contingency theory 2003

8/7/2019 contingency theory 2003

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MBA 3rd sem. 1



1. Fiedler¶s Contingency Theory

2. Normative Decision Model /Leader Participation

Model

3. Situational Leadership Theory

4. Substitute Leadership

5. Path Goal Theory

MBA 3rd sem. 2

AGENDA OF THE PRESENTATION



1.Leadership styles- Two major styles of leadership:

I. Task- oriented

II. Relationship oriented

2. Situational Variables ± It have three factors:

I. Leader-member relations,

II. Task structure and

III. Position power

MBA 3rd sem. 3

FIEDLERS CONTINGENCY THEORY



Pleasant 8 7 6 5 4 3 2 1 UnpleasantFriendly 8 7 6 5 4 3 2 1 UnfriendlyRejecting 8 7 6 5 4 3 2 1 AcceptingTense 8 7 6 5 4 3 2 1 RelaxedCold 8 7 6 5 4 3 2 1 Warm

Supportive 8 7 6 5 4 3 2 1 HostileBoring 8 7 6 5 4 3 2 1 InterestingQuarrelsome 8 7 6 5 4 3 2 1 HarmoniousGloomy 8 7 6 5 4 3 2 1 CheerfulOpen 8 7 6 5 4 3 2 1 ClosedBackbiting 8 7 6 5 4 3 2 1 Loyal

Untrustworthy 8 7 6 5 4 3 2 1 TrustworthyConsiderate 8 7 6 5 4 3 2 1 InconsiderateNasty 8 7 6 5 4 3 2 1 NiceAgreeable 8 7 6 5 4 3 2 1 DisagreeableInsincere 8 7 6 5 4 3 2 1 SincereKind 8 7 6 5 4 3 2 1 Unkind

MBA 3rd sem. 4

LEAST PREFERRED COWORKER

(LPC) SCALE



MBA 3rd sem. 5

Good Poor Leader Member

Relation

Task Structure

Position Power

Preferred

Leadership 1 2 3 4 5 6 7 8

Low LPCs

High LPCsHigh

LPCs

Low

LPCs

High

Structure

Low

Structure

High

Structure

Low

Structure

Strong

Power Weak

Power

Strong

Power

Weak

Power

Strong

Power

Weak

Power

Strong

Power

Weak

Power



Empirical research supports this theory

Includes the impact of situations on leaders

This theory is predictive and therefore provides useful

information about the type of leadership that is most likely to

be successful in a specific context

Does not require people to be successful in all situations

(perfection is not required)

Data from this theory could be useful to organizations indeveloping leadership profiles

MBA 3rd sem. 6

PROS OFCONTINGENCYTHEOR Y



Fails to fully explain why people with certain leadership stylesare more effective in situations than others.

Questions regarding the LPC scale have been made because itdoes not correlate well with other standard leadershipmeasures.

LPC instructions are not clear ± leaders are unsure how tochoose a least preferred coworker.

Also fails to explain what to do when there is a mismatchbetween the leader and the situation in the workplace.

MBA 3rd sem. 7

CONS OF CONTINGENCY THEORY



According to Vroom & Yetton the five decision making styles

may be described as follows:

1) AI : The manager makes the decision or solve the problem

alone, using only the information available to him or her atthe time.

2) AII: The manager asks for information from subordinates but

make the decision alone.

3) CI

:The manager share the problem with the relevant

subordinates individually, getting their ideas & suggestions,

without bringing them together as a group. Then the manager

makes the decision alone.

MBA 3rd sem. 8

NORMATIVE DECISION MODEL /LEADER PARTICIPATION MODEL



4) CII: The manager and subordinates meet as a group to discuss

the problem, but the manager makes the decision. The

decision may or may not reflect the influence of

subordinates.

5) GII: The manager & subordinates meet as a group to discuss

the problem, and the group makes the decision. The manager

accepts & implements any solution which has the support of

the entire group.

Assumptions:i) Decisions acceptance increases commitment & effectiveness

of action.

ii) Participation increases decision acceptance.

MBA 3rd sem. 9

NORMATIVE DECISION MODEL /LEADER PARTICIPATION MODEL



MBA 3rd sem. 10

SITUATIONAL LEADERSHIP THEORY



Hersey & Blanchard¶s situational theory is based on

interaction among:

I. The amount of direction (task behavior) a leader gives.

II. The amount of socio-emotional support (relationshipemphasis) a leader provides.

III. The maturity level that followers exhibit on a specific task or

function.

The level of maturity is defined by three criteria:

i. Degree of achievement motivation.

ii. Willingness to take responsibility.

iii. Level of education & or experience.

MBA 3rd sem. 11

SI I SHI HEORY



H&B characterized leadership style in terms of the amount of

task behaviour& relationship behaviour that the leader

provides to their followers.

Telling style: This is a high task, low relationship style and is

effective when followers are at a very low level of maturity

(M4).

Selling style: This is a high task, high relationship style and is

effective when followers are on the low side of maturity (M3).

Participating style: This is a low- task, high relationship styleand is effective when followers are on the high side of

maturity(M2).

Delegating style: This is low- task, low relationship style and is

effective when followers are at a very high level of maturit . M1

MBA 3rd sem. 12

4 STYLES OF LEADERSI ACCORDI TO THE LEVEL OF ATUR ITY



MBA 3rd sem. 13

MATURITY LEVELOF FOLLOWER S



According to substitute leadership model, many different

variables can produce

MBA 3rd sem. 14

SUBSTITUTE- LEADERSHIP MODEL



SITUATIONAL LEADERSHIP THEORY

LIMITATIONS:

The theory has not been properly tested and refined through

scientific analysis.

The theory is based on the assumption that the leader is able to

judge the actual maturity level of subordinates.This may not

always be possible.

The theory also assumes that as the maturity level of

subordinates changes, the leader has adequate styles flexibility

to move from high task to relationship behaviour.

MBA 3rd sem. 15



Path Goal theory is about how leaders motivatesubordinates to accomplish designated goals

The stated goal of leadership is to enhance employeeperformance and employee satisfaction by focusingon employee motivation

Emphasizes the relationship between the leader¶sstyle and characteristics of the subordinates and the

work settingThe leader must use a style that best meets the

subordinates motivational needs

MBA 3rd sem. 16

PATH-GOAL THEORY



MBA 3rd sem. 17

PATH-GOAL THEORY



Leadership Behaviors

� Directive leadership leader gives instructions, expectations,time lines, and performance standards

� Supportive Leadership- leader is friendly and approachable,

attends to the well being of subordinates, and treats everyoneas equals

� Participative Leadership- leader invites subordinates to giveideas, share opinions and integrates their suggestions into thedecision making process

�

Achievement-Oriented Leadership- leader challengessubordinates to perform at the highest level possible. Leaderhas high standards of excellence and seeks continuousimprovement.

MBA 3rd sem. 18

PATH-GOAL THEORY



MBA 3rd sem. 19



Pros

Helps understand how

leader behavior effects

subordinates satisfaction

and work performance Deals directly with

motivation ± one of the only

theories to address this

Provides a very practicalmodel ± make a clear path

and follow it

Cons

This is a very complex

theory that incorporates

many aspects of leadership

Fails to explain adequatelythe relationship between

leader behavior and

subordinate motivation

Treats leadership as a oneway street, places a majority

of the responsibility on the

leader

MBA 3rd sem. 20

PATH-GOAL THEORY



MBA 3rd sem.21

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OR

QUERIES!!!!!!!

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contingency theory 2003