Question

Why is it important to analyze leadership styles from the point of view of contingency (Situational)?

Answer 1

The markets are highly volatile, and changes that the organization makes to cope with market situations may affect stability. Stability and normalcy of business operations may also be affected by internal factors, including positioning of the business leader and powers associated with the position, task structure, and the leader-follower relationship (for instance after the restructuring of business hierarchy and model). Because multiple factors may exert an effect on businesses, it is important to analyze the leadership styles for situational changes and contingencies.

The “Theory of Contingency” (developed by Fred Fiedler) states that the effectiveness of the leadership style of a leader depends (is contingent) upon how well his/her leadership style matches the situation in hand. Hence it becomes important for the leaders to know the best leadership for a given situation, as there may be no single best leadership style and all may have their own merits and demerits for a given situation. The theory also puts forward a score called the LPC (Least Preferred Coworker) scale to measure the leadership style. People are asked about the least preferred coworkers, and whether they would enjoy working with them. Those people who can work with people whom they dislike have the highest LPC scores. when the situation is favorable or troubles in areas including task structure, position power, and leader-subordinate relations are at their medium or balanced levels. People with high LPC scores are more likely to succeed. In other unfavorable situations, people with low LPC scores are likely to succeed more.

Another theory that applies to situational changes and contingencies is the Situational Leadership Theory (by Kenneth Blanchard and Paul Hersey). According to the theory, leaders should consider the development levels of their co-workers and use and choose a leadership style following it. Employees at initial development stages (or the fresh joiners) have the highest commitment to leaders. The leader should be more directive and provide less support to these employees. After the employees get more experience and are competent, leaders should assume supportive behaviors with them, like coaching’. Tasks can also be delegated to the most competent employees.

The Path-Goal Theory identifies 4 different leadership styles. Directive leadership is good at providing direction to the employees, setting schedules, and defining the roles and expectations. Supportive leaders care for their followers more and provide emotional support. Participative leaders ensure that the employees are more involved in important tasks like decision making. Lastly, the achievement-oriented leaders set the goals for the business and employees, and facilitate and encourage the workforce for obtaining these goals.

As we can see, different theories point out the traits of the leaders and how they handle employees. Because the personality and competence of the employees vary, and because other conditions associated with business operations also change, the leaders need to know which leadership style may suit employee-leader relationship and/or situation better, as it would improve the probability of achieving success.