Introduction The contingency theory of leadership is a behavioral theory based on the general idea that “there is no one best way to organize a corporation, to lead a firm, or to make decisions”. Consequently, the best approach to leadership and decision making is determined by internal, as well as, external circumstances. The contingency theory is built on the following propositions. First, organizations are open entities or systems. Thus, satisfying the internal needs of the organization and adapting to environmental situations requires careful management. Second, optimal organization can not be achieved through a single approach. Hence the best organizational approach should take into account the nature of the task and the environment being dealt with. Fourth, management must focus on alignments, as well as, best of fits. Finally, “different organizational styles are required in different environments”. This paper attempts to critically review the effectiveness and applicability of the contingency theory. The conceptual, theoretical and empirical flaws in this theory will be discussed. Finally, recommendations on how the flaws can be corrected will be suggested. Research Question The contingency theory was developed in response to the deficiencies of earlier leadership models such as the bureaucracy and scientific management models. Proponents of the contingency theory argued that earlier leadership models failed to take into account the fact that management style, as well as, organizational structure are affected by environmental factors. Thus, the contingency theory introduced the effect of environmental factors on the effectiveness of leadership. The main question that drives research in the area of contingency leadership is, ‘what are the contingency factors that determine effective leadership’? While researchers generally agree that effective leadership depends on environmental circumstances, there has never been consensus on the contingency factors that inform effective leadership. This disagreement continues to motivate research in the field of contingency leadership. Recent empirical studies have led to the development of four variants of the contingency model of leadership. The four variants include the Fiedler’s contingency model, the Hersey-Blanchard situational model, path-goal theory and the Vroom-Yetton leadership model. These variants of the contingency theory emphasize different factors that inform effective leadership. Thus, it is important to review each of the four variants before giving a critique of the contingency theory. Fiedler’s Contingency Model This model was developed by Fred Fiedler and it focuses on the relationship between “leadership style and the favorableness of the situation”. According to Fiedler’s model, the effectiveness of the leader is determined by situational contingency. Situational contingency is determined by leadership style, as well as, situational favorableness. Fiedler considered leadership style to be fixed, and can be measured by an instrument referred to as “the least preferred co-worker (LPC)”. The LPC measures the leader’s leadership orientation. Using this instrument involves listing a