contingency theory ppt

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Contingency Theories

Contingency Theories : 

Contingency Theories Contingency theory is a class of behavioural theory that claims that there is no best way to organize a corporation or to make decisions

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The two contingency theories of leadership are: The Fiedler model Path -goal theory

Fiedler model : 

Fiedler model Leadership styles are either task motivated or relationship motivated Least preferred co-worker (LPC) questionnaire A high LPC score suggests that the leader has a human relations orientation A low LPC score indicates a task orientation

Least Preferred Coworker (LPC) Scale: 

Least Preferred Coworker (LPC) Scale Pleasant 8 7 6 5 4 3 2 1 Unpleasant Friendly 8 7 6 5 4 3 2 1 Unfriendly Rejecting 8 7 6 5 4 3 2 1 Accepting Tense 8 7 6 5 4 3 2 1 Relaxed Cold 8 7 6 5 4 3 2 1 Warm Supportive 8 7 6 5 4 3 2 1 Hostile Boring 8 7 6 5 4 3 2 1 Interesting Quarrelsome 8 7 6 5 4 3 2 1 Harmonious Gloomy 8 7 6 5 4 3 2 1 Cheerful Open 8 7 6 5 4 3 2 1 Closed Backbiting 8 7 6 5 4 3 2 1 Loyal Untrustworthy 8 7 6 5 4 3 2 1 Trustworthy Considerate 8 7 6 5 4 3 2 1 Inconsiderate Nasty 8 7 6 5 4 3 2 1 Nice Agreeable 8 7 6 5 4 3 2 1 Disagreeable Insincere 8 7 6 5 4 3 2 1 Sincere Kind 8 7 6 5 4 3 2 1 Unkind


Scoring The final score is the total of the numbers you circled on the 18 scales 57 or less = Low LPC (task motivated) 58-63 = Middle LPC (socio-independent leaders, self directed and not overly concerned with the task or with how others view them) 64 or above = High LPC (motivated by relationships)

Defining the Situation : 

Defining the Situation Three situational components determine the favourableness of situational control: 1. Leader-Member Relations 2. Task Structure 3. Leader Position Power

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Findings of the Fiedler Model Category Leader-Member Relations Task Structure Position Power I Good High Strong II Good High Weak III Good Low Strong IV Good Low Weak V Poor High Strong VI Poor High Weak VII Poor Low Strong VIII Poor Low Weak Good Poor Performance Relationship -Oriented Task-Oriented Favorable Moderate Unfavorable

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Situational Control High Control Situations Moderate Control Situations Low Control Situations Leader-member relations Task Structure Position Power Good Good Good High High High Strong Weak Strong Good Poor Poor Low High High Weak Strong Strong Poor Poor Low Low Strong Weak Situation I II III IV V VI VII VIII Optimal Leadership Style Task Motivated Leadership Relationship Motivated Leadership Task Motivated Leadership Representation of Fiedler’s Contingency Model

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Two ways in which we can improve leader effectiveness. change the leader 2) change the situation

Evaluation : 

Evaluation Pros Empirical research supports this theory Includes the impact of situations on leaders This theory is predictive and therefore provides useful information about the type of leadership that is most likely to be successful in a specific context Does not require people to be successful in all situations (perfection is not required) Data from this theory could be useful to organizations in developing leadership profiles

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Fails to fully explain why people with certain leadership styles are more effective in situations than others Questions regarding the LPC scale have been made because it does not correlate well with other standard leadership measures. LPC instructions are not clear – leaders are unsure how to choose a least preferred coworker Also fails to explain what to do when there is a mismatch between the leader and the situation in the workplace Cons

Path Goal Theory   : 

Path Goal Theory Path Goal theory is about how leaders motivate subordinates to accomplish designated goals The stated goal of leadership is to enhance employee performance and employee satisfaction by focusing on employee motivation Emphasizes the relationship between the leader’s style and characteristics of the subordinates and the work setting The leader must use a style that best meets the subordinates motivational needs

Path-Goal Theory: 

Path-Goal Theory

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Leadership Behaviors Directive leadership Supportive Leadership Participative Leadership Achievement-Oriented Leadership

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Subordinate Characteristics Need for affiliation Preferences for structure Desires of control Self-perceived level of task ability


Evaluation Pros Helps understand how leader behavior effects subordinates satisfaction and work performance Deals directly with motivation – one of the only theories to address this Provides a very practical model – make a clear path and follow it

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Cons This is a very complex theory that incorporates many aspects of leadership Research only partially supports the theory Fails to explain adequately the relationship between leader behavior and subordinate motivation Treats leadership as a one way street, places a majority of the responsibility on the leader