Contingency Theory Approach

LeadershipLeadership

Salma Chad, PhDSalma Chad, PhD

Overview• Contingency Theory Approach Perspective • Leadership Styles• Situational Variables• Research Findings of Leader Style

Effectiveness• How Does the Contingency Theory

Approach Work?

Contingency Theory Approach Description

“Leaders match their style to the competence and commitment of subordinates.”

Contingency theory is a leader-matchleader-match theory (Fiedler & Chemers, 1974) Tries to match leaders to

appropriate situations Leader’s effectiveness effectiveness

depends on how well the leader’s style fits the context

Fiedler et al.’s generalizations about which styles of leadership are best and worst are empirically groundedempirically grounded

• Effective leadership is Effective leadership is contingent on contingent on matching a leader’s matching a leader’s style to the right style to the right settingsetting

PerspectivPerspectivee

DefinitionDefinition

Leadership Styles

Leadership Leadership styles are styles are described as:described as: Task motivatedTask motivated Relationship Relationship

motivatedmotivated

Task-motivated leadersTask-motivated leaders - -Concerned primarily Concerned primarily with reaching a goalwith reaching a goal

Relationship-motivated Relationship-motivated leadersleaders - Concerned with developing close interpersonal relationships

DefinitionDefinition Dimension Dimension DefinitionsDefinitions

Least Preferred Co-Worker (LPC) ScaleLeast Preferred Co-Worker (LPC) ScaleLeader Style Measurement ScaleLeader Style Measurement Scale

High = Relationship-motivated leaderHigh = Relationship-motivated leaderLow = Task-motivated leaderLow = Task-motivated leader

Situational Variables

Leader-Member Leader-Member RelationsRelations

Task StructureTask Structure Position Power

LMRLMR - Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers for leader

TSTS - Concerns the degree to which requirements of a task are clear and spelled out

PPPP - Designates the amount of authority a leader has to reward or punish followers

SituationaSituationall

FactorsFactors

DefinitionDefinition

DetermineDetermineFavorablenessFavorablenessof Situationsof Situations

in Organizationsin Organizations

Contingency Model

GoodGood

11

PoorPoor

High High StructureStructure

High High StructureStructure

Low Low StructureStructure

Low Low StructureStructure

StrongStrongPowerPower

WeakWeakPowerPower

StrongStrongPowerPower

WeakWeakPowerPower

StrongStrongPowerPower

WeakWeakPowerPower

StrongStrongPowerPower

WeakWeakPowerPower

Leader-Leader-MemberMemberRelationsRelations

TaskTaskStructureStructure

PositionPositionPowerPowerPreferredPreferredLeadershipLeadershipStyleStyle

22 33 44 55 66 77 88Low LPCsLow LPCs

Middle LPCsMiddle LPCs High LPCsHigh LPCs LowLow LPCsLPCs

Research Findings of Leader Style Effectiveness

LPC ScoreLPC ScoreFavorablenessFavorableness

of Situationof Situation DefinitionDefinition

LowLow Very FavorableVery FavorableVery UnfavorableVery Unfavorable

Situations going smoothlySituations going smoothlySituations out of controlSituations out of control

HighHigh Moderately Moderately FavorableFavorable

Situations with some degreeSituations with some degreeof certainty; not completelyof certainty; not completelyin or out of leader’s controlin or out of leader’s control

Reasons for leader mismatch Reasons for leader mismatch ineffectiveness:ineffectiveness: LPC style doesn’t match a particular situation; stress and anxiety resultLPC style doesn’t match a particular situation; stress and anxiety result Under stress, leader reverts to less mature coping style learned inUnder stress, leader reverts to less mature coping style learned in earlier developmentearlier development Leader’s less mature coping style results in poor decision making Leader’s less mature coping style results in poor decision making and consequently negative work outcomesand consequently negative work outcomes

How Does the Contingency

Theory Approach Work?• Focus of Contingency Theory Approach

• Strengths

• Criticisms• Application

Contingency Theory Approach

By assessing the 3 By assessing the 3 situational variables, situational variables, any organizational any organizational context can be placed in context can be placed in one of the 8 categories one of the 8 categories represented in the represented in the Contingency Theory Contingency Theory ModelModel

After the nature of a After the nature of a situation is determined, situation is determined, the fit between leader’s the fit between leader’s style and the situation style and the situation can be evaluatedcan be evaluated

By measuring By measuring Leader’s Leader’s LPC scoreLPC score and and the 3 situational the 3 situational variablesvariables,, it is it is possible to predict possible to predict whether a leader will whether a leader will be be effectiveeffective in a in a particular settingparticular setting

FocusFocus Overall ScopeOverall Scope

Strengths Empirical support. 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.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.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.

Not an all-or-nothing approachNot an all-or-nothing approach. Contingency theory contends that leaders should notnot expect to be effective in every situation; thus companies should strive to place leaders in optimal situations according to their leadership style.

Leadership profiles.Leadership profiles. Contingency theory supplies data on leadership styles that could be useful to organizations in developing leadership profiles for human resource planning.

Criticisms Fails to fully explain why why leaders with particular

leadership styles are more effective in some situations than others (Black Box problemBlack Box problem)

Criticism of LPC scale validityvalidity as it does not correlate well with other standard leadership measures

Cumbersome Cumbersome to use in real-world settings Fails to adequately explain what should be

done done about a leader/situation mismatch in the workplace

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