Introduction
Problem-solving is a crucial skill that all organizational managers and leaders should exhibit. In contemporary society, institutions face problems that need more than just a creative approach and solutions. Additionally, uniting a divided organization is essential for growth and consequent profitability. Leadership actions should be consistent with internal and external business factors. A contingency approach to organizational management provides a realistic view of institutional leadership, discarding the universal validity of principles. Although different contingency theories of management offer distinct views on leadership, they are similar on the surface. Therefore, the contingency approach to management is beneficial to organizations since it allows managers to learn from specific situations, and use them to influence future decisions.
History of the Theory
The history of the contingency approach to management dates back to the 20th century. The theory was influenced by research on leadership behaviors that enhance organizational success. In the 1950s, a group of researchers from Ohio State University investigated the impact of various leadership behaviors in different organizational contexts: considerate and structural (Choi et al., 2019). In 1964 Fred Edward Fiedler followed up the research with Fielder’s Contingency theory in his paper, “A Contingency model of leadership effectiveness” (Fielder, 1964). Paul Hersey and Ken Blanchard developed the Situational leadership theory in their 1969 paper titled, “Management of organizational behavior – utilizing human resources” (Hersey & Blanchard, 1969). In 1973, Victor Vroom and Philip Yetton added the Vroom–Yetton contingency model, through their article “Leadership and Decision-Making” (Vroom & Yetton, 1973). The follow-up theories form the foundation of the Contingency approach to management.
Theory’s Models and Proponents
The contingency approach to leadership and management conglomerates various approaches with different views. The various models of the contingency theory explore factors that come into play, defining whether a particular management style will be beneficial to an organization and its stakeholders (Javed et al., 2019). An organization is described as contingents to all factors that affect its routine operations. Therefore, the models hold that institutional leadership is situational and may succeed or fail depending on the adopted management style. The models that form the contingency theory are Fielder’s, Hersey’s, and Blanchard’s Situational leadership, Path-goal, and Vroom-Yetton-Jago decision-making models (Dinibutun, 2020). While the models give distinct approaches to the contingency theory of management, they are anchored on the fact that organizational leadership is situational.
Fiedler’s Approach
A leader-member relationship is significant when executing management activities. Fiedler’s Contingency theory propounds that effective leadership does not solely rely on the adopted style but also on the control held over the situation (Amegayibor, 2021). It is Fielder’s position that effective leadership must fit the situation. The theory was developed in the 1960s by Professor Fred Fiedler after investigating leaders’ personalities and characteristics (Dinibutun, 2020). Fielder concluded that leadership is formed through one’s life experiences, and it is difficult to change. The theorist suggested that leaders’ ability to succeed rests on their natural and situational styles of management (Javed et al., 2019). Therefore, Fiedler’s Contingency theory requires managers to first understand their leadership styles before assessing any situation before them.
Hersey and Blanchard’s Situational Leadership Theory
While Fielder’s theory emphasizes managers’ skills and situations, Hersey ad Blanchard’s theory focuses on the maturity of the subordinates. Some leaders can be exceptionally good at executing their responsibilities but face poor reception from those that they are leading. The Situational theory is anchored on four behaviors: telling, selling, participating, and delegating (Balasubramanian & Fernandes, 2022). The behaviors exhibited by managers should fit into the maturity levels of their subordinates. The levels range from incompetency and unwillingness to perform to competency and willingness to perform. When managing incompetent people, managers must adopt mechanisms that discourage their laziness (Balasubramanian & Fernandes, 2022). Meanwhile, competent subordinates should be encouraged to maintain the behavior. The Situational theory gives an effective leadership approach from the sub-ordinates perspective.
Path-Goal Theory
Organizational successes are goal-oriented, and managers have the responsibility of ensuring that their subordinates work towards a set objective. The Path-Goal theory combines goal-setting and expectancy into one. The theory suggests that it is upon the leaders and managers to ensure that organizational members achieve their goals without hindrance (Felfe & Elprana, 2022). Consequently, the manager should ensure that the subordinates have all resources and information that are crucial for success. The theory bestows upon the leaders path-setting and obstacle removal roles. For instance, organizational management can conduct performance evaluations to identify issues that encumber effective performance among employees (Amegayibor, 2021). Upon determining the obstacles, management can adopt reformative approaches to help the affected employees. Application of the Path-Goal theory of Contingency approach to management help in managing problems faced by organizational members.
Vroom-Yetton-Jago’s Decision-Making Model
Effective decision-making is crucial among organizational leaders during difficult situations. For instance, a business organization that faces massive losses needs strategies that would maximize its profits. The Decision-Making model of the Contingency management approach requires effective leaders to size up situations, assess them, and determine the group’s effort in supporting them (Western Governors University, 2020). After that, the managers can adjust their preferred leadership style in solving the situation. The theory is decision-oriented and excludes the significance of subordinates’ competency levels when salvaging an organization from a downfall (Felfe & Elprana, 2022). The Decision-Making model adopts autocracy, consultation, and group-based decisions. Therefore, the Decision-Making model encourages critical thinking among leaders.
Application of the Theories at the Workplace
The contingency models of leadership have diverging views on management but share a common thread. The overlaying approach of all the models is that leadership is contingent on the situation, people, and task involved. Consequently, leaders adopt the model that is most appropriate to their existing organizational situation (Kovach, 2018). However, a leader can combine more than one model in solving situations before them. For instance, if a leader is tasked to maximize their company’s profitability, they can adopt the path-oriented and decision-making models. The contingency theory encourages leaders and managers to find situations that challenge them, acknowledging that success is dependent on circumstances and decisions made.
Strengths of the Theory
While there are many approaches to effective leadership, the contingency approach has several strengths that make it outstanding. First, the theory is predictive in nature since it provides an understanding of the most effective leadership approach (Shala et al., 2021). The theory allows managers to assess their capabilities for solving a particular situation before settling on the most appropriate approach. Second, the theory has abundant empirical support, meaning that it is a ‘proven and tested’ approach (Choi et al., 2019). The theory’s empirical evidence enhances its reliability for a positive outcome when adopted.
Third, the theory encourages consideration and takes into account the imperfect nature of leaders. According to the theory, leaders are not perfect in all situations but must always try their best. Fourth, the theory’s various models give a wider perspective of understanding leadership approaches (Shala et al., 2021). Last, the Contingency theory provides vast knowledge on leadership styles that apply to organizations, developing different management profiles (Shala et al., 2021). The Contingency theory of management is significant for organizations to grow and make profits.
Criticism of the Theory
Although the Contingency theory has several strings that make it the most effective leadership approach, it is subject to various criticisms. First, the theory is limited to adequate literature that provides for the specific actions to be taken by leaders. For instance, the models have limited concepts and lack detailed actions that managers can take when salvaging their organizations (Dikova & Veselova, 2020). Second, the theory is complex in the sense that situation determination, as required by the approach, is a tasking process (Shala et al., 2021). Consequently, the theory is unsuitable for leaders who have limited time.
Third, the theory presents difficulties when conducting empirical tests. The researchers have to investigate all the models of the theory to prove its reliability. Last, the theory is reactive in nature and not proactive since it involves managers’ actions in a given situation (Dikova & Veselova, 2020). Therefore, the theory tends to suggest that effective leadership can only be determined by solving a situation that has occurred. The Contingency theory’s limitations encumber its application in proactive organizations.
Conclusion
Effective organizational management is anchored on leaders’ actions and inactions. Problem-solving is a crucial task since it guides an organization on possible future strategies. The Contingency approach to management propounds that leadership is dependent on the arising situations and people involved. The theory utilizes various models that give different views on situational leadership styles. The Contingency theory has empirical evidence making it reliable among organizations. Additionally, the approach provides sufficient information on management styles. However, the approach is limited to the literature on actions to be taken and applicability. Learning from specific organizational situations helps effective managers avoid similar situations in the future.
References
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