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Contingency Theory – 4 Types of Contingencies Leadership Theories | Theories of Organization

Contingency Theory | 4 Types of Contingencies Leadership Theories | Theories of Organization | Contingency Approach

Contingency Theory

Contingency Theory of Leadership was developed by an Austrian psychologist , Fred Edward Fiedler  in the mid-1960s which is the latest and the most widely accepted view of organization. Fiedler’s contingency theory emphasizes that the goals, design and structure of an organization are the function of the environment within which it operates.

It attempts to achieve its goals by coping with uncertainty resulting from the dynamic nature of its environment. In simple words , Contingency Leadership Theory explains that an individual can be an effective leader in one circumstance and an ineffective leader in another one.

Contingency Theory is useful because this theory proves that it is reliable, based on various trials and research. The contingency theory is also beneficial as it widened our understanding of leadership, by persuading individuals to consider the various impacts of situations on leaders.


4 Types of Contingencies Leadership Theories

  1. Fiedler’s Contingency Theory
  2. Situational Leadership Theory
  3. Path-Goal Theory and
  4. Decision-Making Theory.

Try out Quiz on Contingency Theory 

Two leadership styles used by Fiedler in his contingency theory were


a. employee-centered and job-centered.
b. consideration and initiating structure.
c. concern for people and concern for production.
d. relationship-oriented and task-oriented.
e. employee-oriented and relations-oriented.


Which of the following exemplifies Fiedler’s contingency theory?

Assigning customer care management position to a person who has exceptional skills to interact with customers exemplifies Fiedler’s contingency theory. Fiedler’s contingency theory states that in order to maximize work group performance, leaders must be matched to the right leadership situation.


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