Contingency Theory: Ditching the “One Size Fits All” Leadership Style for Dynamic Leaders

What makes a great leader? Is it decisiveness, openness to ideas, or an unyielding focus on results? 

The answer completely varies depending on who you ask. You can’t perfectly define a leader with a single archetype or a comprehensive list of attributes. Instead, organizations are leaving the one-size-fits-all approach behind and focusing on adaptive leadership.

At the forefront of this evolution is the contingency theory of leadership, which challenges the idea that a uniform leadership style is enough to navigate the modern business world. It promotes a much more nuanced approach to leadership that accommodates a diverse workforce and organizational structure. 

Discover how HR managers can hone their own leadership strategy and empower their workforce to do the same by exploring this leadership method.

What Is Contingency Theory?

Contingency theory is a leadership and management concept that says there is no one universal or optimal way to lead an organization. Instead, it argues that effective leadership is contingent upon various situational factors. In other words, the most appropriate leadership style depends on the specific circumstances at hand.

This departure from a more traditional leadership model helps organizations advocate for the actual needs of their employees. Organizations are dynamic, and recognizing that there is no universal leadership style can help leaders be more responsive to such a changing environment.

For example, imagine a project manager overseeing two teams: one composed of experienced professionals and another made up of new hires. The leadership strategy that motivates and guides seasoned experts won’t necessarily work for enthusiastic beginners. Contingency theory helps leaders navigate these differences so that each team gets the support it needs to thrive.

Types of Leadership Styles

If you’re looking to shift between leadership styles, it can help to know what options are out there! Common leadership styles include:

• Contingency Leadership: This leadership approach posits that there is no single best way to lead. Instead, effective leadership depends on the situation, including team dynamics, tasks, and environmental factors.
• Adaptive Leadership: A versatile leadership style that allows leaders to pivot between different approaches based on the challenges at hand, focusing on flexibility and responsiveness to change.
• Directive Leadership: A style focused on providing clear instructions, setting expectations, and closely monitoring performance to ensure tasks are completed as planned.
• Participative Leadership: Encourages collaboration and team input in decision-making, fostering a sense of ownership and collective problem-solving among team members.
• Supportive Leadership: Prioritizes team wellbeing by offering emotional support and addressing the individual needs of team members.
• Achievement-Oriented Leadership: Pushes teams towards excellence by setting challenging goals and encouraging high performance.
• Situational Leadership: Adjusts leadership styles based on the development levels and needs of team members, categorized into phases like directive, coaching, supporting, and delegating approaches.
• Decision-Making Leadership: This model advises leaders to adapt their decision-making style—autocratic, consultative, or delegative—depending on the nature and complexity of the decision.

It’s important to note that, while contingency and adaptive leadership styles are similar, there are critical differences:

The Business Case for Adaptive Leadership

Contingency theory provides a framework for developing adaptive leaders who can pivot between styles to meet the demands of any situation. Here’s why this approach is increasingly popular within organizations.

Why a "One-Size-Fits-All" Approach Fails

Rigid leadership models assume that one leadership style works universally—a strategy that often falls flat in the real world. Workforces today are more diverse than ever, with employees bringing unique skills, experiences, and needs to the table. What motivates one team might demoralize another.

When creating leadership development plans, HR managers can tailor their training and programs to the specific needs of their organization. Leaders can be taught to assess different situations, recognize key variables, and adjust their leadership styles accordingly. This approach ensures that leaders have a versatile toolkit they can draw upon based on the needs of their teams and tasks.

How Contingency Theory Supports Growth

Leadership development is an ongoing process—even your best managers and directors need to continually develop their skills and qualities. Instead of being pigeonholed into one or two leadership styles, contingency theory encourages training leaders to adapt according to the situation. 

For example, a directive and authoritative leadership style might work best in a crisis that requires quick decision-making. Meanwhile, a more participative and collaborative approach might be better suited for a creative and innovative project. This theory recognizes that what works in one context may not be impactful in another, and successful leaders are those who can discern the appropriate style for a given set of circumstances.

In practice, adaptive leadership creates a ripple effect. Teams feel more supported, leaders are more confident in their decision-making, and the organization becomes more resilient in the face of change.

4 Contingency Theory Models

Over the years, contingency theory has evolved and transformed into different styles in and of itself. The 4 primary models look like this.

1. Fielder’s Contingency Model: Matching Leaders to Situations

Fred Fiedler's Contingency Model, developed in the 1960s, proposes that leadership effectiveness is determined by “situational favorableness.” In other words, each response to an interaction depends on a leader's style and the favorability of the circumstances. Favorableness is determined by three factors:

• Leader-Member Relations: The level of trust and respect between the leader and the team.
• Task Structure: The clarity of tasks and objectives.
• Position Power: The authority the leader holds to direct the team.

For example, a leader with strong positional authority might excel in a structured environment with clear goals, such as a manufacturing operation. However, the same approach might falter in a fast-moving startup where flexibility and innovation are prized. By understanding this interaction, organizations can make informed decisions about leadership selection and training.

2. Situational Leadership: Flexibility in Action

This model pushes back a little bit compared to Fielder’s model. Also developed by Paul Hersey and Kenneth Blanchard in the late 1960s, Situational leadership is all about adaptability and how leadership styles should be adjusted based on the development levels of team members. 

There are four categories for these team members:

1. Enthusiastic Beginners: High commitment, low competence.
2. Disillusioned Learners: Low commitment, some competence.
3. Reluctant Contributors: Moderate competence, variable commitment.
4. Peak Performers: High competence, high commitment.

For instance, a leader might adopt a directive style for a new hire who needs guidance as an enthusiastic beginner, but rely on more delegation for a peak performer who thrives on autonomy. Essentially, this style offers a practical framework for coaching, mentoring, and delegating based on the needs and competencies of individual team members.

3. The Path-Goal Framework: Steering Towards Success

The Path-Goal Theory, proposed by Robert House in the 1970s, focuses on how leaders can motivate followers to achieve organizational goals. It suggests that leaders should clarify paths to organizational goals and remove obstacles—then, provide support. This model identifies four leadership styles:

• Directive: Providing clear instructions and expectations.
• Supportive: Focusing on the wellbeing of the team.
• Participative: Encouraging team input and collaboration.
• Achievement-oriented: Setting high standards and challenging the team to excel.

In workplace settings, the Path-Goal model is used to analyze the condition and choose the most appropriate leadership style. For example, directive style may be most effective for somebody overseeing quality control in a manufacturing plant where defects could lead to product recalls or safety hazards. Meanwhile, participative style might be suitable for a tech company gathering input from engineers, designers, and marketers to design a new product.

4. The Decision-Making Model: Empowering Leaders

Finally, there is the Decision-Making model, which suggests that the most effective leadership style depends on the nature of the decision that needs to be made. Developed by Vroom and Yetton in the 1970s, the model provides a systematic approach for leaders to decide whether to make decisions autocratically, consult with others, or delegate decision-making authority. 

When faced with a decision, this model encourages leaders to consider factors like:

• The complexity and urgency of the decision.
• The level of team expertise and commitment.
• The importance of team buy-in.

For instance, an autocratic decision-making style might be necessary in a time-sensitive crisis. However, when implementing a new workplace policy, a consultative or collaborative approach is more likely to gain team support and ensure success.

Benefits of Contingency Theory in Leadership for Organizations

Leadership development programs that integrate contingency thinking help leaders align their styles with the values, goals, and structures of their specific organizations. Here are some of the core benefits organizations enjoy with a flexible leadership development model.

Increased Employee Satisfaction and Engagement

When leaders adapt their styles to fit the needs of their teams and tasks, it often results in increased employee satisfaction. Leadership development programs emphasizing contingency theory can teach leaders how to create an environment where employees feel supported and understood. This leads to higher engagement—after all, employees are 12 times more likely to be fully engaged if they trust their leadership, which only drives your organization forward.

Drives Innovation and Problem-Solving

Contingency theory also encourages leaders to view challenges as unique and requiring tailored solutions. Leadership development plans that incorporate this perspective foster problem-solving skills among leaders, and those skills trickle down to the rest of the organization. This not only improves the ability to address specific issues but also contributes to a company culture of innovation and adaptability.

Improved Collaboration and Communication

Communication is a huge part of leadership, and contingency thinking recognizes that communication styles should be adjusted based on the situation. This adaptability helps leaders build stronger relationships and tackle conflict resolution more effectively.

Real-World Leadership Applications of Contingency Theory

Leaders in all kinds of industries can use the benefits of contingency theory. These are some of the practical applications of this leadership model.

Adapting Leadership to Team Dynamics

Take this scenario with a tech startup as an example: Let’s say a team of developers exhibited high levels of expertise but struggled with collaboration. As a startup, the team lead has been more authoritative so far. However, recognizing the need for change, the leader shifted from a directive approach to a participative style. By involving the team in decision-making processes and encouraging open communication, the leader fostered a collaborative environment that improved overall productivity and innovation.

Leadership Evolution During Organizational Change

What about a retail organization undergoing a strategic shift? As the company moves from traditional brick-and-mortar to e-commerce, the CEO can be more adaptive with contingency theory. Initially, leadership used a visionary and transformational style to communicate the new direction. Then the CEO moves to a more hands-on and coaching style during the implementation phase to support employees in acquiring new skills. This versatility ensures that leadership stays on track during organizational development.

Implementing Contingency Theory Across an Organization

Check out these strategies to integrate this leadership model into management practices.

Conduct Leadership Self-Assessments

First, it’s helpful for leaders to understand where they are at and where they would like to be in terms of leadership. Support them as they examine their leadership styles and behaviors, especially in terms of flexibility. For example, leaders can reflect on questions like:

• How do I respond to team challenges?
• In what situations does my leadership style excel or fall short?

This initial step lays the foundation for a more nuanced understanding of their strengths, weaknesses, and areas for growth within the context of adaptive leadership.

Tailor Leadership Styles to Team Needs

When looking for ways to tailor leadership, managers can focus on identifying factors that optimize team performance. This may include task complexity, team dynamics, and other elements. ​​Leaders can evaluate:

• Team competency levels: Does the team have the skills and knowledge to work independently?
• Task complexity: Are the goals straightforward or highly ambiguous?
• Team dynamics: Does the group collaborate well, or is guidance needed?

When managers do this, they can better understand how to modify their leadership styles based on the unique demands of each situation or department.

Embed Contingency Thinking into Leadership Development Programs

Trying to define the dos and don'ts of leadership is tricky, which is why contingency theory leadership focuses on outcomes rather than prescriptive solutions. Incorporate activities like:

• Simulations: Present leaders with varied challenges that require switching leadership styles.
• Workshops: Facilitate cross-departmental exercises where leaders practice aligning styles with team needs.
• Metricsfor success: Measure how well leaders adjust their approaches in different situations.

Leaders can focus on the outcome that they want for their team and coworkers and then identify the necessary skills they need to develop.

Collaborate with Coaches and Mentors

Leaders don’t have to figure out how to adapt on their own — finding a mentor who can help managers through their own growth is key. Mentorship programs can focus on:

• Role-playing exercises for different leadership challenges.
• Ongoing discussions about overcoming situational obstacles.
• Building self-awareness around adaptability through constructive feedback.

This collaboration becomes not just a one-time initiative but a sustained effort to nurture self-aware leaders who value feedback.

Focus on Outcome-Driven Leadership Development

Another great way to incorporate contingency theory leadership is by instilling a growth mindset. Whenever possible, encourage leaders to stay updated on industry trends and new leadership strategies. This can look like:

• Defining clear objectives for their teams and adjusting leadership styles accordingly.
• Using flexible KPIs that accommodate the nuances of different tasks and challenges.
• Empowering team members by involving them in decision-making processes when appropriate.

By fostering a culture that embraces continuous learning and development, leaders are better equipped to handle different circumstances and challenges as they arise.

Contingency Theory in HR Practices

Embracing contingency theory often starts with HR—consider how creating flexible HR helps create a more adaptive workforce:

• Recruitment and Selection: You can evaluate candidates’ ability to adapt their leadership style through situational interview questions like, "Can you describe a time when you adjusted your approach to suit your team’s needs?"
• LeadershipDevelopment: Try designing customized training programs that emphasize adaptability, such as workshops on handling different team dynamics or simulations of real-world challenges.
• Performance Management: When evaluating leaders, consider focusing on how well they assess and respond to situational variables. Provide constructive feedback to refine their adaptability.
• Organizational Culture: Foster a culture of continuous learning and flexibility by promoting cross-functional collaboration, open communication, and mentorship opportunities.

Wellness Is Not “One Size Fits All”

Adaptive leadership creates an environment where employees can thrive. Pairing this approach with flexible wellness solutions ensures even greater success. Employees have unique circumstances and needs, and offering versatile wellbeing options sets companies apart in today’s competitive landscape.

In fact, 83% of workers say they’d consider leaving a company that doesn’t prioritize employee wellbeing​. By investing in a robust wellbeing strategy, organizations not only support their workforce but also enhance retention, engagement, and overall performance.

Explore how tailored wellbeing programs can transform your workplace. Speak with a Wellhub Wellbeing Specialist to create a workplace where employees and your businesses thrive.

You May Also Like:

• How to Handle Toxic Leadership
• Making the Dream Work: What to Know About Team Dynamics
• HR Department Structure: Roles, Functions, and 4 Common Structures

Resources

• Wellhub (2024, October 16). The State of Work-Life Wellness 2025. https://wellhub.com/en-us/resources/research/work-life-wellness-report-2025/ 
• Essential Employee Satisfaction Statistics in 2023. (2023, June 9). ZipDo. Retrieved November 17, 2023, from https://zipdo.co/statistics/employee-satisfaction/