Fiedler’s contingency theory classifies situations as high, moderate, and low control. The more control that the leader exercises, the more favorable the situation is for the leader.
The control classifications are determined by rating the situation on its three dimensions. Leader–member relations measure how well the group and the leader get along; task structure measures how clearly the procedures, goals, and evaluation of the job are defined; and position power measures the leader’s authority to hire, fire, discipline, and grant salary increases to group members.
Leader–member relations contribute as much to situation favorability as do task structure and position power combined. The leader therefore has the most control in a situation in which relationships with members are the best.