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Chapter 5: Contingency Leadership Theories. This presentation created by: MANAGEMENT TRAINING SPECIALISTS 5320-D Camp Bowie Blvd / Fort Worth, Texas 76107 / 817 737-2893 e-mail: And Extensively Adapted by Jeffrey M. Wachtel, Ph. D. 5-1. Chapter 5 Learning Objectives.

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Chapter 5: Contingency Leadership Theories

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    1. Chapter 5: ContingencyLeadershipTheories This presentation created by: MANAGEMENT TRAININGSPECIALISTS 5320-D Camp Bowie Blvd / Fort Worth, Texas 76107 / 817 737-2893 e-mail: And Extensively Adapted by Jeffrey M. Wachtel, Ph. D. 5-1

    2. Chapter 5 Learning Objectives • Differences between behavioral and contingency leadership theories. • Contingency leadership variables and styles. • Leadership models: • Contingency —Prescriptive • Leadership continuum — Descriptive • Path-goal — Substitutes • Normative — Situational 5-2 5-2

    3. Carly Fiorina • Fiorina is the only female CEO heading a major Silicon Valley company, and only one of four female chief executives among the Fortune 500. But she's not just any woman. Fortune Magazine says she's the "most powerful woman in business." • "Fiorina whips H-P into fighting shape," with strong leadership and sound decision making, changing HP's culture...streamlining operations...and cutting costs." –Jon Swatz, USA Today

    4. Contingency Leadership Theories: “It Depends” • explain that the appropriate leadership style based on the (1) leader, (2) followers, and (3) situation. • If managers can properly diagnose a situation and followers so that they can then use the appropriate leadership style, successful outcomes are highly likely. • “Leadership is largely shaped by contextual factors”

    5. Global Contingency Leadership • Global companies, like McDonald’s realize that successful leadership styles can vary greatly from place to place. • “Companies are now looking for graduates with an international openness and flexibility who can master the complexity of the global economy.”

    6. Global Contingency Leadership: Professor William Ouchi’s Findings: Theory Z • observed that Japanese firms were managed and led differently than U.S. organizations. • 7 Differences…Japanese found to have: longer employment, collective decision making, collective responsibility, slower promotion, more implicit controls, more unspecialized career paths, and more holistic concern for employees.

    7. Contingency Leadership Framework Variables Followers Capability Motivation Leader Personality traits Behavior Experience Situation Task Structure Environment 5-3

    8. Contingency Leadership Model: Fiedler • Is a leader’s style more task or relationship oriented? Does the situation match the leader’s style? If so it will maximize performance. 5-4

    9. The Contingency Leadership Model Variables Within The Contingency Leadership Framework Leader Situation Task Structure Position Power Leader/Follower Relations* Followers Leader / Member Relations* Situation Task Structure Position Power Leadership Styles Task Relationship 5-5

    10. Leader-member Relations, #1 Task structure, #2 Position power, #3 3 Variables of Situational Favorableness. 5-6

    11. Situational Favorableness • Leader-member relations—good or poor? • Task structure—repetitive or non-repetitive? • Position power—strong or weak?

    12. Fiedler’s Recommendations: Change the Situation to Fit Your Style • How to change the situation: • Analyze each variable and then either: • Improve relations, • Create or lessen task structure by either stating more or less specific standards, • Downplay position power or get more and act more powerful.

    13. Form Small Groups: Analyze This Class From The Leader’s Standpoint • What is the situation? (This is probably similar for most classes). • What is the leader’s predominant style? This may be a tricky question? • Should the leader change one of the situational variables? If so, which one?

    14. The Leadership Continuum Model Used to determine which one of seven styles to select based on one’s use of boss-centered versus subordinate centered leadership to meet the situation. 5-7

    15. Tannenbaum and Schmidt’s Leadership Continuum Model Autocratic Participative 1. Leader makes decision and announces it to employees without discussion. 2. Leader makes a decision and sells it to employees. 7. Leader permits employees to make ongoing decisions within defined limits. 5. Leader presents problem, gets suggestions, and makes decision. 3. Leader presents ideas and invites employee questions. 4. Leader presents tentative decision subject to change. 6. Leader defines limits and asks employees to make a decision. 5-8

    16. COMPARATIVE ANALYSIS OF THE 4 SYSTEMS • 1. In a few words, describe each of the four systems: • System 1 • System 2 • System 3 • System 4

    17. Case Study Small Group Exercise

    18. The Situational Leadership Model Variables Within The Contingency Leadership Framework Variables Leader None Followers Follower Maturity Situation Task Telling Selling Participating Delegating L’Ship Styles 5-11

    19. Readiness of Followers Behavior of Leaders Unable and Unwilling Clear, Specific Directions Unable and Willing High Task Orientation Able and Unwilling Support & Participation Able and Willing Let Followers Perform Situational Leadership Theory

    20. House Path-Goal Leadership Model Leadership Styles Directive Supportive Participative Achievement-oriented • Situational • Factors • Subordinate • authoritative • locus of control • ability • Environment • task structure • formal     authority • work group Goal Achievement Performance Satisfaction 5-10

    21. 4 5 2 1 3 Leader Participation Model Employee Involvement Continuum Increased Leader Control Increased Employee Involvement

    22. Contingency Variables in the Revised Leader-Participation Model • Importance of the decision • Importance of subordinate commitment • Whether leader has enough information • The structural nature of the problem • Acceptability of autocratic decisions • Commitment of subordinates to the organization

    23. Contingency Variables in the Revised Leader-Participation Model • Subordinates’ opinions about alternatives • Knowledge level of subordinates • Time constraints on involvement of subordinates • Cost of arranging for subordinates to meet • Time constraints on making a decision • Importance of participation

    24. Subordinate A Subordinate B Subordinate C Subordinate D Subordinate E Subordinate F In-Group Out-Group Leader-Member Exchange Model Personal Compatibility and/or Subordinate Competence Leader Formal Relations High Interactions Trust

    25. Substitute for Leadership Variables Within the Contingency Leadership Framework Variables Followers Subordinates Leader None Situation Task Organization 5-12

    26. Substitutes and Neutralizers for Leadership Defining Characteristics Relationship- Oriented Leadership Task- Oriented Leadership • Individual • Experience/training • Professionalism • Indifference to rewards • No effect • Substitutes • Neutralizes • Substitutes • Substitutes • Neutralizes • Job • Highly structured task • Provides own feedback • Intrinsically satisfying • Substitutes • Substitutes • No effect • No effect • No effect • Substitutes • Organization • Explicit formal goals • Rigid rules & procedures • Cohesive work groups • No effect • No effect • Substitutes • Substitutes • Substitutes • Substitutes