The Contingency Theory of Leadership (Easily Explained!)

What Is the Contingency Theory of Leadership?

The contingency approach to leadership centres around the idea that to be effective in their role, a leader’s style must be appropriate to the situation to be effective in their role.

If a leader only has one strategy up their sleeve, they will be very effective in some cases and entirely ineffective in others. The contingency theory provides a potential solution to this problem.

Practising the contingency leadership style involves examining the situation first, then adjusting your response as a leader according to that context (or changing the person in charge of leading to best suit the situation).

Being flexible in your approach is something that we cover in our Management Training Courses, Team Leader Training and Supervisory Courses.

Different Contingency Theories or Models of Leadership

A few different versions of the contingency leadership model exist. The following are some of the variations you may utilise as a manager or team leader:

Fiedler Model

The Fiedler Model is a two-step approach. First, the leader must evaluate their own leadership style. Then, they must consider three key factors — all of which contribute to “situational favourableness” — to be successful.

The Fiedler Model is unique because it also states that leadership styles are fixed. If someone’s leadership style does not fit a situation, that person must be replaced by someone else who practises a different approach.

Leadership Style

To identify your leadership style, you must first identify the co-worker you enjoy working with the least. Then, rate that co-worker based on a series of adjectives laid out in the Least Preferred Coworker (LPC) scale.

If you rate your LPC highly, you’re a relationship-oriented leader. You see the best in people, even those you don’t particularly like.

If you rate your LPC less favourably, you’re a task-oriented leader. You struggle to see certain people’s contributions because you value efficiency and effectiveness over other vital attributes.

Situational Favourableness

The next step is evaluating the favourableness of various situations. The favourability varies based on your influence and power as a team leader.

Determine favourableness based on the following:

• Leader-member relations: Does your team trust you? High levels of trust equal increased favourability.
• Task structure: How clear is the task? High levels of clarity equal increased favourableness.
• Position power: How much authority do you have over your team? You have a high level of authority if you can administer rewards or punishments. The higher the position power, the more favourable the situation.

After you have evaluated the situation’s favourableness, you can decide if you’re the right fit to lead.

Task-oriented leaders typically do the best work in highly favourable and highly unfavourable situations. Relationship-oriented leaders usually do the best work in moderately favourable situations.

Situational Leadership Model

Sometimes referred to as the Situational Contingency Theory of Leadership or the Hersey-Blanchard model, the Situational Leadership model says that leaders must adapt their leadership style to best fit team members and their unique abilities.

Unlike the Fiedler Model, which states that leadership styles are fixed, the Situational Leadership Model states that leadership styles can and should change.

The primary focus of this model is team member maturity.

High-maturity employees have more experience and can make decisions on their own.

Moderately mature employees have the capability to make good decisions, but they may lack confidence. On the flip side, they may also be confident but unwilling to complete tasks that have been assigned to them.

Low-maturity employees are enthusiastic and willing to get things done, but they also lack the needed skills or experience.

The Situational Leadership model also posits that leaders should choose between four leadership styles based on their employees’ maturity:

Delegating style

When using the delegating style, leaders allow team members to be responsible for specific tasks to lead smaller groups. This approach works best for high-maturity employees.

Participating style

When using this style, leaders encourage team members to share ideas and decisions. This approach works well for moderately mature team members who need help building confidence or further developing their skills.

Selling style

The selling style requires a leader to sell team members on an idea with clear and persuasive instructions. This approach is helpful for moderately mature team members — specifically those with confidence but an unwillingness to complete tasks.

Telling style

The telling style involves explicit directions and close supervision. It works best for low-maturity employees who are willing but lack the skills to act independently.

Path-Goal Model

The Path-Goal model involves identifying processes or paths that set team members up to meet individual objectives or goals.

Leaders who practise this approach adjust their behaviours and expectations to encourage maximum productivity. They must be very flexible and willing to meet each team member’s needs.

Those who practise the Path-Goal model will alternate between these four leadership approaches:

Directive Clarifying Leader

The leader tells employees what’s expected of them and tells them how to perform certain tasks. This approach is the most effective when an employee’s role is unstructured, or the task is ambiguous.

Achievement-Oriented Leader

The leader sets ambitious goals for employees, expects a high level of performance, and has complete confidence in them and their abilities. This approach works well in environments that attract high-achieving employees (hospitals, labs, law firms, etc.).

Participative Leader

The leader consults with their employees and asks for their input before making decisions. This approach works well in environments where employees are personally invested in their work and outcomes.

Supportive Leader

The leader is as concerned with employees’ mental health and well-being as they are with productivity and results. This approach works well in stressful or mentally challenging environments.

Decision-Making Model

The Decision-Making model is also known as the Vroom-Yetton contingency model or the Normative Decision Theory. It’s centred around the idea that decision-making is a crucial component of effective leadership and determines the relationship between the leader and their employees.

Leaders who practise the Decision-Making model demonstrate one of these five leadership styles:

Autocratic (A1)
Leaders believe they have all the information needed to make good decisions. They don’t need any input from their team.

Autocratic (A2)
Leaders consult with their team as a group and then make the final decision alone.

Consultative (C1)
Leaders consult with their team members individually, consider everyone’s view, and then make the final decision alone.

Consultative (C2)
Leaders consult at a broader level with team-wide meetings and then make the final decision alone.

Collaborative (G2)
Leaders care about reaching a consensus. They organise meetings to discuss the situation and ask every team member for their opinion. Then, everyone makes the final decision together by voting.

How Do Contingency Theories Work?

The various contingency leadership models mentioned above all centre around the idea that the best leaders are adaptable. They understand that their effectiveness is contingent upon their ability to read the room and adjust their approach based on numerous factors, including the following:

• Team members’ maturity levels
• The relationship status between the leader and the team members (is it positive or negative?)
• The clarity of the task
• The amount of personal power the leader possesses
• Organisational culture
• Amount of time available to complete a given task

Below are some additional elements to keep in mind when considering utilising the contingency theory of leadership:

Importance of Contingency Theory in Leadership

The contingency theory of leadership provides a lot of value to managers and team leaders because it encourages them to be realistic. It prompts them to evaluate situations and see team members as unique individuals rather than trying to implement a one-size-fits-all approach.

Contingency thinking also allows for more creativity and flexibility in the workplace. Leaders and managers can adjust their approach based on each situation and the capabilities or experience level of their team. These adjustments create opportunities for them to think outside of the box and find new solutions.