Contingency Theory:
The author describes this theory as leader-match. This means matching leaders to appropriate situations. The term ‘contingency’ is used to reflect how well the leader’s style fits the context, and for Northouse effective leadership is therefore contingent on matching the leader’s style to the setting. Showing similarities to style leadership, contingency theory describes events as either task- or relationship-motivated. Contingency theory says that situations are assessed using three factors: leader-member relations, the degree of structure the task has, and positions power. Having assessed these three, the author notes that contingency theory says that certain styles will be effective in certain situations. Task-orientated leaders will do well when things are going well or there is a crisis, while relationship-orientated leaders will do well in moderate situations. (Northouse, 2000)
This is also known as the situational theory. Because of the complexity of environments and organizations, There is no one theory that seems to be effective in dealing with all situations. In other words, There is no best way to manage. According to the contingency theory. The strategy chosen to deal with a situation depends upon the type of situation or contingent upon the situation.
Lawrence and borsch conducted extensive studies to prove this theory. (Lawrence & Lorch, 1967) According to these authors, there is no best way of organizing. External or environmental conditions will determine the type of structure an organization requires for effective performance. The reason for choosing these industries is that they displayed important differences among the environmental dimensions. For instance, Compared with the other two the plastics industry operated in a dynamic and highly competitive environment followed by the food and then the container industries. Differences in the formal organization structure of these industries reflected the uncertainty and diversity of environmental factors. In other words, Their study.......
