1. Contingency Theories in Leadership
CHAPTER 4
Anugrahayu Krisna ◦ Andika Adidharma ◦ Thea Samantha ◦ William ◦ Richie Bestianto
25th September 2013

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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.

8. 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.

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

10. 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.

11. Leadership Continuum Model

12. 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.

13. 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

14. 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.

15. 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.

16. 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

17. Situational Factors
Subordinate
Environment

18. 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.

19. 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.

20. 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.

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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.

27. 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?

28. 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

29. 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

30. 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.”

31. 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.”

32. 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.

33. 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