Contingency Theory
As the CEO of Southwest Airlines, James Parker relies heavily on the contingency theory to make quick judgments that have helped the firm prosper in challenging times. This notion highlights that a leader's decision-making process is not always consistent. Some decisions, however, are made based on the underlying internal or external condition. In our case study, consumers are stuck after the government shuts down fleet operations due to a terrorist strike. All of his employees were encouraged by the CEO to assist stranded customers in having fun at bowling lanes and watching movies. In this contingency model, Fielder postulates that managers do not have a single efficient way of leading. However, different situations stimulate different styles of leadership by managers. The theory emphasizes that solutions to difficult situations are contingent on impinging factors. Fielder identifies three major elements that help leaders manage some difficult situations. These elements are position power, the task structure and the relationship between members and leaders (Bolden et al. 8). As the CEO, Parker’s position gave him the authority and power to direct his employees into doing the right thing according to the situation. As the senior most employee, the rest had to follow his decisions. In his leadership, we establish the positive relationship between Parker and his employees. His leadership is customer and employee-oriented. Assuming that the relationship did not exist, things would have been different with the employees not buying the CEO’s decision. Clearly, it is right to conclude that the contingency theory manifests in Parker’s leadership style.
Adair’s Action-Centered Leadership Model
Adair’s model is part of the contingent theory where he suggests that a leader accomplishes a task via good relationships with fellow leaders or staff and teamwork. Adair advocates for three critical actions. The actions are task structuring, reviewing and supporting individual work and fostering or coordinating teamwork. In task structuring, few critical measures count. The measures include defining a task, task allocation and checking performance among others (Bolden et al. 11). Parker delegates and defines a task by encouraging his employees to help the company’s stranded customers. As a team, Adair encourages discipline, appointing sub-leaders and building a team spirit. In our case study, the individual is the most important part. Adair emphasizes on recognizing individual abilities, attending to personal issues and giving status. The CEO recognized the Southwest Airlines employees for their excellent task. These employees received financial gains arising from the profits of the company. The actions are clear representations of the contingency theory.
Other Theories in the Case Study
Trait Theories
The trait theory establishes that leaders have identifiable characteristics that are outstanding and different from commoners. With the discovery of the theory, leaders were chosen and put in different positions using these traits (Zaccaro 9). The limitation with this theory is that several studies conducted did not produce consistency on traits. However, there are those traits identified by researchers as most appearing among successive leaders. These traits manifest alongside some skills possessed by the same leaders. From the list of traits, Parker is adaptable to situations, decisive, achievement-oriented and ambitious, dependable and dominant. As a leader, Parker acknowledges that the company has grown and survived through sound business principles and decisions made in the past. He goes ahead and makes a decision that is good for business and beats his competitors. The decision of engaging the employees to help the stranded customers show his decisive trait. With the discussed decision, Parker and the whole company adapts to the situation of a nearly paralyzed fleet system in the country. His decisions make him dependable even in solving future difficulties. The trait of being dominant portrays in his ability and desire to influence the employees in doing the right thing. Parker is achievement-oriented in the sense that he needed to retain his customers since the company requires them to continue being in business. Some of the skills in the theory that Parker possess include being intelligent, persuasive and creative.
Transactional Leadership Theories
Transactional leadership theories suggest the presence of a transaction between the leaders and followers. These theories, also known as the exchange theories emphasize on a mutually beneficial relationship between the two parties. Moreover, these theories also insist on a positive relationship between the leaders and followers. The leader has a way of finding a motivational value (Odumeru and Ifeanyi 4). A task performer is rewarded using an award system that synchronizes with the goals and objectives of the organization. The CEO of Southwest Airlines portrays some attributes of a transactional leader. The major goal during the emergent crisis was ensuring that the company retains its customers. Parker encourages his employees to help the company’s stranded customers affected by the government’s ban on fleets. The CEO has established a positive relationship with his employees, and we observe the same when they decide to follow his directives. Parker focuses on his employees and ensures a mutual benefit where these workers acquire financial gains from the profits of the company, as rewards.
Works Cited
Bolden, Richard, et al. A review of leadership theory and competency frameworks. Centre for Leadership Studies, University of Exeter, 2003.
Odumeru, James A., and Ifeanyi George Ogbonna. "Transformational vs. transactional leadership theories: Evidence in literature." International Review of Management and Business Research 2.2 (2013): 355.
Zaccaro, Stephen J. "Trait-based perspectives of leadership." American Psychologist 62.1 (2007): 6.
