2. Contingency theory is a behavioral theory based on their views that
there is no “one best way” to lead an organization, organize a
cooperation or to make a decision. Contingency theory states that
these actions are dependant (contingent) to the internal and external
factors. Thus it states that there is no single theory of contingency
management.
Some important contingencies for organizations are:
Technology
Suppliers and Distributers
Customers and Competitors
Consumer Interest Groups
Government
Unions
3. Researchers of contingency theory states that
the decision making process depends on a number
of variables. These variables are:
The importance of the decision – is the decision a
strategic or difficult decisions to reverse.
The amount of information available to the leaders and
subordinates- has a similar decision been made before
and is there available information on the results.
The relationship between leaders and subordinates more
leaders are likely the greater support they will have from
subordinates.
The likelihood of subordinates accepting on autocratic
decision or cooperate with taking a few good decisions if
allowed to participate- how well motivated are the staff?
The amount of disagreement among subordinates with
respect to the preferred alternative- the greater need for
an autocratic approach, perhaps.
4. Theorists of the Contingency Management
Theory
Fred Edward Fiedler
Kenneth Blanchard
Paul Hersey
Victor Vroom
Philip Yetton
Arthur Jago
5. Fred Edward Fiedler (1922) is one of the leading experts
on the study of leadership and organizational
performance and thus has had a profound impact on
social organizational and industrial psychology. Before
he even entered his teen years, Fiedler decided to be a
psychologist. Fourteen years later, he graduated from
the University of Chicago and started his research into
changing the way that people think of leadership.
Beginning in 1954, Fiedler began studying leadership in
high school basketball teams. This lead to the
development of the Least Preferred Co-worker scale.
The result of his research, in 1967 lead to the publishing
of his famous book, ‘A Theory of Leadership
Effectiveness.” This book proposed his contingency
model of leadership, the first leadership theory to
measure member- leader relationships.
6. Kenneth H. Blanchard (May 6th 1939), born
in Orange, Ney Jersey attended New
Rochelle High School, graduating in 1957.
He completed his BA in government and
philosophy in 1961, a MA degree in
sociology and counseling in1963 and a PhD
degree in education administration and
leadership in 1967. In the 1960’s he
developed the Situational leadership theory
and model with Paul Hersey.
7. Paul Hersey born in 1931, is a behavioral scientist
and entrepreneur. He is known for his work on
Situational leadership theory with Kenneth
Blanchard. They published Management and
Organization Behavior.
8. Victor H. Vroom is a business school professor at
the Yale School of Management, who was born on 9
August 1932 in Montreal, Canada. He holds a PhD
from University of Michigan. Vroom's primary research
was on the expectancy theory of motivation, which
attempts to explain why individuals choose to follow
certain courses of action in organizations, particularly
in decision-making and leadership. His most well-
known books are Work and Motivation, Leadership
and Decision Making and The New Leadership.
9. Fred Edward Fiedler
Contingency theory of leadership emphasizes that the
effectiveness of leadership is dependant (contingent) on
matching its leadership style to right situations. This theory was
originally developed by Fred E. Fiedler after studying various
leaders in different context. It is contradictory to “situational
leadership” which stress for leaders to adapt to the situation.
Situation in this context may have different meanings. As it
relates to the development/readiness level of the organization, it
also relates to three factors in contingency. These factors are:
Leader- Member- Relations- it is a measure of leadership
acceptance between the organizational hierarchies. If the
subordinates have trust, confidence and feel adequately
motivated by their superiors, it is positive.
Task Structure- it is a measure of the clarity of the projects or
tasks, their methods to achieve the end product. There are clear
guidelines to follow and progress can be easily tracked.
Positional Power- it is a measure of the amount of authority the
leader has to influence the productivity of the followers, whether
he rewards or punishes them. The positional power can be weak
if subordinates do not directly report the leader.
11. Leadership Styles
S1: Telling / Directing
Follower: R1: Low competence, low commitment / Unable and unwilling or insecure
Leader: High task focus, low relationship focus
When the follower cannot do the job and is unwilling or afraid to try, then the leader takes a highly
directive role, telling them what to do but without a great deal of concern for the relationship. The
leader may also provide a working structure, both for the job and in terms of how the person is
controlled.
S2: Selling / Coaching
Follower: R2: Some competence, variable commitment / Unable but willing or motivated
Leader: High task focus, high relationship focus
When the follower can do the job, at least to some extent, and perhaps is over-confident about their
ability in this, then 'telling' them what to do may demotivate them or lead to resistance. The leader
thus needs to 'sell' another way of working, explaining and clarifying decisions.
S3: Participating / Supporting
Follower: R3: High competence, variable commitment / Able but unwilling or insecure
Leader: Low task focus, high relationship focus
When the follower can do the job, but is refusing to do it or otherwise showing insufficient commitment,
the leader need not worry about showing them what to do, and instead is concerned with finding out
why the person is refusing and thence persuading them to cooperate.
S4: Delegating / Observing
Follower: R4: High competence, high commitment / Able and willing or motivated
Leader: Low task focus, low relationship focus
When the follower can do the job and is motivated to do it, then the leader can basically leave them
to it, largely trusting them to get on with the job although they also may need to keep a relatively
distant eye on things to ensure everything is going to plan.
12. According to Hersey and Blanchard, knowing when
to use each style is largely dependent on the
maturity of the person or group you're leading. They
break maturity down into four different levels:
M1 – People at this level of maturity are at the bottom level of
the scale. They lack the knowledge, skills, or confidence to
work on their own, and they often need to be pushed to take
the task on.
M2 – at this level, followers might be willing to work on the
task, but they still don't have the skills to do it successfully.
M3 – Here, followers are ready and willing to help with the
task. They have more skills than the M2 group, but they're still
not confident in their abilities.
M4 – These followers are able to work on their own. They have
high confidence and strong skills, and they're committed to
the task.
13. Maturity Level Most Appropriate Leadership Style
M1: Low maturity S1: Telling/directing
M2: Medium maturity, limited skills S2: Selling/coaching
M3: Medium maturity, higher skills but S3: Participating/supporting
lacking confidence
M4: High maturity S4: Delegating
14.
15. Understanding the Model:
When you sit down to make a decision, your style, and the degree of participation you
need to get from your team, are affected by three main factors:
Decision Quality – how important is it to come up with the "right" solution? The higher the
quality of the decision needed, the more you should involve other people in the
decision.
Subordinate Commitment - how important is it that your team and others buy into the
decision? When teammates need to embrace the decision you should increase the
participation levels.
Time Constraints – How much time do you have to make the decision? The more time
you have, the more you have the luxury of including others, and of using the decision as
an opportunity for teambuilding.
Vroom and Yetton defined five different decision procedures. Two are autocratic (A1
and A2), two are consultative (C1 and C2) and one is Group based (G2).
A1: Leader takes known information and then decides alone.
A2: Leader gets information from followers, and then decides alone.
C1: Leader shares problem with followers individually, listens to ideas and then decides
alone.
C2: Leader shares problems with followers as a group, listens to ideas and then decides
alone.
G2: Leader shares problems with followers as a group and then seeks and accepts
consensus agreement.
