Early Contingency Theories of Effective Leader Behavior Contingency theories describe aspects of the situation that determine what type of leader behavior is most likely to be effective in each type of situation. Two early contingency theories that involve observable leader behaviors are the path-goal theory and the leadership substitutes theory. These theories are briefly reviewed, followed by a review of a more recent and broader contingency theory called the multiple-linkage model. A few contingency theories such as the Vroom and Yetton normative decision theory are described in other chapters. The least useful of the early contingency theories, such as situational leadership theory (Hersey & Blanchard, 1977) and the LPC contingency model (Fiedler, 1967) are described and evaluated in other publications (e.g., Ayman & Lauritsen, 2018; Yukl, 1993). Path-Goal Theory The initial versions of path-goal theory described how a leader's task-oriented behavior ("instrumental leadership") and relations-oriented behavior ("supportive leadership") influence subordinate satisfaction and performance in different situations (Evans, 1970; House, 1971). The theory was later extended to include participative leadership and achievement-oriented leadership (e.g., Evans, 1974; House, 1996: House & Mitchell, 1974). As in the expectancy theory of motivation, leaders can motivate subordinates by influencing their perceptions about the likely consequences of different levels of effort. Subordinates will perform better when they have clear and accurate role expectations, they perceive that a high level of effort is necessary to attain task objectives, they are optimistic that it is possible to achieve the task objectives, and they perceive that high performance will result in beneficial outcomes. The effect of a leader's behavior is primarily to modify these perceptions and beliefs. Leader behavior can also affect subordinate satisfaction with the leader. The effect of leader behavior on subordinate satisfaction and effort depends on aspects of the situation, including task characteristics and subordinate characteristics. These situational moderator variables determine both the potential for increased subordinate motivation and the manner in which the leader must act to improve motivation. Situational variables also influence subordinate preferences for a particular pattern of leadership behavior, thereby influencing the impact of the leader on subordinate satisfaction. One key proposition of the theory involves the moderating influence of situational variables on instrumental leadership. Task-oriented behavior has a stronger effect on role clarity, self-efficacy, effort, and performance when subordinates are unsure about how to do their work, which occurs when they have a complex and difficult task and little prior experience with it. Another key proposition is that supportive leadership has a stronger effect when the task is very tedious, dangerous, and stressful. In this situation supportive leadership increases subordinate confidence, effort, and satisfaction. Multiple-Linkage Model The multiple-linkage model (Yukl, 1981, 1989) describes how specific types of leader behavior and situational variables jointly influence performance by individual subordinates and by the leader's work unit. The broadly defined behaviors used in most earlier contingency theories were replaced with specific types of leader behaviors. The model includes a larger number of mediating variables that explain the effects of leader behaviors and situational variables, and there is more explicit description of group-level processes. However, the model does not deal directly with organizational processes involving adaptive leadership by top management to threats and opportunities in the external environment of the organization, and that subject is discussed in Chapter 12. The four types of variables in the multiple-linkage model include leader behaviors, explanatory mediating variables, outcome variables, and situational variables. Mediating Variables The mediating variables in the model are based on earlier research and theory on determinants of individual and group performance (e.g., Hackman, Brousseau, & Weiss, 1976: Likert, 1967: McGrath, 1984: Porter & Lawler, 1968), but they are defined primarily at the group level, as with theories of team leadership (see Chapter 11) 0. Task commitment: members strive to attain a high level of performance and show a high degree of personal commitment to unit task objectives. Ability and role clarity: members understand their individual job responsibilities, know what to do, and have the skills to do it. Organization of the work: effective performance strategies are used and the work is organized to ensure efficient utilization of personnel, equipment, and facilities. Cooperation and mutual trust: members trust each other, share information and ideas, help each other, and identify with the work unit. Resources and support: the group has budgetary funds, tools, equipment, supplies, personnel, facilities, information, and assistance needed to do the work. External coordination: the activities of the group are synchronized with the interdependent activities in other subunits and organizations (e.g., suppliers, clients). The mediating variables interact with each other to determine the effectiveness of a group or organizational subunit. A serious deficiency in one mediating variable may lower group effectiveness, even though the other mediating variables are not deficient. The greater the relative importance of a particular mediating variable, the more group performance will be reduced by a deficiency in this variable. The relative importance of the mediating variables depends on the type of work unit and other aspects of the situation.