Leadership Style with Contingency Theory Approach in proving Organizational Performance
The dynamics of the global economy that continues to change and the rapid pace of science and technology also have an impact on business development in Indonesia. This happened simultaneously with the development of globalization. As a result of the existence of globalization, business competition is increasingly competitive, so it requires companies to always innovate and must improve the effectiveness of company performance. Thus, it takes the ability to face and make changes in a short time.
Currently, domestic companies are still trying to face global changes that are fast and continuous. Until now, it is still common in organizations that there are problems with employment, such as conflicts between management and employees, as well as various problems between management and outside parties (Ernie T, 2019). To deal with these problems, efforts are needed from the management through improving the quality of human resources in managing an organization.
The development of a company or organization will depend on the figure of a leader in managing the organization because a highly dedicated leader will help generate employee motivation. Motivation is very important as a foundation in building an organization that is ready to face competition.
In terms of improving human resources, especially organizational leaders in this era of globalization, an approach with contingency theory is very relevant. This contingency theory is a behavioral theory which states that the state of management or organization depends on the internal and external situations of a company (Ganescu, 2012). Contingency theory assumes that leadership is a process in which a leader’s ability to exert influence depends on the group task situation. Situational leadership style is quite interesting in the current era, because leaders with this style will always try to adapt to the situation and conditions of the organization, and are flexible in adapting/adjusting to the maturity of their subordinates and their work environment. This is in accordance with the current conditions and situations that require leaders to be accommodative and aspirational towards their work environment.
The situational approach is not only important for the interactive complexities and phenomena of leadership, but also helps potential leaders with useful concepts to assess various situations and to demonstrate appropriate leadership behavior based on the situation (Ifatun, 2017). The leader’s role must be considered in relation to the situation in which it is performed.
The contingency approach or situational approach emphasizes certain situations or conditions encountered. Not all scientific management methods can be applied to all situations and not always human relations that need to be emphasized because sometimes effective solutions are through a quantitative approach. It all really depends on the characteristics of the situation at hand and the goals to be achieved.
In other words, the high and low work performance of a group is influenced by the motivational system of the leader and the extent to which the leader can control and influence a certain situation or it can be said that the model assumes that the leader’s contribution to the effectiveness of group performance depends on the way or style of leadership and the suitability of the situation he faced.
- Yang Cheng, “Contingent organization-public relationship (COPR) matters: reconciling the contingency theory of accommodation into the relationship management paradigm”, Journal of Public Relation Research, 2020.
- Franklin M. Lartey, “Chaos, Complexity, and Contingency Theories: A Comparative Analysis and Application to the 21st Century Organization”, Journal of Business Administration Research, Vol. 9, No. 1; 2020
- Wa Ode Zus nita Muizu, Umi Kaltum, Ernie T. Sule, “Pengaruh Kepemimpinan terhadap Kinerja Karyawan”, Jurnal Pendidikan Kewirausahaan Indonesia, Vol 2, No 1, 2019
- Mokhamad Anwar, “Contingency Theory and Its Implications to CorporateFinancial Planning and Organization Structure”, Jurnal Aplikasi Managemen, 2015
- Latifah, “Sistem Pengendalian Manajemen dan Tujuan Perusahaan (Sebuah Tinjauan Teori Kontigensi)”, Jurnal Dinamika Akuntansi, 2014
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