contingency theory 2003
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8/7/2019 contingency theory 2003
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MBA 3rd sem. 1
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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
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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
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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
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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
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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
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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
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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
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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
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MBA 3rd sem. 10
SITUATIONAL LEADERSHIP THEORY
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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
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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
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MBA 3rd sem. 13
MATURITY LEVELOF FOLLOWER S
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According to substitute leadership model, many different
variables can produce
MBA 3rd sem. 14
SUBSTITUTE- LEADERSHIP MODEL
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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
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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
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MBA 3rd sem. 17
PATH-GOAL THEORY
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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
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MBA 3rd sem. 19
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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
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MBA 3rd sem.21
ANY SUGGESTIONS
OR
QUERIES!!!!!!!
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