Contingency Approach

What is the contingency approach?

The contingency approach states that a leader’s effectiveness depends on how well their leadership style fits the current situation. In short, the key to effective leadership lies in finding the right match between the leader’s style and the demands of the situation.

This theory was developed by Fred Fiedler in 1958 during his research on ‘Effectiveness of Leader in Group Setting’. Also known as the Contingency Theory of Leadership or Management, this approach is based on two fundamental principles:

• “There is not one best style in Leadership.”
• “A leader is effective when his or her style of leadership fits with the situation.”

The basic working principle behind this model rests on the Least Preferred Coworker Scale, according to this:

• High LPC score – A Leader with good personal skills relies on relationships to accomplish tasks.
• Low LPC score – Leaders who accomplish goals through task-oriented focus and hierarchical authority.

Fiedler’s Contingency Model or Contingency Approach rests on the following three pillars:

• Leader-member relationship: This is the relationship quality between the leader and their team members. A leader with a good relationship with their team will likely be more effective than one without.
• Task structure: This refers to the clarity and structure of tasks the leaders assign to their teams.
• Positional power: This refers to the amount of hierarchical authority and control that the leader has over his team.

Thus, managers can determine their preferred leadership style using the three pillars and the LPC results. This can help them adapt to different situations and effectively address the challenges of a dynamic business environment.