The Contingency Theory takes the context in which the leader is operating into consideration and tries to isolate the conditions that allow for effective leadership. There are three key theories that enhance our understanding of leadership by explaining situational variables. They are Fiedler’s Model, Hersey and Blanchard’s Situational Leadership Theory, and the Path-Goal Theory of Leadership.

1. PRESENTATION ON:
CONTIGENCY THEORY
S. Liton Kumar Roy Amitav
Roll# 117851
Jagannath University, Dhaka
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2. What Is Leadership?
 Leadership
– The ability to influence a group
toward the achievement of goals
 Management
– Use of authority inherent in
designated formal rank to obtain
compliance from organizational
members
 Both are necessary for
organizational success
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3. Trait theory: leadership is inherent,
so we must identify the leader based
on his or her traits
Behavioral theory: leadership is a
skill set and can be taught to anyone,
so we must identify the proper
behaviors to teach potential leaders
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Theories of Leadership:

4. Contingency Theories
 While trait and behavior theories do help us
understand leadership, an important component is
missing: the environment in which the leader exists
 Contingency Theory adds this additional aspect to our
understanding leadership effectiveness studies
 Three key theories:
– Fiedler’s Model
– Hersey and Blanchard’s Situational Leadership Theory
– Path-Goal Theory
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5. Fiedler Model
 Effective group performance depends on the proper
match between leadership style and the degree to which
the situation gives the leader control.
– Assumes that leadership style (based on orientation revealed
in LPC questionnaire) is fixed
 Considers Three Situational Factors:
– Leader-member relations: degree of confidence and trust in
the leader
– Task structure: degree of structure in the jobs
– Position power: leader’s ability to hire, fire, and reward
 For effective leadership: must change to a leader who fits
the situation or change the situational variables to fit the
current leader
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6. Graphic Representation of Fiedler’s Model
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E X H I B I T 12-2
Used to
determine
which type
of leader
to use in a
given
situation

7. Fiedler’s Cognitive Resource Theory
 A refinement of Fiedler’s original model:
– Focuses on stress as the enemy of rationality and creator of
unfavorable conditions
– A leader’s intelligence and experience influence his or her
reaction to that stress
 Research is supporting the theory.
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Stress Level
• Low
• High
Intellectual
Abilities
• Effective
• Ineffective
Leader’s
Experience
• Ineffective
• Effective

8. Assessment of Fiedler’s Model
 Positives:
– Considerable evidence supports the model, especially if the
original eight situations are grouped into three
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 Problems:
– The logic behind the LPC
scale is not well understood
– LPC scores are not stable
– Contingency variables are
complex and hard to
determine

9. Situational Leadership Theory
 A model that focuses on follower “readiness”
– Followers can accept or reject the leader
– Effectiveness depends on the followers’ response to the
leader’s actions
– “Readiness” is the extent to which people have the ability
and willingness to accomplish a specific task
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Ability to follow Willingness to Follow Leadership Behavior
Unable Unwilling Give clear and specific directions
Unable Willing Display high task orientation
Able Unwilling Use a supportive and participatory
style
Able Willing Doesn’t need to do much

10. House’s Path-Goal Theory
 Builds from the Ohio State studies and the expectancy
theory of motivation
 The Theory:
– Leaders provide followers with information, support, and
resources to help them achieve their goals
– Leaders help clarify the “path” to the worker’s goals
– Leaders can display multiple leadership types
 Four types of leaders:
– Directive: focuses on the work to be done
– Supportive: focuses on the well-being of the worker
– Participative: consults with employees in decision making
– Achievement-Oriented: sets challenging goals
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11. Vroom and Yetton’s Leader-Participation Model
 How a leader makes decisions is as important as what is
decided
 Premise: Situational variables interact with leadership
attributes to impact the behavior of the leader.
– Leader behaviors must adjust to the way tasks are structured
in the organization.
– This is a normative model that tells leaders how participative
to be in their decision making of a decision tree
• Five leadership styles
• Twelve contingency variables
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E X H I B I T 12-5

12. Summary and Managerial Implications
• Leadership is central to understanding group behavior as the leader provides the
direction.
• Extroversion, conscientiousness, and openness all show consistent relationships to
leadership.
• Behavioral approaches have narrowed leadership down into two usable
dimensions.
• Need to take into account the situational variables, especially the impact of
followers.
• Research on charismatic and transformational leadership has made major
contributions to our understanding of leadership.
• Leaders must be seen as authentic and trustworthy.
• Investment must be made in the future through mentoring and training leaders.
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13. THANKS TO
ALL
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