Chapter 5: Contingency Leadership Theories

Leadership: Theory, Application, Skill Development, 1E, Lussier/Achua ©2001 South-Western College Publishing

Chapter 5: ContingencyChapter 5: ContingencyLeadershipLeadership

TheoriesTheories

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Chapter 5 Chapter 5 Learning ObjectivesLearning Objectives

• Differences between behavioral and contingency leadership theories.

• Contingency leadership variables and styles.• Leadership models:

– Contingency —Prescriptive

– Leadership continuum — Descriptive

– Path-goal — Substitutes

– Normative — Situational

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Carly FiorinaCarly Fiorina• Fiorina is the only female CEO heading a

major Silicon Valley company, and only one of four female chief executives among the Fortune 500. But she's not just any woman. Fortune Magazine says she's the "most powerful woman in business."

• "Fiorina whips H-P into fighting shape," with strong leadership and sound decision making, changing HP's culture...streamlining operations...and cutting costs." –Jon Swatz, USA Today


Contingency Leadership Contingency Leadership Theories: “It Depends”Theories: “It Depends”

• explain that the appropriate leadership style based on the (1) leader, (2) followers, and (3) situation.

• If managers can properly diagnose a situation and followers so that they can then use the appropriate leadership style, successful outcomes are highly likely.

• “Leadership is largely shaped by contextual factors”


Global Contingency LeadershipGlobal Contingency Leadership

• Global companies, like McDonald’s realize that successful leadership styles can vary greatly from place to place.

• “Companies are now looking for graduates with an international openness and flexibility who can master the complexity of the global economy.”


Global Contingency Global Contingency Leadership: Leadership: Professor William Professor William

Ouchi’s Findings: Theory ZOuchi’s Findings: Theory Z• observed that Japanese firms were

managed and led differently than U.S. organizations.

• 7 Differences…Japanese found to have: longer employment, collective decision making, collective responsibility, slower promotion, more implicit controls, more unspecialized career paths, and more holistic concern for employees.


FollowersFollowersCapabilityMotivation

FollowersFollowersCapabilityMotivation

LeaderLeaderPersonality traits

BehaviorExperience

LeaderLeaderPersonality traits

BehaviorExperience

Contingency LeadershipContingency LeadershipFramework VariablesFramework Variables

Contingency LeadershipContingency LeadershipFramework VariablesFramework Variables

SituationSituationTask

StructureEnvironment


StructureEnvironment

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Contingency Leadership Contingency Leadership Model: FiedlerModel: Fiedler

• Is a leader’s style more task or relationship oriented? Does the situation match the leader’s style? If so it will maximize performance.

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FollowersFollowersLeader / Member

Relations*

FollowersFollowersLeader / Member

Relations*

LeaderLeaderLeaderLeader

The Contingency Leadership The Contingency Leadership Model Variables WithinModel Variables Within

The Contingency LeadershipThe Contingency LeadershipFrameworkFramework

The Contingency Leadership The Contingency Leadership Model Variables WithinModel Variables Within

The Contingency LeadershipThe Contingency LeadershipFrameworkFramework

SituationSituationTask StructurePosition Power

SituationSituationTask StructurePosition PowerLeadershipLeadership

StylesStylesTask

Relationship

LeadershipLeadershipStylesStylesTask

Relationship

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Leader/Follower Relations*


Leader/Follower Relations*


Leader-memberLeader-memberRelations, #1Relations, #1

Task structure, Task structure, #2#2

Position power, Position power, #3#3

33Variables of Variables of Situational Situational

Favorableness.Favorableness.

33Variables of Variables of Situational Situational

Favorableness.Favorableness.

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Situational FavorablenessSituational Favorableness• Leader-member relations—

good or poor?

• Task structure—repetitive or non-repetitive?

• Position power—strong or weak?


Fiedler’s Recommendations: Fiedler’s Recommendations: Change the Situation to Fit Change the Situation to Fit

Your StyleYour Style• How to change the situation:• Analyze each variable and then either:• Improve relations, • Create or lessen task structure by either

stating more or less specific standards, • Downplay position power or get more

and act more powerful.


Form Small Groups: Analyze Form Small Groups: Analyze This Class From The Leader’s This Class From The Leader’s

StandpointStandpoint• What is the situation? (This is

probably similar for most classes).• What is the leader’s predominant

style? This may be a tricky question?

• Should the leader change one of the situational variables? If so, which one?


The Leadership Continuum The Leadership Continuum ModelModel

Used to determine which one of seven styles to select based on one’s use of boss-centered boss-centered versus versus subordinate centered subordinate centered leadership to meet the situation.

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Tannenbaum and Tannenbaum and Schmidt’s Schmidt’s

Leadership Continuum Leadership Continuum ModelModel

1.Leader makes decision and announces it to employeeswithout discussion.

2.Leader makes a decision and sells it to employees.

3.Leader presents ideas and invites employee questions.

4.Leader presents tentative decision subject to change.

5.Leader presents problem, gets suggestions, and makes decision.

6.Leader defines limits and asks employees to make a decision.

7.Leader permits employees to make ongoing decisions within defined limits.

AutocraticAutocraticParticipativeParticipative

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COMPARATIVE ANALYSIS COMPARATIVE ANALYSIS OF THE 4 SYSTEMSOF THE 4 SYSTEMS

• 1. In a few words, describe each of the four systems:• System 1

• System 2•• System 3

• System 4• • •


Case Study Small Group ExerciseCase Study Small Group Exercise

System

Action taken?

Attitude/ Behavior

Perfor-mance?

System 1

System 2

System 3

System 4


FollowersFollowersFollowerMaturity

FollowersFollowersFollowerMaturity

LeaderLeaderNone

LeaderLeaderNone

The Situational Leadership ModelThe Situational Leadership ModelVariables WithinVariables Within

The Contingency LeadershipThe Contingency LeadershipFramework VariablesFramework Variables

The Situational Leadership ModelThe Situational Leadership ModelVariables WithinVariables Within

The Contingency LeadershipThe Contingency LeadershipFramework VariablesFramework Variables



TellingSelling

ParticipatingDelegating

TellingSelling

ParticipatingDelegating

L’Ship StylesL’Ship Styles

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Situational Situational Leadership TheoryLeadership Theory

Able and Willing Let Followers Perform

Able and Unwilling Support & Participation

Unable and Willing High Task Orientation

Unable and Unwilling Clear, Specific Directions

Readiness of Followers

Behavior of Leaders


House Path-Goal House Path-Goal Leadership ModelLeadership Model

Situational Situational FactorsFactors

Subordinate•authoritative•locus of control•ability

Environment•task structure•formal authority•work group

Leadership Leadership Styles Styles

Directive

Supportive

Participative

Achievement-

oriented

Goal Goal AchievementAchievement

Performance

Satisfaction

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1 2 3 4 5

Increased Employee InvolvementIncreased Employee Involvement

Increased Leader ControlIncreased Leader Control

Employee Involvement ContinuumEmployee Involvement Continuum

Leader Participation ModelLeader Participation Model


Contingency Variables in the Revised Contingency Variables in the Revised Leader-Participation ModelLeader-Participation Model

• Importance of the decision

• Importance of subordinate commitment

• Whether leader has enough information

• The structural nature of the problem

• Acceptability of autocratic decisions

• Commitment of subordinates to the organization


Contingency Variables in the Revised Contingency Variables in the Revised Leader-Participation ModelLeader-Participation Model

• Subordinates’ opinions about alternatives

• Knowledge level of subordinates

• Time constraints on involvement of subordinates

• Cost of arranging for subordinates to meet

• Time constraints on making a decision

• Importance of participation


Leader-Member Exchange ModelLeader-Member Exchange Model

PersonalPersonalCompatibility Compatibility

and/or and/or SubordinateSubordinateCompetenceCompetence

LeaderLeader

SubordinateSubordinateAA

SubordinateSubordinateBB

SubordinateSubordinateCC

In-Group

SubordinateSubordinateDD

SubordinateSubordinateEE

SubordinateSubordinateFF

Out-Group

Trust HighInteractions

FormalRelations


FollowersFollowers

Subordinates

FollowersFollowers

Subordinates

LeaderLeader

None

LeaderLeader

None

Substitute for LeadershipSubstitute for LeadershipVariables Within the ContingencyVariables Within the ContingencyLeadership Framework VariablesLeadership Framework Variables

Substitute for LeadershipSubstitute for LeadershipVariables Within the ContingencyVariables Within the ContingencyLeadership Framework VariablesLeadership Framework Variables


Organization


Organization

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Substitutes and Neutralizers for LeadershipSubstitutes and Neutralizers for Leadership

Defining Characteristics

Relationship-Oriented Leadership

Task-Oriented Leadership

Individual•Experience/training•Professionalism•Indifference to rewards

Job•Highly structured task•Provides own feedback•Intrinsically satisfying

Organization•Explicit formal goals•Rigid rules & procedures•Cohesive work groups

•No effect•Substitutes•Neutralizes

•No effect•No effect•Substitutes

•No effect•No effect•Substitutes

•Substitutes•Substitutes•Neutralizes

•Substitutes•Substitutes•No effect

•Substitutes•Substitutes•Substitutes

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Chapter 5: Contingency Leadership Theories