Topic 12.Contingency Theories & Situational Leadership.ppt

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    Topic 12Contingency Theories

    & SituationalLeadership

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    The Contingency Approach The essence of the contingency approach to

    leadership is that leaders are most effective when they make their behavior contingent uponsituational forces, including group membercharacteristics.

    Leadership effectiveness is maximized whenleaders correctly make their behaviorscontingent on certain situational and followercharacteristics.

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    The Contingency Approach (cont.)

    The effects of leadership vary from situation tosituation. Aspects of the situation that enhanceor nullify the effects of a leaders traits or behavior are called situational moderator variables.

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    The Contingency Approach (cont.) Normative Decision Model

    (Vroom, Yetton / Vroom,Yetton, and Jago)

    The Situational Leadership Theory (Hershey and Blanchard)

    Fiedlers Contingency Theory

    The Path-Goal Theory (House, et.al.)

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    Contigency Approach (cont) The four theories share several similarities:

    They are theories rather than someones personal opinions . They implicitly assume that leaders are able to accurately diagnose or

    assess key aspects of the followers and the leadership situation. With the exception of the contingency model, leaders are assumed to

    be able to act in a flexible manner. A correct match between situational and follower characteristicsand leaders behavior is assumed to have a positive effect on groupor organizational outcomes.

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    Normative Decision Model The Normative Decision Model views leadership

    as a decision-making process. It specifies what aleader ought to do in a given situation. It issolely directed at determining the amount ofsubordinate input in the decision-makingprocess. Normative refers to the idea that the

    leader should follow certain prescriptionsindicated in the model. Two key factors in the model are decision quality

    and decision acceptance.

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    Normative Decision Model (cont.) Decision quality refers to the objective aspects of

    a decision that affect group or individualperformance. When an effective alternative ischosen, decision quality is said to be high.

    Decision quality is not important when theconsequences of choosing various alternativesare about the same, or when the consequences ofthe decision are unimportant.

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    Normative Decision Model (cont.) Decision acceptance refers to how committed

    group members are to implementing a decisioneffectively. If group members are responsiblefor implementing a decision, acceptance iscrucial. At times decision acceptance is not an

    issue because very few employees are involved inimplementation.

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    Normative Decision Model (cont.) The model identifies 5 levels of leader-

    subordinate (follower) participation: AI- leader decides completely alone AII- leader obtains information from subordinates,

    leader decides CI- Leader shares problem individually with

    subordinates, obtains opinions, leader decides. CII- leader shares problem collectively with

    subordinates, obtains opinions, leader decides. GII- leader shares problem with group, group decides.

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    Normative Decision Model (cont.) A decision tree is required to implement the

    model. The leader diagnoses situational variables by considering key questions.

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    Normative Decision Model (cont.) The Decision Tree- provides a branching set of

    questions to be answered either yes or no which lead to a set of decision processes that willprotect quality and acceptance. Time andsubordinate development may be factored in ifof importance AFTER ensuring quality and

    acceptance by using the decision tree.

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    The Decision Tree

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    Evaluation of the Model: Pro:

    Supported by numerous empirical studies Prompts leaders to ask themselves intelligent,

    perceptive, focused questions Following step-by-step procedures increases

    decision-making effectiveness

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    Evaluation of the Model (cont.) : Con:

    Decision processes are treated as a single, discrete

    episode that occur at one point in time Being a good decision-maker is not enough to be a

    good leader Excludes trial- balloon approaches to decision -

    making (leader floating tentative decisions) More about management than about leadership, and

    therefore has little to do with inspiring and influencingothers and bringing about important changes

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    Situational Leadership Theory The Situational Leadership Theory explains how

    to match leadership style with followerreadiness.

    The key contingency factors are group membercharacteristics.

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    Situational Leadership Theory (cont.)

    The theory has its roots in the Ohio State Studieson Leader Behavior.

    That study identified 2 distinct leader behaviorcategories: Initiating structure (task behavior)

    Consideration (relationship behavior)

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    Basics of the Model Task behavior is the extent to which the leader

    spells out the duties and responsibilities of anindividual or group.

    Relationship behavior is the extent to whichthe leader engages in two-way or multi-way

    communication.

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    The Situational Leadership Theorydeveloped by Hershey and Blanchard,answers the following questions:

    Is there an optimum way for leaders to adjusttheir behavior with different followers andthereby increase their likelihood of success?

    If so, then what factors should the leader basehis behavior on?

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    The Answer: Answer is that leaders adapt their style or behavior based on he maturity of their followers.

    The most effective style depends on thereadiness level of group members.

    Readiness is the extent to which a follower isable and willing to accomplish a specific task.

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    Components of Follower Maturity Job maturity- the amount of task-relevant

    knowledge, experience, skill, and ability that thefollower possesses. (i.e. ability, KSAs)

    Psychological maturity- the followers selfconfidence, commitment, motivation, and self-respect relative to the task at hand (i.e. willingness)

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    Four Levels of Readiness

    Style 1 - High task and low relationship. The telling style isdirective.

    Style 2 - High task and high relationship. The selling styleis also directive, but in a more persuasive, guiding, manner.

    Style3 - High relationship and low task. In theparticipating leadership style there is less direction and

    more collaboration between leader and group members.

    Style 4 - Low relationship and low task. In the delegatingstyle, the leader delegates and is kept informed of progress.

    TM 13-6 SITUATIONAL LEADERSHIP THEORY

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    TM 13 6 SITUATIONAL LEADERSHIP THEORY

    3 2

    4 1

    High Rel.Low task

    Low Rel.Low task

    High TaskHigh Rel.

    High TaskLow Rel.

    (LOW) (HIGH)TASK BEHAVIOR

    ( S u p p o r t i v e B e h a v i

    o r )

    R E L A T I O N S H

    I P B E H A V I O R

    ( H I G H

    )

    R4 R3 R2 R1

    FOLLOWER READINESSMODERATEHIGH LO

    W

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    Hersey and Blanchards SituationalLeadership Model

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    The Situational Leadership Model Caveat Any given follower could be low on

    readiness to perform one task buthigh on readiness to perform adifferent task .

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    Evaluation of the Theory: Best used with new hires Can be valuable in training and development Based on fundamental truth about leadership:

    Competent people require the least specificdirection

    Gives false impression that all situations areclear-cut

    Popular because of its commonsense approach but not a lot of empirical research to support its validity

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    Evaluation (cont)

    Situational Leadership is a useful way to

    get leaders to think about howleadership effectiveness may dependsomewhat on being flexible with

    different subordinates, not on acting thesame way toward them all.

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    The Contingency Model Fiedlers contingency theory of leadership states

    that best leadership style is determined by thesituation in which the leader works.

    It recognizes natural behavioral tendencies ofleaders and suggests certain situations where

    these behaviors may be more or less effective. Probably the earliest and certainly the most well-known contingency theory.

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    Some leaders may be generally more supportive andrelationship-oriented , whereas others may be moreconcerned with task or goal accomplishment .

    The contingency model suggests that leader

    effectiveness is primarily determined by selecting theright kind of leader for a certain situation orchanging the situation to fit the particular leadersstyle.

    To understand the contingency theory one must lookfirst at the critical characteristics of the leader and then at the critical aspects of the situation .

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    Least Preferred Coworker Scale To measure leadership style the theory uses an

    instrument called the Least-Preferred-CoworkerScale (LPC)

    LPC Handout

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    LPC Scale

    The scale instructs a leader to think of thesingle individual with whom he has had thegreatest difficulty working and then todescribe that individual in terms of a series of

    bipolar activities. Based on their LPC scores, leaders arecategorized into two groups: Low-LPC leaders (primarily motivated by task ) High-LPC leaders (primarily motivated by

    relationships )

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    Scale Interpretation One who describes the least preferred coworker

    in favorable terms is relationship-motivated. Incontrast, a person who describes his or her leastpreferred coworker unfavorably tends to be task-motivated.

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    Motivational Hierarchies For Low- andHigh-LPC Leaders

    Task

    People

    Low-LPC leader motivationalhierarchy

    People

    Task

    High-LPC leader motivationalhierarchy

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    Situation Dimensions: The situation is assessed to determine the degreeof situational control, or favorability, for the leaderusing three dimensions:

    1. Leader-member relations measures how well the groupand the leader get along. 2. Task structure measures how clearly the procedures,

    goals, and evaluation of the job are defined. 3. Position power measures how much authority the

    leader possesses. Leader-member relations contribute as much tothe favorability of the leadership situation as dotask structure and position power combined.

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    Contingency Model Octant Structure ForDetermining Situational Favorability

    Good Poor

    Structured Unstructured Structured Unstructured

    High Low High Low High Low High Low

    1 2 3 4 5 6 7 8

    Leader-member

    relations

    Task structure

    Position power

    Octant

    Overall situation favorability

    High Low

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    Fiedlers Contingency Model

    GOOD POOR

    HIGH LO W HIGH LOW

    S W S W S W S W

    Leader-Member

    Relations

    TaskStructure

    PositionPower

    Kinds ofLeadershipSituations

    VeryFavorable

    VeryUnfavorable

    I II III IV V VI VII VIII1

    Relationship-oriented managers most effective in IV, V, VI,Task-oriented managers most effective in I, II, III or VIII.

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    Prescriptions of the Model The major proposition in contingency theory is

    the leader-match concept-leadership

    effectiveness depends on matching leaders tosituations where they can exercise more control. Fiedlers research suggests that low LPC leaders will perform better in either low favorability

    situations or in very high favorability situations.High LPC leaders will perform best in moderatefavorability situations.

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    Path-Goal Theory The path-goal theory of leadership effectiveness

    specifies what the leader must do to achieve high

    productivity and morale in a given situation.

    Path-goal theory, in its most basic form, is basedupon expectancy theory. The effective leader

    will ensure valued rewards are available to thefollowers (the goal) and will help them find waysof getting to these goals (the path).

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    The Path-Goal Theory The underlying mechanism of the path-goal

    theory deals with expectancy , a cognitiveapproach to understanding motivation where

    people calculate: Effort-to-performance probabilities Performance-to-outcome probabilities Assigned valences or values to outcome

    Path-goal theory uses the same basicassumptions as expectancy theory (to bediscussed in topic 19 Motivation)

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    Leader Behaviors Leader behaviors - unlike contingency theory,

    path-goal theory suggests that leaders may use varying styles with different subordinates oreven with the same subordinates in differingsituations.

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    Leaders / Path-Goal

    Directive leaders give specific directions. Supportive leaders strive to create a positive

    climate. Participative leaders consult with subordinates

    taking their suggestions into account.

    Achievement-oriented leaders push goal setting,higher standards, and show strong confidence intheir followers.

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    The Followers Path-goal theory contains follower variables of overall

    satisfaction,locus of control,and perceived ability.

    Followers will actively support a leader as long as they view theleaders actions as a means for increasing their own level ofsatisfaction.

    Followers who believe they are capable of performing a task are notas motivated by, or willing to accept, a directive leader as they woulda leader with participative behavior.

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    Evaluation of Theory Path-Goal Theory is so complicated and has so

    many nuances it is primarily studied byresearchers and scholars in the field ofleadership it has little value or at bestquestionable value for practicing leaders.