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Situational and Contingency Theories

Author: Sophia

what's covered
In this tutorial, you will learn about situational and contingency perspectives, understanding that effective leadership and organizational approaches depend on context, not on one "best" way. Specifically, this tutorial will cover:

Table of Contents

1. Situational Theories: Flexibility is a Key Strength

As we continue our exploration of leadership, we move from understanding what leaders do to considering when and where certain actions are most effective. Our previous lesson focused on behavioral leadership theories, which examined the specific actions and styles leaders exhibit, such as being task-oriented or people-oriented. These studies helped us identify patterns in leadership conduct, suggesting that certain behaviors might generally lead to positive outcomes for a team or organization.

Let’s transition now to a related but different perspective: situational theories, often called contingency theories. While behavioral theories sought to uncover universal leadership traits or behaviors, situational theories propose that the most effective leadership approach depends heavily on the specific context or circumstances. You will find a key similarity between these two approaches in their shared goal: both aim to identify what makes a leader successful. For instance, both might acknowledge the importance of clear communication.

The main difference lies in their core assumption. Behavioral theories often imply a 'one best way' to lead, suggesting that if you adopt certain behaviors, you will be an effective leader regardless of the environment. Situational theories, however, argue that there is no single best style. A leader's effectiveness is contingent upon, or dependent on, various factors within the situation, such as the maturity of the followers, the nature of the task, or the organizational structure. This lesson will help you understand how to adapt your leadership style to fit different scenarios, making your leadership more flexible and responsive.

Again, behavioral leadership evolved from the trait-based leadership models of the early to mid-nineteenth century. The focus shifted from the characteristics that individuals possessed to the way that leaders behaved both inside and outside of their organizations. Simply put, focus shifted from who a leader is to what a leader does. Behavioral leadership theories suggest many behaviors are important, but do not identify a universal set of effective actions for leaders. The most successful leadership behaviors actually depend on an organization's specific type and culture, making a set of behaviors effective in one setting potentially ineffective in another. Situational or contingency theories demonstrate flexibility in their ability to adapt to new situations and contexts.

Another important critique of behavioral leadership is that it takes a considerable amount of time and effort (both on an individual and organizational level) to develop behaviors. This leadership model is essentially “trial under fire.” The only way to know if your behaviors are effective as a leader is to actually engage in leadership. It is very difficult to test behaviors in a controlled environment where the consequences are inconsequential. Engaging in the wrong behaviors can have real organizational consequences, and leaders who engage in incorrect behaviors may not get another opportunity (within that organization) to reimagine new behaviors that bring them (and the organization) success.


2. Six Situational Leadership Styles

Building on our understanding that effective leadership depends on the situation, Daniel Goleman and his colleagues identified six distinct leadership styles that leaders can employ, adapting their approach to specific contexts. These styles offer practical ways for you to navigate diverse challenges and lead various teams effectively.

Leadership Style Description
Coaching Leaders Help develop the skills of their followers
Pacesetting Leaders Hold their followers to high standards through leadership by example
Democratic Leaders Demonstrate communal leadership where decisions are made based on the needs of the group
Affiliative Leaders Build up their followers with the primary focus on group morale
Authoritative Leaders Analyze problems and identify challenges
Coercive Leaders Tell their followers what to do

2a. Coaching Leaders

Coaching Leaders help develop the skills of their followers, much like a seasoned mentor guiding a junior employee through a complex task to improve their specific abilities.

EXAMPLE

Sheryl Sandberg, the former Chief Operating Officer of Meta (Facebook), is widely recognized for her commitment to mentoring and developing talent, particularly women in the tech industry. She actively guided individuals to enhance their leadership and management capabilities, helping them navigate career challenges and build essential skills (Forbes, 2025).

term to know
Coaching Leaders
Leaders who develop the skills of their followers.

2b. Pacesetting Leaders

Pacesetting leaders hold their followers to high standards through leadership by example; imagine a team lead who consistently delivers exceptional work and expects the same level of commitment and quality from their team members. A pacesetting leader motivates a team by modeling high standards and expecting excellent, rapid results. This leadership style, sometimes called leading from the front, means the leader demonstrates the desired behavior and performance level.

EXAMPLE

Jack Welch, the former CEO of General Electric, was a well-known pacesetting leader. He established ambitious goals for his teams and consistently pushed them to achieve those objectives. His approach involved actively participating in the work, demanding intense performance from every individual, and demonstrating the commitment and effort he expected from others. This leadership style can inspire a team to meet challenging targets and deliver quickly, as the leader sets a clear example of what is required (AIHR, n.d.).

term to know
Pacesetting Leaders
Leaders who hold their followers to high standards through leadership by example.

2c. Democratic Leaders

Democratic leaders demonstrate communal leadership where decisions are made based on the needs of the group, such as a manager who facilitates a team discussion to arrive at a consensus on a new work process or project timeline. Democratic leaders excel in communal leadership, where group needs guide decisions, ensuring everyone's voice is valued. This approach aligns with Situational and Contingency studies, which emphasize that effective leadership adapts to the specific circumstances and the readiness of the followers. Rather than a "one-size-fits-all" style, democratic leaders involve their teams in problem-solving and decision-making processes.

EXAMPLE

Tim Cook, Apple's CEO, demonstrates this style. Unlike his predecessor, he encourages consensus among his senior managers and promotes broader participation and delegation across departments. This fosters a sense of ownership and commitment among team members, as their input is genuinely considered, contributing to more robust and well-accepted outcomes within the organizational context.

term to know
Democratic Leaders
Leaders who demonstrate communal leadership where decisions are made based on the needs of the group.

2d. Affiliative Leaders

Affiliative leaders build up their followers with the primary focus on group morale, perhaps by organizing a team celebration after a challenging project to strengthen bonds and appreciation among colleagues. Affiliative leaders prioritize building strong emotional bonds and harmony within their teams, focusing primarily on group morale. This leadership style aims to create a supportive and inclusive environment where individuals feel valued and connected. You will find that these leaders often emphasize praise and positive feedback, fostering a sense of belonging and trust among team members.

EXAMPLE

Howard Schultz, the former CEO of Starbucks, provides a clear example of an affiliative leader. He cultivated Starbucks's reputation not only for its coffee but also for its commitment to employee well-being. Schultz prioritized creating a strong sense of community and connection among his staff, ensuring they felt supported and appreciated. This approach builds loyalty and a positive work atmosphere, which can lead to increased collaboration and a more resilient team.

term to know
Affiliative Leaders
Leaders who build up their followers with the primary focus on group morale.

2e. Authoritative Leaders

Authoritative leaders analyze problems and identify challenges, effectively setting a clear vision and mobilizing people toward it, like a CEO who articulates a new strategic direction for the company after careful market analysis. Authoritative leaders carefully analyze problems and pinpoint challenges, then effectively articulate a clear vision, mobilizing people toward it. This leadership style focuses on setting the direction, making it clear "where we are going," while granting teams the autonomy to determine "how to get there."

The leader provides the overarching goal, trusting individuals to find the best path to achieve it.

EXAMPLE

Satya Nadella, the CEO of Microsoft, exemplifies this approach. He presented a compelling vision for a cloud-first, mobile-first world, along with fostering a growth mindset within the company. Nadella then empowered his teams to innovate and develop solutions within this framework, significantly transforming Microsoft's culture. This method aligns employees around a shared purpose while encouraging initiative and creativity in reaching objectives (Ian, 2025).

term to know
Authoritative Leaders
Leaders who analyze problems and identify challenges.

2f. Coercive Leaders

Coercive leaders tell their followers what to do, a style often seen in crisis situations where rapid compliance is essential, such as a fire chief issuing immediate instructions during an emergency. The coercive leader dictates tasks and expects immediate, unquestioning compliance. This leader tells their followers exactly what to do, often relying on authority to ensure directions are followed without discussion.

Coercive leadership is not always negative; its effectiveness depends on the situation, which aligns with the principles of contingency leadership. Contingency leadership suggests that the most effective leadership style is not fixed but changes based on the specific circumstances, such as the nature of the task, the team's capabilities, and the organizational environment. In times of crisis, for instance, a coercive approach can be essential. When immediate and decisive action is critical, and there is no time for discussion or consensus, a leader who provides clear, direct orders can guide a team through a difficult situation. Think of an emergency where quick decisions are needed to prevent further harm; a coercive style might save lives.

EXAMPLE

Elon Musk's management of Twitter, now X, at times demonstrated traits of a coercive leader by issuing ultimatums or requiring extreme work hours, telling employees precisely what to do to meet rapid, high-pressure demands. While such an approach can be polarizing, it can also drive intense, focused effort, particularly when an organization faces significant challenges or needs to execute a swift turnaround. The key is to understand that while coercive leadership can be effective in specific, high-stakes scenarios, its long-term use may negatively impact morale and innovation, as Goleman's research suggests (Cabral, 2022).

term to know
Coercive Leaders
Leaders who tell their followers what to do.

3. Goleman’s Insightful Framework on Leadership Styles

Daniel Goleman’s work on leadership styles provides a powerful framework for understanding how emotional intelligence influences a leader's effectiveness. We can view these styles as tools in a leader's toolbox, to be used judiciously depending on the situation, and like all tools, each one has a use, but can also cause harm, depending on the context or situation.

  1. The coercive leader demands immediate compliance, saying, "Do what I tell you." This style can be effective in a crisis where quick, decisive action is necessary, like an emergency. However, its prolonged use can harm morale and stifle innovation.
  2. The authoritative or visionary leader inspires with a clear vision, saying, "Come with me." This is often the most effective style, mobilizing people towards a shared goal and allowing them flexibility in how they achieve it. Think of a leader charting a new course for an organization.
  3. The affiliative leader prioritizes emotional bonds and harmony, saying, "People come first." This style builds strong relationships and morale, which is helpful for healing rifts or boosting team spirit. However, it might struggle with addressing poor performance.
  4. The democratic leader values consensus through participation, asking, "What do you think?" This approach builds buy-in and trust by involving team members in decision-making, which is useful when a leader needs input and expertise from their team.
  5. The pacesetting leader sets high standards and expects excellence, often saying, "Do as I do, now." This style can be effective with a highly motivated and competent team, driving strong performance. Yet, it risks overwhelming employees if standards are unrealistic or if the leader micromanages, potentially leading to burnout, the mental and physical exhaustion of overworking, for both the leader and the followers.
  6. The coaching leader focuses on developing individuals for the future, saying, "Try this." This style helps employees grow, linking their personal goals to the organization's objectives, and is excellent for building long-term capabilities and commitment.
These styles rarely exist in isolation; effective leaders often overlap and blend them, adapting their approach based on the specific context, the team's needs, and individual strengths. For example, an authoritative leader might also employ coaching to develop their team, or an affiliative leader might temporarily adopt a more coercive stance in an urgent situation. Understanding these styles provides invaluable insight, helping us recognize our default leadership tendencies and assess their impact. This knowledge can then guide us to develop a more versatile leadership repertoire, allowing us to choose the most appropriate style for any given moment, thus fostering a more positive and productive environment. Understanding these six approaches empowers you to choose the most fitting style for any given leadership moment.

term to know

Burnout
The mental and physical exhaustion of overwork.

4. Blending Behavioral and Situational Orientations

Both behavioral and situational approaches share fundamental goals and insights. Both aim to understand what makes a leader effective, seeking to identify the qualities or actions that lead to successful outcomes for an organization or team. They both recognize the importance of a leader's actions; whether those actions are universal or context-dependent, the leader's behavior is seen as central to their impact. Crucially, both perspectives acknowledge that leaders influence their followers, guiding their efforts, and play a vital role in the achievement of organizational goals, such as meeting sales targets or completing a complex project. They agree that leadership is an active process, not just a passive role.

However, the main distinction between these theories lies in their central assumption about what constitutes the "best" way to lead. Behavioral theories, which we explored earlier, sought universal behaviors, suggesting a general best way to lead that would be effective across most situations. For example, some behavioral theories might have proposed that always being highly people-oriented, caring deeply for employee well-being, would consistently yield the best results regardless of the team's experience level or task urgency. Situational theories, by contrast, argue that the ideal leadership style varies greatly depending on the specific context, emphasizing adaptability as the key to effectiveness. These theories recognize that what works well in one setting, perhaps a highly structured environment with new employees, might be ineffective in another, such as a creative team of experienced professionals who need more autonomy.

In practical application, effective leaders often draw from both perspectives, understanding various leadership behaviors and knowing when to apply them based on the specific situation and the needs of their team. It doesn’t have to be one or the other, but it can leaders can draw insight and inspiration from both. This blended approach acknowledges that while certain behaviors are fundamental, their utility is optimized by tailoring them to the circumstances. For instance, a leader might use a more Democratic style when seeking team input on a new policy, allowing team members to contribute their ideas and build consensus. However, that same leader might switch to a more Pacesetting style when a critical deadline looms and direct execution is key, demonstrating high standards through their own work and expecting immediate action from the team. This ability to assess the environment and fluidly adjust one's leadership style is a hallmark of truly effective and adaptive leadership.

summary
In this tutorial, you learned that effective leadership and organizational success depend on adapting to specific circumstances, recognizing that no single approach works in every situation. Situational Theories of Leadership thus view leadership not as a static set of traits or behaviors but as a flexible and adaptable set of skills. Leadership styles that are appropriate to different circumstances include coaching, pacesetting, democratic, affiliative, authoritative, and coercive. Daniel Goleman’s Framework helps leaders find the right blend of styles for each situation.

REFERENCES

AIHR. (n.d.). Pacesetting leadership: Definition & examples. Academy to Innovate HR. www.aihr.com/hr-glossary/pacesetting-leadership/

Cabral, S. (2022, November 17). Elon Musk’s ultimatum to Twitter employees ramps up company’s crisis. Markkula Center for Applied Ethics, Santa Clara University. www.scu.edu/ethics/media-mentions/stories/elon-musks-ultimatum-to-twitter-employees-ramps-up-companys-crisis.html

Forbes. (2025, July 28). Sheryl Sandberg. Forbes. www.forbes.com/profile/sheryl-sandberg/

Ian. (2025, March). Satya Nadella’s Leadership Style and Philosophy. Pressfarm. press.farm/satya-nadella-leadership-style-and-philosophy/

Terms to Know
Affiliative Leaders

Leaders who build up their followers with the primary focus on group morale.

Authoritative Leaders

Leaders who analyze problems and identify challenges.

Coaching Leaders

Leaders who develop the skills of their followers.

Coercive Leaders

Leaders who tell their followers what to do.

Democratic Leaders

Leaders who demonstrate communal leadership where decisions are made based on the needs of the group.

Pacesetting Leaders

Leaders who hold their followers to high standards through leadership by example.