Contingency Theory

The Contingency theory, given by Fred Fiedler, is a theory on leadership. Contingency theories explain that there exists no single best way that can be used in organizing or leading. An organizational style that can be very effective in one situation may prove to be the worst way of leading in some other situations.

Fred Fiedler, by giving this theory, helped the leaders to improve their personality and characteristics. He said that the effectiveness of a leader depends on the situation and there is no leadership style that can be called “The Best”. Thus two factors should be considered to judge a leader’s effectiveness:

1.Leadership style

2.Situational favorableness.

Contingency Theory gives the following ideas:

1.No universal or single best way to manage, organize or lead exists.

2.An organization should be designed in such a way that it along with its subsystems , fits the environment.

3.Not only with the environment, should an effective organization fit well between its subsystems also.

4.Needs of organizations could be better satisfied if it has a proper design, the management style should properly take care of the tasks undertaken and it should be appropriate for the working group’s behavior and nature?

Working of the Contingency Model

The following three steps are to be followed to apply the contingency model

Identification of your Leadership style

1.Identification of your situation.

2.Determination of the best leadership style suitable for your situation.

Disadvantage of the Model

Lack of flexibility: It did not allow for flexibility amongst the leaders. He believed that a leader has his own natural style of leadership that is fixed and so to handle different situations the most effective way is to change the leader. Thus his model didn’t permit flexibility in leaders.