Contingency Theory Case Study 6.3
CONTINGENCY THEORY 4
According to contingency theory, Martha Lee should be the new head of the newly created management position. This is because, unlike Bill Washington who is relationship motivated, she is task motivated. This is evident by her low score of 52 in the LPC scale. Her peers described her as honest, friendly, and very conscientious in reaching her short and long term goals (Northouse, 2013). The Universal Drugs pharmaceutical company wants to make the company’s management and with that, they need someone work who is both friendly yet result oriented. With her low LPC score, Martha Lee is best suited since she develops self-esteem to achieve goals.
The company’s owner could define the new management position in a way that it could automatically eliminate one of applicants. Since the owner has both their three situational variables and LPC scores, he can predict one and not the other will become more effective in a specific setting. By studying all the situational variables, the owner will be able to place the organizational responsibility to one of the applicants. Again, once the situation is known, the position between situation and leader’s style can be evaluated.
By using the contingency theory, Universal Drugs pharmaceutical company could benefit immensely in its management structure. First, it is backed up by a more advanced empirical research (Northouse, 2013). Contingency theory provides a particular approach to long tradition of leadership. A number of researchers have tried it and found out that that it is a valid and a reliable approach. Secondly, contingency theory is broadened with leadership understanding by forcing us to think about the impact of situations in leaders. Contingency theory emphasizes on the value of concentrating on the leaders’ style relationship and demands from various situations. Contingency theory in essence shifted the emphasis to contextual leadership, and in particular the link between situation and leaders (Northouse, 2013)
Northouse, P. G. (2013). Leadership: Theory and practice.Thousand Oaks: SAGE.