Contingency theory


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Contingency theory

  1. 1. Presentation
  2. 2. Contingency Theory Under the Guidance of: Miss. Bhawana Saun Faculty IMS Presentation By: Shweta Talwar Sakshi Jain Shubhangi Mahajan Shweta Agrawal Sanjay Singh MBA ( 1st Sem
  3. 3. Contingency Theory
  4. 4. Models in contingency leadership theory  The Fiedler Contingency model  Hersey & Blanchard's Situational Leadership model  Path-Goal theory  Charismatic Leadership
  5. 5. Fred Fiedler  Fiedler (1964, 1967)  Situation Moderates Leader Effectiveness and Subordinate Traits  Based on “Least Preferred Coworker” (LPC)  Indicates Leader’s Motive Hierarchy (nAFF)  High LPC is Considerate  Low LPC is Directive  Based on Situational Favorability  Leader-Member Relations, Position Power, Task Structure Fred Fiedler
  6. 6. LPC – leadership instruments To measure the leadership style Least Preferred Co-Worker (LPC) Scale High LPCs = Relationship-motivated Low LPCs = Task-motivated
  7. 7. Situational Variable Factors Contingency theory suggest that situations can be characterized in terms of three factors: 1.Leader - Member Relation 2.Task structure 3.Position power
  8. 8. Leader-member relation  Consist of the group atmosphere and the degree of confidence, loyalty and attraction that followers fell for their leader.  The quality of the leader-member exchange relationship mediates the relationship between transformational leadership and innovative behavior, affective organizational commitment and employees’ satisfaction with Hr-practices.
  9. 9. Task structure Considered as structured when: - Is the degree to which the requirements of a task are clear and the performer know the requirement clearly spelled out the path to accomplishing the task has few alternatives - Task that are completely structured tend to give more control to the completion the unclear be clearly demonstrated leader, whereas vague and task can tasks lessen the leader’s control and influence. only limited number of correct solutions to task exist
  10. 10. Position Power  Position power: the amount of authority the leader has to reward or to punish followers  Includes the legitimate power  Strong: a person has the authority to hire and fire or give raises in rank or pay  Weak: vice versa
  11. 11. Situational Variables  The most favorable situation are those having good leader-follower relations, defined tasks, and strong leader-position power. (task-motivated)  The least favorable situation are those having bad leader-follower relations, structured tasks and weak leader-position power. (task-motivated)  The moderately favorable fall b/w these two extremes. (relationship-motivated)
  12. 12. Situational Leadership model  Hersey & Blanchard (1977)  Leadership Depends of “Maturity” of Followers  Job Maturity (KSAs)  Psychological Maturity (Self-Efficacy)  Minimal to Moderate Maturity = Supportive  Moderate to Maximum Maturity = Directive  Developmental Interventions  Simple vs. Contingency Contracting
  13. 13. Path-Goal theory  Leaders Influence Satisfaction and Performance  Increase Subordinate Outcomes By:  Clarifying Path to Goals  Reducing Roadblocks to Goals  Increase JS on the Way  Links to VIE
  14. 14. Path-Goal theory (contd.)  Inclusion of Task Characteristics and Subordinate Characteristics  4 Types of Leaders  Supportive (Boring)  Directive (Unstructured)  Participative (Complex)  Achievement-Oriented (High nACH Employees)  Mixed Results
  15. 15. Charismatic Leadership  Charismatic leaders have the ability to inspire almost anyone.  Self-confidence is a key characteristic of the charismatic leader.  Taking risks and convincing others to take risks is a characteristic of the charismatic leader.  Charismatic leaders have the ability to connect with followers in such a way that the follower feels special and needed. These leaders are sensitive to the needs of others and are responsive to those needs.  Creativity is a characteristic of many leaders, especially the charismatic leader. These leaders take creative approaches to everything including solving problems, completing tasks or starting new projects.
  16. 16. How to apply contingency theory  Leaders should always be adaptable  This is a theory that lends itself to that adaptability.  If we recognize that success is a matter of having the right mix of skill and opportunity, you can evaluate what to bring to the table, and what to dismiss.
  17. 17. Strength  Many researchers have tested it and was proven valid and reliable approach to explaining how leadership can be achieved  Has a broadened understanding  Predictive, so therefore provides useful information about the type of leadership  Does not require that people are effective in all situations.  Data collected from this theory can be useful
  18. 18. Limitations  It has been criticized because it has failed to explain fully why people with certain leadership styles are more effective in some situations then others  Sometimes mismatch between the leader and the situation in the workplace  Various aspects of environment has to be considered
  19. 19. Conclusion - Natural leadership style, and the situations in which it will be most effective. - The model says that leader are either task-focused, or relationship-focused. - It doesn’t allow for leadership flexibility, and the LPC score might give an inaccurate picture of your leadership style.
  20. 20. Conclusion •Its very important for a leader to possess the quality of taking decisions in different situations •Acting differently in different situations •Think differently in different situations •Various factors •Circumstances play important role in this theory
  21. 21. Thank you for your attention!! 