A cost-contingency approach of leadership: in institutional household settings

Abstract

The paper centers on the problem of deciding effective leadership level in institutional household settings through logical concepts of contingency theories of leadership. By using the integrated concept of cost in goal setting and achieving process within an organization, the paper logically shows how effective leadership level is determined as situational variables varies. The most appropriate leadership style is determined as to minimize the total cost in accomplishing organizational goal which is composed of goal -setting cost and goal- achieving cost. Therefore, the most appropriate leadership style is determined to the direction that the summation of goal-setting cost and goal-achieving cost is minimized. Though it remains in a conceptual level, this paper has contributions to organizational study by suggesting integrated tool for accounting for many situational variables through the concept of cost. Further empirical studies is expected to polish the frame of logic developed in this paper.