Nothing endures but change Change is the only constant, whether in personal life or professional.

The success or failure of an individual, team or an organization depends upon the manner in which they adjust to the changes happening around them. Contingency means unforeseen events. The possible future outcomes of the decisions taken in the present or any changes in the external environment are hard to predict. The excellence of a leader lies in his ability to react to these conditions in the most appropriate manner. Early Contingency or situational theories, Fiedler s Contingency Theory Fiedler s contingency model postulates that the leader s effectiveness is based on situational contingency which is a result of interaction of two factors: leadership style and situational favorableness. Least Preferred Coworker The leadership style of the leader, thus, fixed and measured by what he calls the least preferred coworker (LPC) scale, an instrument for measuring an individual s leadership orientation. The LPC scale asks a leader to think of all the people with whom they have ever worked and then describe the person, with whom they have worked least well, using a series of bipolar scales of 1 to 8. Situational Favorableness According to Fiedler, there is no ideal leader. Both low-LPC (task-oriented) and high-LPC (relationshiporiented) leaders can be effective if their leadership orientation fits the situation. The contingency theory allows for predicting the characteristics of the appropriate situations for effectiveness. Three situational components determine the favorableness or situational control: 1. Leader-Member Relations, referring to the degree of mutual trust, respect and confidence between the leader and the subordinates. 2. Task Structure, referring to the extent to which group tasks are clear and structured. 3. Leader Position Power, referring to the power inherent in the leader's position itself. Leader Situation Match & Mismatch Since personality is relatively stable, the contingency model suggests that improving effectiveness requires changing the situation to fit the leader. This is called "job engineering." The organization or the leader may increase or decrease task structure and position power, also training and group development may improve leader-member relations.

Shortfalls 1. Fiedler's contingency theory falls short on flexibility 2. LPC scores can fail to reflect the personality traits they are supposed to reflect. 3. Fiedler s contingency theory has drawn criticism because it implies that the only alternative for an unalterable mismatch of leader orientation and an unfavorable situation is changing the leader. Path Goal Theory The path-goal theory, also known as the path-goal theory of leader effectiveness or the path-goal model, is a leadership theory developed byRobert House. According to the original theory, the manager s job is viewed as guiding workers to choose the best paths to reach their goals, as well as the organizational goals. The theory argues that leaders will have to engage in different types of leadership behavior depending on the nature and the demands of a particular situation. It is the leader s job to assist followers in attaining goals and to provide the direction and support needed to ensure that their goals are compatible with the organization s goals. A leader s behavior is acceptable to subordinates when viewed as a source of satisfaction, and motivational when need satisfaction is contingent on performance, and the leader facilitates, coaches, and rewards effective performance. The original path-goal theory identifies achievement oriented, directive, participative, and supportive leader behaviors:
The directive path-goal clarifying leader behavior refers to situations where the leader lets followers know what is expected of them and tells them how to perform their tasks. The theory argues that this behavior has the most positive effect when the subordinates' role and task demands are ambiguous and intrinsically satisfying The achievement-oriented leader behavior refers to situations where the leader sets challenging goals for followers, expects them to perform at their highest level, and shows confidence in their ability to meet this expectation. The participative leader behavior involves leaders consulting with followers and asking for their suggestions before making a decision. This behavior is predominant when subordinates are highly personally involved in their work. The supportive leader behavior is directed towards the satisfaction of subordinates needs and preferences. The leader shows concern for the followers psychological well being. This behavior is especially needed in situations in which tasks or relationships are psychologically or physically distressing.

Path-goal theory assumes that leaders are flexible and that they can change their style, as situations require. The theory proposes two contingency variables, such as environment and follower characteristics, that moderate the leader behavior-outcome relationship. Environment is outside the control of the follower-task structure, authority system, and work group.Environmental factors determine the type of leader behavior required if the follower outcomes are to be

maximized. Follower characteristics are the locus of control, experience, and perceived ability. Personal characteristics of subordinates determine how the environment and leader are interpreted. Effective leaders clarify the path to help their followers achieve goals and make the journey easier by reducing roadblocks and pitfalls. Research demonstrates that employee performance and satisfaction are positively influenced when the leader compensates for the shortcomings in either the employee or the work setting. In contrast to the Fiedler s Contingency Theory, the path-goal model states that the four leadership styles are fluid, and that leaders can adopt any of the four depending on what the situation demands. Case of Path Goal Theory Doing it the Ranbaxy Way About Ranbaxy.
Ranbaxy Laboratories Limited is India's largest Pharma Company. ncorporated in 1961, Ranbaxy exports its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries. The company went public in 1973, and Japanese company Daiichi Sankyo gained majority control in 2008. About its leadership.

Dr. Parvinder Singh Dr. Parvinder Singh was a highly educated & dynamic person. He was a very friendly & empathetic person. With his caring & respectful nature, Dr. Parvinder Singh was not only able to hold onto the key talents within the company, but also attract the best talents that the country had to offer. He also had the most motivated work force that was able to correlate with the company s ideology & company s vision. This made the whole company work like a cohesive whole & this translated into great results for the company. Parvinder Joined Ranbaxy in 1967 & was heading Ranbaxy until his death in 1999. In 1999, Parvinder Singh s son, Malvinder Singh & Shivinder Singh took charge of the company. Mr. Malvinder Singh is an MBA from Duke s University s Fuqua School of Business. Malvinder Singh was a highly task oriented person. He was very upright in his approach. For him result was the ultimate goal. But after a 32 years long career of Dr. Parvinder Singh at Ranbaxy, the culture & environment at Ranbaxy was shaped up as a friendly & warm place to work. Mr. Malvinder Singh with an almost opposite manner of managing had to endure a lot of problems. The initial phases of Ranbaxy under Mr. Malvinder Singh were quite rough as the productivity & enthusiasm of the employees had gone down. Ranbaxy was also facing huge employee turnover with majority of the talent going to the competitors. Mr. Malvinder Singh spotted the problem & appropriately changed his leadership style. After this, he was again able to retain the talent at his company & thus Ranbaxy was again back to profit making ways.