Unit VI Case Study

BBA 3651, Leadership 1

Course Learning Outcomes for Unit VI Upon completion of this unit, students should be able to:

3. Evaluate different styles of leadership such as directive, participative, and free rein. 3.1 Identify the leader behaviors of the leader-member exchange (LMX) theory, normative decision

model, Situational Leadership model, and contingency model. 3.2 Identify the follower behaviors of the leader-member exchange (LMX) theory, normative

decision model, Situational Leadership model, and contingency model. 3.3 Describe the four leader behaviors of the path-goal theory.

Reading Assignment Chapter 13: Contingency Theories of Leadership

Unit Lesson In Unit VI, we will focus on the contingency theories associated with leadership. The more common leadership contingency theories include the leader-member exchange (LMX) theory, normative decision model, situational leadership model, contingency model, and path-goal theory. It is important to note that many of these theories share similarities and there are some differences. The leadership contingency theories are outlined below. Leader-Member Exchange (LMX) Theory This theory deals with leader and management relationships with team members. It investigates how leaders and managers interact with groups and attempts to explain how these relationships help others grow or hold them back. LMX states that relationships go through three steps: role-taking, role-making, and routinization.

1. Role-taking starts when an employee joins a group for the first time. During this phase, managers assess the new employee’s skills, behavior, and abilities.

2. Role-making is where the new employee begins to work on tasks as a team member. The leader

usually expects that the new employee will work hard and try to prove his or her self to other team members. Also during this phase, the leader determines if the new employee belongs in the in-group or out-group.

3. Routinization is the last phase. Routines are established between team members and managers. In-

group team members continue to work hard and build trust among one another. The out-group members begin to dislike and distrust their leaders. In many occasions, the out-group member will need to leave the team.

Normative Decision Model The normative decision model of leadership developed by Vroom and Yetton (1973) was designed to help create the most effective leadership. Vroom developed decision-making processes that vary based on the participation of the leader. These processes are decide, consult (employee), consult (leader), facilitate, and delegate. Vroom and Yetton also outlined seven situational factors to consider as a leader. They are decision significance, importance of commitment, leader’s expertise, likelihood of commitment, group support for objectives, group expertise, and team competence.

UNIT VI STUDY GUIDE

Contingency Theories of Leadership

BBA 3651, Leadership 2

UNIT x STUDY GUIDE

Title

Situational Leadership Model The situational leadership model was developed by Hersey and Blanchard. Under this theory, it is believed that managers should use more than one style of leadership based upon the follower’s maturity. This theory places emphases on the task or the relationship depending on what is needed to get the job done. The four leadership styles outlined by Hersey and Blanchard are telling, selling, participating, and delegating. Telling and selling are about getting the task completed. Participating and delegating are focused on developing an employee’s ability to work independently. Hersey and Blanchard also breakdown maturity into four levels: M1, M2, M3, and M4. M1 is the bottom of the scale and represents employees who lack knowledge or are unskilled. M2 represents an employee willing to work on a task but may lack all the skills needed. M3 employees are still working on their confidence but have more skills than level M2. M4 employees are able to work alone and exhibit confidence, skills, and are committed to get the task completed. Contingency Model The contingency model was developed by Fred Fielder in the 1960s. Fiedler believed there is not one best style of leadership; he believed in two factors leadership style and situational control. There are three steps to his model. Leadership style is the first step. Fielder uses a scale he developed called least-preferred co- worker (LPC) scale to measure leadership style. The scale was based on the skills employees least enjoyed. The second step is identification of the situation. Followed by determining the most effective leadership style. Path-Goal Theory The path-goal theory focuses on the way a leader encourages and supports employees in achieving goals. Under this theory, the leader sets the path by making it clear and easy for the employee. The leader is responsible for identification of the path, removing roadblocks, and offering rewards. There are four styles of leadership under the path-goal theory: supportive leadership, directive leadership, participative leadership, and achievement-oriented leadership.

Reference Vroom, V. H., & Yetton, P. W. (1973). Leadership and decision-making. Pittsburg, PA: University of Pittsburg

Press.

Suggested Reading To learn more about the leader-member exchange theory, go to: https://www.youtube.com/watch?v=1N6M2UU0Xqw To learn more about the normative decision model, go to: https://www.youtube.com/watch?v=wI06amxoqtI To learn more about the situational leadership model, go to: https://www.youtube.com/watch?v=kqp8PsA73io To learn more about the contingency model, go to: https://www.youtube.com/watch?v=pX_nRePpxoY To learn more about the path-goal theory, go to: https://www.youtube.com/watch?v=pRSio5j3Iy4&list=PLlMHgLpynsacusfwGvEuq4B9n_wmPTr5H