations
Situations that are rated:
Least Favorable -
Poor leader-follower relations,
unstructured tasks (low structure), &
Weak leader position power
Moderately Favorable –
Fall in between these extremes

12. Contingency Model

13. Research Findings of Leader Style Effectiveness
Favorableness
of Situation
LPC Score
Definition
Low
Very Favorable
Very Unfavorable
Situations going smoothly
Situations out of control
Situations with some degree
of certainty; not completely
in or out of leader’s control
High
Moderately
Favorable

14. Research Findings of Leader Style Effectiveness
Reasons for leader mismatch ineffectiveness:
LPC style doesn’t match a particular situation; stress and anxiety result
Under stress, leader reverts to less mature coping style learned in
earlier development
Leader’s less mature coping style results in poor decision making and consequently negative work outcomes

15. How Does the Contingency Theory Approach Work?
Focus of Contingency Theory
Strengths
Criticisms
Application

16. Contingency Theory Approach
Focus
By assessing the 3 situational variables, any organizational context can be placed in one of the 8 categories represented in the Contingency Theory Model
After the nature of a situation is determined, the fit between leader’s style and the situation can be evaluated
Overall Scope
By measuring Leader’s LPC score and the 3 situational variables, it is possible to predict whether a leader will be effective in a particular setting

17. How Does Contingency Theory Work?
Low LPCs – Task-Oriented
Effective in Categories –
1, 2, 3, & 8
High LPCs – Relationship-Oriented
Effective in Categories –
4, 5, 6, & 7
Effective in Categories –
1, 2, & 3
Middle LPCs
If individuals style matches appropriate category in the model, leader will be effective
If individuals style does not match appropriate category in the model, leader will not be effective

18. How Does Contingency Theory Work?
How Does it Work?
Example:
Situation
Leader–Member Relation – Good
Task Structure – High
Position Power – High
Category – 1
Low LPC – (Individual who is task-oriented will be effective)
By measuring Leader’s LPC score and the 3 situational variables, it is possible to predict whether a leader will be effective in a particular setting

19. Strengths
Empirical support. Contingency theory has been tested by many researchers and found to be a valid and reliable approach to explaining how to achieve effective leadership.
Broadened understanding. Contingency theory has broadened the scope of leadership understanding from a focus on a single, best type of leadership (e.g., trait approach) to emphasizing the importance of a leader’s style and the demands of different situations.
Predictive. Because Contingency theory is predictive, it provides relevant information regarding the type of leadership that is most likely to be effective in particular contexts.

20. Strengths
Not an all-or-nothing approach. Contingency theory contends that leaders should not expect to be effective in every situation; thus companies should strive to place leaders in optimal situations according to their leadership style.
Leadership profiles. Contingency theory supplies data on leadership styles that could be useful to organizations in developing leadership profiles for human resource planning.

21. Criticisms
Fails to fully explain why leaders with particular leadership styles are more effective in some situations than others
Criticism of LPC scale validity as it does not correlate well with other standard leadership measures
Cumbersome to use in real-world settings
Fails to adequately explain what should be done about a leader/situation mismatch in the workplace

22. Application
Useful in answering a multitude of questions about the leadership of individuals in various types of organizations
Helpful tool to assist upper management in making changes to lower level positions to ensure a good fit between an existing manager and a certain work context