Fiedler Contingency Theory - Matching Leader Style to Situation

Fiedler’s Contingency Theory
Whereas the situational model focused on the characteristics of followers, Fiedler and his associates
looked at some other elements of the organizational situation to assess when one leadership
style is more effective than another.48 The starting point for Fiedler’s theory is the extent
to which the leader’s style is task-oriented or relationship-(people) oriented. Fiedler considered
a person’s leadership style to be relatively fixed and difficult to change; therefore, the basic
idea is to match the leader’s style with the situation most favorable for his or her effectiveness.
By diagnosing leadership style and the organizational situation, the correct fit can be arranged.
Situation: Favorable or Unfavorable?
The suitability of a person’s leadership style is determined by whether the situation is
favorable or unfavorable to the leader. The favorability of a leadership situation can be
analyzed in terms of three elements: the quality of relationships between leader and
followers, the degree of task structure, and the extent to which the leader has formal
authority over followers.49
As illustrated in the lower portion of Exhibit 15.8, a situation would be considered
highly favorable to the leader when leader-member relationships are positive, tasks are
highly structured, and the leader has formal authority over followers. In this situation,
followers trust, respect, and have confidence in the leader. The group’s tasks are clearly
defined, involve specific procedures, and have clear, explicit goals. In addition, the leader
has formal authority to direct and evaluate followers, along with the power to reward or
punish. In a highly unfavorable situation, followers have little respect for or confidence
and trust in the leader. Tasks are vague and ill-defined and lack clear-cut procedures and
guidelines. The leader has little formal authority to direct subordinates and does not have
the power to issue rewards or punishments.
Matching Leader Style to the Situation
When Fiedler examined the relationships among leadership style and situational favorability,
he found the pattern shown in the upper portion of Exhibit 15.8. Task-oriented
leaders are more effective when the situation is either highly favorable or highly unfavorable.
Relationship-oriented leaders are more effective in situations of moderate favorability.
The task-oriented leader excels in the favorable situation because everyone gets along,
the task is clear, and the leader has power; all that is needed is for someone to lead the charge
and provide direction. Similarly, if the situation is highly unfavorable to the leader, a great
deal of structure and task direction is needed. A strong leader will define task structure and
establish strong authority. Because leader-member relations are poor anyway, a strong task
orientation will make no difference in the leader’s popularity.Researchers at the University of Chicago who looked at CEOs in turnaround situations—
where companies typically have high debt loads and a need to improve results in a hurry—
found that tough-minded, task-focused characteristics such as analytical skills, a focus on
efficiency, and setting high standards were more valuable leader qualities than were relationship
skills such as good communication, listening, and teamwork.52
The relationship-oriented leader performs better in situations of intermediate favorability
because human relations skills are important in achieving high group performance. In these
situations, the leader may be moderately well liked, have some power, and supervise jobs that
contain some ambiguity. A leader with good interpersonal skills can create a positive group
atmosphere that will improve relationships, clarify task structure, and establish position power.
A leader, then, needs to know two things to use Fiedler’s contingency theory. First, the
leader should know whether he or she has a relationship- or task-oriented style. Second,
the leader should diagnose the situation and determine whether leader-member relations,
task structure, and position power are favorable or unfavorable.
Fiedler believed fitting leader style to the situation can yield big dividends in profits and
efficiency.53 On the other hand, the model has also been criticized.54 For one thing, some
researchers have challenged the idea that leaders cannot adjust their styles as situational
characteristics change. Despite criticisms, Fiedler’s model has continued to influence leadership
studies. Fiedler’s research called attention to the importance of finding the correct
fit between leadership style and situation.