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10 Contingency Management

Contingency management is based on contingency theory developed by Fred Fielder. It states that leadership effectiveness depends on two factors: the leader's task or relationship motivation and the favorability of the situation. Situation favorability is assessed based on leader-member relations, task structure, and the leader's position power. The theory contends that a leader's effectiveness is contingent on whether they can control and influence outcomes based on these three situational factors.

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144 views2 pages

10 Contingency Management

Contingency management is based on contingency theory developed by Fred Fielder. It states that leadership effectiveness depends on two factors: the leader's task or relationship motivation and the favorability of the situation. Situation favorability is assessed based on leader-member relations, task structure, and the leader's position power. The theory contends that a leader's effectiveness is contingent on whether they can control and influence outcomes based on these three situational factors.

Uploaded by

Rose Dumayac
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Contingency Management

Name Topic Highlights

The contingency approach to management finds its


Contingency Management
foundation in the contingency theory of leadership

effectiveness developed by management psychologist Fred

Fielder. The theory states that leadership effectiveness, as it

relates to group effectiveness, is a component of two factors:

task motivation, or relation motivation, and circumstances.

You measure task motivation, or relation motivation, by

the least preferred co-worker (LPC) scale.

The theory states that task or relations motivations are

contingent upon whether the manager is able to both control

and affect the group's situational favorability, or outcome.

According to the theory, you can assess situational

favorability by three factors:

1. Leader-member relations - This factor addresses the

manager's perception of his cooperative relations with

his subordinates. In other words, is the cooperation

between you and your employees good or bad?


2. Task structure - This factor relates to whether the

structure of the work task is highly structured, subject

to standard procedures, and subject to adequate

measures of assessment. Certain tasks are easy to

structure, standardize and assess, such as the operation

of an assembly line.

3. Position power - This factor asks if the manager's level

of authority is based on punishing or rewarding

behavior. For example, does the manger derive his

authority from providing bonuses for meeting sales

goals or terminating employees for failure to meet the

goals?

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