The Contingency Theory of Leadership suggests that the effectiveness of a leader depends on the specific situation and context in which they operate. This theory posits that there is no single best way to lead; instead, the most effective leadership style varies based on factors such as the task, the team, and the environment. Developed by researchers like Fred Fiedler, the theory emphasizes the importance of matching a leader's style to the right situation. For example, a task-oriented leader may excel in high-pressure scenarios, while a relationship-oriented leader might be more effective in collaborative settings.