Contingency leadership

From CEOpedia | Management online

Contingency Theory of Leadership states that a leader’s effectiveness is contingent upon with how his or her leadership style matches to the situation (Leadership Theories, n.d). That is, the leader must find out what kind of leadership style and situation he or she thrives in. The Contingency Theory is concerned with the following:

  1. "There is no one best style of leadership"
  2. A leader is effective when his or her style of leadership fits with the situation

Evolution of contingency theory

There have been two major stages in the development of contingency theory. The first, extending from early 1950s to the early 1960s, was essentially exploratory. A sizeable body of research data was collected, and various hypotheses were tried out in an attempt to explain the findings. During this period it is totally impossible to separate research from theory. The second stage began with the statement of contingency theory in a form much the same as that currently existing. This stage has continued to the present with the testing of these early propositions and of others that have emerged since.

Contingency Model of Leadership Effectiveness

The contingency model of leadership effectiveness (Fiedler, 1978) has been the basis for an extensive body of research. During the last three decades, numerous studies have supported its propositions (Peters, Hartke, & Pohlmann, 1985; Strube & Garcia, 1981), but the model has also elicited strong criticisms. This article argues that the contingency model was one of the first models in leadership research that was theoretically multi-level and methodologically multi-source. New evidence and alternative perspectives are offered to address the issues concerning the conceptual definitions of the model's components, which have often been the subject of debate. The discussion concludes with productive avenues for future research in the paradigm and its potential contributions to leadership training and development within a multi-level framework.

The leader is an individual in the group, who directs and coordinates task-relevant group activities, or who, in the absence of a designated leader, automatically performs these functions in the group. This chapter provides an overview of the framework for the understanding of factors which determine a leader's personality attributes and its impact on group performance, the development of integrative model, and empirical support for the model. A leader is either appointed by a representative of the larger organization of which the group is a part; or is elected by the group; or in case there is neither an elected nor an appointed leader, he can be identified as most influential on task-relevant questions of a sociometric preference questionnaire. The leader and member abilities are among the most important predictors of group performance, and a high correlation between the leader's ability score and the group's performance presumably reflects the degree of leader influence over the task itself. The negative correlations suggest that the leader's influence, or his contribution to the task is minimal. A leader can be trained to modify these attitudes, but considerable effort might be required on the part of many individuals to make them. The leader's task functions and his therapeutic attitudes are highly speculative, and extensive future research is required to elucidate the role, which these therapeutic attitudes play in the group process.

Comparisons to other Leadership Theories

Comparing Fiedler’s Contingency Theory to other theories, we see that the contingency theory incorporates some parts of other theories. In many ways, the contingency theory derives from the trait theory. A leader’s traits are directly related to the most effective style and situation in which they lead. The factor of relations with followers related to the transactional and transformational theories. The Contingency Theory states that a leader’s relations impact their effectiveness, which is the basis of these two theories. In transactional leadership, a leader’s ability to influence followers with rewards and punishments for behavior to ensure member goals is the basis of the style. In Transformational Theory, the leader relies on building relationships between themselves and followers. Leaders who are people-oriented rely on these relationships to be effective and have influence over his or her followers.

Strengths of Contingency Theory

  • Used to create leadership profiles for organizations.
  • Puts emphasis on combination of leaders style and the situation.
  • "It is predictive; there is a well-defined method to evaluate LPC and Situations".
  • Can be used to create leadership profiles for organizations, in which certain styles can be matched with situations that have proven to be successful.
  • Companies can know what type of person would fit in each position of the organization whenever there is an opening.
  • Helps to reduce what is expected from leaders, and instead puts emphasis on finding a match to the situation.
  • Very useful in matching professionals to the right situations and determining the best person for a job.

Examples of Contingency leadership

  • Situational Leadership: This leadership style proposes that a leader must adjust their leadership style based on the situation and the followers. This can include using a direct, supportive, participative, or delegating leadership style. For example, when a leader is trying to motivate their team to complete a task, they might use a supportive leadership style to encourage their followers.
  • Path-Goal Theory: This theory suggests that in order to be effective, a leader should observe the environment and then adjust their leadership approach to best guide their followers to reach the goal. For example, a leader may use a directive style of leadership when their followers need direction, or a participative style of leadership when their followers require more input.
  • Transformational Leadership: This leadership style focuses on the leader inspiring and motivating their followers to reach their goals. A transformational leader focuses on inspiring others and encouraging them to take ownership in the task at hand. For example, a leader may use an inspirational approach to motivate their team to finish a project on time by recognizing and rewarding their work.

Advantages of Contingency leadership

The Contingency Theory of Leadership is a theory that suggests that a leader’s effectiveness is contingent upon with how his or her leadership style matches to the situation. This theory offers many advantages for the leader and the organization. The following are some of the advantages of Contingency leadership:

  • It encourages the leader to consider the context of the situation and use the appropriate leadership style. This allows the leader to be more effective and promote better performance from the team.
  • It allows the leader to be flexible and adaptive by being able to adjust the leadership style to different circumstances. This provides the leader with the ability to respond to unexpected changes and challenges in the environment.
  • It highlights the importance of communication and collaboration between the leader and the team. This enables the team to work more effectively together and produce better results.
  • It emphasizes the importance of developing a team-oriented approach. This allows the leader to create a culture where everyone can respect each other and work together to achieve the organization’s goals.

Limitations of Contingency leadership

The limitations of Contingency leadership include:

  • Difficulty in Determining the Correct Leadership Style: It can be difficult to determine which leadership style is the most appropriate for a given situation. This can lead to a leader choosing an ineffective style for a given situation.
  • Lack of Flexibility: Contingency theory requires that a leader remain flexible in his or her leadership style and be able to adjust it to the situation. If a leader is unable to do this, they may find themselves in an ineffective situation.
  • Costly: Contingency leadership may be expensive to implement as it requires a leader to be aware of their environment and be able to adjust their leadership style accordingly.
  • Dependent on Situation: The success of a leader is highly dependent on the situation that they find themselves in. If the situation is not favorable, a leader may not be successful regardless of their approach.

Other approaches related to Contingency leadership

The Contingency Theory of Leadership is part of a larger group of approaches that also include:

  • Path-Goal Theory of Leadership: This theory looks at how a leader can motivate followers by providing guidance and support while also setting achievable goals.
  • Situational Leadership Theory: This theory states that the best leadership style depends on the situation and the needs of the followers. Leaders must be flexible and adjust their style based on the context.
  • Transactional Leadership Theory: This theory focuses on the exchange of resources between a leader and their followers. Leaders must be able to provide rewards and discipline when necessary to ensure that followers are motivated and working towards a common goal.

In summary, the Contingency Theory of Leadership is one of several approaches that look at the relationship between leaders, followers, and the situation. All of these approaches are designed to help leaders better understand how to motivate and guide their followers to success.


Contingency leadership — recommended articles
Management styles — Belbin team roles — Team stages — Job characteristics — Levels of learning — Blake and Mouton managerial grid — Team dynamics — Belbin team role inventory — Skills and competencies

References

Author: Paulina Olszewska

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