Leadership has a lot of meaning for everyone, but a leader is virtuous for anyone with a fraction of semblance. Over the years, several theories have governed how leadership as a discipline is seen. Out of those, the contingency theory of leadership stands out the most.
Whereas the other theories suggest a generic method of addressing problems, this theory asserts that a leader’s effectiveness is contingent upon the way a leader’s style handles a specific situation. If I may put it that way, the interplay between the style and the demands of the problem.
The following sections will explore the core concept, elements, and application of contingency theory. Let’s begin!
What is the Contingency Theory of Leadership?
Primarily developed by Fred Fiedler in the 1960s, the contingency theory of leadership states that there is no “one-method-fits-all” way to lead. However, the effectiveness of a leader on how well the leadership style matches the situation they are in.
The situation may be a context where the work environment, nature of a task, or characteristics of team members play a role. As per the founder of this theory, the classification of leadership styles can be in two ways:
- Relationship-based
- Task-based
Relationship-based leaders focus on building strong interpersonal relationships and prioritizing supporting their team members. They also focus on creating a positive environment that is feasible for work.
On the other hand, task-oriented or task-based leaders are focused on organizing work, achieving goals, and ensuring task completion. The leader’s effectiveness is unrelated to whether they have innate skills to lead people. It is dependent on those skills’ alignment with what the situation demands.
This approach to detach the leadership skills from the leader’s effectiveness requires these:
- The ability of the leader to assess a situation effectively
- Adaptable nature of the leader/flexibility in their leadership
- Decision-making on the application of the most accurate leadership style for success
This is what defines the core concept of the contingency theory of leadership. Let’s have a look at the different elements of the theory.
Key Elements of the Contingency Theory of Leadership
Here are the critical aspects of the contingency theory that are necessary to understand it. Check it out:
1. Leadership Style
A leader’s leadership style is essential to the contingency theory as it defines how they will interact with their team in each situation. How does the leader make decisions upon addressing a problem, and how do they drive the organizational goals?
As per the theory, different situations will need different leadership styles that cannot be satisfied with a single style. For instance, an authoritative leadership style will be most appropriate in a high-pressure situation.
In such a situation, quick decisions are crucial to the organization, which is what the leadership style will provide. This is because the style includes giving clear directives and making independent decisions.
2. Situational Factors
The effectiveness of the leadership style of a leader is contingent upon situational factors such as:
- Task structure: The degree to which the tasks are structured and defined. Letting it be unambiguous.
- Position power: The leader’s authority over rewarding and punishing a team member/s.
- Leader-member relationship: How much respect, confidence, and trust the team members have in their leader defines this variable.
These factors/variables are essential to determine the context for choosing a leadership style. This is necessary as it influences the effectiveness of the leadership style that will be exercised.
3. Adaptability
One of the strengths of this theory is the emphasis on the leader’s adaptability. Leaders should possess a wide range of leadership skills that will surely be helpful. However, out of them, adaptability should be one of those, too.
Leaders must be flexible enough to adjust their leadership style per the situation’s demands. For example, this situation is helpful when choosing between transactional and transformational leadership.
When a team is highly motivated and skilled, a transformational leadership style will help encourage personal development and innovation. However, in a situation where close supervision of your team and precise guidance are necessary, transactional leadership is the answer.
The latter focuses on correcting deviations and rewarding performance, which best suits the second situation.
How to Apply the Contingency Theory of Leadership in Practice
The application of the contingency theory of leadership is accessible through the following steps:
Assess the Situation
The first step in applying this theory in practice is assessing a situation. When you, as a leader, are in a problem, you are responsible for evaluating the situation. It would help if You analyzed the characteristics of the team and your leadership style.
This requires situational analysis and strong self-awareness to help determine how to go about leadership appropriately. For instance, a leader in a corporate leadership position might adopt different leadership styles for other projects.
This is when they have a diverse, large team. The choice of style will be directly dependent on the challenges they face.
Development of Leadership Skills
The effectiveness of the contingency theory requires leaders to develop a broad set of leadership skills. These include inspiring and motivating others, communicating clearly, and making decisions. They also should be able to create strong relationships.
Understanding how to develop leadership skills is essential because it allows you to adapt to the situation. Another effective way to enhance these skills is through team-building activities for work.
These activities will help you build trust, foster a collaborative environment, and improve communication within your team. This is essential for adopting leadership styles that help meet the team’s needs.
Choose the Right Leadership Style
The next step is to select the leadership style that best suits your and your team’s situation. For instance, if your team requires a little supervision, you may choose transformational leadership. This is due to the autonomy, creativity, and personal development that this style encourages.
However, if your team lacks experience, you should choose a transactional leadership style to emphasize clear expectations and reward performance.
What happens when this theory is put in different leadership scenarios?
Here’s how to test if this theory is worth its mettle or if it’s just making noise. Check out the following list:
Corporate Leadership
Of course, we pick this one first. Contingency theory in leadership is highly effective for corporate leadership. Corporate environments have dynamic and complex scenarios where the adaptability and flexibility of the leader are necessary.
For example, during a transformation across the company, such as restructuring or a merger, leaders may switch between transformational and authoritative leadership styles.
The former inspires and motivates employees to persevere through change. While the latter helps make tough decisions.
A corporate leader aware of the contingency theory will know that their approach to a situation depends on the team they are leading. Some teams may thrive under a directive style, while others may require empowering or participative approaches.
Project Management
Contingency theory is the best used in project management. Projects can vary greatly depending on the team dynamics, scope, and complexity. A project manager must be capable of assessing the team’s capabilities and the project’s needs and choosing the leadership style accordingly.
For instance, a transactional leadership style will be effective in a project with a tight deadline.
Team Building
Effective team building is an essential component of successful leadership under contingency theory. The collaborative effort of the leader allows them to know their team better, creating a cohesive unit.
Leaders can effectively choose a practical approach for future challenges based on the bond they develop within the team.
Challenges of Contingency Theory
The contingency theory of leadership offers valuable insights that are not without criticism and challenges. One of the significant challenges of this theory is that it assumes that leaders can switch between styles easily, which is far from the truth.
Another challenge is that the theory does need to account for all human nature’s and corporate culture’s complexities. Another one is the theory’s complexity, making it difficult for leaders to adjust their style.
Conclusion
That was all on the contingency theory of leadership and its different aspects. The core concepts, the key elements, their application in various settings, and the challenges. This article covers everything you would want to know about this theory.
It is not about rigid adherence to one leadership style but the skill of being flexible. This makes you strategic and responsive to achieve the team goals.
Let us know in the comments below if you’re in support of or against this theory.
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