Situational Approach

The situational approach emphasizes the importance of contextual factors that influence
leadership processes. Major situational variables include the characteristics of followers, the
nature of the work performed by the leader’s unit, the type of organization, and the nature of the
external environment.

This approach has two major subcategories. One line of research is an attempt to discover the
extent to which leadership processes are the same or unique across different types of
organizations, levels of management, and cultures. The primary research method is a
comparative study of two or more situations. The dependent variables may be managerial
perceptions and attitudes, managerial activities and behavior patterns, or influence processes.

The other subcategory of situational research attempts to identify aspects of the situation that
“moderate” the relationship of leader attributes (e.g., traits, skills, behavior) to leadership
effectiveness. The assumption is that different attributes will be effective in different situations,
and that the same attribute is not optimal in all situations. Theories describing this relationship
are sometimes called “contingency theories” of leadership. A more extreme form of situational
theory (“leadership substitutes”) identifies the conditions that can make hierarchical leadership
redundant and unnecessary.

Types of Variables
The contingency theories of effective leadership have at least one predictor variable, at
least one dependent variable, and one or more situational variables. The leadership attributes
used as independent variables were usually described in terms of broad meta-categories (e.g.,
task and relations behavior). The dependent variable in most of the theories was subordinate
satisfaction or performance, and in a few cases it was group performance. Most of the
situational variables were conditions the leader is not able to change in the short term, including
characteristics of the work (e.g., task structure, role interdependence), characteristics of
subordinates (e.g., needs, values), characteristics of the leader (expertise, interpersonal stress),
and characteristics of the leadership position (leader authority, formal policies).

Some contingency theories also include mediating variables (sometimes called

“intervening variables”) to explain the influence of leader behavior and situational variables on
performance outcomes. The mediators are usually subordinate characteristics that determine
individual performance (e.g., role clarity, task skills, self-efficacy, task goals), but mediators can
also include group-level characteristics that determine team performance (e.g., collective
efficacy, cooperation, coordination of activities, resources). A theory is more complex and
difficult to test if it includes many specific behaviors, mediating variables, and situational
variables.

Causal Effects of Situational Variables

The situational variables used in contingency theories can have different types of causal effects,
and more than one type of effect can occur for the same situational variable (Howell, Dorfman,
& Kerr, 1986; James & Brett, 1984; Yukl, 2009).

Situation Directly Effects Outcomes or Mediators.

A situational variable can directly influence an outcome such as subordinate satisfaction or
performance, or a mediating variable that is a determinant of the outcomes. When a situational
variable can make a mediating variable or an outcome more favorable, it is sometimes called a
“substitute” for leadership. An example is when subordinates have extensive prior training and
experience. The need for clarifying and coaching by the leader is reduced, because
subordinates already know what to do and how to do it.

Situation Directly Influences Leader Behavior.

A situational variable may directly influence a leader’s behavior but only indirectly influence the
dependent variables. Aspects of the situation such as formal rules, policies, role expectations,
and organizational values can encourage or constrain a leader’s behavior, and they are
sometimes called demands and constraints. In addition to the direct effect of the situation on
leader behavior, there may be an indirect effect on dependent variables.

Situation Moderates Effects of Leader Behavior.

A situational variable is called an enhancer if it increases the effects of leader behavior on the
dependent variable but does not directly influence the dependent variable. For example
providing coaching will have a stronger impact on subordinate performance when the leader has
relevant expertise. This expertise enables the leader to provide better coaching, and
subordinates are more likely to follow advice from a leader who is perceived to be an expert. An
enhancer can indirectly influence leader behavior if a leader is more likely to use a behavior
because it is perceived to be relevant and effective. A situational moderator variable is called a
neutralizer when it decreases the effect of leader behavior on the dependent variable or
prevents any effect from occurring.