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1 
Situational or Contingency 
Approaches Leadership
2 
Chapter Objectives 
 Understand how leadership is often contingent on people 
and situations. 
 Apply Fiedler’s contingency model to key relationships 
among leader style, situational favorability, and group task 
performance. 
 Apply Hersey and Blanchard’s situational theory of leader 
style to the level of follower readiness. 
 Explain the path-goal theory of leadership. 
 Use the Vroom-Jago model to identify the correct amount 
of follower participation in specific decision situations. 
 Know how to use the power of situational variables to 
substitute for or neutralize the need for leadership. 
 Note all action memos in the chapter
Leader’s bookshelf - Wheatley 
 Nurture relationships with a clear vision, statements 
of values, expressions of caring, sharing of 
information, and freedom from strict rules and 
controls 
 Focus on the whole, not on the parts in isolation 
 Reduce boundaries between departments to allow 
new patterns of relationships 
 Become comfortable with uncertainty and recognize 
that any solutions are only temporary 
 Recognize that healthy growth of people and 
organizations is found in disequilibrium, not in 
stability
4 
Ex. 3.1 Comparing the Universalistic and 
Contingency Approaches to Leadership 
Universalistic 
Approach 
Contingency 
Approach 
Followers 
Leader 
Situation 
Leadership 
Traits/behaviors 
Style 
Traits 
Behavior 
Position 
Needs 
Maturity 
Training 
Cohesion 
Task 
Structure 
Systems 
Env. 
Outcomes 
(Performance, satisfaction, 
etc.) 
Outcomes 
(Performance, satisfaction, 
etc.)
5 
Ex. 3.2 Metacategories of Leader Behavior and 
Four Leader Styles 
High Task-Low 
Relationship 
High Task-High 
Relationship 
Low Task-Low 
Relationship 
High Relationship 
-Low Task 
High 
Low 
Low RELATIONSHIP BEHAVIOR High 
TASK 
BEHAVIOR
6 
Contingency Approaches 
Contingency approaches: 
approaches that seek to delineate the 
characteristics of situations and 
followers and examine the leadership 
styles that can be used effectively 
Fiedler’s contingency model: a 
model designed to diagnose whether a 
leader is task-oriented or relationship-oriented 
and match leader style to the 
situation
Fiedler’s Contingency Theory 
Fiedler’s Contingency Theory - classifies the 
favorableness of the leader’s situation 
 Least Preferred Coworker (LPC) - the person a 
leader has least preferred to work with over his or 
her career 
 Task Structure - degree of clarity, or ambiguity, in 
the group’s work activities 
 Position Power - authority associated with the 
leader’s formal position in the organization 
 Leader-Member Relations – quality of 
interpersonal relationships among a leader and 
group members
Leadership Effectiveness in the Contingency Theory 
High LPC 
relations oriented 
Correlations 
between leader 
LPC & group 
performance 
1.00 
.80 
.60 
.40 
.20 
0 
-.20 
-.40 
-.60 
-.80 
Low LPC 
task oriented 
I II III IV V VI VII VIII Unfavorable 
for leader 
Favorable 
for leader 
I II III IV V VI VII VIII 
Leader-member 
relations 
G G G G MPoor MPoor MPoor MPoor 
Task structure S S U U S S U U 
Leader position 
power 
Strong Weak Strong Weak Strong Weak Strong Weak
9 
Fiedler’s theory 
Fit between leader’s style (task or 
relationship) and the situation 
(favorable or unfavorable) 
Both relations and task oriented 
leaders can be effective in the right 
situation.
10 
Situational Theory 
Hersey and Blanchard’s extension of 
the Leadership Grid focusing on the 
characteristics of followers as the 
important element of the situation, and 
consequently, of determining effective 
leader behavior
11 
Ex. 3.4 Hersey and Blanchard’s 
Situational Theory of Leadership 
Follower Characteristics Appropriate Leader Style 
Low readiness level 
Moderate readiness level 
High readiness level 
Very high readiness level 
Telling (high task-low relationship) 
Selling (high task-high relationship) 
Participating (low task-high rel.) 
Delegating (low task-low relationship) 
Can be tailored to individual followers
Hersey-Blanchard Situational Leadership Model 
Immature 
Employees 
Leader’s concern with task 
Low High 
High 
Low 
Mature 
Employees 
Willing/Able Unwilling/able Willing/unable Unwilling/unable 
4 3 2 1 
Leader’s 
concern 
with 
relationship
13 
Hersey-Blanchard Situational 
Leadership® Model 
Follower Readiness 
High Moderate Low 
R4 R3 R2 R1 
Able and 
Able but 
Unable but 
willing or 
unwilling 
willing or 
confident 
or insecure 
confident 
Unable and 
unwilling 
or insecure 
Leader 
Directed 
Follower 
Directed
14 
Path-Goal Theory 
A contingency approach to leadership in 
which the leader’s responsibility is to 
increase subordinates’ motivation by 
clarifying the behaviors necessary for task 
accomplishment and rewards
15 
Situational Contingencies 
1. Personal Characteristics of group members 
 Ability, skills, needs, and motivations 
1. The work environment 
 Degree of task structure, formal authority 
system, work group itself (e.g. quality of 
relationships and educational level of members)
Ex. 3.5 Leader Roles in the Path-Goal Model 
Path Clarification Increase Rewards 
Leader defines what follower 
must do to attain work 
outcomes 
Leader clarifies follower’s 
work role 
Follower has increased 
knowledge & confidence to 
accomplish outcomes 
Leader learns follower’s 
needs 
Leader matches follower’s 
needs to rewards if work 
outcomes are accomplished 
Leader increases value of 
work outcomes for follower 
Follower displays increased effort and 
motivation 
Organizational work outcomes are 
accomplished
17 
Ex. 3.6 Path-Goal Situations and Preferred Leader Behaviors 
Situation Leader Behavior Impact on Follower Outcome 
Supportive 
Leadership 
Directive 
Leadership 
Achievement- 
Oriented 
Leadership 
Participative 
Leadership 
Followers lack 
self-confidence 
Ambiguous job 
Lack of job 
challenge 
Incorrect 
reward 
Increases confidence 
to achieve work 
outcomes 
Clarifies path to 
reward 
Set and strive for 
high goals 
Clarifies followers’ 
needs to change 
rewards 
Increased 
effort; 
improved 
satisfaction 
and 
performance
18 
The Vroom-Jago Contingency Model 
A contingency model that 
focuses on varying degrees of 
participative leadership, and how 
each level of participation 
influences quality and 
accountability of decisions
19 
Ex. 3.7 Five Leader Decision Styles 
Area of Influence by Leader 
Area of Freedom for Group 
Decide Consult 
Individually 
Consult 
Group 
Facilitate Delegate
20 
Substitute and Neutralizer 
Substitute: a situational 
variable that makes 
leadership unnecessary 
or redundant 
Neutralizer: a situational 
characteristic that 
counteracts the leadership 
style and prevents the 
leader from displaying 
certain behaviors
Ex. 3.10 Substitutes and Neutralizers for Leadership 
Variable Task-Oriented 
Leadership 
People-Oriented 
Leadership 
Organizational 
variables 
Group cohesiveness 
Formalization 
Inflexibility 
Low positional power 
Physical separation 
Substitutes for 
Substitutes for 
Neutralizes 
Neutralizes 
Neutralizes 
Substitutes for 
No effect on 
No effect on 
Neutralizes 
Neutralizes 
Task 
characteristics 
Highly struct. task 
Automatic feedback 
Intrinsic satisfaction 
Substitutes for 
Substitutes for 
No effect on 
No effect on 
No effect on 
Substitutes for 
Follower 
characteristics 
Professionalism 
Training/experience 
Low value of rewards 
Substitutes for 
Substitutes for 
Neutralizes 
Substitutes for 
No effect on 
Neutralizes

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Management

  • 1. 1 Situational or Contingency Approaches Leadership
  • 2. 2 Chapter Objectives  Understand how leadership is often contingent on people and situations.  Apply Fiedler’s contingency model to key relationships among leader style, situational favorability, and group task performance.  Apply Hersey and Blanchard’s situational theory of leader style to the level of follower readiness.  Explain the path-goal theory of leadership.  Use the Vroom-Jago model to identify the correct amount of follower participation in specific decision situations.  Know how to use the power of situational variables to substitute for or neutralize the need for leadership.  Note all action memos in the chapter
  • 3. Leader’s bookshelf - Wheatley  Nurture relationships with a clear vision, statements of values, expressions of caring, sharing of information, and freedom from strict rules and controls  Focus on the whole, not on the parts in isolation  Reduce boundaries between departments to allow new patterns of relationships  Become comfortable with uncertainty and recognize that any solutions are only temporary  Recognize that healthy growth of people and organizations is found in disequilibrium, not in stability
  • 4. 4 Ex. 3.1 Comparing the Universalistic and Contingency Approaches to Leadership Universalistic Approach Contingency Approach Followers Leader Situation Leadership Traits/behaviors Style Traits Behavior Position Needs Maturity Training Cohesion Task Structure Systems Env. Outcomes (Performance, satisfaction, etc.) Outcomes (Performance, satisfaction, etc.)
  • 5. 5 Ex. 3.2 Metacategories of Leader Behavior and Four Leader Styles High Task-Low Relationship High Task-High Relationship Low Task-Low Relationship High Relationship -Low Task High Low Low RELATIONSHIP BEHAVIOR High TASK BEHAVIOR
  • 6. 6 Contingency Approaches Contingency approaches: approaches that seek to delineate the characteristics of situations and followers and examine the leadership styles that can be used effectively Fiedler’s contingency model: a model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation
  • 7. Fiedler’s Contingency Theory Fiedler’s Contingency Theory - classifies the favorableness of the leader’s situation  Least Preferred Coworker (LPC) - the person a leader has least preferred to work with over his or her career  Task Structure - degree of clarity, or ambiguity, in the group’s work activities  Position Power - authority associated with the leader’s formal position in the organization  Leader-Member Relations – quality of interpersonal relationships among a leader and group members
  • 8. Leadership Effectiveness in the Contingency Theory High LPC relations oriented Correlations between leader LPC & group performance 1.00 .80 .60 .40 .20 0 -.20 -.40 -.60 -.80 Low LPC task oriented I II III IV V VI VII VIII Unfavorable for leader Favorable for leader I II III IV V VI VII VIII Leader-member relations G G G G MPoor MPoor MPoor MPoor Task structure S S U U S S U U Leader position power Strong Weak Strong Weak Strong Weak Strong Weak
  • 9. 9 Fiedler’s theory Fit between leader’s style (task or relationship) and the situation (favorable or unfavorable) Both relations and task oriented leaders can be effective in the right situation.
  • 10. 10 Situational Theory Hersey and Blanchard’s extension of the Leadership Grid focusing on the characteristics of followers as the important element of the situation, and consequently, of determining effective leader behavior
  • 11. 11 Ex. 3.4 Hersey and Blanchard’s Situational Theory of Leadership Follower Characteristics Appropriate Leader Style Low readiness level Moderate readiness level High readiness level Very high readiness level Telling (high task-low relationship) Selling (high task-high relationship) Participating (low task-high rel.) Delegating (low task-low relationship) Can be tailored to individual followers
  • 12. Hersey-Blanchard Situational Leadership Model Immature Employees Leader’s concern with task Low High High Low Mature Employees Willing/Able Unwilling/able Willing/unable Unwilling/unable 4 3 2 1 Leader’s concern with relationship
  • 13. 13 Hersey-Blanchard Situational Leadership® Model Follower Readiness High Moderate Low R4 R3 R2 R1 Able and Able but Unable but willing or unwilling willing or confident or insecure confident Unable and unwilling or insecure Leader Directed Follower Directed
  • 14. 14 Path-Goal Theory A contingency approach to leadership in which the leader’s responsibility is to increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment and rewards
  • 15. 15 Situational Contingencies 1. Personal Characteristics of group members  Ability, skills, needs, and motivations 1. The work environment  Degree of task structure, formal authority system, work group itself (e.g. quality of relationships and educational level of members)
  • 16. Ex. 3.5 Leader Roles in the Path-Goal Model Path Clarification Increase Rewards Leader defines what follower must do to attain work outcomes Leader clarifies follower’s work role Follower has increased knowledge & confidence to accomplish outcomes Leader learns follower’s needs Leader matches follower’s needs to rewards if work outcomes are accomplished Leader increases value of work outcomes for follower Follower displays increased effort and motivation Organizational work outcomes are accomplished
  • 17. 17 Ex. 3.6 Path-Goal Situations and Preferred Leader Behaviors Situation Leader Behavior Impact on Follower Outcome Supportive Leadership Directive Leadership Achievement- Oriented Leadership Participative Leadership Followers lack self-confidence Ambiguous job Lack of job challenge Incorrect reward Increases confidence to achieve work outcomes Clarifies path to reward Set and strive for high goals Clarifies followers’ needs to change rewards Increased effort; improved satisfaction and performance
  • 18. 18 The Vroom-Jago Contingency Model A contingency model that focuses on varying degrees of participative leadership, and how each level of participation influences quality and accountability of decisions
  • 19. 19 Ex. 3.7 Five Leader Decision Styles Area of Influence by Leader Area of Freedom for Group Decide Consult Individually Consult Group Facilitate Delegate
  • 20. 20 Substitute and Neutralizer Substitute: a situational variable that makes leadership unnecessary or redundant Neutralizer: a situational characteristic that counteracts the leadership style and prevents the leader from displaying certain behaviors
  • 21. Ex. 3.10 Substitutes and Neutralizers for Leadership Variable Task-Oriented Leadership People-Oriented Leadership Organizational variables Group cohesiveness Formalization Inflexibility Low positional power Physical separation Substitutes for Substitutes for Neutralizes Neutralizes Neutralizes Substitutes for No effect on No effect on Neutralizes Neutralizes Task characteristics Highly struct. task Automatic feedback Intrinsic satisfaction Substitutes for Substitutes for No effect on No effect on No effect on Substitutes for Follower characteristics Professionalism Training/experience Low value of rewards Substitutes for Substitutes for Neutralizes Substitutes for No effect on Neutralizes