In essence, the LPC Contingency theory posits that the most effective leadership
style is contingent on a variety of situational factors. Fiedler found that, when
situations are highly favourable or unfavourable, task-orientated leaders are more
effective; however, when situational favourableness lay between these poles,
then a relations-orientated leaders would perform more effectively.
Favourability of situation is assessed based on three measures:
leader-member relations (extent of subordinate loyalty and friendly and
cooperative leader-member relations);
task structure (extent to which tasks, outcomes and performance are
prescripted); and
position power (extent of leader’s authority regarding performance appraisal
and allocation of rewards or punishments).
In combination, these three variables describe a continuum of favourability which
can be disaggregated into octants. At the favourable end of the continuum
(octants I to III) a task-orientated leadership orientation will work most
effectively – this is also the case at the unfavourable end of the continuum in
octant VIII; from octants IV to VII, a relations-orientated leadership style is most
effective.
Individual leaders are categorised as either task- or relations-oriented based on
their LPC (least preferred co-worker) score; the LPC score is determined based on
the leader’s behaviour and performance rating of their ‘least preferred co-worker’
- their co-worker with whom the leader feels they could work least well with.
High Low Favourableness
Good Poor Leaderrelations-member
Structured Unstructured Structured Unstructured Task structure
Strong Weak Strong Weak Strong Weak Strong Weak (^) Position Power
I II III IV V VI VII VIII Octant
Task
(Low LPC score)
Relationship
(High LPC score)
Task
(Low
LPC)
Leader
orientation
Source: author; after Fiedler (1964; 1967)