MGT3002

Contingency Theories, Situational Leadership, Issues in Leadership © 2016 South University

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Organizational Behavior

©2016 South University

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MGT3002 W4 L2

Taking into account the situational factor, Fred Fiedler's studies led to what are referred to as the Contingency Theories of Leadership. In his initial studies, Fiedler allocated simple tasks to small groups of children with a designated leader. The leaders in different groups were told to behave in specific ways and conditions for each group were varied. To his surprise, Fiedler found that the children performed tasks well under a people- oriented leadership style only when conditions were moderately favorable or unfavorable. However, when conditions were highly favorable or highly unfavorable, performance was high under autocratic leadership.

This conclusion led Fiedler to experiment further with adults. From these studies he developed the contingency model, which assumes that the appropriate leadership style will be contingent upon situational factors. This is in contrast with the behavioral theories that implicitly assume that the same leadership behavior will generate the same kinds of outcomes, regardless of the situation.

Situational Leadership Theory

Inspired by the contingency approach, Paul Hersey and Ken Blanchard developed a model called the Situational Leadership Theory which has become very popular. This theory focuses on employees as well as management. Hersey and Blanchard looked

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Organizational Behavior

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at two factors, employee skills and attitude. They identified four kinds of leadership behaviors or styles that are dependent upon these two factors.

Hersey and Blanchard believed that if the employees are both willing and have the required skills and abilities then management could take a more passive role. They referred to this leadership style as the delegating style in which minimal supervision and control are necessary.

If the employees are willing but unable the leader needs to focus on both employee and task orientation. In this situation the employees need help with their abilities and skills, and the leader must respond with the selling style—providing a lot of instructional information on how to perform tasks, while also being very supportive. An example would be where an employee has joined a new organization or has been promoted. Even though the employee is willing he or she may be unable to perform a task because he or she lacks knowledge or skill.

If the employees are unwilling but able, the leader needs a strong people-oriented style that emphasizes participation. With proper

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Organizational Behavior

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support and the opportunity to participate in decision-making, employees would be more willing to participate in the process of goal attainment. Hersey and Blanchard have referred to this as the participating style—the effort being to use a participative process to persuade unwilling employees to accept the goals and tasks set for them.

Finally, if the employees are both unwilling and unable, the leader has to continually provide clear and specific instructions to compensate for their lack of skills and motivation. Hersey and Blanchard have termed this the telling style, where the manager must constantly tell employees what to do and how to do it.

Because different situations may require a variety of leadership styles, management needs to be flexible in their approach to every situation. Without this flexibility both employee and management performance will suffer, and in extreme cases, the results can be disastrous for a company.

For example, if your company suddenly receives a large order with a very tight delivery schedule, you may need to temporarily adopt a telling or selling style, or a mix of these styles, even with employees who are willing and able. You would incorporate this style to meet the delivery schedule and then revert to your regular management style once the order is complete.

Contemporary Issues in Leadership

Recently people have begun to express a need for strong leadership that inspires trust, faith, and a sense of security— physical, emotional, and economic. These needs have arisen as a consequence of the events of September 11, 2001, and their impact on the economy, as well as some high-profile cases of fraudulent and illegal activities by some large corporations.

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Organizational Behavior

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To many people New York City mayor, Rudolph Giuliani has emerged as a strong and charismatic leader through his handling of post-September 11 events. According to opinion polls, President Bush was also perceived as a strong and charismatic leader as a result of these events. However, because trust in corporate and political leadership has diminished as a result of continuing scandals, this has become a major concern for both organizations and employees.

As a result the issue of trust has become a priority for Americans as well as for employees and management. This issue becomes even more important during an election year and managers need to understand the emotional and theoretical nature of this issue.