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Contingency Theory

AssumptionsThe leader's ability to lead is contingent upon various situational factors, including theleader's preferred style, the capabilities and behaviors of followers and also various othersituational factors.

DescriptionContingency theories are a class of behavioral theory that contends that there is no onebest way of leading and that a leadership style that is effective in some situations may notbe successful in others.An effect of this is that leaders who are very effective at one place and time may becomeunsuccessful either when transplanted to another situation or when the factors aroundthem change.This helps to explain how some leaders who seem for a while to have the 'Midas touch'suddenly appear to go off the boil and make very unsuccessful decisions.

DiscussionContingency theory is similar to situational theory in that there is an assumption of nosimple one right way. The main difference is that situational theory tends to focus more onthe behaviors that the leader should adopt, given situational factors (often about followerbehavior), whereas contingency theory takes a broader view that includes contingentfactors about leader capability and other variables within the situation.

Contingency ModelsLeadership styles cannot be fully explained by behavioral models. The situation in which thegroup is operating also determines the style of leadership which is adopted.Several models exist which attempt to understand the relationship between style andsituation, four of which are described here:

• Fiedler's Contingency Model.• Hersey-Blanchard Situational Theory.• Path-Goal Theory.• Vroom-Yetton Leadership Model

The models described have limited validity, but are still widely used.

Fiedler's Contingency model

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Fiedler's model assumes that group performance depends on:

• Leadership style, described in terms of task motivation and relationshipmotivation.

• Situational favorableness, determined by three factors:

1. Leader-member relations - Degree to which a leader is accepted andsupported by the group members.

2. Task structure - Extent to which the task is structured and defined, withclear goals and procedures.

3. Position power - The ability of a leader to control subordinates throughreward and punishment.

High levels of these three factors give the most favourable situation, low levels, theleast favourable. Relationship-motivated leaders are most effective in moderatelyfavourable situations. Task-motivated leaders are most effective at either end of thescale.Fiedler suggests that it may be easier for leaders to change their situation toachieve effectiveness, rather than change their leadership style.

Hersey-Blanchard Situational Theory

This theory suggests that leadership style should be matched to the maturity of thesubordinates. Maturity is assessed in relation to a specific task and has two parts:

• Psychological maturity - Their self-confidence and ability and readiness toaccept responsibility.

• Job maturity - Their relevant skills and technical knowledge.

As the subordinate maturity increases, leadership should be more relationship-motivated than task-motivated. For four degrees of subordinate maturity, fromhighly mature to highly immature, leadership can consist of:

• Delegating to subordinates.• Participating with subordinates.•

Selling ideas to subordinates.• Telling subordinates what to do

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Path-Goal Theory

Evans and House suggest that the performance, satisfaction and motivation of a group canbe affected by the leader in a number of ways:

• Offering rewards for the achievement of performance goals.• Clarifying paths towards these goals.• Removing performance obstacles.

A person may do these by adopting a certain leadership style, according to thesituation:

• Directive leadership - Specific advice is given to the group and ground rulesare established.

• Supportive leadership - Good relations exist with the group and sensitivity tosubordinates' needs is shown.

• Participative leadership - Decision making is based on group consultation andinformation is shared with the group.

• Achievement-oriented leadership - Challenging goals are set and highperformance is encouraged while showing confidence in the groups' ability.

Supportive behaviour increases group satisfaction, particularly in stressfulsituations, while directive behaviour is suited to ambiguous situations. It is alsosuggested that leaders who have influence upon their superiors can increase groupsatisfaction and performance.Return to top