Chapter Five

Contingency and Situational Leadership

Learning Objectives
Describe how the situation influences the choice of leadership objectives. Present an overview of the contingency theory of leadership effectiveness. Explain the path-goal theory of leadership effectiveness. Explain Situational Leadership II (SLII).

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Learning Objectives (contd)

Use the normative decision model to determine the most appropriate decision-making style in a given situation. Explain the cognitive resource theory as a contingency approach.

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Contingency Approach
Leaders are most effective when they make their behavior contingent on situational forces, including group member characteristics.

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Fiedlers Contingency Theory

The best style of leadership is determined by situational factors Leadership style may be relationshipmotivated or task-motivated Leadership style is relatively enduring and difficult to change Leaders should be matched to situations according to their style

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Least Preferred Coworker (LPC)

The LPC scale measures the degree to which a leader describes favorably or unfavorably an employee with whom he or she could work least well A relationship-motivated leader tends to describe their LPC in favorable terms A task-motivated leader tends to describe their LPC in an unfavorable manner

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Measuring the Situation

Leadership situations are classified as high, moderate, or low control More controllable situations are viewed as more favorable for the leader Control is determined by three dimensions:
Leader-member relations Task structure Position power

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Figure 5-1 Summary of Findings From Fiedlers Contingency Theory

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Evaluation of Fiedlers Contingency Theory

Fiedlers work prompted others to conduct studies about the contingency nature of leadership. The model has alerted leaders to the importance of sizing up the situation to gain control. However, contingency theory is too complicated to have much of an impact on most leaders.

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Path-Goal Theory Developed by Robert House

Specifies what the leader must do to achieve high productivity and morale in a given situation Based on expectancy theory of motivation The manager should choose a leadership style that takes into account the characteristics of group members and the demands of the task

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Figure 5-2 The Path-Goal Theory of Leadership

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Path-Goal Theory: Matching the Leadership Style to the Situation

Two sets of contingency factors:
Type of subordinates determined by locus of control and self-efficacy Type of work subordinates perform

Factors influencing job satisfaction and task accomplishment:

Group members tasks Authority system of the organization The work group

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Situational Leadership II (SLII) Developed by Kenneth H. Blanchard and others

Explains how to match leadership style to the capabilities of group members on a given task SLII is designed to increase the frequency and quality of conversations about performance and professional development between managers and group members so that competence is developed, commitment takes place, and turnover among talented workers is reduced

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Figure 5-3 Situational Leadership II (SLII)

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Normative Decision Model

Views leadership as a decision-making process in which the leader determines which decision-making style will be the most effective by examining certain factors within the situation

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The Normative Model: Five Decision-Making Styles

Decide Leader makes decision alone Consult (individually) Leader makes decision after consulting group members Consult (group) Leader makes decision after meeting with the group Facilitate Leader defines the problem and decision boundaries Delegate Leader permits the group to make the decision

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Contingency Leadership in the Executive Suite

Five approaches successful CEOs use based on assessments of their companies needs:
Strategic Human assets Expertise Box Change agent

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Crisis Leadership Attributes

Be decisive Lead with compassion Reestablish the usual work routine Avoid a circle-the-wagons mentality Display optimism Be a transformational leader

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Summary
Leaders are more effective when they make their behavior contingent upon situational factors Fiedlers contingency theory proposes that the best style of leadership is determined by situational factors such as leader-member relations, task structure, and position power High- and low-control situations are best suited for task-motivated leadership

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Summary (contd)
Moderate-control situations are best suited for relationship-motivated leadership The path-goal theory of leadership effectiveness specifies the best leadership style based on the characteristics of the group members and the tasks The four styles in path-goal theory are directive, supportive, participative, and achievement-oriented

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Summary (contd)
The situational leadership model explains how to match leadership style to the readiness of group members The normative decision model explains leadership as a decision-making process Cognitive resource theory describes how a leaders intelligence and experience can influence performance under conditions of stress

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Summary (contd)
Successful CEOs assess their companies needs, then adapt their leadership style to fit Leading through a crisis is a form of contingency leadership

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