Week 04

Capsule – B: Management & Leadership

 Unit # 4:
Leadership in Organizations

Instructor: Maria Mohsin

Contingency Theory

A model of leadership that describes the relationship

between leadership styles and specific organizational
situations.

It includes leadership models developed by the

following;

 Fielder’s Contingency Theory

 Situational theory of Hersey and Blanchard
 The path goal theory presented by Evans and House

Instructor: Maria Mohsin

Fielder’s Contingency Theories

Instructor: Maria Mohsin

Fielder’s Contingency Theory

This theory states that your effectiveness as a leader is

determined by how well your leadership style matches the
situation.

There are two important factors in Fiedler’s Contingency Theory:

Leadership Style Situational

Favorableness

Instructor: Maria Mohsin

Fielder’s Contingency Theory

1. Leadership Style

 The first step in using the model is to determine your natural

leadership style.
 To do this, Fiedler developed a scale called the Least
Preferred Coworker (LPC) for measuring the leadership style;
 High LPC = Relationship-oriented leader.
 Low LPC = Task-oriented leader.

Instructor: Maria Mohsin

Fielder’s Contingency Theory
 The LPC scale is a 1. Leadership Style
questionnaire that helps
the leader to understand
their specific leadership
style.
 The leader is asked to
think of all the people
with whom they have ever
worked and then describe
the person with whom
they have worked least
well, using a series of
scales of 1 to 8.

Instructor: Maria Mohsin

Fielder’s Contingency Theory
1. Leadership Style

Instructor: Maria Mohsin

Fielder’s Contingency Theory
2. Situational Favorableness

 Also known as situational control.

 It describes the leader’s ability to control the group situation,
influence their behavior and face the current situation.
 The factors that determine the favorableness of a situation
are:
 Leader-Member Relations
 Task Structure
 Leader Position Power

Instructor: Maria Mohsin

Fielder’s Contingency Theory
2. Situational Favorableness

Instructor: Maria Mohsin

Fielder’s Contingency Theory
Leader Member Relations

 The Leader-Member Relations factor of Fiedler’s Contingency

Model of Leadership refers to the degree of mutual trust,
respect and confidence between the leader and the
subordinates.
 When the leader-member relations are good, the leader has
a high degree of control of the situation which makes the
situation more favorable for the leader.
 When leader-member relations in the group are poor, the
leader has to shift focus away from the group task in order to
regulate behavior and conflict within the group.

Instructor: Maria Mohsin

Fielder’s Contingency Theory
Task Structure

 The Task Structure factor refers to the extent to which group

tasks are clear and structured.
 When task structure is low (unstructured), group tasks are
ambiguous, with no clear solution or correct approach to
complete the goal.
 Conversely, when task structure is high (structured), the
group goal is clear and straightforward and members have a
clear idea about how to approach and reach the goal.

Instructor: Maria Mohsin

Fielder’s Contingency Theory
Leader Position Power

 The Leader Position Power factor refers to the amount of

power the leader has over the group, i.e. to which extent the
leader can reward or punish the group’s members.
 The stronger the power, the higher the degree to which the
leader can control the situation.
 When the position power is weak, leaders cannot control the
resources so they lack the same degree of situational control
as leaders high in power.

Instructor: Maria Mohsin

Fielder’s Contingency Theory
Conclusion

 Fiedler’s Contingency Model of Leadership states that group

effectiveness depends on an appropriate match between a
leader’s style and the demands of the situation.

 In other words, effective leadership is contingent on

matching the leader’s style to the right setting.

Instructor: Maria Mohsin

Hersey and Blanchard’s Situational Theory

Instructor: Maria Mohsin

Hersey and Blanchard’s Situational Theory

 Focuses on the ability and willingness of individual

employees
 It is a contingency approach to leadership that links the
leader’s behavior style with the task readiness of the
subordinates
 Focuses a great deal on the characteristics of employees in
determining the appropriate leadership behaviour

Instructor: Maria Mohsin

Hersey and Blanchard’s Situational Theory

Instructor: Maria Mohsin

Hersey and Blanchard’s Situational Theory
 In the model, employees are referred to as “followers,” while
managers are referred to as “leaders.”
 The diagram outlines four distinct groups of followers, each
organized by their ability and willingness to work.
 Ability refers to a follower’s ability to perform their job
successfully with a combination of skills and experience.
 Willingness refers to followers who are motivated to take on a
task and have the confidence to carry out their responsibilities.
 Based on the Hersey-Blanchard model, the four groups of
followers are:
1. Unable and Unwilling
2. Unable and Willing
3. Able and Unwilling
4. Able and Willing
Instructor: Maria Mohsin
Hersey and Blanchard’s Situational Theory
1. Unable and Unwilling (D1)
D1 followers are unable to complete their tasks because they lack the proper
skills to succeed. They are also unmotivated and lack confidence in their
abilities.
2. Unable and Willing (D2)
D2 followers are unable to complete their tasks, usually due to a lack of skills
and experience. However, they are still willing to try and attempt the task. It
exemplifies new employees that are motivated to succeed but lack adequate
knowledge and ability.
3. Able and Unwilling (D3)
D3 followers have the capacity and experience to complete their tasks but are
unwilling to do so. It can be attributed to a lack of self–confidence in their ability
or a lack of motivation to follow their leader’s guidance.
4. Able and Willing (D4)
D4 followers have the necessary skills and experience, as well as the confidence
in their ability to complete tasks successfully. The employees have the highest
level of capacity and can complete tasks while also taking responsibility for their
work.
Instructor: Maria Mohsin
Hersey and Blanchard’s Situational Theory
 A leader must adapt their leadership methods depending on the
ability and willingness of their followers.
 Therefore, the Hersey-Blanchard model outlines four distinct
leadership styles, each corresponding to a specific level of
employee development.
1. Directing (S1)
The S1 leadership style focuses primarily on providing direction to employees. At the
S1 stage, followers lack the ability and willingness to complete their tasks, and leaders
must clearly define their responsibilities and ensure they develop the foundational
skills to be successful. Typical S1 leadership methods include simple instructions,
clear explanations, and careful supervision.
2. Coaching (S2)
The S2 leadership style provides followers with both direction and personal support.
In the S2 stage of development, followers are still unable to perform their tasks but
are motivated to succeed. Therefore, leaders should ensure that followers are
developing the necessary skills but still maintaining their self-confidence. Ultimately,
this results in followers that can take on personal responsibility for their tasks.
Instructor: Maria Mohsin
Hersey and Blanchard’s Situational Theory

3. Supporting (S3)
The S3 leadership style focuses on supporting followers and less
emphasis on providing direction. At the S3 stage, the follower has
already developed the necessary skills to complete their tasks.
Therefore, the leader should focus on providing feedback and
support to motivate the employee and encourage greater
development.
4. Delegating (S4)
The S4 leadership style involves minimal direction and support, as
the follower is already capable of performing their tasks
independently. At the S4 level, the leader should provide support
when needed but also provide the follower with autonomy over
their responsibilities.

Instructor: Maria Mohsin

Hersey and Blanchard’s Situational Theory
Conclusion

 The model outlines four leadership styles, each

corresponding with a specific level of employee
development.
 Although the model is well-regarded among professionals,
there are still difficulties with its application in the real-world.

Instructor: Maria Mohsin

Path – Goal Theory

Instructor: Maria Mohsin

Path – Goal Theory

 A contingency approach to leadership specifying that the

leader responsibility is to increase subordinates motivation
by clarifying the behaviors necessary for task
accomplishment and rewards
 Based on this theory a leader increases the motivation of
employees by either;
 Clarifying the subordinates path to rewards that are available
 Increasing the rewards that the subordinates value and desire

Instructor: Maria Mohsin

Path – Goal Theory

Instructor: Maria Mohsin

Path – Goal Theory

Path – Goal Leadership Theory

Path Clarification Increase Rewards

Leader defines what followers

must do to attain work Leader learns follower’s needs
outcomes

Leader clarifies follower’s Leader matches follower’s

work role needs to rewards if work
outcomes are accomplished

Follower has increased Leader increases value

knowledge and confidence to outcomes for follower
accomplish outcomes

Follower displays increased effort and

motivation

Organizational work outcomes are

accomplished
Instructor: Maria Mohsin
Path – Goal Theory
Leadership Styles

The path-goal theory suggests a fourfold classification of

the leader’s behavior – described as following;
 Directive: Here the leader provides guidelines, lets subordinates know what is
expected of them, sets performance standards for them, and controls behavior when
performance standards are not met. He makes judicious use of rewards and
disciplinary action. The style is the same as task-oriented one.

 Supportive: The leader is friendly towards subordinates and displays personal

concern for their needs, welfare, and well-being. This style is the same as people-
oriented leadership.

 Participative: The leader believes in group decision-making and shares information

with subordinates. He consults his subordinates on important decisions related to
work, task goals, and paths to resolve goals.

 Achievement-oriented: The leader sets challenging goals and encourages

employees to reach their peak performance. The leader believes that employees are
responsible enough to accomplish challenging goals. This is the same as goal-
setting theory.
Instructor: Maria Mohsin
Path – Goal Theory
Contingencies

The theory states that the relationship between a leader’s style and
effectiveness is dependent on the following variables:

 Employee characteristics: These include factors such as employees’

needs, locus of control (the degree to which people believe that they, as opposed to external forces, have
control over the outcome of events in their lives), experience, perceived ability, satisfaction,

willingness to leave the organization, and anxiety. For example, if followers

are of high inability, a directive style of leadership may be unnecessary;
instead a supportive approach may be preferable.

 Characteristics of work environment: These include factors such as task

structure and team dynamics that are outside the control of the employee.
For example, for employees performing simple and routine tasks, a
supportive style is much effective than a directive one. Similarly, the
participative style works much better for non-routine tasks than routine
ones.

Instructor: Maria Mohsin

Path – Goal Theory
Path Goal Situations & Preferred Leader Behaviors

Leader Impact on
Situation Outcome
Behavior Follower

Increased
More effort, improved
Follower Supportive confidence to
satisfaction and
lacks self Leadership achieve work
performance
outcome

More effort, improved

Ambiguous Directive Clarify path to
satisfaction and
job Leadership reward
performance

Achievement More effort, improved

Lack of job
Oriented Set high goals satisfaction and
challenge
Leadership performance

Clarify follower’s More effort, improved

Incorrect Participative
needs and satisfaction and
reward Leadership
change rewards performance
Instructor: Maria Mohsin
Path – Goal Theory
Conclusion

 The theory has been subjected to empirical testing in several

studies and has received considerable research support.

 This theory consistently reminds the leaders that their main role as a
leader is to assist the subordinates in defining their goals and
then to assist them in accomplishing those goals in the most
efficient and effective manner.

 This theory gives a guide map to the leaders about how to

increase subordinates satisfaction and performance level.

Instructor: Maria Mohsin

Leadership Issues in the 21st Century

Instructor: Maria Mohsin

Leadership Issues in the 21st Century

Leading effectively in today’s environment is likely to involve

challenging circumstances for many leaders.

Managing Developing
Power Trust

Leading
Empowering Across
Employees Cultures

Becoming an Effective Leader

Instructor: Maria Mohsin

Managing Power
Power: is the right or capacity to influence work actions or decisions.
Source of
Description
Leader Power

Legitimate This is the same as authority. Represents the power a leader has a result of his or her position in
the organization.
power
It is the power that a leader has to punish or control. Followers react to this power out of the
fear of negative results that might occur if they don’t comply.
Coercive
Example;
power  Suspend or demote employees
 Assign work to employees, which they find unpleasant or undesirable
It is the power to give positive rewards. A reward can be anything that a person values
Example;
Reward  Money & Promotions
power  Favorable performance appraisals
 Interesting work assignment
 Preferred work shifts et’al.
The power that is based on expertise, special skills or knowledge.
Expert Example;
power An employee having skills and expertise i.e. critical to a work group results in the person’s expert
power being enhanced.

Referent The power that arises cause of a person’s desirable resources or personal traits.
Referent power arises out of admiration of another and a desire to be like that person.
power
Instructor: Maria Mohsin
Developing Trust
 In today’s environment an important consideration for leaders is building trust and
credibility; both of which is extremely fragile.
 Trust is defined as the belief in the integrity, character and ability of a leader.
 There are five dimensions that make up the concept of trust

Integrity Competence
Honesty and truthfulness Technical and interpersonal
knowledge and skills

Consistency Loyalty
Reliability, predictability and Willingness to protect a person
good judgment in handling physically and emotionally
situations

Openness
Willingness to share ideas and information freely
Instructor: Maria Mohsin
Empowering Employees
 Empowerment involves increasing the decision making
discretion of workers.

 Reason for empowering employees is the attainment of

quick decisions by the people who are the most
knowledgeable about the issues arising in the organization
– often those at lower organization levels.

 If organizations want to successfully compete in a dynamic

global economy, employees have to be able to make
decisions and implement changes quickly.

 In order to cope with increasing work demands (due to

larger span of controls due to organizational downsizing)
Managers had to empower their people.
Instructor: Maria Mohsin
Leading Across Cultures

 Effective leaders do not have a single style, they

adjust it to the situation
 National culture is certainly an important
situational variable in determining which
leadership style shall be most effective.
 Effective business leaders in any country are expected by their
subordinates to provide a powerful and proactive vision to guide
the company into the future, strong motivational skills to
stimulate all employees to fulfill the vision and excellent planning
skills to assist in implementing the vision
 Transformational leader characteristics are due to the pressures
towards common technologies and management practices as a
result of global competitiveness.

Instructor: Maria Mohsin

Becoming an Effective Leader

 All organizations need effective leaders.

 There are two issues pertinent to becoming
an effective leader i.e.
o Leader Training; and
o Recognizing that sometimes being an effective
leader means not leading

Following are some of the common approaches of an

effective leaders use to keep their teams motivated
1. Lead by example
2. Welcome failure
3. Put your people first
4. Be decisive
5. Know when to Delegate (and when to jump in)
6. Respect your co-workers opinions
7. Practice effective communication
8. Explore further leadership development opportunities

Instructor: Maria Mohsin

The End

Instructor: Maria Mohsin