Contingency Theory

Concept:

- A situational and practical approach- influenced by system approach

- Assumption: there is no one best way to solve management problems in all organizations and in every situations, it varies depending upon situational variables

- No plans, organization structures, leadership styles or control techniques that fit in all organizations

- The manager must understand the uniqueness and differentiating variables depending upon situation

- Should be a match between situation and dealing manner

- The four contingency variables that determine management practice:

A. Organization size- no. of people

B. Routine technologies requirement for transforming inputs into outputs

C. Environmental Uncertainty- a best style in stable environment, inappropriate in dynamic environment. So, style as per environmental changes

D. Personal Differences- Managers must select leadership style, motivation techniques, job design considering personal differences

- Management needs to recognize:

* nature of technology

* variation in human participants

* diversity in environmental relationships

- And develop management problem solving approach based on prevailing circumstances and situational factors, using intuitive appeal

Contributions:

- Managers are involved in innovative ideas generation

- Develop capability to think analytically, critically and in multidimensional ways

- Managers are given more freedom

Management Full Notes:

  Introduction To Management
  PROCESS/FUNCTIONS OF MANAGEMENT
  Managerial Roles/Skills in Management
  Evolution of Management Thoughts
  Principles of Scientific Management
  14 principles of Evolution of Management
  Human Relation and Behavioral Science Theory
  Abraham Maslow: Need Hierarchy Theory
  Difference Between Theory X & Y
  Comparison Of Theory X and Theory Y
  Two Factor theory by Frederick Hertzberg
  Management Science Theory
  Contingency Theory
  Management Environment