Question

Imagine CEO Gerd Finger wishes to introduce a new line of music equipment at Newskool Grooves and that several of the other managers do not like his idea.

1. Based on various perspectives and models of leadership, how would you describe the leadership style of the CEO Gerd Finger? Why would you associate him with form of leadership?

2. Why is Path-Goal Theory considered a contingency theory of leadership?

3. Using Path-Goal Theory, provide examples of leadership behaviours enacted by CEO Gerd Finger.

4. Of the contingencies from Path-Goal Theory, which two are most important for deciding how to best lead employees are Newskool Groove? Why?

Answer 1

Please find my answers below:

a. Much information has not been given about CEO Gerd Finger and hence based on the available information I feel that his leadership style is Autocratic. Generally these types of leaders think that he is the smartest of all and they want everyone following them to act according to their wishes. In the given example, managers are not happy and do not like his idea but he still wishes to introduce a new line of music equipment.

We associate CEO Gerd Finger with a form of leadership because in the example it is clear he is having the authority of making decision of introducing a new line of product. It depends of the leader which style of leadership he implements. CEO Gerd could have asked opinions of his managers and then decided on this but he is chosing to stick to his wish. Hence I feel he is a leader with Autocratic leadership style. We can also call him as a Task oriented leader.

Contingency theory of leadership means how the leader find out which leadership behavior is best suited in a particular situation. A leader and his leadership is effective if his style best suits the situation and gives the best outcome. Path Goal theory is where the leader choses a leadership style that best suites the situation (employees/subordinates and office environment) to finally achieve the goal. As we see that both concepts are very much similar, we can say that Path Goal theory is considered as a contingency theory of leadership. This theory is also applied if none of the other leadership styles or strategies work in the Organization's favour.

In Path Goal theory, it is assumed that leaders can easily get adapted and change their leadership style according to the situation and hence the two important deciding factors in the leadership style are: organization's environment and employee/team behavior. Based on these two factors the leader or manager can decide which type of leadership style he/she should follow to attain goals. If employees are willing to accept the decisions made by the leader then he can adapt a more democratic style of leadership otherwise autocratic or authoritative. Similarly, if the organization is going through a crisis then the leader has to be more strict in his approach and need to take a different leadership style like pacesetting style to meet the need of the situation.