Chpt 6 Contingency[1]

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Chapter 6 - Contingency Theory ApproachChapter 6 - Contingency Theory Approach

© 2003 Jan KriegerSAGESAGE Publications Publications

Contingency Theory ApproachContingency Theory ApproachContingency Theory ApproachContingency Theory Approach

LeadershipLeadershipTheory and Practice, Theory and Practice, 3/e3/ePeter G. Northouse, Ph.D.Peter G. Northouse, Ph.D.

William Kritsonis, PhDWilliam Kritsonis, PhDPresenterPresenter

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• Contingency Theory Approach Perspective

• Leadership Styles

• Situational Variables

• Research Findings of Leader Style Effectiveness

• How Does the Contingency Theory Approach Work?

OverviewOverviewOverviewOverview

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Contingency Theory Approach DescriptionContingency Theory Approach Description“Leaders match their style to the competence and “Leaders match their style to the competence and

commitment of subordinates.”commitment of subordinates.”

Contingency Theory Approach DescriptionContingency Theory Approach Description“Leaders match their style to the competence and “Leaders match their style to the competence and

commitment of subordinates.”commitment of subordinates.”

• Contingency theory is a leader-leader-matchmatch theory (Fiedler & Chemers, 1974)

– Tries to match leaders to appropriate situations

• Leader’s effectiveness effectiveness depends on how well the leader’s style fits the context

• Fiedler et al.’s generalizations about which styles of leadership are best and worst are empirically groundedempirically grounded

• Effective leadership is Effective leadership is contingent on contingent on matching a leader’s matching a leader’s style to the right style to the right settingsetting

PerspectivPerspectivee

PerspectivPerspectivee

DefinitionDefinitionDefinitionDefinition

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Leadership StylesLeadership StylesLeadership StylesLeadership Styles

• Leadership styles Leadership styles are described as:are described as:– Task motivatedTask motivated

– Relationship Relationship motivatedmotivated

• Task-motivated leadersTask-motivated leaders - -Concerned primarily with Concerned primarily with reaching a goalreaching a goal

• Relationship-motivated leadersRelationship-motivated leaders - Concerned with developing close interpersonal relationships

DefinitionDefinitionDefinitionDefinition Dimension Dimension DefinitionsDefinitionsDimension Dimension DefinitionsDefinitions

Least Preferred Co-Worker (LPC) ScaleLeast Preferred Co-Worker (LPC) ScaleLeader Style Measurement ScaleLeader Style Measurement Scale

High = Relationship-motivated leaderHigh = Relationship-motivated leaderLow = Task-motivated leaderLow = Task-motivated leader

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Situational VariablesSituational VariablesSituational VariablesSituational Variables

Leader-Member Leader-Member RelationsRelations

Task StructureTask Structure Position Power

LMRLMR - Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers for leader

TSTS - Concerns the degree to which requirements of a task are clear and spelled out

PPPP - Designates the amount of authority a leader has to reward or punish followers

SituationaSituationall

FactorsFactors

SituationaSituationall

FactorsFactors

DefinitionDefinitionDefinitionDefinition

DetermineDetermineFavorablenessFavorablenessof Situationsof Situations

in Organizationsin Organizations

DetermineDetermineFavorablenessFavorablenessof Situationsof Situations

in Organizationsin Organizations

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Contingency ModelContingency ModelContingency ModelContingency Model

GoodGood

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PoorPoor

High High StructureStructure

High High StructureStructure

Low Low StructureStructure

Low Low StructureStructure

StrongStrongPowerPower

WeakWeakPowerPower


WeakWeakPowerPower


WeakWeakPowerPower


WeakWeakPowerPower

Leader-Leader-MemberMemberRelationsRelations

TaskTaskStructureStructure

PositionPositionPowerPower

PreferredPreferredLeadershipLeadershipStyleStyle

22 33 44 55 66 77 88Low LPCsLow LPCs

Middle LPCsMiddle LPCs High LPCsHigh LPCsLowLow

LPCsLPCs

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Research Findings of Leader Style Research Findings of Leader Style EffectivenessEffectiveness

Research Findings of Leader Style Research Findings of Leader Style EffectivenessEffectiveness

LPC ScoreLPC ScoreFavorablenessFavorableness

of Situationof Situation DefinitionDefinition

LowLow Very FavorableVery FavorableVery UnfavorableVery Unfavorable

Situations going smoothlySituations going smoothlySituations out of controlSituations out of control

HighHigh Moderately Moderately FavorableFavorable

Situations with some degreeSituations with some degreeof certainty; not completelyof certainty; not completelyin or out of leader’s controlin or out of leader’s control

Reasons for leader mismatch Reasons for leader mismatch ineffectiveness:ineffectiveness: LPC style doesn’t match a particular situation; stress and anxiety resultLPC style doesn’t match a particular situation; stress and anxiety result Under stress, leader reverts to less mature coping style learned inUnder stress, leader reverts to less mature coping style learned in earlier developmentearlier development Leader’s less mature coping style results in poor decision making Leader’s less mature coping style results in poor decision making and consequently negative work outcomesand consequently negative work outcomes

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How Does the How Does the Contingency Contingency

Theory Approach Theory Approach Work?Work?

How Does the How Does the Contingency Contingency

Theory Approach Theory Approach Work?Work?

• Focus of Contingency Theory Approach

• Strengths

• Criticisms

• Application

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Contingency Theory ApproachContingency Theory ApproachContingency Theory ApproachContingency Theory Approach

• By assessing the 3 situational By assessing the 3 situational variables, any organizational context variables, any organizational context can be placed in one of the 8 can be placed in one of the 8 categories represented in the categories represented in the Contingency Theory ModelContingency Theory Model

• After the nature of a situation is After the nature of a situation is determined, the fit between leader’s determined, the fit between leader’s style and the situation can be style and the situation can be evaluatedevaluated

• By measuring Leader’s By measuring Leader’s LPC scoreLPC score and and the 3 the 3 situational variablessituational variables,, it it is possible to predict is possible to predict whether a leader will be whether a leader will be effectiveeffective in a particular in a particular settingsetting

FocusFocusFocusFocus Overall ScopeOverall ScopeOverall ScopeOverall Scope

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StrengthsStrengthsStrengthsStrengths• Empirical support. 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.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 leader’s style and the demands of different situations.

• Predictive.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 approachNot an all-or-nothing approach. Contingency theory contends that leaders should notnot expect to be effective in every situation; thus companies should strive to place leaders in optimal situations according to their leadership style.

• Leadership profiles.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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CriticismsCriticismsCriticismsCriticisms• Fails to fully explain why why leaders with particular leadership styles

are more effective in some situations than others (Black Box Black Box problemproblem)

• Criticism of LPC scale validityvalidity as it does not correlate well with other standard leadership measures

• Cumbersome Cumbersome to use in real-world settings

• Fails to adequately explain what should be done done about a leader/situation mismatch in the workplace

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ApplicationApplicationApplicationApplication• 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

Education

Chpt 6 Contingency[1]