1. When the leader’s approach is directive only then the team performs. In this the leader decides the plan of action and does the entire decision making. The team is expected to work as per the plan so that the end result is achieved (Bass & Bass, 2009).
2. The level of stress is inversely proportional to the quality of decision. If stress is high then it would affect the intellectual levels and hence the decisions taken would not be very effective.
3. The level of experience is directly proportional to the decision quality under stress. When the stress is high, one can never think intellectually and hence experience comes to the rescue.
4. When the tasks are simple, the intelligence and the experience of the leader is not required.
Strategic Contingency Theories
When a leader has effective problem solving skills, actor centrality and uniqueness of skills then he will always be in high demand in any organization (Selznick, 2011). Moreover, if this person is at a strategic position in an organization, then it becomes inevitable for him to go unnoticed. Such leaders excel in their position and always treated as a support system for the company.
Power and Influence Theory:
This theory talks about the source of the power of the decision making leader. This also talks about the ways and means in which a leader uses his power to get the things done. There are three kinds of positional power. They are legitimate, reward and coercive. The other two kinds of personal power are expert power and referent power (Wheatley, 2011).
This theory also defines the transactional leadership of the leader. This theory assumes that people work in order to receive something in return. It can either be tangible of intangible. Thus the leaders design a job or a work in such a way that it has some reward structure as well.