What is the Contingency Theory?

The Contingency Theory of Leadership states that a leader’s effectiveness is contingent upon
with how his or her leadership style matches to the situation (Leadership Theories). That is, the
leader must find out what kind of leadership style and situation he or she thrives in. The
Contingency Theory is concerned with the following:
• “There is no one best style of leadership” (Fiedler’s Contingency Model)
• A leader is effective when his or her style of leadership fits with the situation (Fiedler’s
Contingency Model)
History of Contingency Theories
The Contingency Theory of leadership was developed by Fred Fiedler in 1958 during his
research of leader effectiveness in group situations. Fiedler believed that one’s effectiveness to
lead depended on one’s control of the situation and the style of leadership. Unlike the Situational
Theory of leadership, leader effectiveness is contingent on the leader’s style matching the
situation, not adapting to it. This theory assumes that styles are fixed, and that they cannot be
adapted or modified (Gupta, 2009). A leader is most effective when his or her attributes and style
of leadership is matched with the situation and environment around them (Gupta, 2009).

How Fiedler’s Contingency Theory Works

The Contingency theory is not concerned with having the leader adapt to a situation, rather the
goal is to match the leader’s style with a compatible situation (Gupta, 2009). To make best use of
this theory, it is important to find what style a leader has (Gupta, 2009). This is done through
the Least Preferred Coworker Scale (LPC) (Gupta, 2009).
The LPC is a list of questions designed to find out what kind of employee a leader would most
like to work with, and in turn shows the leaders style (Gupta, 2009). Fiedler’s Contingency
Model attempts to match the leader’s style using LPC to the situation in which they would thrive
(Gupta, 2009).

• High LPC Score– leader with good personal skills and relies on relationships with others to
accomplish tasks (Fiedler’s); people-oriented
• Low LPC Score– leader that accomplishes goals through focus on the task and positional
power (Fiedler’s); task-oriented
 Task-oriented leaders are most effective when their positional power is high, as well as the task
structure (Gupta, 2009). People or relation-oriented leaders perform their best when the
relationship levels between themselves and followers are at their greatest (Gupta, 2009). After
finding the style of the leader, Fiedler’s Model states that finding the best situation for the leader,
also known as “situational favorableness” (Fiedler’s Contingency Model).
A situation is defined by three factors in the contingency theory:

1. Leader-Member Relation- how the leader interacts with employees (Gupta, 2009).
2. Task Structure- how tasks are set up by the leader (Gupta, 2009).
3. Positional Power- the amount of power a leader has over followers (Gupta, 2009).
These three factors combine to form the situation in which a leader’s style is effective or
ineffective. If the three factors match up to the style of the leader, success is projected (Gupta,
2009). It is important to remember that the opposite can happen as well. If a leader is put into a
situation opposite of his or her favored task structure, member relation, and level of power, then
failure is to ensue (Gupta, 2009). The three factors of contingency situation have less of an
impact on leaders who are task-oriented, or score low LPC’s, than leaders who are people-
oriented and score high LPC’s (Fiedler’s). By using the results from the LPC to find a person’s
leadership style, and analyzing their preferred leader-member relation, task structure, and
positional power, finding the right job or position for someone can be more accurately
accomplished (Fiedler’s Contingency Model).
What Is the Hersey-Blanchard Model?
The Hersey-Blanchard Model suggests that there is no single leadership style that is better than
another. Instead of focusing on workplace factors, the model suggests leaders adjust their styles
to the followers and their abilities.

Under the model, successful leadership is both task-relevant and relationship-relevant. It is an

adaptive, flexible style, whereby leaders are encouraged to consider their followers—individuals
or a team—then consider the factors that affect the work environment before choosing how they
will lead. This ensures they will meet their goals.

Because the Hersey-Blanchard model depends on a leader's decision-making skills, it uses an

individualistic rather than a group approach.

The Hersey-Blanchard Model is also referred to as the Situational Leadership Model or Theory.

Understanding the Hersey-Blanchard Model

The Hersey-Blanchard Model, or situational leadership, was developed by author Paul Hersey,
and leadership expert Ken Blanchard, author of "The One Minute Manager." The model is not a
static leadership style. Instead, it is flexible, wherein the manager adapts management style to
various factors in the workplace including his or her relationship with other employees.

That means managers who live by the model must choose the leadership style as it relates to the
maturity of followers. For example, if follower maturity is high, the model suggests the leader
provide minimal guidance. By contrast, if follower maturity is low, the manager may need to
provide explicit directions and supervise work closely in order to ensure the group has clarity on
their goals and how they are expected to achieve them.

The maturity level of followers is divided into three categories: high, moderate, and low. High
maturity includes highly capable and confident individuals who are experienced and work well
on their own. Moderate maturity is generally divided into two groups—the first are employees
who are capable, but lack enough confidence to take on the responsibility to do so, and the
second has the confidence but is not willing to do the task at hand. Low maturity employees are
not skilled enough to do the task but are very enthusiastic.

Special Considerations
Hersey-Blanchard Model and Leadership Styles
Hersey and Blanchard came up with four different types of leadership styles based on the task
and relationships that leaders experience in the workplace. According to the model, the following
are styles of leadership managers can use:

• Delegating style: A low-task, low-relationship style wherein the leader allows the group
to take responsibility for task decisions. This is best used with high maturity followers.
• Participating style: A low-task, high-relationship style that emphasizes shared ideas and
decisions. Managers using the participating style tend to use it with moderate followers
who are not only experienced but with those who aren't as confident to do the tasks
assigned.
• Selling style: Refers to a high-task, high-relationship style, in which the leader attempts
to sell his ideas to the group by explaining task directions in a persuasive manner. This,
too, is used with moderate followers. Unlike the previous style, these followers have the
ability but are unwilling to do the job.
• Telling style: Refers a high-task, low-relationship style wherein the leader gives explicit
directions and supervises work closely. This style is geared toward low maturity
followers.

KEY TAKEAWAYS

• The Hersey-Blanchard Model suggests no leadership style is better than another.

• The model suggests managers adapt their leadership style to tasks and relationships in the
workplace.
• The model's leadership styles are related directly to the different maturity categories of
followers or employees.
Applying the Model and Its Limitations
This leadership method lets executives, managers, and other positions of authority take charge of
their followers based on the acumen, understanding, and context of the group. By taking into
consideration how the strengths, weaknesses, and awareness of the followers can affect
their performance and the outcomes of the project, leaders can apply an appropriate structure and
degree of control to achieve the desired result.

There are limitations to the model that may be beyond the leader’s control. The position and
authority of the leader may be restricted by the operational chain-of-command or hierarchy for
an organization, which could force them to adopt rigid styles rather than adapt to follower
maturity. Furthermore, time constraints, a narrow field of options, and limits on available assets
can also force managers to act based on the circumstances they face, eliminating the possibility
of enacting strategies built around follower maturity.

Advantages and Disadvantages of the Hersey-Blanchard Model

Although this leadership model may be sound, in theory, it may not necessarily be applicable in
every situation. So, it comes with advantages and disadvantages.

Some of the advantages of using an adaptive leadership style are that leaders can change their
style at their own discretion at any time. Secondly, employees may find a leader who adapts to
shifting changes in the workforce as a desirable trait. It is also a simple and easy-to-apply
leadership style, meaning a manager can quickly evaluate a situation and make decisions as he or
she sees fit.

On the downside, situational leadership may put too much responsibility on the manager, whose
decisions may be flawed. The model may not also be applicable to different cultures. The model
may also prioritize relationships and tasks, as opposed to a company's long-term goals.