Which theory suggests that a leader's effectiveness varies depending on situational characteristics?

Contingency Theory posits that a leader's effectiveness is contingent upon various situational factors, suggesting there is no single best way to lead. Instead, the theory emphasizes that the context in which leadership occurs, including the environment, task structure, and the characteristics of followers, significantly influence leadership effectiveness. This highlights the adaptability required of leaders; they should adjust their style based on the specific situation they face.

While other theories address leadership styles or behaviors, they do not focus as directly on the impact of situational variables. Transformational Theory emphasizes inspiring and motivating followers rather than situational adaptability. Situational Leadership Theory does suggest that different styles are more effective in different situations, but it is more about the nature of leadership styles as they relate to follower readiness rather than a broader array of situational characteristics. Behavioral Theory focuses on the behaviors leaders exhibit rather than the varying contexts affecting leadership effectiveness. Thus, Contingency Theory stands out for its specific emphasis on how situational factors determine a leader's success.