There are many leadership theories and the main purpose of all of them is to highlight the factors on which leadership depends to generate best performance in an organization. Two most important and prominent categorization of leadership theories are contingency and situational theories. Contingency theories of leadership explain the factors on which it has to depend to produce best performance; these factors could be either internal or external. As word contingency means dependency, reveals that according to these theories best performance solely depends upon certain situations. There are certain contingency theories like path-goal theory, leader substitutes theory, the multiple linkage model, LPC contingency theory and cognitive resource theory.
Fried Fiedler who worked on the characteristics and personality of the leaders gave LPC model to Identifying leadership style. He believed that the style of leadership is fixed, and it can be measured by applying a scale he created called Least-Preferred Co-Worker (LPC) Scale.
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Application of Fiedler’s contingency model comprise of following steps. First to identify our leadership style by using LPC scale, then to identify the situation in which he is playing his role through settled criteria and finally to determine the most effective leadership style.
We can evaluate that Contingency theories illustrates that an improvement in overall efficiency of employee is mostly related to the situation, task, characteristics of employees and culture of organization. Kenneth Blanchard and Paul Hersey’s theory of situational leadership is basically comprise of three dimensions; two about the leaders and one about followers. By adopting this style leader first diagnose the needs of the followers and then use specific style to cope with them to achieve specific objectives. “According to this theory there are four actual styles of leader ship. Telling – Leaders tell their people exactly what to do and how to do it. Selling – Leaders still provide information and direction, but there’s more communication with followers.
Leaders “sell” their message to get the team on board. Participating – Leaders focus more on the relationship and less on direction. The leader works with the team and shares decision-making responsibilities. Delegating – Leaders pass most of the responsibility onto the follower or group. The leaders still monitor progress, but they’re less involved in decisions.”1 (Fellenz 2010, p.203)
How successful is an organization is directly proportionate to the styles of management and leadership. Different management styles give different outcome in different situations, when we adopt particular style of management according to environment and culture of organisation along the nature of project then we can get best out come. Following are main four styles of management and how they effect an organisation.
This style of management is now disappearing because it leads towards ineffectiveness of an organisation in this global and competitive age. Because manger makes most of decisions and goals are settled for employees, it has downward communication style and lack the soul of motivation in an organisation, without proper observation we cant expect quality work.
This style of management has some advantages and disadvantages in effectiveness of an organisation. Because participation through consensus where leads towards harmony, quality, diverse skills and efficiency in work along motivational culture in an organization. There it creates some hurdles where to make important decisions because its time consuming and also this lacks the solidity of decision-making in certain project oriented situations.
This style of management develops good atmosphere, motivational and social culture and loyal employees in an organisation because mangers keep in mind the best interests of their employees as compare to project while making any decision. This style is organisation oriented instead of project oriented.
This style of management is workable in highly professional atmosphere. Because the role of team members is more as compare to manger. Its highly team oriented style as compare to managerial. It can lead towards quality and efficient work and more responsibility and creativity of work in an organization. A certain level of accountability from leader is require to keep team members responsible. (PM4DEV 2008, p. 107)
To achieve settled goals organizations have to manage their resources and process of work. it can be defines as “the formal arrangement of task, communication and authority relationships that influence and control how people co-ordinate and conduct theior work”2 (Fellenz 2010, p.336). Structure plays very important role in the performance of any organisation. there are different structures that organisations based upon and they are adopted according to different objectives to achieve settled goals. In the beginning usually organisation adopt simple structure but with the expansion of its business it adopt proper structures through planing and systematic approach.
A proper structure interconnect different wings of an organisation and sustain relationships among them. There are plenty or organisational structures like functional structure, Line structure, divisional structure, process-Oriented structure,Hybird structure, project structures and network structures. But followings are important structures and their characteristics.
1-LINE ORGANIZATION STRUCTURE:-
It is most simplest and was most popular form in old days , its also called
Vertical or departmental organization. in this structure the power comes from top to bottom, full power remains to one person in organization and he further allocates power to his subordinates and then they to theirs until it reaches to desired bottom person.
2. DEPARTMENTAL LINE ORGANIZATION:-
Because in this form of organization all functions are allocated to different wings, and each wing or department have to be responsible for its functions or duties which are allocated to it. we can say that this very simple and plain structure because its easy to explain and every one in organisation is aware of their duties, powers and responsibilities and helps to maintain discipline in organisation. In this structure it become easy and quick to make decisions and implements them.
3. FUNCTIONAL ORGANIZATION STRUCTURE:-
In functional organisation structure all activities are organised according to basic functions of organization such as finance, labour, marketing, production…and every function is controlled by specialist who have to be responsible for everything in that field. This structure provides different benefits like large scale production, standardization, specialization and efficient and quality work,
4. LINE AND STAFF ORGANIZATION STRUCTURE:-
This form of organisation plays the roll of two form – Line organisation and functional organization. It is mix of unity of command and decentralization of control, In this organization structure works on the principle of line organization and staff on staff works on the principle of functional organisation. Good decisions can be made in this structure because staff is involved in decision making