CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES PDF

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CHAPTER 4

CONTINGENCY LEADERSHIP THEORIES
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CHAPTER4

CONTI NGENCYLEADERSHI PTHEORI ES

Chapt erOut l i ne I.

CONTINGENCY LEADERSHIP THEORIES AND MODELS A. Leadership Theories versus Leadership Models B. Contingency Theory and Model Variables C. Global Contingency Leadership

II. CONTINGENCY LEADERSHIP THEORY AND MODEL A. B. C. D.

Leadership Style and the LPC Situational Favorableness Determining the Appropriate Leadership Style Research

III. LEADERSHIP CONTINUUM THEORY AND MODEL IV. PATH-GOAL LEADERSHIP THEORY AND MODEL A. Situational Factors B. Leadership Styles C. Research V. NORMATIVE LEADERSHIP THEORY AND MODELS A. B. C. D. E.

Leadership Participation Styles Model Questions to Determine the Appropriate Leadership Style Selecting the Time-Driven or Development-Driven Model for the Situation Determining the Appropriate Leadership Style Research

VI. PUTTING THE BEHAVIORAL AND CONTINGENCY LEADERSHIP THEORIES TOGETHER A. Prescriptive and Descriptive Models VII. LEADERSHIP SUBSTITUTES THEORY A. B. C. D.

Substitutes and Neutralizers Leadership Style Changing the Situation Research

New To Chapter 4 (Changes from the 4e to 5e) 

Note that this used to be Chapter 5. The sequence has been changed to put the three major leadership paradigms (trait, behavior, and contingency) back-to-back. 59

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The chapter has been updated throughout. However, this chapter is based on older contingency leadership theories. Therefore, it includes more classical references than several of the other chapters. There are 60 references and only 9 are from the 4e; so 51 or 85 percent of the references are new to this edition.

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The opening case has been updated, including all new references.

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The references to the first section have all been updated.

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The subsection “Research” within each of the leadership theories has been expanded to “Research, Criticism, and Applications” to more clearly include and expand on these two new topic areas in all five sections.

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The research reference on You Make the Ethical Call 1, Leadership Gender, has been updated.

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In the “Global Contingency Leadership” section, Theory Z has been replaced with GLOBE, so the critical thinking question about Theory Z has been taken out.

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The “Research” section of Contingency Leadership has been cut down by eliminating the discussion on the Cognitive Resource Theory.

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Some of the research on leadership substitute theory has been eliminated so place more focus on the expanded criticism and applications of the theory.

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The end of chapter case is a new company (Foxconn) and CEO (Gou). However the application of contingency leadership theory is the same, with the names change to reflect the new company. Thus, the case questions and answers are the same.

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Lect ur eOut l i ne PowerPoint: You may use the PowerPoint supplement to enhance your lectures. Even if your classroom is not equipped to use PowerPoint, you can review the material on your personal computer to get teaching ideas and to copy the slides. Copies of the slides can be made into overheads.

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Learning Outcome (LO) 1. State the major difference between behavioral and contingency leadership theories, and explain the behavioral contribution to contingency theories. Behavioral theories attempt to determine the one best leadership style for all situations. Contingency leadership theories contend that there is no one best leadership style for all situations. Behavioral theories contributed to contingency theories because their basic leadership styles are used in contingency leadership models. A. Leadership Theories versus Leadership Models As defined in Chapter 1, a leadership theory is an explanation of some aspect of leadership; theories have practical value because they are used to better understand, predict, and control successful leadership. A leadership model is an example for emulation or use in a given situation. All of the contingency leadership theories in this chapter have leadership models. The leadership theory is the longer text that explains the variables and leadership styles to be used in a given contingency situation. The leadership model is the short (one page or less) summary of the theory to be used when selecting the appropriate leadership style for a given situation. B. Contingency Theory and Model Variables LO 2. Describe the contingency leadership theory variables. The contingency leadership variables used to explain the appropriate leadership style are the leader, followers, and situation. The leader factor is based on personality traits, behavior, and experience. The followers factor is based on capability and motivation. The situational factor is based on task, structure, and environment. For a leader to be effective, there must be an appropriate fit between the leader’s behavior and style and the followers and the situation. Recall from Chapter 1 that contingency leadership theories attempt to explain the appropriate leadership style based on the leader, followers, and situation. Different individuals and groups also prefer different leadership styles. Leaders display a range of behavior in different situations, because leadership is largely shaped by contextual factors that not only set the boundaries within which leaders and followers interact but also determine the demands and constraints confronting the leader. See Exhibit 4.1 for a list of general contingency leadership variables that can be used as a framework in which to place all the contingency leadership model variables for analyzing leadership. YOU MAKE THE ETHICAL CALL 1 Leadership Gender Answers will vary based on opinion.

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C. Global Contingency Leadership More companies are now looking for graduates with an international openness and flexibility who can master the complexity of the global economy. William Ouchi found that Japanese firms were managed and led differently than U.S. organizations. Ouchi combined practices of U.S. and Japanese companies in what he called Theory Z.

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LO 3. Identify the contingency leadership model styles and variables. The contingency leadership model styles are task and relationship. The variables include (1) the leader–follower relationship, (2) the leadership styles—task or relationship, and (3) the situation—task structure and position power. In 1951, Fred E. Fiedler began to develop the first situational leadership theory. It was the first theory to specify how situational variables interact with leader personality and behavior. He called the theory “Contingency Theory of Leader Effectiveness.” The contingency leadership model is used to determine if a person’s leadership style is task- or relationship-oriented, and if the situation (leader–member relationship, task structure, and position power) matches the leader’s style to maximize performance. A. Leadership Style and the LPC The first major factor in using Fielder’s model is to determine whether your dominant leadership style is taskmotivated or relationship-motivated. To determine leadership style, using Fiedler’s model, you must complete the least preferred coworker (LPC) scales. The LPC essentially answers the question, “Are you more task-oriented or relationship-oriented?” The two leadership styles are (1) task and (2) relationship. Self-Assessment 1 Leadership Style If you want students to complete the Self-Assessment exercises throughout the book, you may want to tell students and spend a little time talking about them. B. Situational Favorableness After determining your leadership style, determine the situational favorableness. Situation favorableness refers to the degree to which a situation enables the leader to exert influence over the followers. The more control the leader has over the followers, the more favorable the situation is for the leader. The three variables, in order of importance, are: 1.

Leader–member relations. This is the most powerful determinant of overall situational favorableness. Is the relationship good or poor? Do the followers trust, respect, accept, and have confidence in the leader? Leaders with good relations have more influence. The better the relations, the more favorable the situation.

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Task structure. This is second in potency: Is the task structured or unstructured? Do employees perform repetitive, routine, unambiguous, standard tasks that are easily understood? Leaders in a structured situation have more influence. The more structured the jobs are, the more favorable the situation.

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Position power. This is the weakest factor: Is position power strong or weak? Does the leader have the power to assign work, reward and punish, hire and fire, give raises and promotions? The leader with position power has more influence. The more power, the more favorable the situation.

The relative weights of these three factors together create a continuum of situational favorableness of the leader. Fiedler developed eight levels of favorableness, going from 1 (highly favorable) to 8 (very unfavorable). See Exhibit 4.3 for an adapted model.

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C. Determining the Appropriate Leadership Style To determine whether task or relationship leadership is appropriate, the user answers the three questions pertaining to situational favorableness, using the Fiedler contingency theory model (Exhibit 4.3). The user starts with question 1 and follows the decision tree to Good or Poor depending upon the relations. The user then answers question 2 and follows the decision tree to Repetitive or Nonrepetitive. When answering question 3, the user ends up in one of eight possible situations. If the LPC leadership style matches, the user does nothing, since they may be successful in that situation. 1.

Changing the Situation

However, if the leadership style does not match the situation, the leader may be ineffective. One option is to change to a job that matches the leadership style. Fiedler recommends (and trains people to) change the situation, rather than their leadership styles. CONCEPT APPLICATION CA 1—Contingency Leadership Theory The answers to the 5 Applying the Concept questions are at the end of the lecture outline. WORK APPLICATION 1 Select a present or past manager. Which LPC leadership style is or was dominant for that manager? Using the Fiedler model (Exhibit 4.3), which situation number is the manager in? What is the appropriate leadership style for the manager in this situation? Does it match his or her style? How successful a leader is your manager? Do you think there is a relationship between the manager’s leadership style and situation? If you are a manager, you may want to repeat this work application, using yourself as the manager. D. Research Despite its groundbreaking start to contingency theory, Fiedler’s work was criticized in the 1970s for conceptual reasons, and because of inconsistent empirical finding and inability to account for substantial variance in group performance. Two meta-analyses concluded that the research tends to support the model, although not for every situation and not as strongly for field studies as for laboratory studies. Fiedler has helped contribute to the other contingency theories. Based on the contingency leadership model, Fiedler teamed up with J. E. Garcia to develop cognitive resources theory (CRT). CRT is a person-by-situation interaction theory in which the person variables are leader intelligence and experience, and the situational variable is stress, experienced by leaders and followers. CRT has important implications for leader selection and for situational management. Fiedler recommends a two-step process for effective utilization of leaders: (1) recruiting and selecting individuals with required intellectual abilities, experience, and job-relevant knowledge, and (2) enabling leaders to work under conditions that allow them to make effective use of the cognitive resources for which they were hired. Despite the critics, Fiedler’s contingency leadership model and cognitive resources theory are considered the most validated of all leadership theories by some scholars.

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LO 4. State the leadership continuum model major styles and variables. The two major continuum leadership model styles are boss-centered and subordinate-centered. The variables include (1) the boss, (2) the subordinates, and (3) the situation (time). Robert Tannenbaum and Warren Schmidt also developed a contingency theory in the 1950s. They stated that leadership behavior is on a continuum form from boss-centered to subordinate-centered leadership. Their model focuses on who makes the decisions. ©2 01 3Ce n g a g eLe a r n i n g .Al lRi g ht sRe s e r v e d . Ma yn o tb es c a n ne d, c o p i e do rd up l i c a t e d ,o rpo s t e dt oapu b l i c l y a c c e s s i b l ewe b s i t e ,i nwho l eo ri npa r t .

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Tannenbaum and Schmidt identify some major styles the leader can choose from. Exhibit 4.5 is an adaptation of their model. The leadership continuum model is used to determine which one of seven styles to select based on the use of boss-centered versus subordinate-centered leadership, to meet the situation (boss, subordinates, situation/time) in order to maximize performance. Before selecting one of the seven leadership styles, the leader must consider the following three forces or variables: 

Boss. The leader’s personality and behavioral preferred style—based on experience, expectation, values, background, knowledge, feeling of security, and confidence in the subordinates—is considered in selecting a leadership style. Based on personality and behavior, some leaders tend to be more autocratic and others more participative.

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Subordinates. The followers’ preferred style for the leader is based on personality and behavior, as with the leader. Generally, the more willing and able the followers are to participate, the more freedom of participation should be used, and vice versa.

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Situation (time). The environmental considerations, such as the organization’s size, structure, climate, goals, and technology, are considered in selecting a leadership style. The time available is another consideration. It takes more time to make participative decisions. Thus, when there is no time to include followers in decision making, the leader uses an autocratic leadership style.

Although the leadership continuum model was very popular, it did not undergo research testing like the contingency leadership model. One major criticism of the model is that the three factors to consider when selecting a leadership style are very subjective. In other words, determining which style to use, and when, is not clear in the model. CONCEPT APPLICATION CA 2—Leadership Continuum The answers to the 5 Applying the Concept questions are at the end of the lecture outline. WORK APPLICATION 2 Using the leadership continuum model (Exhibit 4.5), identify your manager’s most commonly used leadership style by number and description. Would you say this is the most appropriate leadership style based on the leader, the followers, and situation? Explain.

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LO 5. Identify the path-goal leadership model styles and variables. The path-goal leadership model styles include directive, supportive, participative, and achievement-oriented. Variables used to determine the leadership style are the subordinate and the environment. The path-goal leadership theory was developed by Robert House. House intended to reconcile prior conflicting findings concerning task- and relationship-oriented leader behavior. His theory specified a number of situational moderators of relationships between task- and person-oriented leadership and their effects. House attempted to explain how the behavior of a leader influences the performance and satisfaction of the followers (subordinates). The path-goal leadership model is used to select the leadership style (directive, supportive, participative, or achievement-oriented) appropriate to the situation (subordinate and environment) to maximize both performance and job satisfaction. Note that path-goal leadership theory is based on motivation theories of goal setting and expectancy theory. The leader is responsible for increasing followers’ motivation to attain personal and organizational goals. Motivation is increased by (1) clarifying the follower’s path to the rewards that are available, or (2) increasing the rewards that the follower values and desires. Path clarification means that that leader works with followers to help them identify and learn the behaviors that will lead to successful task accomplishment and organizational rewards.

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A. Situational Factors 1.

Subordinate

Subordinate situational characteristics include:

2.

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Authoritarianism is the degree to which employees defer to others, and want to be told what to do and how to do the job.

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Locus of control is the extent to which employees believe they control goal achievement (interval) or if goal achievement is controlled by others (external).

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Ability is the extent of the employees’ ability to perform tasks to achieve goals.

Environment

Environment situational characteristics include: 1.

Task structure is the extent of repetitiveness of the job.

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Formal authority is the extent of the leader’s position power.

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Work group is the extent to which coworkers contribute to job satisfaction or the relationship between followers.

YOU MAKE THE ETHICAL CALL 2 Drug Research Answers will vary based on opinion. B. Leadership Styles Based on the situational factors in the path-goal model, the leader can select the most appropriate leadership style by using the following general guidelines for each style. 1.
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