This report delves into the contingency approach to leadership, a theory developed by Fred Fiedler, emphasizing that effective leadership depends on the situation. The report explores the history, working principles, and key features of this approach, comparing it with other leadership theories. It highlights the advantages, such as creating leadership profiles for companies and focusing on the combination of situation and leadership style. The analysis also includes a discussion of the three major factors influencing the contingency approach: leader-member relations, task structure, and position power. Furthermore, the report examines the development of leadership competencies related to this style. It concludes that the contingency approach is effective because it focuses on the situation and leadership style.