CHAPTER 3
Contingency Approaches to Leadership
Chapter Outline
The Contingency Approach
Hersey and Blanchard’s Situational Theory
Fiedler’s Contingency Model
Path–Goal Theory
The Vroom–Jago Contingency Model
Substitutes for Leadership
In the Lead
Janette Sadik-Khan, New York City Transportation Commissioner
Leader’s Self-Insight
T–P Leadership Questionnaire: An Assessment of Style
Are You Ready?
Measuring Substitutes for Leadership
Leader’s Bookshelf
Summary and Interpretation
The most important point in this chapter is that situational variables affect leadership outcomes.
The contingency approaches were developed to systematically address the relationship between a
leader and the organization. The contingency approaches focus on how the components of
leadership style, subordinate characteristics, and situational elements impact one another.
Fiedler’s contingency model, Hersey and Blanchard’s situational theory, the path–goal theory,
the Vroom–Jago model, and the substitutes-for-leadership concept each examine how different
situations call for different styles of leadership behavior.
Your Leadership Challenge
After reading this chapter, you should be able to:
• Understand how leadership is often contingent on people and situations.
• Apply Hersey and Blanchard’s situational theory of leader style to the level of follower
readiness.
Key Terms and Concepts
Contingency: a theory meaning one thing depends on other things.
Fiedler’s contingency model: a model designed to diagnose whether a leader is task-oriented or
relationship–oriented and match leader style to the situation.
Path–goal theory: a contingency approach to leadership in which the leader’s responsibility is to
increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment
and rewards.
Introduction
Tim Cook, CEO of Apple, is a quiet, humble, thoughtful leader with a data-driven, analytical,
and detail-oriented approach. His predecessor, the late, legendary Steve Jobs, had a forceful,
This example points to what researchers of leader traits and behaviors eventually discovered—
many different leadership styles can be effective. What, then, determines the success of a
leadership style?
One factor that affects what leadership approach will be most effective is the situation in which
Annotated Lecture/Outline
Leadership Challenge #1: Understand how leadership is often contingent on people and
situations.
I. The Contingency Approach
The failure to find universal leader traits or behaviors that would always determine effective
leadership led researchers in a new direction. Although leader behavior was still examined, the
Exhibit 3.1: Comparing the Universalistic and Contingency Approaches to
Leadership
Contingency means that one thing depends on other things, and for a leader to be effective there
must be an appropriate fit between the leader’s behavior and style and the conditions of the
situation. A leadership style that works in one situation might not work in another situation.
The contingencies most important to leadership are the situation and followers. Research implies
that situational variables such as task, structure, context, and environment is important to
leadership style.
Exhibit 3.2: Meta-Categories of Leader Behavior and Four Leader Styles
Exhibit 3.2 illustrates the four possible behavior approaches:
• Low task-high relationship
New Leader Action Memo: Complete the questionnaire in Leader’s Self-Insight 3.1 to assess your
relative emphasis on two important categories of leafership behavior.
Discussion Question #2: Do you think leadership style is fixed and unchangeable, or can
leaders be flexible and adaptable with respect to style? Why?
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Leadership Challenge #2: Apply Hersey and Blanchard’s situational theory of leader style to
the level of follower readiness.
II. Hersey and Blanchard’s Situational Theory
The situational theory developed by Hersey and Blanchard focuses on the characteristics of
followers as the most important element of the situation and consequently of determining
A. Leader Style
According to the situational theory, a leader can adopt one of four leadership styles, based on
a combination of relationship (concern for people) and task (concern for production) behavior.
The appropriate style depends on the readiness level of followers.
Exhibit 3.3: The Situational Model of Leadership
Exhibit 3.3 summarizes the relationship between leader style and follower readiness. The four
leader styles are:
• Directing—this style reflects a high concern for tasks and a low concern for people and
relationships. The leader provides detailed objectives and explicit instructions about
how tasks should be accomplished. The leader provides detailed objectives and explicit
instructions about how tasks should be accomplished.
• Coaching—this style is based on a high concern for both relationships and tasks. The
leader both provides task instruction and personal support, explains decisions, and gives
B. Follower Readiness Contingency
The important contingency in Hersey and Blanchard’s situational theory is the follower’s
Low Readiness Contingency
When one or more followers exhibit very low levels of readiness, the leader has to use a
directing style, telling followers exactly what to do, directing them in how to do it, and
specifying timelines.
New Leader Action Memo: As a leader, you can tell followers how to perform their tasks if they
have few skills, little experience, or low self-confidence. If followers have a moderate degree of
skill and show enthusiasm and willingness to learn, provide direction but seek followers’ input
and explain your decisions.
Moderate Readiness Contingency
A coaching leadership style works well when followers lack some skills or experience for
the job but demonstrate confidence, ability, and willingness to learn. With a coaching style,
High Readiness Contingency
A supporting style can be effective when followers have the necessary education, skills,
and experience but might be insecure in their abilities and need some encouragement from
Very High Readiness Contingency
The entrusting style of leadership can be effectively used when followers have very high
New Leader Action Memo: As a leader, you can act as a resource to provide advice and guidance
when followers have a high level of skill, experience, and responsibility. Delegate responsibility for
decisions and their implementation to followers who have very high levels of skill and positive
attitudes.
In summary, the directing style works best for followers who demonstrate very low levels
of readiness to take responsibility for their own task behavior, the coaching style is
effective for followers with moderate readiness, the supporting style works well for
In the Lead: Janette Sadik-Khan, New York City Transportation Commissioner
Since being appointed transportation commissioner by Mayor Michael R. Bloomberg in 2007,
Janette Sadik-Khan has earned international acclaim for transforming the congested streets of
New York City by directing the installation of more than 250 miles of bicycle lanes, the creation
In the Hersey–Blanchard model, leaders can tailor their approach to individual
subordinates. If one follower is at a low level of readiness, the leader must be very specific,
New Leader Action Memo: Answer the questions in Leader’s Self– Insight 3.2 to determine
your own readiness level and the style of leadership that would be most appropriate for you as a
follower.
Discussion Question #5: If you were a first-level supervisor of a team of telemarketers, how
would you go about assessing the readiness level of your subordinates? Do you think most
leaders are able to easily shift their leadership style to suit the readiness level of followers?
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Leadership Challenge #3: Apply Fiedler’s contingency model to key relationships among
leader style, situational favorability, and group task performance.
III. Fiedler’s Contingency Model
Fiedler and his associates developed a model that takes not only followers but other elements of
the situation into consideration. Although the model is somewhat complicated, the basic idea is
A. Leadership Style
The cornerstone of Fiedler’s theory is the extent to which the leader’s style is relationship-
oriented or task-oriented.
A relationship-oriented leader:
• Is concerned with people
A task-oriented leader:
• Is primarily motivated by task accomplishment
Leadership style was measured with a questionnaire known as the least preferred coworker
(LPC) scale. The LPC scale has a set of 16 bipolar adjectives along an eight-point scale. The
B. Situation
Fiedler’s model presents the leadership situation in terms of three key elements that can be
either favorable or unfavorable to a leader:
• Leader-member relations—this refers to group atmosphere and members’ attitudes
toward and acceptance of the leader. When subordinates trust, respect, and have
confidence in the leader, leader–member relations are considered good
Exhibit 3.4: Fiedler’s Classification: How Leader Style Fits the Situation
Combining the three situational characteristics yield a list of eight leadership situations
C. Contingency Theory
Task-oriented leaders are more effective when the situation is either highly favorable or
highly unfavorable. Relationship-oriented leaders are more effective in situations of moderate
favorability.
In the Lead: Sergio Marchionne, Chrysler Group LLC
The fate of the smallest of the Big Three U.S. automakers rests in the hands of Italian-born
Sergio Marchionne, who rescued Fiat from the brink of collapse a few years ago with his close
attention to detail. Marchionne is a strong task-oriented leader.
Marchionne came into a highly unfavorable situation at Chrysler. Like General Motors,
Chrysler had to be rescued by a federal bailout several years ago, and Marchionne took charge
just after the company emerged from bankruptcy and Fiat assumed part ownership. Sales were
The relationship-oriented leader performs better in situations of intermediate favorability
because human relations skills are important in achieving high group performance. In these
A leader, then, needs to know two things in order to use Fiedler’s contingency theory:
• The leader should know whether he or she has a relationship- or task-oriented style.
New Leader Action Memo: As a leader, you can effectively use a task-oriented style when the
organizational situation is either highly unfavorable or highly favorable to you as a leader. Use
a relationship-oriented style in situations of intermediate favorability because human relations
skills can create a positive atmosphere.
Discussion Question #1: Consider Fiedler’s theory as illustrated in Exhibit 3.4. How often do
you think very favorable, intermediate, or very unfavorable situations occur to leaders in real
life? Discuss.
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Many studies have been conducted to test Fiedler’s model, and the research in general
provides some support for the model. However, Fiedler’s model has also been criticized.
Using the LPC score as a measure of relationship- or task-oriented behavior seems simplistic
to some researchers, and the weights used to determine situation favorability seem to have
Leadership Challenge #4: Explain the path-goal theory of leadership.
IV. Path-Goal Theory
Exhibit 3.5: Leader Roles in the Path–Goal Model
According to the path-goal theory, the leader’s responsibility is to increase subordinates’
motivation to attain personal and organizational goals. The leader increases follower motivation
by either:
• Clarifying the follower’s path to the rewards that are available
• Increasing the rewards that the follower values and desires
A. Leader Behavior
New Leader Action Memo: As a leader, you can increase follower motivation, satisfaction and
performance by adopting a leadership behavior that will clarify the follower’s path to receiving
available rewards or increase the availability of rewards the follower desires.
The path-goal theory suggests a fourfold classification of leader behaviors:
• Supportive leadership shows concern for subordinates’ well-being and personal needs.
Leadership behavior is open, friendly, and approachable, and the leader creates a team
climate and treats subordinates as equals
• Directive leadership tells subordinates exactly what they are supposed to do. Leader
behavior includes planning, making schedules, setting performance goals and behavior
In the Lead Alan Robbins, Plastic Lumber Company
Alan Robbins started Plastic Lumber Company because he saw a way to both help the planet and
make money by converting plastic milk and soda bottles into fake lumber. He also had definite
ideas about how to run a company. Robbins wanted to be both a boss and a friend to his
employees. His leadership style stressed teamwork and participation, and Robbins spent a lot of
time running ideas by workers on the factory floor. However, he soon learned that most of his
low-skilled workers didn’t really want a chance to participate; they just wanted clear direction
and consistent standards so that people knew what was expected of them.
Consider This!
The phrase “too much of a good thing” is relevant in leadership. Behavior that becomes
overbearing can be a disadvantage by ultimately resulting in the opposite of what the individual
is hoping to achieve.
Polarities
All behavior consists of opposites or polarities. Any over-determined behavior produces its
opposite:
• An obsession with living suggests worry about dying.
• True simplicity is not easy.
B. Situational Contingencies
The two important situational contingencies in the path-goal theory are:
• Personal characteristics of group members—these are similar to Hersey and Blanchard’s
readiness level and include such factors as ability, skills, needs, and motivations. For
example, if a subordinate is self-centered, the leader may use monetary rewards to
motivate him or her.
• Work environment—these include the degree of task structure, the nature of the formal
authority system, and the work group itself.
o The task structure includes the extent to which tasks are defined and have explicit
C. Use of Rewards
The leader’s responsibility is to clarify the path to rewards for followers or to increase the
amount or type of rewards to enhance satisfaction and job performance. In some situations,
Exhibit 3.6: Path–Goal Situations and Preferred Leader Behaviors
Exhibit 3.6 illustrates four examples of how leadership behavior is tailored to the situation:
• Situation 1—the subordinate lacks confidence; thus, the supportive leadership style
provides the social support with which to encourage the subordinate to undertake the
Discussion Question #4: Compare Fiedler’s contingency model with the path-goal theory. What
are the similarities and differences? Which do you prefer?
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Discussion Question #6: Think back to teachers you have had, and identify one each who fits a
supportive style, directive style, participative style, and achievement-oriented style according to
the path-goal theory. Which style did you find most effective? Why?
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Leadership Challenge #5: Use the Vroom-Jago model to identify the correct amount of
follower participation in specific decision situations.
V. The Vroom-Jago Contingency Model
The Vroom-Jago contingency model focuses specifically on varying degrees of participative
leadership and how each level of participation influences quality and accountability of decisions.
A number of situational factors shape the likelihood that either a participative or autocratic
A. Leader Participation Styles
Exhibit 3.7: Five Leader Decision Styles
The model employs five levels of subordinate participation in decision making, ranging from
highly autocratic (leader decides alone) to highly democratic (leader delegates to group):
• Decide—the leader makes the decisions alone
• Consult individually—the leader presents the problem to subordinates individually for
their suggestions and then makes the decision
B. Diagnostic Questions
The appropriate degree of decision participation depends on situational factors. Leaders can
analyze the appropriate degree of participation by answering seven diagnostic questions:
• Decision significance—how significant is this decision for the project or organization?
If the decision is highly important and a high-quality decision is needed for the success
of the project or organization, the leader has to be actively involved.
• Importance of commitment—how important is subordinate commitment to carrying out
the decision? If implementation requires a high level of commitment to the decision,
leaders should involve subordinates in the decision process.
making can be delegated to them.
C. Selecting a Decision Style
Further development of the Vroom–Jago model added concern for time constraints and
concern for follower development as explicit criteria for determining the level of
participation. That is, a leader considers the relative importance of time versus follower
development in selecting a decision style. This led to the development of two decision
matrixes:
• A time-based model to be used if time is critical, for example if the organization is
Exhibit 3.8: Timesaving-Based Model for Determining an Appropriate
Decision-Making Style—Group Problems
The leader enters the matrix at Problem Statement. The matrix acts as a funnel as one moves
Exhibit 3.9: Employee Development-Based Model for Determining an
Appropriate Decision-Making Style—Group Problems
New Leader Action Memo: As a leader, you can use the Vroom-Jago model to determine the
appropriate amount of follower participation to use in making a decision. You can follow the time-
based guidelines when time is of the essence, but use development-based guidelines when cultivating
followers’ decision–making skills is also important.
The timesaving-driven model takes the leader to the first decision style that preserves decision
quality and follower acceptance, whereas the employee development-driven takes other
considerations into account. It takes less time to make an autocratic decision (Decide) than to
involve subordinates by using a Facilitate or Delegate style.
In the Lead: Art Weinstein, Whitlock Manufacturing
When Whitlock Manufacturing won a contract from a large auto manufacturer to produce an
engine to power its flagship sports car, Art Weinstein was thrilled to be selected as project
manager. The engine, of Japanese design and extremely complex, has gotten rave reviews in the
automotive press. This project has dramatically enhanced the reputation of Whitlock
Manufacturing, which was previously known primarily as a producer of outboard engines for
marine use.
Weinstein and his team of engineers have taken great pride in their work on the project, but their
excitement was dashed by a recent report of serious engine problems in cars delivered to
customers. Fourteen owners of cars produced during the first month had experienced engine
seizures. Taking quick action, the auto manufacturer suspended sales of the sports car, halted
Discussion Question #7: Do you think leaders should decide on a participative style based on
the most efficient way to reach the decision? Should leaders let people participate for other
reasons?
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Leadership Challenge #6: Know how to use the power of situational variables to substitute for
or neutralize the need for leadership.
VI. Substitutes for Leadership
This contingency approach suggests that situational variables can be so powerful that they
Exhibit 3.10: Substitutes and Neutralizers for Leadership
A substitute for leadership makes the leadership style unnecessary or redundant. For example,
highly educated, professional subordinates who know how to do their tasks do not need a leader
who initiates structure for them and tells them what to do. In addition, long-term education often
Discussion Question #3: Consider the leadership position of the managing partner in a law
firm. What task, subordinate, and organizational factors might serve as substitutes for leadership
in this situation?
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In the Lead: Daniel Snyder, Washington Redskins
For many of Daniel Snyder’s 14 years as owner of the Washington Redskins, he had a reputation
as a meddlesome, overbearing boss who got in the way of people doing their jobs. He got
involved in every detail of the team, even making big decisions on player acquisition himself.
Unlike a substitute, a neutralizer counteracts the leadership style and prevents the leader from
displaying certain behaviors. For example, if a leader is physically removed from subordinates,
the leader’s ability to give directions to subordinates is greatly reduced.
New Leader Action Memo: As a leader, you can avoid leadership overkill. Adopt a style that is
complementary to the organizational situation to ensure that both task needs and people needs
are met.
Situational variables include:
• Characteristics of the followers
New Leader Action Memo: You can measure how the task characteristics of your job or a job
you’ve held in the past might act as substitutes for leadership by answering the questions in Leader’s
Self–Insight 3.3.
When a task is highly structured and routine, like auditing cash, the leader should provide
personal consideration and support that is not provided by the task. Satisfied people don’t need
New Leader Action Memo: As a leader, you can use a people-oriented style when tasks are highly
structured and followers are bound by formal rules and procedures. You can adopt a task-oriented
style if group cohesiveness and followers’ intrinsic job satisfaction meet their social and emotional
needs.