Leadership

1. Leadership Chapter 6 - Contingency Theory Northouse, 5th 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 effectivenessdepends 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 • Assessment based on: • Leadership Styles • Situational Variables Definition • Effective leadership is contingent on matching a leader’s style to the right setting

5. 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 Least Preferred Co-Worker (LPC) Scale High LPCs = Relationship-motivated Low LPCs = Task-motivated Leadership Styles Leader Style Measurement Scale (Fiedler)

6. 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 Situational Variables/3 Factors

7. Task Structure 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 Situational Variables/3 Factors

8. Task Structure, cont’d. 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 Situational Variables/3 Factors

9. 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 Situational Variables/3 Factors

10. 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 Situational Variables/3 Factors

11. 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 Situational Variables/3 Factors

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. 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 By measuring Leader’sLPC scoreandthe 3 situational variables, it is possible to predict whether a leader will be effective in a particular setting Contingency Theory Approach Focus Overall Scope

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

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 notexpect 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 explainwhy leaders with particular leadership styles are more effective in some situations than others • Criticism of LPC scalevalidityas it does not correlate well with other standard leadership measures • Cumbersometo use in real-world settings • Fails to adequately explain what should bedoneabout a leader/situation mismatch in the workplace

22. 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 Application