Vroom and Yetton's Contingency Theory

Vroom and Yetton's  Contingency Theory 
This theory is also called the Leader Participation Model.
Vroom and Yetton base their analysis on two aspects of a leader's decision :

●Decision Quality:The effect that the decision has on group performance 

●Decision Acceptance :It refers to the motivation and commitment of group members in implementing the decision 


Vroom and Yetton identified five leadership styles based on the degree of employee participation and power in making organizational decisions :

●Autocratic  (A-1): The leader solves the problem himself or makes the decision alone using information available to him at that time.

●Automatic  (A-2): The leader obtains information from his subordinates but the decision on solution is his alone.

●Consultative  (C-1): The leader shares the problem with his subordinates individually . He then makes the decision which mayor may not reflect the influence of his subordinates. 

●Consultative  (C-2):The leader shares the problem with his subordinates as a group.  Therefore he makes decision which may or may not reflect the influence of his subordinates. 

●Consultative  (G): The leader shares the problem with the entire   group together and acts as its chairman to generate and evaluate alternatives in an attempt to reach a consensus solution to the problem.  Here the leader accepts,  adopts and implements the solutions which are recommended by the entire group.

Vroom and Yetton suggest seven decision rules to help the manager discover the most appropriate leadership style in a given situation. These are:

1. How important is the quality of the decision? 

2. Do I possess adequate information and sufficient expertise to make a high-quality decision? 

3. Is the problem structured? 

4. Is acceptance of the decision by subordinates critical to effective implementation? 

5. If the leader were to make the decision himself is he reasonably certain that it  would be accepted by subordinates? 

6. How motivated are the subordinates to attain organizational goals as they are represented in this problem? 

7. Is conflict among the subordinates likely over the preferred decision and solution of the problem? 


Transaction  Leadership Style 
●Transactional leaders are power holders by virtue of their position in the organization. 

●They have the capacity to influence others because of their job.

●There is simply a mutual exchange for economic or political reasons between leader and follower. 

●They are managers whose main functions are: planning,  budgeting, developing timetable,  Organizing, Staffing, controlling, problem solves etc. 

There is order and predictability in their functioning .

Transformational Leadership Theory 

●Transformational leadership is a leadership style that is defined as leadership that creates valuable and positive change in the followers  . A transformational leader focuses on "transforming " others to help each other to look out for each other to be encouraging and harmonious and to look out for the organization as a whole . In this leadership the leader enhances the motivation, morale and performance of his follower group. It is an extension of the charismatic theory of leadership transformational leadership focuses on changing the values, beliefs and needs of the subordinates. 

There are four elements of a transformational leader:

●Individualized consideration-The degree to which the leader attends to each follower's needs acts as a mentor or coach to the follower and listens to the follower's concerns and needs. The leader gives empathy and support keeps on open communication and place challenges to the followers. 

●Intellectual stimulation-The degree to which the leader challenges assuptions , takes risks and solicits followers' ideas. Leaders with this trait stimulate and encourage creativity in their followers. They nurture and develop people who think independently  .

●Inspirational motivation -The degree to which the leader articulates a vision that is appealing and inspiring to followers. Leaders with inspirational motivation challenge followers with high standards communicate optimism about future goals and provide meaning for the task at hand.

●Role and identification model-The highest level of transformational leadership.  The leader provides communal design of vision and purpose, Values and norms that gives meaning to be work . The leader plants pride and feelings of mission within the stakeholders enhancing their performance capabilities and providing personal example. The followers trust and emulate this leader identifying with the goals.

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