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Chapter 3

Contingency Approaches

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Chapter Objectives Understand how leadership is often contingent on people

and situations. Apply Fiedler’s contingency model to key relationships

among leader style, situational favorability, and group task performance.

Apply Hersey and Blanchard’s situational theory of leader style to the level of follower readiness.

Explain the path-goal theory of leadership. Use the Vroom-Jago model to identify the correct amount

of follower participation in specific decision situations. Know how to use the power of situational variables to

substitute for or neutralize the need for leadership. Note all action memos in the chapter

Leader’s bookshelf - Wheatley

Nurture relationships with a clear vision, statements of values, expressions of caring, sharing of information, and freedom from strict rules and controls

Focus on the whole, not on the parts in isolation Reduce boundaries between departments to allow

new patterns of relationships Become comfortable with uncertainty and recognize

that any solutions are only temporary Recognize that healthy growth of people and

organizations is found in disequilibrium, not in stability

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Ex. 3.1 Comparing the Universalistic and Contingency Approaches to Leadership

Universalistic Approach

Contingency Approach

Followers

Leader

Situation

Leadership Traits/behaviors

Style Traits

BehaviorPosition

NeedsMaturityTraining

Cohesion

TaskStructureSystems

Env.

Outcomes(Performance, satisfaction,

etc.)

Outcomes(Performance, satisfaction,

etc.)

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Ex. 3.2 Metacategories of Leader Behavior and Four Leader Styles

High Task-LowRelationship

High Task-HighRelationship

Low Task-LowRelationship

High Relationship-Low Task

Low

High

Low HighRELATIONSHIP BEHAVIOR

TA

SK

B

EH

AV

IOR

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Contingency ApproachesContingency approaches: approaches that seek to delineate the characteristics of situations and followers and examine the leadership styles that can be used effectively

Fiedler’s contingency model: a model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation

Fiedler’s Contingency Theory

Fiedler’s Contingency Theory - classifies the favorableness of the leader’s situation

Least Preferred Coworker (LPC) - the person a leader has least preferred to work with over his or her career

Task Structure - degree of clarity, or ambiguity, in the group’s work activities

Position Power - authority associated with the leader’s formal position in the organization

Leader-Member Relations – quality of interpersonal relationships among a leader and group members

Leadership Effectiveness in the Contingency Theory

High LPCrelations oriented

Correlationsbetween leader

LPC & groupperformance

Low LPCtask oriented

1.00.80.60.40.200

-.20-.40-.60-.80

I II III IV V VI VII VIII Unfavorable for leader

Favorable for leader

I II III IV V VI VII VIIILeader-member

relationsG G G G MPoor MPoor MPoor MPoor

Task structure S S U U S S U U

Leader positionpower

Strong Weak Strong Weak Strong Weak Strong Weak

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Fiedler’s theory

Fit between leader’s style (task or relationship) and the situation (favorable or unfavorable)

Both relations and task oriented leaders can be effective in the right situation.

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Situational Theory

Hersey and Blanchard’s extension of the Leadership Grid focusing on the characteristics of followers as the important element of the situation, and consequently, of determining effective leader behavior

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Ex. 3.4 Hersey and Blanchard’s Situational Theory of Leadership

Follower Characteristics Appropriate Leader Style

Low readiness level

Moderate readiness level

High readiness level

Very high readiness level

Telling (high task-low relationship)

Selling (high task-high relationship)

Participating (low task-high rel.)

Delegating (low task-low relationship)

Can be tailored to individual followers

Hersey-Blanchard Situational Leadership Model

ImmatureEmployees

Low High

High

Low

MatureEmployees

Willing/Able Unwilling/able Willing/unable Unwilling/unable

4 3 2 1

Leader’s concern with task

Leader’s concern

with relationship

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High Moderate Low

R4 R3 R2 R1

Able and willing or confident

Able but unwilling

or insecure

Unable but willing or confident

Unable and unwilling

or insecure

LeaderDirected

FollowerDirected

Follower Readiness

Hersey-Blanchard SituationalLeadership® Model

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Path-Goal Theory

A contingency approach to leadership in which the leader’s responsibility is to increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment and rewards

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Situational Contingencies (p.77)1. Personal Characteristics of group members

Ability, skills, needs, and motivations

2. The work environment Degree of task structure, formal authority

system, work group itself (e.g. quality of relationships and educational level of members)

Ex. 3.5 Leader Roles in the Path-Goal Model

Path Clarification Increase Rewards

Leader defines what followermust do to attain work outcomes

Leader clarifies follower’s work role

Follower has increased knowledge & confidence to accomplish outcomes

Leader learns follower’s needs

Leader matches follower’s needs to rewards if work outcomes are accomplished

Leader increases value of work outcomes for follower

Follower displays increased effort and motivation

Organizational work outcomes are accomplished

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Ex. 3.6 Path-Goal Situations and Preferred Leader Behaviors

Situation Leader Behavior Impact on Follower Outcome

Supportive Leadership

Directive Leadership

Achievement-Oriented

Leadership

Participative Leadership

Followers lack self-confidence

Ambiguous job

Lack of job challenge

Incorrect reward

Increases confidence to achieve work outcomes

Clarifies path to reward

Set and strive for high goals

Clarifies followers’ needs to change rewards

Increased effort; improved satisfaction and performance

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The Vroom-Jago Contingency Model

A contingency model that focuses on varying degrees of participative leadership, and how each level of participation influences quality and accountability of decisions

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Ex. 3.7 Five Leader Decision Styles

Area of Influence by Leader

Area of Freedom for Group

Decide Consult Individually

Consult Group

Facilitate Delegate

See page 81-85

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Substitute and NeutralizerSubstitute: a situational variable that makes leadership unnecessary or redundant

Neutralizer: a situational characteristic that counteracts the leadership style and prevents the leader from displaying certain behaviors

Ex. 3.10 Substitutes and Neutralizers for Leadership

Variable Task-Oriented Leadership

People-Oriented Leadership

Organizational variables

Group cohesiveness

Formalization

Inflexibility

Low positional power

Physical separation

Substitutes for

Substitutes for

Neutralizes

Neutralizes

Neutralizes

Substitutes for

No effect on

No effect on

Neutralizes

Neutralizes

Task characteristics

Highly struct. task

Automatic feedback

Intrinsic satisfaction

Substitutes for

Substitutes for

No effect on

No effect on

No effect on

Substitutes for

Follower characteristics

Professionalism

Training/experience

Low value of rewards

Substitutes for

Substitutes for

Neutralizes

Substitutes for

No effect on

Neutralizes