Chapter 6 - Contingency Theory Approach

Contingency Theory Approach

Leadership
Theory and Practice, 3/e
Peter G. Northouse, Ph.D.

William Allan Kritsonis, PhD

Presenter

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Chapter 6 - Contingency Theory Approach

Overview
Contingency Theory Approach Perspective
Leadership Styles
Situational Variables
Research Findings of Leader Style Effectiveness
How Does the Contingency Theory Approach Work?

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Chapter 6 - Contingency Theory Approach

Contingency Theory Approach Description

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

Perspective Definition
Contingency theory is a leader- Effective leadership is
match theory (Fiedler &
Chemers, 1974) contingent on
Tries to match leaders to matching a leaders
appropriate situations style to the right
Leaders effectiveness depends
on how well the leaders style
setting
fits the context
Fiedler et al.s generalizations
about which styles of leadership
are best and worst are
empirically grounded
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Chapter 6 - Contingency Theory Approach

Leadership Styles
Definition Dimension Definitions
Leadership styles Task-motivated leaders
are described as: -Concerned primarily with
reaching a goal
Task motivated
Relationship-motivated leaders
Relationship
- Concerned with developing
motivated
close interpersonal
relationships
Leader Style Measurement Scale
Least Preferred Co-Worker (LPC) Scale
High = Relationship-motivated leader
Low = Task-motivated leader
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Chapter 6 - Contingency Theory Approach

Situational Variables
Situational Definition
Factors
LMR - Refers to the group atmosphere
Leader-Member and the degree of confidence, loyalty,
Relations and attraction of followers for leader
TS - Concerns the degree to which
Task Structure requirements of a task are clear and
spelled out
Position Power
PP - Designates the amount of
authority a leader has to reward or
punish followers
Determine
Determine
Favorableness
Favorableness
ofSituations
of Situations
inOrganizations
in Organizations

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Chapter 6 - Contingency Theory Approach

Contingency Model
Leader-
Member Good Poor
Relations

Task High Low High Low

Structure Structure Structure Structure Structure
Strong Weak Strong Weak Strong Weak Strong Weak
Position Power Power Power Power Power Power Power Power
Power
Preferred 1 2 3 4 5 6 7 8
Leadership Low LPCs Low
High LPCs
Style Middle LPCs LPCs

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Chapter 6 - Contingency Theory Approach
Research Findings of Leader Style
Effectiveness
Favorableness
LPC Score of Situation Definition

Low Very Favorable Situations going smoothly

Very Unfavorable Situations out of control

Situations with some degree

High Moderately
of certainty; not completely
Favorable in or out of leaders control

Reasons for leader mismatch ineffectiveness:

LPC style doesnt match a particular situation; stress and anxiety result
Under stress, leader reverts to less mature coping style learned in
earlier development
Leaders less mature coping style results in poor decision making
and consequently negative work outcomes
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Chapter 6 - Contingency Theory Approach

How Does the

Contingency Theory
Approach Work?
Focus of Contingency Theory Approach
Strengths
Criticisms
Application

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Chapter 6 - Contingency Theory Approach

Contingency Theory Approach

Focus Overall Scope
By assessing the 3 situational
variables, any organizational context By measuring Leaders
can be placed in one of the 8
categories represented in the LPC score and the 3
Contingency Theory Model situational variables, it
After the nature of a situation is
determined, the fit between leaders
is possible to predict
style and the situation can be whether a leader will be
evaluated
effective in a particular
setting

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 Chapter 6 - Contingency Theory Approach

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 leaders 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.
Not an all-or-nothing approach.
approach Contingency theory contends that leaders should not expect 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.

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Chapter 6 - Contingency Theory Approach

Criticisms
Fails to fully explain why leaders with particular leadership styles are
more effective in some situations than others (Black Box problem)
problem
Criticism of LPC scale validity as it does not correlate well with
other standard leadership measures
Cumbersome to use in real-world settings
Fails to adequately explain what should be done about a
leader/situation mismatch in the workplace

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Chapter 6 - Contingency Theory Approach

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

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