ABSTRACT

Contingency theory initially arose from the body of work concerning leadership and motivation. The principal proponent of this psychology-based approach is Fiedler (1967), whose work suggested that the best leadership style depended upon the organization’s particular set of circumstances. He identified two styles of leadership, ‘relationship motivated’ and ‘task motivated’, which were equally valid under different conditions. Relationship-motivated leadership is seen as appropriate when the technical task is relatively easy but the relationships are difficult to manage, task-motivated leadership in the opposing circumstances. There is a ‘sliding scale’ or continuum of variations between these two extreme positions. Overall, Fiedler’s work, unlike that of earlier writers, suggests that there is no ‘one best way’ of leading

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CONTINGENCY THEORY AND ORGANIZATION DESIGN

During the 1970s, contingency theory developed from its roots in leadership and motivation theory to became the dominant approach to organization design and management. Theoretically, it reflects some of the development of systems thinking, to be discussed in Chapter 14, but it is based on observation and practice and pre-dates much recent work which has popularized the systems field.