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CHAPTER 3: CONTINGENCY APPROACHES 69

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The task-oriented leader excels in the favorable situation because everyone
gets along, the task is clear, and the leader has power; all that is needed is for
someone to take charge and provide direction. Similarly, if the situation is highly
unfavorable to the leader, a great deal of structure and task direction is needed. A

strong leader defines task structure and can establish authority over subordinates.
Because leader–member relations are poor anyway, a strong task orientation will
make no difference to the leader’s popularity.
The relationship-oriented leader performs better in situations of interme-
diate favorability because human relations skills are important in achieving
high group performance. In these situations, the leader may be moderately
well liked, have some power, and supervise jobs that contain some ambiguity.
A leader with good interpersonal skills can create a positive group atmosphere
that will improve relationships, clarify task structure, and establish position
power.
A leader, then, needs to know two things in order to use Fiedler’s contingency
theory. First, the leader should know whether he or she has a relationship- or task-
oriented style. Second, the leader should diagnose the situation and determine
whether leader–member relations, task structure, and position power are favor-
able or unfavorable. Consider the following example of Tom Freston, former
CEO of MTV Networks and Viacom, Inc.

IN THE LEAD Tom Freston, Viacom, Inc.
A few years ago, Tom Freston was regarded as one of the best leaders in the enter-
tainment industry. In the fall of 2006, the 26-year company veteran, credited with
building MTV into a global powerhouse, was fi red. What went wrong?
One way to look at Freston’s rise and fall is to examine his leadership in terms
of Fiedler’s theory. As CEO of MTV Networks and later its parent company Viacom,
Freston fostered a relaxed atmosphere and gave people freedom to explore, imagine,