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Fiedler's contingency theory is one of the contingency theories that states that effective leadership depends not only on the style of leading but on the control over a situation. There needs to be good leader-member relations, task with clear goals and procedures, and the ability for the leader to mete out rewards and punishments. As per the theory, the leader’s effectiveness is determined by the interaction of the leader’s style of behaviour and the favourableness of the situational characteristics. The most favourable situation is when leader-member relations are good, the task is highly structured, and the leader has a strong position power. Research on the contingency model has shown that task-oriented leaders are more effective in highly favourable and highly unfavourable situation, whereas relationship-oriented leaders are more effective in situations of intermediate favourableness.
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