The situational approach to leadership assumes that appropriate leader behavior varies from one situation to another, as shown in Figure 9.2. The trait and behavioral approaches to leadership were both universal in nature. They attempted to prescribe leader behaviors that would lead to a set of universal outcomes and consequences. For instance, proponents of these universal perspectives might argue that tall and intelligent people or people who are consistently employee-focused will always be good leaders. In reality, though, research has found this simply is not true. So, the situational approach to leadership attempts to identify various forms of leader behavior that result in contingent outcomes and consequences. By contingent, we mean that they depend on elements of the situation and characteristics of both the leader and followers.

Figure 9.2

The Situational Approach to Leadership

Consider, for example, how Edward Bastian, CEO of Delta Airlines, has to vary his leadership style when he is interacting with different kinds of people. When he is dealing with investors, he has to convey an impression of confidence about the company’s financial picture. When he interacts with union officials, he needs to take a firm stand on cost control combined with collaboration. Bastian often speaks to leaders at other airlines and has to balance their mutual interests against Delta’s own competitive situation. And when dealing with customers, he has to be charming and respectful.

Leadership characteristics include the manager’s value system, confidence in subordinates, personal inclinations, feelings of security, and actual behaviors. Subordinate characteristics include the subordinates’ need for independence, readiness to assume responsibility, tolerance for ambiguity, interest in the problem, understanding of goals, knowledge, experience, and expectations. Situational characteristics that affect decision making include the type of organization, group effectiveness, the problem itself, and time pressures. Three important situational approaches to leadership are (1) the path–goal theory, (2) the decision tree approach, and (3) the leader–member exchange model.

The path–goal theory of leadership is a direct extension of the expectancy theory of motivation discussed in Chapter 8 .⁸ Recall that the primary components of expectancy theory include the likelihood of attaining various outcomes and the value associated with those outcomes. The path–goal theory of leadership suggests that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment and valued rewards. The leader should clarify the paths to goal attainment.

Path–goal theory identifies four kinds of behaviors that leaders can use, depending on the situation. Directive leader behavior lets subordinates know what is expected of them, gives guidance and direction, and schedules work. Supportive leader behavior is being friendly and approachable, showing concern for subordinates’ welfare, and treating members as equals. Participative leader behavior includes consulting with subordinates, soliciting suggestions, and allowing participation in decision making. Achievement-oriented leader behavior sets challenging goals, expects subordinates to perform at high levels, encourages subordinates, and shows confidence in subordinates’ abilities.

Another major contemporary approach to leadership is the decision tree approach. Like the path–goal theory, this approach attempts to prescribe a leadership style appropriate to a given situation. It also assumes that the same leader may display different leadership styles. But the decision tree approach concerns itself with only a single aspect of leader behavior: subordinate participation in decision making. The decision tree approach assumes that the degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation. In other words, no one decision-making process is best for all situations. After evaluating a variety of problem attributes (characteristics of the problem or decision), the leader determines an appropriate decision style that specifies the amount of subordinate participation.

The leader–member exchange (LMX) model stresses the importance of variable relationships between supervisors and each of their subordinates.⁹ Each superior–subordinate pair represents a “vertical dyad.” The model differs from previous approaches in that it focuses on the differential relationship leaders often establish with different subordinates. This model suggests that supervisors establish a special relationship with a small number of trusted subordinates, referred to as “the in-group.” The in-group usually receives special duties requiring responsibility and autonomy; they may also receive special privileges. Subordinates who are not a part of this group are called “the out-group,” and they receive less of the supervisor’s time and attention. However, the key element of this theory is the concept of individual vertical dyads and how leaders have different relationships with each of their subordinates.