Operations management is an administrative function that seeks to ensure high levels of business

and organizational efficiency. This operations management definition confirms that the focus of this
executive function is the efficient utilization of labor and materials to maximize profitability. The
general purpose of operations management is to:

 Handle strategic issues

 Enhance operational efficiency
 Balance costs with revenue
 Generate high net profits

Operations management is a key component of production and operations management. Production

and operations management combines and transforms organizational resources into value-added
goods and services. Effective operations management ensures this process is executed in a
controlled manner in line with company policies.
Essentially, operations management denotes the key activities that typify the production of goods
and services. As such, operations managers are concerned with planning, supervising, and
organizing the production process. The three main elements of operations management are:

1. Marketing — Involves raising the demand for the company's products to increase sales and
boost profitability.
2. Finance — Effective operations management is characterized by minimum production costs.
As already stated, one primary goal of operations management is to balance costs and
revenue to maximize net profits.
3. Operations — This element involves critical functions such as maintenance and
replacement, job design, quality control, capacity planning, product selection, and process
planning.

The main characteristics of operations management are:

 Flexibility
 Quality
 Effectiveness
 Profitability
 Coordination
 Analysis

Role of Operations Manager

Who is an operations manager, and what are his duties? An operations manager supervises all
operational activities throughout the organization. These professionals ensure all activities run
smoothly by maximizing procedures, ensuring cost-effectiveness, and meeting customer
expectations.
The specific functions of an operational manager include:

 Ensuring an appropriate, cost-effective strategy is applied in all organizational operations.

 Spearheading the improvement of operational management practices, processes, and
systems.
 Securing legal compliance with regard to organizational processes.
 Formulating operational strategies.
  Analyze financial data and manage budgets to improve profitability.
 Monitor key performance indicators and facilitate quality controls.
 Supervise the recruitment and training of staff.
 Improve customer service.
 Procuring resources and materials needed for the production process.

Generally, an operations manager ensures the business implements proper practices and processes
across all organizational levels. He helps the organization to remain efficient, compliant, and
profitable.

The processes of operations management are impacted by five variables which are known
as 5Ps of management.

These are as follows:

1. Product

The ultimate link between the production and marketing processes of a company is the
product manufactured by it. A customer demands a product but at the same time, the
organization must also be capable of producing it effectively.

In accordance with the product policy in an organization, an agreement is formed in

accordance with the product’s aspects and different functions. The aspects of products are:

 Quantity and Quality

 Reliability
 Performance
 Delivery Schedule
 Selling Price
 Aesthetics
 Ergonomics
In an organization, there are multitudes of internal and external factors affecting the
business environment. These factors affect various aspects related to products such as
legal constraints, needs of the market, culture, etc. Hence, they must be given equivalent
importance.

2. Process

There are many occasions when an established method/process may lead to effective
production but fail to achieve other objectives. To face such issues effectively, the manager
keeps an alternative to every method. He then chooses the best alternative which can
accomplish the objectives. While discussing the process, some factors that need to be kept
in mind are:

 Safety
 The capacity that is available
 The production types
 Cost of manufacturing
 Maintenance
 Plant Layout
 Labor skills

3. Plant

One of the most important assets of a production firm is a manufacturing plant. An

operational plant allows continuous production without bottlenecks. On the other hand, the
non-operational plant may hamper the production process.

A plant must be effective so as to achieve the product, market, and organizational needs.
Furthermore, financial constraints, building’s design and layout, equipment maintenance,
etc are different concerns about establishing a plant.

The plant layout must be effective enough to allow smooth movement of materials and
manpower. Its layout must be able to deal with the arrangement of plants and machinery
and is dependent upon the demand volume, production type, etc.

4. People

Manpower or people are the biggest assets for manufacturing firms. The production is
highly affected by people/manpower and their hard work.

Every individual has a different skill set and attitude towards work. Hence, to achieve
optimum results, it is mandatory to match an individual with a perfect job he is capable of
doing. Furthermore, motivation, decent wages, good working environment, employee
training, etc are different factors that need to be handled by a manager to ensure that
people are working at their optimum productivity level.
5. Programmes

In a manufacturing unit, there should be a proper time schedule for the implementation and
completion of various progammes. To accomplish different situations, different programmes
are organized. These are related to:

 Storage
 Purchasing
 Transport
 Maintenance
So these were 5Ps of Operations Management that are crucial for every Operations
Manager.

What Are The Functions of Operations Management?

Operations management is a business field concerned with producing goods and

services and involves the management of resources, processes, and staff. The
functions of operations management are to ensure that these resources are used
effectively and efficiently to achieve the major objectives of the organization.

The functions of operations management can be divided into four main categories:

 Production planning and control

 Finance
 Product Design
 Inventory management
 Quality control
 Forecasting
 Supple Chain Management
 Operational Strategy
 Product Planning & Control
 The first function of operations management is production planning and control.
This involves the planning and coordination of all activities related to the
production of goods and services. This includes the development of production
plans, the scheduling of production activities, and the control of the production
process. With efficient product planning & management, organizations can
ensure that their products are of high quality and meet the needs of their
customers.
 Benefits of Product Planning & Control

 Ensure Product Manufacture: By planning the production process and

scheduling activities, product planners can ensure that products are
manufactured on time.
  Improved Product Quality: By controlling the production process, product
planners can ensure high-quality products.
 Reduced Costs: Organizations are able to reduce their production costs with
efficient planning and coordination of production activities.
 Customer Satisfaction: Product planners can ensure customer satisfaction by
meeting the customer’s requirements.

Finance

The second function of operations management is finance. This involves the

management of financial resources. The financing function includes budgeting,
forecasting, and accounting. This function aims to ensure that the organization has the
funds necessary to meet its objectives. It is essential to understand that finance is not
limited to acquiring funds but also how to use them efficiently and effectively. Finance’s
role in operations management is finding ways for a better investment.

Benefits of Finance

 Efficient use of resources: Finance helps organizations to use their resources

efficiently and effectively. It ensures that the organization has the necessary
funds to meet its objectives and also provides guidance on how to use those
funds efficiently.
 Improved decision-making: Finance provides information that can be used to
make better decisions. This information can help organizations decide where to
invest their resources and allocate their budgets.
 Increased profitability: Finance can help organizations increase their
profitability. By understanding where the organization’s money is being spent and
how it can be used more efficiently, organizations can save money and increase
their profits.

Product Design

Operations managers are also responsible for process design. This involves creating
efficient methods for manufacturing products and delivering services. They will work
closely with engineers and designers to ensure that products are manufactured
efficiently and meet quality standards. The function of product design is to create a
product that meets the customer’s needs while also being affordable and profitable for
the company. It is essential for operations managers to have a strong understanding of
production technology and processes in order to be effective at process design.

Benefits of Product Design:

 Improved efficiency: By designing products and processes that are easy to

manufacture and require minimal processing time, operations managers can
improve the overall efficiency of the manufacturing process. This can lead to
lower production costs and shorter lead times.
  Reduced Product Costs: Product planners working in operations
management can often find ways to reduce the cost of materials and
components used to manufacture a product. This can be done by redesigning
products to use less expensive materials or finding new suppliers offering lower
prices.
 Better Quality Products: By carefully designing products and processes,
operations managers can help to ensure that products are of high quality and
meet customer expectations. This can lead to increased sales and improved
customer satisfaction.

Inventory Management

Inventory management is no doubt one of the crucial functions of operations

management. It involves managing the levels of stock in a company to ensure enough
inventory to meet customer demand while also avoiding excessive levels of stock that
could tie up working capital.

Operations managers use a variety of techniques to manage inventory levels, including

just-in-time (JIT) inventory systems, economic order quantity (EOQ) models, and supply
chain management (SCM) systems. This ensures that the company has the right
inventory level to meet customer demand while minimizing the costs associated with
holding too much stock.

Benefits of Inventory Management

 Avoids the costs associated with holding too much stock: Inventory
management helps avoid the costs associated with holding too much stock, such
as storage costs and the opportunity cost of tied-up capital.
 Helps meet customer demand: By managing inventory levels, operations
managers can help ensure that customer demand is met. This is especially
important in businesses where customer demand is high, and stock levels need
to be closely monitored.
 Reduces The Stock outs: By managing inventory levels, operations managers
can help reduce the risk of stockouts. This is especially important in businesses
where stockouts could lead to lost sales or production disruptions.

Quality Control

Operations management ensures that products and services meet the company’s and
its customers’ quality standards. This includes establishing quality control procedures
and ensuring that employees are adequately trained in quality control techniques.
Quality control is an integral part of operations management because it can greatly
impact a company’s bottom line. For instance, if a company makes a product that is not
up to quality standards, it may have to issue refunds or replacements, which can cost
the company money.
Benefits of Quality Control

 Ensure products and services meet the company’s quality

standards: Quality control procedures help ensure that products and services
meet the company’s quality standards. This helps to protect the company’s
reputation and bottom line.
 Reduce the cost of refunds or replacements: By ensuring that products and
services meet quality standards, quality control can help to reduce the cost of
refunds or replacements.
 Increase customer satisfaction: Quality control can help to increase customer
satisfaction by ensuring that products and services meet their expectations.

Forecasting

Forecasting is a complex process, and using the most accurate data and methods is
essential. Both short-term and long-term planning is involved in forecasting. This helps
the company to set production goals and make decisions about inventory levels,
capacity, and staffing. Demand planning is a critical component of forecasting. This
process involves analyzing past demand patterns and using them to predict future
demand. Statistical methods, such as trend and regression, are often used in demand
planning. Without accurate forecasting, companies may find themselves with too much
or too little inventory, under-utilized capacity, and not enough staff to meet customer
demand.

Benefits of forecasting

 Helps the company to set production goals: Forecasting helps the company
to set production goals by analyzing past demand patterns and using them to
predict future demand.
 Helps the company make decisions about inventory levels, capacity, and
staffing: By forecasting future demand, the company can make better decisions
about inventory levels, capacity, and staffing.
 Helps the company avoid overproduction and production: Forecasting helps
the company to avoid overproduction and underproduction by predicting future
demand.

Supply Chain Management

When it comes to supply chain management, the functions of operations management

become even more critical. In order to ensure that goods and services are delivered on
time and within budget, operations managers must coordinate the activities of suppliers,
manufacturers, warehouses, and transportation companies. By doing so, they can avoid
disruptions in the supply chain and keep costs down. Supply chain management is a
vital fragment of operations management and one in which functions must be constantly
monitored and improved.
Benefits of Supply Chain Management:

 Reduces overall costs

 Improves communication and coordination
 Increases transparency and accountability
 Decreases turnaround time
 Enhances customer satisfaction levels

Operational Strategy

The functions of operations management also play a role in developing and

implementing an operational strategy. This strategy is designed to help an organization
achieve its long-term goals and objectives. Operations managers must consider the
resources available to them, their customers’ needs, and the organization’s overall
objectives. By considering all of these factors, they can develop a plan to help the
organization achieve its goals. The functions of operations management are essential in
the development and implementation of an operational strategy.

Benefits of an Operational Strategy:

 Helps to achieve long-term goals: Operational strategy

 Takes into account the needs of customers
 Utilizes available resources
 Can be adapted as needed

Scientific Management Theory

What is Scientific Management Theory?
Scientific management theory is a method of improving efficiency in the workforce. As
its name implies, this management theory uses scientific methods to assess work
processes.

The scientific method consists of three steps: observation, experimentation, and

analysis. In science, this could mean observing the effects of a treatment,
experimenting with a different treatment, and analyzing the results. Similarly, managers
use scientific management theory to observe their workplaces, test different methods of
completing tasks, and analyze the effect of the changes.

When properly implemented, scientific management theory improves productivity. It is

an evidence-based method that prioritizes efficiency and reliability. Having scientifically
rigorous work methods in place creates clear expectations for employees because it
establishes a single right way to do things. It also gives managers a unified standard
against which to evaluate their employees.

Scientific management theory has grown exponentially since its inception. There are
now a variety of management strategies that fall under the umbrella label of scientific
management theory. Each of these strategies has its own set of strengths and
weaknesses. It’s important to do your own research into scientific management theory
to find the best applications for it in your workplace.

The History of Scientific Management Theory

The history of scientific management theory begins with 20th century mechanical
engineer Frederick Winslow Taylor. In Taylor’s time, America was on the cusp of
industrialization, but management methods had not yet changed to keep up with
changes in technology. While working at a steel manufacturing plant, Taylor observed
several production problems.

For one thing, there was little specialization of labor or tools. Work shifts were randomly
assigned, so inexperienced workers often ended up trying and failing to complete
important projects. Tools were crude, and since only a small number of tools were used
for every task, they wore out quickly. For another, there was no one single “best”
standard for workers to aspire to. Everyone did their job in whatever way they thought
worked best, regardless of whether it was effective. Finally, managers were completely
disconnected from the workers they supervised. The average manager had no idea how
the workers’ tasks were performed, so they were unable to provide suggestions for
improvement.

Taylor set out to solve these problems. He designed specialized shovels and other
tools. He advocated for workers to be matched to the projects for which they were most
naturally gifted. He trained managers in his methods so that they could implement
scientific management theory in their own workplaces.

Taylor is credited with revolutionizing productivity in the American workforce. At his own
steel plant, the amount of pig iron the workers could transport in a day reportedly tripled
once they adopted his methods. His ideas spread rapidly and helped give rise to the
Industrial Age. Scientific management is sometimes even referred to as “Taylorism” in
his honor.
Taylorism and Classical Management Theory
When people talk about “Taylorism,” they often mean scientific management theory as it
existed in the early 20th century. This specific management style is also called classical
management theory.

Classical management theory is distinguished by three characteristics: hierarchical

structure, specialization, and financial incentives. In a company operating on classical
management theory, there is a rigid hierarchy. Business owners are on top, supervisors
are in the middle, and regular employees are on the bottom. Everyone has a
specialized, small-scale task. Anyone who is especially successful is rewarded with
financial benefits.

Classic Taylorism does a good job of addressing the physical needs of workers, but it
ignores social needs and creativity. Inflexible hierarchies make it difficult for talented
people to rise the ranks of leadership. Specialization is efficient, but it discourages
people from experimenting, and therefore prevents the development of new methods.
And although good pay incentivizes good behavior, money isn’t the only thing workers
care about. Employees also want to feel valued and take pride in their work.

Classical management theory is no longer widely followed, but it still has uses. Since
Taylor developed his theory while working in a manufacturing plant, classic Taylorism is
well-designed for manufacturers. It also tends to function better in small enterprises
where everyone knows each other, and social needs are easy to address.

The Principles of Scientific Management

There are four principles of Taylorism.

1. Choose methods based on science: Use the scientific method to determine the most
efficient way to complete a task. Focus on increasing productivity and profits.
2. Assign workers to tasks based on their natural skillset: Get to know your workers,
discover what they’re good at, and place them where their skills will be the most useful.
3. Monitor your workers’ performance: Observe what your workers are doing while they are
on the clock so that you can quickly address any problems. If some workers are confused or
unproductive, it is up to their managers to step in and fix the issue.
4. Divide workloads appropriately between workers and managers: Make sure that
managers understand how to plan and train workers and that workers understand how to
implement those plans.
Goals and Objectives of Scientific Management
The primary goal of scientific management is to increase efficiency. When Taylor began
his scientific management experiments, he focused on increasing efficiency by reducing
the amount of time needed to perform tasks. This was a good first step, but there’s a lot
more to improving efficiency than just decreasing work time. Since Taylor’s time, other
innovators have found more ways to increase efficiency, such as implementing
automation software.

Another objective of scientific management theory is increasing profits. If everyone is

working as efficiently as possible, then they should be able to produce huge amounts of
high-quality products. That translates into more sales and bigger profit margins.

Real-World Applications of Scientific Management Theory

Scientific management theory is flexible enough to be applied in just about any industry.
Whether you’re designing software or selling real estate, there are certain tasks that
need to be done regularly. Identifying those tasks and optimizing them for efficiency is a
great way to bring Taylorism into your workplace. Here’s an example.

Imagine your company has a newsletter mailing list. Every time a new person wants to
be added to the mailing list, they send an email requesting to be added. An employee
then manually adds them to the list.

This is an inefficient, multi-step method of adding newsletter subscribers. Your

employee probably doesn’t get any job satisfaction from typing a name into a mailing
list. Moreover, the time spent manually adding names is time that could be spent on
more pressing projects.

If you were the manager tasked with implementing the principles of scientific
management in this company, you might suggest designing a system that automatically
adds people to the mailing list as soon as they submit a request. The subscribers get
newsletter access sooner and the employee now has more time to concentrate on
important assignments.

Applying Scientific Management Techniques

The theory of scientific management is not perfect. Optimizing efficiency while trying to
maximize profits may not solve all your workplace problems. Moreover, Taylorism has
been criticized as being ineffective for modern businesses. After all, Taylor was working
in a pre-industrial era. He could not have foreseen how businesses and management
styles would change in the future.

Taylor’s brand of scientific management may not be a perfect fit for contemporary life.
However, the scientific management theory could be a starting point for designing your
own management style.

Six Sigma
What is Six Sigma?

Six Sigma is a term used to define various techniques and

management tools designed to make business processes more
efficient and effective. It provides statistical tools to eliminate
defects, identify the cause of the error, and reduce the possibilities
of error. Thus, Six Sigma creates an environment of continuous
process improvement, enabling businesses to provide
better products and services to customers. It was developed by
Motorola, Inc. in 1986.

Six Sigma can be applied to any process in any industry to establish

a management system for identifying errors and eliminating them. It
provides methods to improve the efficiency of business structure
and quality of processes, enhancing the profitability of the business.

The term “Six Sigma” is derived from the bell curve in statistics, in
which sigma represents the standard deviation from the center.
Hence, a process with six sigmas will achieve an extremely low
defect rate. The failure of a business process or product is regarded
as a defect. When a process produces less than 3.4 defects for one
million chances, it is considered efficient.

Six Sigma Principles

There are five main principles of Six Sigma:

1. Customer focus

The main objective is to maximize the benefits for customers.

Hence, a business must understand the needs of
their customers and the drivers of sales. It requires establishing
quality standards according to the market or customer demands.
2. Assess the value chain and find the problem

Outline the steps of a process to find out unwanted areas and

gather related data. Define goals for data collection, purposes for
data gathering, and expected insights. Verify that the data is
assisting in achieving the objectives, whether more information is
needed to be collected, or if data cleansing is required. Find out the
problem and its root cause.

3. Eliminate defects and outliers

After the identification of the problem, make appropriate

modifications in the process to eliminate defects. Eliminate any
activity in the given process that does not contribute to the
customer value. If the value chain is unable to reveal the problem
area, various tools are used to find out the problem areas and
outliers. Eliminating the outliers and defects removes the
bottlenecks in a given process.

4. Involve stakeholders

A structured process should be adopted where all stakeholders

collaborate and contribute to finding solutions to complex issues.
The team needs to achieve proficiency in the methodologies and
principles applied. Hence, specialized knowledge and training are
required to lower project failure risks and ensure optimal
performance of the processes.

5. Flexible and responsive system

Whenever an inefficient or faulty process is eliminated, the

employee approach and work practices need to be changed. A
flexible and responsive environment to the changes in processes
can lead to the efficient implementation of the projects.

The departments involved should be capable of adapting easily to

the change. Companies that periodically examine the data and
make appropriate changes to their processes may achieve a
competitive advantage.
Six Sigma Methodology

The following are the two main methodologies of Six Sigma, which
are used in different business environments:

DMAIC

DMAIC is a data-driven approach used for optimizing and improving

the existing business designs and processes. It is an effective
method of controlled change management. The five phases of
DMAIC are listed below, and each phase involves tools and tasks to
help find the final solution.

1. Define the problem and the goals of the project

2. Measure the different aspects of the existing process in detail
 3. Analyze data to find the main flaw in a process
4. Improve the given process
5. Control the way the process is implemented in the future
DMADV

DMADV focuses on the development of an entirely new process,

product, or service. It is used when existing processes, even after
improvement, do not satisfy the customer’s needs, and new
methods are required to be developed. It comprises five phases:

1. Define the purpose of the project, product, or service

2. Measure the crucial components of a process and product
capabilities
3. Analyze data and develop design alternatives, ultimately
selecting the best design
4. Design the selected best alternative and test the prototype
5. Verify the effectiveness of the design through several
simulations and a pilot program
What is a contingency theory of leadership?
The contingency theory of leadership states that a leader's effectiveness depends on their
leadership style and the favorableness of the situation. Depending on their style, a leader may be
effective in one situation and ineffective in another situation.

Why is contingency theory important?

The contingency theory is important because it analyzes dependent and independent variables to
accomplish an effective work environment. Improving the work environments for employees can
increase an organization's overall success.

When asked what it means to be a "good leader," what comes to mind? Do you
think of certain skills or traits, or do you picture a specific person or a leader from
your own life?

The truth is, the answer varies. Good leadership can’t be defined in a single person
or a laundry list of personality traits. But we can, however, identify key skills and
traits that great leaders share. We know that people simply aren’t born leaders.
After all, skills, behaviors, and mindsets can grow and develop with the right
support.

At BetterUp, we’ve studied leadership . We've studied how people have invested in
developing much-needed leadership skills. Leadership skills are critical whether
employees are in a managerial position or not. A person's ability to understand their
own strengths, weaknesses, and style of leadership is critical to being a good
leader.
We know that the contingency theory of leadership follows this school of thought.
The contingency theory of leadership tells us that effective leadership depends on
the situation. In simple terms, a leader could be highly effective in one situation and
ineffective in another.

It might be true that leaders respond differently in certain situations. But this theory
minimizes people’s ability to develop new skills and behaviors. People are capable
of building new skills to adapt to new situations with the right support and resources.
It might take some muscle in certain areas more than others. But human growth and
transformation are more than possible.

Good leadership isn’t just about a leader’s skills. It’s about a leader’s awareness
and adaptability in a specific situation. It’s more fruitful to understand our different
leadership styles and build self-awareness . In other words, it’s critical that we build
mental fitness to be able to recognize where we can improve.

And science tells us that when we invest in developing our leadership skills, our
teams benefit, too. Our research shows that leaders who balance optimistic action
with thoughtful pragmatism have higher-performing teams . The results? Teams
show increased agility, team engagement, innovation, performance, and resilience.

If you’re looking for new ways to connect with your team members and grow in your
career, keep reading. You'll learn more about the contingency theory of leadership
and how it can help you approach leadership in a whole new light.

What is the contingency theory of leadership?

The contingency theory of leadership states that effective leadership is contingent

upon the situation at hand. Essentially, it depends on whether an individual's
leadership style befits the situation. According to this theory, someone can be an
effective leader in one circumstance and an ineffective leader in another.

This theory ignores the false dichotomy that someone is either a "good" or "bad"
leader. Instead, it focuses on matching the right leadership traits to the situation.

This theory of leadership accommodates the reality that success in an undertaking

is often a combination of the attributes of the leader and the attributes of the
challenge. "Good leadership" is contingent upon how one responds to the situation.

The very first contingency theory was developed by Austrian psychologist Fred E.
Fiedler in the 1960s . Fiedler's model continues to be one of the leading contingency
leadership theories.

From Fiedler's research, more modes of thinking were born:

  The Situational Leadership® model, developed by Paul Hersey and Kenneth
Blanchard in 1982
 The Path-Goal model, developed by Martin Evans and Robert House in 1971
 The Decision-Making model, developed by Victor Vroom and Philip Yetton in 1973

All four models present different ways to approach and apply the contingency theory
of leadership. We'll dig deeper into each later in this guide. First, let's unpack the
approach as a whole.

What does the contingency theory of leadership focus on?

Firstly, the contingency theory of leadership focuses on leadership styles. To apply

this theory or any of its models, leaders must be aware of their own leadership style
as well as their strengths and weaknesses. This requires honesty, self-reflection,
and vulnerability for a person to identify how they’re showing up as a leader.

Acknowledging these things can be uncomfortable but can make someone a better
leader in the long run.

We’ll get into leadership styles — and how they align to each of the four models
— later in this article. But some of the leadership styles include:

 Delegating style. Leaders who easily delegate goals, projects, and tasks to team
members
 Participating style. Leaders who share ideas to motivate their team members, gain
buy-in, and help them build confidence and autonomy
 Selling style. Leaders who "sell" their instructions and tasks to team members who
may need extra motivation
 Telling style. Leaders who delegate and supervise their team members who may
lack experience or confidence in their roles
 Supportive style. Leaders who consider their team members' personal preferences
and treat well-being as important as productivity
 Participative style. Leaders who work alongside their team and ask for input or
feedback before making decisions
 Directive-clarifying style. Leaders who give explicit tasks and instructions
 Achievement-oriented style. Leaders who set high expectations and goals for their
team and encourage autonomy and independence
 Autocratic style. Leaders who make decisions independently
 Consultative style. Leaders who consult their team members but ultimately make
decisions independently
 Collaborative style. Leaders who make decisions democratically

This theory focuses on the circumstances surrounding a situation or a challenge.

Different models use different factors to predict what kind of leadership style would
be most effective.
If anything, this approach to leadership surfaces how many variables are at play in
any given situation in the workplace. Only by being aware of and understanding
these factors can someone be an effective leader.

Those include (but aren't limited to):

 Work schedules

 Work styles and paces

 Task structures

 Team structures

 Professional and personal goals

 Feedback preferences (for both giving and receiving)

 Leaders' and employees' maturity levels and personality types

 Relationships between and among employees and leaders

 Employee morale

 Company hierarchy and power levels

 Company performance
 Company policies and behavioral standards

 Consider how a football quarterback 'reads the field' before he calls a route
for his offensive line. He likely has to change the play from down to down,
especially as the opposing team changes their defensive line.

 So, too, do factors vary within and between every employee and their
employers. With so many moving parts within an organization, it's clear why a
"one size fits all" approach to leadership simply can't work.

 Let’s say you manage a team of four people. You’ve tasked your project
management expert to take the lead on an upcoming cross-functional
campaign. However, as the campaign progresses, you realize the work
requires a different skill set. Many of the deliverables are focused on creating
copy, design, and other sorts of creative work.

Your project management person has been going back to the content
marketing manager for certain asks. Yet the content marketing manager
wasn’t originally a part of the project. You decide that your content marketing
 manager would be better equipped to help the team reach success. So, you
swap out your project management expert with your content marketing lead.

 Why is contingency theory important in leadership?

 Contingency theory isn't one that we at BetterUp necessarily believe in. We

know that people are capable of learning, growing, and developing leadership
skills.

 So, it's important to understand that this theory is one that some leaders may
believe in. But in reality, it's even more important to understand that people
can grow and change.

 Essentially, it’s critical that your leaders understand they can build skills to
succeed in situations where they might feel especially challenged. We all
have a sense of our strengths and weaknesses .

 The contingency theory of leadership can help bring awareness to those

areas of opportunity for your leaders. However, it’s important your leaders
understand that just because they’re not seeing the desired outcome in
certain situations doesn’t mean they can’t build the skills to succeed.

 Approaching leadership with this lens allows more individuals to explore

leadership in their careers and better understand themselves as well as in
what situations they may be effective leaders.

 Most believe that leadership exists on a spectrum, with poor leaders and
great leaders. Contingency theory debunks this thought process and instead
presents the idea that for every situation or challenge, there is a best-fit
leadership style.

 For those employees and individuals who desire to improve their leadership
skills, the contingency leadership theory argues that they must look within,
work to understand themselves and develop their strengths, and then
approach challenges objectively to determine what (and who) can lead.

 At BetterUp, we use the practice of Inner Work® . And according to our

research, looking inward makes you a better leader. When leaders practice
Inner Work® , teams are more engaged, more productive, and gain more
clarity. We also see better work-life balance and reduced burnout, which
helps support overall employee well-being.

2 examples of contingency leadership theory in action

Let's review a couple of examples that illustrate the contingency theory of

leadership and its models.
Example #1: Adapting to feedback preferences

Jason manages a team of writers for his company's publication. Every Friday, he
holds a meeting for his writers to share their current assignments and receive
feedback from their colleagues. Jason has found that this helps his team hone their
writing, editing, and feedback-giving skills. He also employs the Supportive Leader
style of the Path-Goal model.

A new writer joins Jason's team and immediately expresses discomfort about these
Friday feedback sessions. They don't enjoy public speaking and dislike the public
nature of the feedback. They prefer to receive edits via Google Docs.

Does this make Jason a bad manager? No. Yet, the contingency theory of
leadership states that to remain a good and effective leader, he must adapt to his
new employee's preferred feedback method. Jason can still ask his new team
member to join the meeting but not feel pressured to share their work.

Example #2: Delegating a leadership responsibility to another

Four years ago, Abby founded her software company alongside two former
colleagues, both of whom enjoy sales, networking, and attending and speaking at
events.

In other words, her two partners are the "face of the company," while Abby enjoys
staying out of the spotlight and working with her team of developers to build and
improve the company's product. Abby has a Delegating Style of leadership
according to the situational leadership model.

One day, Abby's cofounder surfaces an opportunity to lead a keynote presentation

at a top conference for their company's industry. Unfortunately, even thinking about
presenting in front of many people gives Abby anxiety.

Does Abby become a lousy leader if she turns down the speaking opportunity? No.
Leaders aren't required to be natural extroverts or enjoy public speaking to lead.

Because she's cultivated a culture of delegation and trust among her team, Abby
could work with one of her lead developers—someone who is also experienced in
the topic but more comfortable with public speaking —to present the keynote speech
instead.

Looking at the models of the contingency theory at work

There are many ways to put the contingency leadership theory into action. This
section covers four distinct perspectives on contingent leadership. Each model has
its defined leadership styles, but there's plenty of overlap between the styles.
Note: These models aren't designed to "diagnose" leadership styles; they're
intended to identify where leaders should work with their coaches to identify how
(and where) to work on certain capabilities.

Using these leadership styles as references, leaders can identify and be aware of
the behaviors and mindsets they're using with their teams and where they can
improve.

1. Fiedler’s contingency model

The first of the contingency leadership models were developed in the 1960s by
Austrian psychologist and professor Fred Fiedler. Through years of research into
the personalities and characteristics of leaders, Fiedler’s theory was that life
experiences shape leadership styles .

As a result, according to this model, leadership styles tend to be fixed and near-
impossible to change.

Fiedler’s contingency theory is quite simple: By comparing their natural (and fixed)
leadership style to three situational factors, leaders can determine if they can be
effective leaders.

First, to determine their leadership style, individuals can use the Least Preferred
Coworker (LPC) scale to describe a coworker with whom they least enjoy working.

Individuals with high scores (typically ~70 or higher) are considered high LPC
leaders and tend to be relationship-oriented leaders. Those with lower scores
(typically ~50 or below) are considered low LPC leaders and are more likely to be
task-oriented leaders.

If leaders score between 50 and 70, they can be considered both relationship- and
task-oriented and need to approach situations with more subjectivity and self-
reflection. (The other three models can help with this.)

As you can imagine, high LPC leaders can combat interpersonal conflict , boost
team synergy and morale, and build relationships among their teams. Low LPC
leaders excel at project management, organizational skills, and logistical team
management .

This isn't to say that high LPC and low LPC leaders don't share some skills, but
Fiedler's LPC score presents a helpful baseline for individuals wanting to better
understand their different leadership styles and combat unfavorable situations.

To implement Fiedler’s model, leaders must then evaluate the situation at hand to
determine how well their leadership style befits the challenge:
  Leader-member relations refer to the strength of a leader’s relationship with their
team and employees. Relationship strength can be determined by the level of trust
and respect shared between a team and its leader. The stronger the leader-member
relations, the more favorable the situation

 Task structure refers to how clearly defined and organized a project's tasks are.
Well-structured tasks have high task structure and vice versa. The higher the task
structure, the more favorable the situation
 Leader position power refers to the level of authority a leader has over their team.
The higher up on a company's hierarchy or organizational structure , the more power
a leader has. The higher the position of power, the more favorable the situation

The following chart developed by CEO Carl Lindberg helps compare leadership
styles with these three situational variables:

Source

"The novelty with [this model] was that Fiedler stated that a leader could be
effective in one situation and not in another," Lindberg shared. "A good leader is not
necessarily successful when heading all types of organizations in all situations."
Who does Fiedler's model of contingency leadership theory benefit most?

While the Fiedler model is the flagship model of the contingency theory of
leadership, it isn't a fit for every leader. Let's look at a few pros and cons of the
theory:

Advantages Disadvantages
It encourages self-awareness Since the LPC scale is a perceived score,
and self-reflection when it can result in biased results and can
evaluating leadership styles thus be unreliable
Its application is pretty black-and-white.
It provides a straightforward way
Depending on their leadership style and
to check one's leadership style
the situational favorableness, leaders can
and determine when and how
either address a situation or replace
one's skills suit a situation
themselves
It focuses on the situations at It's not as clear how moderate LPC
hand and not the leaders leaders (with scores between 50 and 70)
themselves should handle situations

2. Situational Leadership® model

Also called the "Hersey-Blanchard model," the Situational Leadership model states
that individuals should adapt their leadership style to the situation at hand and the
employees involved.

The model focuses on one workplace factor: the maturity level of leaders and their
employees.

Experienced, autonomous employees who can make decisions independently are

high maturity. Capable employees that struggle with confidence or following through
are moderate maturity. Enthusiastic, receptive employees that lack basic leadership
or experience are low maturity.

The Situational Leadership model presents four different leadership types for all
maturity levels:

 The Delegating Style of leadership is best suited for leaders who delegate goals,
projects, and tasks to high-maturity employees. This leadership style also requires a
healthy amount of trust between leaders and their teams . (Consider the low LPC
leader in the Fiedler model.)

 The Participating Style of leadership involves a give-and-take between leaders and

their teams. Leaders share ideas to motivate their moderate-maturity team members
and help them build the confidence to move into a high-maturity mindset.
  The Selling Style of leadership refers to when leaders must "sell" their instructions
to moderate-maturity employees. This type of leader often surfaces when
employees lack motivation or aren't self-starters.

 The Telling Style of leadership works best for teams of low-maturity employees who
lack experience or foresight to determine their projects and tasks. Leaders in this
style must delegate and supervise their team members, at least until they move up
in maturity level.

3. Path-Goal model

The Path-Goal model says that effective leaders help their employees reach their
goals. Simple enough, right?

By working with employees to determine their daily, weekly, or career goals, leaders
can map the path to completing those goals and adapt their coaching leadership
style to coach each employee to achieve them.

The contingency leadership theory comes into play as individuals' leadership styles
will vary based on each goal path. This requires flexibility and self-awareness on the
part of the leader. In other words, the leader must be aware of their employees’
goals. They must also be aware of the skills employees have — and what they must
coach their employees on to reach their goals.

The Path-Goal theory emphasizes employee morale, employee engagement ,

satisfaction, and productivity as factors to help leaders determine what style is best
for their team. This model has four primary leadership styles:

 The Supportive Leader takes into account their employees' personal preferences
and treats their well-being as important as their productivity. Leaders in stressful
work environments may implement this approach.

 The Participative Leader works alongside their team and often asks for input or
feedback before making decisions. Leaders at startups, in small teams, or whose
team members are personally invested in the outcome may implement this
approach.

 The Directive Clarifying Leader gives explicit tasks and explains how tasks should
be done. Leaders of teams with ambiguous roles or unstructured tasks may
implement this approach.

 The Achievement-Oriented Leader sets high expectations and goals for their team
and often encourages autonomy and independence at work. Leaders who
manage distributed leaders or high-achieving teams may implement this approach.

4. Decision-Making model
Also known as the "Vroom-Yetton contingency model ," the Decision-Making model
uses decision-making and leader-member relations to determine effective
leadership.

This model presents five leadership styles:

 The Autocratic (A1) leader makes decisions independently and doesn't consult
others before doing so.

 The Autocratic (A2) leader makes decisions independently but passively consults
with team members to gather information before doing so.

 The Consultative (C1) leader makes decisions independently but consults with
team members individually to understand everyone’s opinions before doing so.

 The Consultative (C2) leader makes decisions independently but consults with
team members often, perhaps through a group discussion to gather suggestions,
before doing so.

 The Collaborative (G2) leader makes decisions through a democratic

leadership process, often organizing a group discussion to discuss suggestions
before voting for the final decision.

How to apply the contingency theory of leadership at work

The contingency theory of leadership can help bring levels of awareness and
education to how leadership styles manifest in the workplace. However, it's not
necessarily a model that will unlock the full potential of your workforce.

At BetterUp, we've studied how leaders can grow and develop their skills (especially
after they've reflected on their own areas of opportunity). Here are five ways you
can help develop inclusive leaders and future-minded leaders who will have an
impact.

1. Identify where you see the contingency theory of leadership showing up in

your own behaviors and mindset

Pay attention to how you react to specific challenges or situations at work. Take
stock of your reactions—internally and externally—and how you adapt based on
whom you're working with, what you're working on, and other variables in the
situation.

2. Figure out what leadership style you're leveraging for specific situations

Using the models above, determine your leadership style—or styles, as different
situations may surface different responses.
Consider doing this early in your leadership role instead of waiting until a situation
or challenge arises, and reevaluate your style regularly as you gain more
experience, change your team or employer, or even invest in coaching.

3. Identify your ideal outcome. What skills do you need to achieve that outcome?

What kind of leader do you aspire to be? What outcomes do you hope to achieve or
even expect from your team? If your team is struggling to achieve those outcomes,
it may be a reflection of how effective you are as a leader.

Thankfully, leadership is all about adapting and growing into the skills you may be
lacking to lead effectively. A coach can help you do this.

4. Work with your coach to develop and grow

Learning the skills needed to adapt and improve your leadership style can be tough,
and you don't have to do it alone. Coaching is a surefire way to shape your
leadership skills and work towards the ideal outcomes you identified above.

A leadership coach can help you become more self-aware and acknowledge the
inherent complexity of leadership.

5. Commit to growing and learning

As we've discussed in this article, there's no single right approach or right set of
leadership characteristics for every workplace circumstance. Instead, adopt
a growth mindset and allow yourself to learn from and thrive in difficult situations.

Commit to developing skills that make you an adaptable, open-minded leader—the

best kind of leader there is.

Start to develop great leaders in your organization

So, what does it mean to be a good leader?

In today's fast-paced world, being flexible and open to change is a prerequisite for
success—especially for those in leadership positions. Good leadership isn't a one-
size-fits-all approach—it's about taking the time to understand yourself, your team,
and your workplace to determine how to be the best leader.

With BetterUp, you can invest in developing leaders that will help unlock your
workforce's full potential. Help your people build the skills they need to become the
leaders they can be.