What Is The Contingency Theory Of Leader Effectiveness?

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Leadership What is leadership and why it is important for an organization? Leadership is the individuals who are the leader in an organization, regarded collectively. In a competitive business environment, a good and effectively leadership is an essential requirement in order to achieve the goals. No matter what type of business, effective leadership provides many benefits or advantages and will assist the organization to achieve success and stability. If lack of effectively leadership, organization probably will grow slowly and might be lose their direction or competitiveness. Indra Krishnamurthy Nooyi has been the chief executive officer of PepsiCo Inc. since 2006, and the company employed approximately 274,000 people worldwide as of 2013. …show more content…

Nooyi has applied the contingency theory while she is trying hard to lead the company accomplish their own target and goal. The meaning of contingency is “It depends.” One thing depends on other things, and if the leaders want to be effective, there must be a suitable fit followers and the situation between the leader’s behavior and style. In an organization, different characteristic of individuals or group prefer different leadership styles. Contingency theory is about using the right method or right style in a suitable situation to succeed, which IndraNooyi continues to do after she has handled the PepsiCo Inc. The leadership theory could be founded in PepsiCo. Inc. is Fiedler Contingency Models.
Fred E. Fielder has started to develop the first situational leadership theory in 1951. It was the first theory to mention how situational variables interact with leader individuality and action. He has named the theory “Contingency Theory of Leader Effectiveness.” Fielder believed that individuality (trait theory-oriented) and behavior (behavioral theory-oriented) will reflect the leadership style, and that leadership styles are unchanging.
Least-Preferred Co-Worker …show more content…

There were only two ways to improve leader effectiveness. First you could bring in a new leader whose style better and suitable for the situation. For an example, if the group situation was highly unfavorable but was led by a relationship-oriented leader, replacing that person with a task-oriented leader could be improved the group performance.The second choice was to change the situation to more suitable for the leader. This could be done by restructuring tasks; by increasing or decreasing the power of the leader or by improving the relationships between leader and members. However, Fiedler prefer in changing the situation rather than changing the leadership style. There are some generally examples of how to make more favorable match for the leader’s style by changing the situation

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