Page 90 - E2 Integrated Workbook STUDENT 2018

Chapter 6

Contingency theories

Contingency theory suggests that there is no one best approach to leadership. A
good leader will change their style to suit the situation.

8.1 Adair – Action-centred leadership

Task
needs

Individual Group
needs needs

8.2 Fielder – Contingency model

Fielder identified two distinct styles of leadership:

 psychologically distant managers (PDMs)

 psychologically close managers (PCMs)

Fiedler suggested that the most effective style of leadership would be determined by
the situation, which would be influenced by three factors:

 leader/member relations – the nature of the relationship between the leader and
the group

 task structure – the extent to which the task is structured

 leader position power – the degree of formal authority/responsibility allocated to
the position

A psychologically distant approach is better if the situation is very favourable or very
unfavourable, while a psychologically close approach is better if the situation is
moderately favourable.

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