Contingency ApproachMANAGING ORGANIZATION

FUMIKO KAJI

・Definition・How to Apply the Approach

Leadership StyleSituational Favorableness8 Situations

・Advantages & Disadvantages

CONTENTS

WHAT IS CONTINGENCY APPROACH??

The contingency approach is…Based on the contingency theory of leadership effectiveness

Developed by a management psychologist, Fred Fielder in 1960’s

DEFINITION

The theory holds that most appropriate style of management is dependent on both the situation and managers’ own leadership style.

No one theory or method can apply to all businesses!

HOW TO APPLY THE APPROACH

1 Know your own leadership style

2 Analyze the situatioal favorableness

3 Find the best leadership style

1. Know your own leadership style

You leadership style is…

Relation Motivated Task Motivated

Least Preferred Co-worker Scale(LPC Scale)

Leaders are asked what traits can ascribed to the co-worker that you least enjoyed working with.

PleasantFriendlySupportiveCooperativeRelaxed

8 7 6 5 4 3 2 18 7 6 5 4 3 2 18 7 6 5 4 3 2 18 7 6 5 4 3 2 18 7 6 5 4 3 2 1

UnpleasantUnfriendlyHostileUncooperativeTense

Low LPC Score →Task Oriented Leader / Low LPC Leader

Effective at Completing TasksQuick to organize a group to get tasks done

High LPC Score→Relation Oriented Leader / High LPC Leader

Focus more on personal connection Good at avoiding and managing conflicts, making complex decision

2. Analyze the situational favorableness

3 Determinants of Favorableness

Leader-memberRelations

TaskStructure

Leader’sPositionPower

Do your team members trust you?

Is your task clear and structured?

Do you have power to reward or punish?

3. Find the Best leadership Style

Leader-member relation

Good Poor

Task Structure High Low High Low

Power Position Strong Weak Strong Weak Strong Weak Strong Weak

1 2 3 4 5 6 7 8Favorable Unfavorable

→Low or Middle LPC Leader →High LPC Leader →Low LPCLeader

ADVANTAGES AND DISADVANTAGES

Advantages

・A company can have the right person in place・A manager can know what kind of leader he/she should

be adapting to different tasks

Disadvantages

・Difficulty to change leadership style・Two-dimensional・LPC score is Influenced by how bad your least preferred

co-worker is

Thank you for listening !

References

http://www.hrzone.com/hr-glossary/what-is-a-contingency-approachhttp://www.referenceforbusiness.com/management/Comp-De/Contingency-Approach-to-Management.htmlhttp://smallbusiness.chron.com/contingency-approach-use-business-33893.htmlhttps://www.business.com/articles/contingency-management-theory/http://www.investopedia.com/terms/l/least-preferred-coworker-scale.asp