...FIEDLER CONTINGENCY MODEL: The Fiedler Contingency Model was created in the mid-1960s by Fred Fiedler, a scientist who studied the personality and characteristics of leaders. The model states that there is no one best style of leadership. Instead, a leader's effectiveness is based on the situation. This is the result of two factors – "leadership style" and "situational favourableness". Leadership Style: Identifying leadership style is the first step in using the model. Fiedler believed that leadership style is fixed, and it can be measured using a scale he developed called Least-Preferred Co-Worker (LPC) Scale. The scale asks you to think about the person who you've least enjoyed working with. This can be a person who you've worked with in your job, or in education or training. You then rate how you feel about this person for each factor, and add up your scores. If your total score is high, you're likely to be a relationship-orientated leader. If your total score is low, you're more likely to be task-orientated leader. The model says that task-oriented leaders usually view their LPCs more negatively, resulting in a lower score. Fiedler called these low LPC-leaders. He said that low LPCs are very effective at completing tasks. They're quick to organize a group to get tasks and projects done. Relationship-building is a low priority. However; relationship-oriented leaders usually view their LPCs more positively, giving them a higher score. These are high-LPC leaders. High LPCs...
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...Fiedler's Contingency Theory of Leadership is regarded by many as the first situational theory of leadership. He broke with the behavioral theorists of leadership and hypothesized that their is no one right way for a leaders to behave in all situations. He went on to state that situations could be classified as most, moderately and least favorable to leadership based on three dimensions -- leader-member relations, task structure and position power. Fiedler's Theory of Leadership is more complex than the behavioral theories of leadership. He said in took a pretzel shaped hypothesis to explain a pretzel shaped world. One of the contributions of his theory of leadership was the idea that not one form of leadership is appropriate for all situations. He continued to view most people as having a predisposition to be either task or relationship-oriented as a primary style of leadership. In addition, he recognized that people had a secondary style of leadership which they could use in low stress situations. For task-oriented leaders, their secondary style was relationship-oriented. For relationship-oriented, the secondary style is to look for new challenges. To understand the situation, Fiedler said that the following three factors had to be considered: Leader-member relations - Degree to which a leader is accepted and supported by the group members. Task structure - Extent to which the task is structured and defined, with clear goals and procedures. Position power - The ability...
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...respondents criticized the original dislosure requirements of loss contingencies: “a.The initial disclosure of specific information about a loss contingency often does not occur until a material accrual is recognized for that loss contingency, sometimes taking investors by surprise. b. The at least reasonably possible threshold for disclosing loss contingencies has not resulted in the disclosure of the full population of an entity’s existing loss contingencies that would be of interest to financial statement users. c. The amounts recognized in the financial statements related to loss contingencies are not transparent to users. In order to improve the disclosures about certain loss contingencies, such change of standards is necessary.” In response to this concern, the Board made two roundable discussions and got some feedback from respondents and finally issued an exposure draft stating that “An entity shall disclose qualitative and quantitative information about loss contingencies to enable financial statement users to understand all of the following: a. The nature of the loss contingencies. b.Their potential magnitude. c.Their potential timeing (if known).” It is reasonable the Board revised some proposal in insponse to the comment letters from respondents. For example, respondents argued that some unnecessry disclosure of certain remote loss contingencies would show fianancial statement users and mislead loss contingencies information. “ The Board agreed with this opinion that it is...
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...imagine the amount of trouble a company has to go through to typically deal with this kind of an issue, since a lot is left to interpretation. According to ASC 450-20-25-1, “When a loss contingency exists, the likelihood that the future event or events will confirm the loss or impairment of an asset or the incurrence of a liability can range from probable to remote.” Thus, M is dealing with a loss contingency because management determined the loss from the claim would be probable at December 2007. Moreover, the loss should be accrued due to ASC 450-20-25-2, since the “amount can be reasonably estimated” and “information is available before the financial statements are issued.” In reference to the actual amount that should be recorded, the case states a range of the estimated loss from $15 to $20 million dollars, $17 million being the most probable. In deciding which amount to record at December 31, 2007, Accounting Standards must again be referenced. ASC 450-20-30-1 states, “If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, that amount shall be accrued.” Given M’s conclusion that the loss was probable and $17 million would be the best estimate in their calculated range, M should record that amount for their loss contingency. Two years later, M was faced with the same question: how to record this matter on their financial statements. In September 2009, a trial took place and the outcome was in favor of W...
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...Contingencies 1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability? For year-end December 31, 2007 M Company should accrue the liability in the amount of 17 million and disclose the liability in the notes of financial statements. M company should accrue the liability for the contingency and disclose the nature of the liability within the notes to the financial statements. This is in accordance with guidance under ASC 450-25-2, which stated, in part: An estimated loss from a loss contingency shall be accrued by a charge to income if both of the following conditions are met: a. Information available before the financial statements are issues or are available to be issued (as discussed in Section 855-10-25) indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. Date of the financial statements means the end of the most recent accounting period for which financial statements are being presented. It is implicit in this condition that it must be probable that one or more future events will occur confirming the fact of the loss. b. The amount of loss can be reasonably estimated. 2. For the year-end December 31, 2019, financial statements, should M adjust its liability? If so, what amount should be recorded; and should the amount of the adjustment be considered a 2009 event or a prior period adjustment. For year-end December 31, 2009 M Company...
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...It is undeniable the short-term benefit that hiring contingent faculty brings to the American higher education. However, the price that both administrators, teachers and students have to pay for this is not small at all. Hence, from my point of view, it is not a wise choice to continue overusing non-tenure-track faculty in U.S colleges. From 1980 to 1996, with the sharp decline of subsidy from state government ( from 31% in 1980 to 23% in 1996), most instituitions are brain racking to effectively invest the money. At the same time, the student enrollments in universities surge 34% between 1976-1999 ( American association of undergraduate professors) which intrigues administrators to improve infrastructure. And it also means that the instructional budget decreases. Most instituitions shift to employ more non-tenure-track faculty because they demand low wage with minimal commitments and high level of turnover. In this situation, hiring contingent faculty is necessary to sustain the life of higher education. Nevertheless, using this temporary solution for such a long time, until now is not advisable because it is undermining the core value of American education in general, the quality of student learning and the benefit of contingent faculty themselves in particular. With the very low wages, the contingent faculty usually have to commute between colleges and seek for multiple courses to sustain a living. That explains why they do not have enough time to fully prepare before...
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...Contingency Plans G.S. is an experienced nurse on the medical/surgical floor at a community hospital. G.S. is the charge nurse for the floor and needs to make decisions regarding staffing in the morning. A blizzard with 2-3 feet of snow and damaging winds is forecasted within the next 12-18 hours. It is the charge nurses responsibility to make the decision on proper emergency protocol for safe patient handling. There should be a contingency plan in place in all hospitals to adhere to during a crisis situation. Comprehensive Emergency Management Plans (CEMP) is used in Florida for all hospitals for emergency and non-emergency situations. The CEMP is responsible for the government, private, volunteer and non-governmental organizations consisting of the State Emergency Response Team (SERT). It helps with a basic process for awareness, recovery, response, and mitigates activities of the SERT. The CEMP ensures that all levels of government are able to mobilize as a unified emergency organization to safeguard the well-being of the state’s residents and visitors (Florida Disaster, 2016). CEMP provides a framework which doesn’t depend on any particular individual or situation but adjustable to the situation. A disaster contingency plan is prepared in every organization to respond to an emergency and the impact it can have to the people. Having a contingency plan in place can save time and confusion during a crisis. A contingency plan takes the guessing out of the situation and...
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...Contingency Theory of Leadership Bus 210 February 13, 2015 Charles May Contingency Theory of Leadership Contingency Theory of Leadership Description of work envi-ronment The work environment I will describe is my last em-ployer. I was on the Project Management team for construction. Our goal was to build project timelines for builders and developers in a timely manner by following a timeline we provide depending on a number of variables. Our goal is to have the project complete by the time it was promised as well as provide great service. In the table below, categorize different leadership approaches that could be used in the work environment you have described. Provide different suggestions for each of the four approaches to leadership. Directive approach Supportive approach This approach is when a manager or leader gives his/her employees tasks and tells them exactly how to perform a task. I can see this approach being use-ful with departments such as Customer Service. This approach is usually seen in training classes. I feel this was an important part of me learning more about the company, how it operated, and how to navigate within the different systems. I have experienced this approach when I was first hired on to the company and was told what my responsibilities were as a Project Manager and how to navi-gate within our system. With the supportive approach, it is when a manager would give his/her subordi-nates the tools necessary...
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...certificates, vendor credits, and outstanding checks, such as payroll and dividend checks. Since unclaimed property claims do not constitute a tax, Statement of Financial Accounting Standards No. 5, "Accounting for Contingencies" (FAS 5)5 may affect an enterprise's financial reporting obligations. In FAS 5, the term "contingency" is defined as "an existing condition, situation, or set of circumstances involving uncertainty as to possible gain (hereinafter a 'gain contingency') or loss (hereinafter a 'loss contingency') to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur. According to FAS 5, a contingent loss should be charged to income if information is available before issuance of the financial statements indicating by fiscal year-end that a loss probably has been incurred and that the amount of such loss can be reasonably estimated. If there is a reasonable possibility that the loss will be incurred, FAS 5 generally requires the disclosure in the footnotes of the financial statements to include a discussion of the nature of the loss and either the possible range of the loss (if it can be estimated) or a statement that such loss cannot be estimated. FAS 5 provides: "Disclosure is not required of a loss contingency involving an un-asserted claim or assessment when there has been no manifestation by a potential claimant of an awareness of a possible claim or assessment unless it is...
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...Administration in Canada, (pg 70) contingency theory is one of the most recent theories in organizational structure, it argues that there is no "one best way" of structuring an organization. Instead contingency theory suggests that the best way to structure a particular organization is contingent(dependent) on a number of factors such as the attitudes of the managers and employees, the nature of the task performed by the organization and the nature of the environment. The basic premise of Contingency Theory is that there is no one best way to organize a corporation, to lead a company, or to make decisions. There are too many external and internal constraints that will alter what really is the best way to lead is in a given situation. In other words, it all depends upon the situation at hand as to what will be the best course of action. An organizational / leadership / decision making style that is effective in some situations, may be not successful in other situations because organizations, people, and situations vary and change over time thus, the right thing to do depends on a complex variety of critical environmental and internal contingencies. The contingency approach to organizational design tailors the design of the company to the sources of environmental uncertainties faced by the organization. The point is to design an organizational structure that can handle uncertainties in the environment effectively and efficiently. The contingency theory approach to the study of organizations...
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...Contingency theory has several major strengths. First, it is supported by a great deal of empirical research. contingency theory offers an approach to leadership that has a long tradition. Many researchers have tested it and found it to be a valid and reliable approach to explaining how effective leadership can be achieved. Contingency theory is grounded in research. Second, contingency theory has broadened our understanding of leadership by forcing us to consider the impact of situations on leaders. Before contingency theory was developed, leadership theories focused on whether there was a single, best type of leadership. However, contingency theory emphasized the importance of focusing on the relationship between the leader’s style and the demands of various situations. In essence, contingency theory shifted the emphasis to leadership contexts, particularly the link between the leader and the situations. Third, contingency theory is predictive and therefore provides useful information about the type of leadership that is most likely to be effective in certain contexts. It can also predict whether an individual was effective in a certain position can be effective in another. This gives contingency theory predictive power that other leadership theories do not have. Fourth, this theory does not require that people be effective in all situations. Under contingency theory, companies should try to place leaders in optimal situations, in situations that are ideal for their...
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...Case Study: Contingency: BP a. A contingent liability is a potential liability that depends on a future event occurring or not occurring; or past events that are not recognized because the outcome is not probable or the amount of obligation cannot be measured. Examples: Law suits and government agencies investigations and product warranties. A contingent liability and the related contingent loss are recorded with a journal entry only if the contingency is both probable and the amount can be estimated. If a contingent liability is only possible (not probable), or if the amount cannot be estimated, a journal entry is not required. When a contingent liability is remote (such as a nuisance suit), neither a journal nor a disclosure is required. b. A warranty is a contract between a company and its customers. From BP stand point, the warranty gives BP an additional protection from buying the telescopic joint. From GE oi & Gas, the warranty gives GE the responsibility to repair or replace the product if it is damaged or faulty. c. G Firms must make several judgments to account for contingencies. For example, with respect to the warranty on the telescopic joint, GE Oil and Gas must estimate how many joints will require servicing (failure rate), of those, how many will actually be serviced (i.e., how many customers will remember that the product is under warranty and make a claim to GE Oil and Gas to get it fixed), and the projected cost per repair. For GE...
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...Provisions and Contingencies Scenario 1 Fact: Energy Inc. (Energy, or the Company), which operates in the oil industry, is a U.S. subsidiary of a U.K. entity that prepares its financial statements in accordance with IFRS and U.S. GAAP. A draft law in a country where Energy operates in, which requires a cleanup of land already contaminated, will possibly be enacted shortly after the year-end. Issues: Should Energy recognize a provision, (i) in reporting under IFRSs, and (ii) in accordance with U.S. GAAP? Analysis: (i) Under IFRSs, Energy should recognize a provision for the cleanup costs in its 20x1. IAS 37-14 states a provision shall be recognized if “(a) an entity has a present obligation, (b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made.” When it is not clear if there is a present obligation, IAS 37-15 also defines a present obligation as obligation that “more or likely than not is risen by a past event after taking accounting of all available evidence”. Moreover, IAS 37-22 also specifically provides that “where details of a proposed new law have yet to be finalized, an obligation arises only when the legislation is virtually certain to be enacted as drafted”. As it is virtually certain that the law will be enacted shortly after year-end, it is highly possible the Company will be required to clean up the contamination. The amount of obligation is also...
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...uncertainties are risks to the project. Some refer to these risks as "known-unknowns" because the estimator is aware of them, and based on past experience, can even estimate their probable costs. The estimated costs of the known-unknowns is referred to by cost estimators as cost contingency. AACE International, the Association for the Advancement of Cost engineering, has defined contingency as "An amount added to an estimate to allow for items, conditions, or events for which the state, occurrence, or effect is uncertain and that experience shows will likely result, in aggregate, in additional costs. Typically estimated using statistical analysis or judgment based on past asset or project experience. Contingency usually excludes: 1. Major scope changes such as changes in end product specification, capacities, building sizes, and location of the asset or project; 2. Extraordinary events such as major strikes and natural disasters; 3. Management reserves; and 4. Escalation and currency effects. On 7/27/11, he wrote: Contingency cost are the additinal cost that happen while we are running a project and this cost have effect to the project that we have to spend some of budget to let the project running forward. Contingency cost usually estimated or judgement base of the past experience and exclude the list below: 1. Major scope changes such as changes in end product specification, capacities, building sizes, and location of the asset or project 2. Extraordinary events such as major...
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...without going back to their origins (Field & Seters, 1990) There are several leadership theories that have been researched, developed and discussed by various researchers. They include; personality, influence, behavior, situational, transactional, anti-leadership, culture, transformational and contingency theories. The sole objective of this essay is to critically evaluate a group of contingency theories of leadership. The most notable contingency theories of leadership include Fried Fiedler’s, Path-Goal and Vroom-Jago (Field&Seters, 1990). This essay will start by evaluating Fiedler’s theory, followed by Path-Goal theory and the last three theories will be evaluated as a single group and it will discuss which of the said model is best suited to improve the work culture in Zambia. According to (Bryman, 2011), contingency theories are advanced on the platform that dictates that there is no single best method that can be used alone to make a decision or lead an organization. These theories seek to offer and explain the effectiveness of a given leadership style. Thus, the theories differ in the way they address and deal with a specific situation. Fred Fiedler’s contingency theory of leadership is basically about how certain leaders fit in certain situations as a result of their leadership styles. In addition, the theory depends on how the leader responds to a given situation. The situational...
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