Management variables such as management process, organisation structure, organisational behaviour, management style, management control are dependent variables. The basic theme of contingency approach is that organisations have to cope with different situations in different ways. Even bureaucracy can work under certain circumstances and it has not totally outlived its utility. Managers are, therefore, required to be pragmatic and also open-minded or adaptive. This approach is action oriented as it is directed towards the application of system concepts and the knowledge gained from other approaches. Thus, the right thing to do depends on a complex variety of critical environmental and internal contingencies. If one is leading troops in the Persian Gulf, an autocratic style is probably best (of course, many might argue here, too). Managers in an organic structure can react more quickly to a changing environment than can managers in a mechanistic structure. Secondly, the adaptive-organic structure is more appropriate when the following conditions are fulfilled: (i) The environment is relatively uncertain and turbulent. The same was true for quantitative approaches. According to contingency theory, effective management varies with the organisation and its environment. The major contribution of this theory to management reminds the manager that there is no one best way to do anything in the world of management.This theory seems to hold a great deal of promise for the future development of management theory and practice. contingency approach to management emerged from the real life experience of managers who found that no single approach worked consistently in every situation. The two basic ways in which managers can organize and control an organisation’s activities to respond to characteristics of its external environment – They can use a mechanistic structure or an organic structure. This approach, therefore, is certainly an improvement over the earlier systems’ approach. 1. It was found that behavioural approaches worked in some situation, but not in all. Pough, Robert Katz, Kahn have made significant contributions to the development of the systems approach. Departments are encouraged to take a cross-departmental or functional perspective, and, as in Mary Parker Follett’s model, authority rests with the individuals and departments best positioned to control the current problems the organisation is facing. Management, Approaches, Contingency Approach to Management. Contribution of Situational (Contingency) Approach to Management by Syndicate 6. A contingent leader effectively applies their own style of leadership to the right situation. Organisations characterised by limited resources, unskilled labour force, limited training opportunities, limited products offered to local markets— work simplification would be the ideal solution. It emphasises the multivariate nature of organisations and attempts to understand how organisations operate under varying conditions and in specific circumstances. We will have a flexible managerial system to meet easily changes in environment. It has not developed to such an extent where it can offer meaningful solutions to different managerial problems in a specific way. For example, they point out that even classical theorists like Fayol cautioned that management principles require flexible application. Contingency theory is theoretically complex. They are constantly interacting with their environment. The systems approach takes a general view of organisational variables, i.e., technical, social, personal, structural and external variables. Because tasks and people in organisations differ, the contingency theorists (Selznik, Burns and Stalker, Woodward, Lawrence and Lorsch, James Thompson and others) argue that the method of managing them must also differ. Information in depth was gathered from books, course texts and various reviews and articles. For example- if an organisation structure has to be decided, there should be an appropriate response to a number of variables, or contingencies, which influence both the needs of the organisation and how it works. Instead, every management situation must be approached with the ‘it all depends’ attitude. The contribution and role of systems theory and contingency theory to the emergency management process is stressed. (1) Spells out the relationship of organisation to its environment clearly. While Henry Fayol is an ardent proponent of the unity of command, F.W. Thus, if it is a small organisation, a centralised structure would do, but if it is a big organisation, a decentralised structure would be more appropriate. This theory helps to examine the conditional or moderating variables of cause and effect relations. 3. Firstly, the stable-mechanistic structure is more appropriate when the following conditions are fulfilled: (i) The environment is relatively stable and certain. Management theory stresses the need for effective planning to ensure that organizational goals are obtained. The management will face a range of choices when determining how a particular function is to be performed. (ii) The goals of the organisation are well defined and enduring. Contingency thinking avoids the classical ‘one best way’ arguments and recognizes the need to understand situational differences and respond appropriately to them. Research Methodology This study is based on a qualitative approach and it is analysed using a narrative method that will lean more towards the interpretivist approach … What motivational approaches and incentive programs should we use?”. Share Your PDF File
It also allows the management to modify the roles of employees who are already working on the project to ensure success. Instead, it must offer, in precise terms, what a manager should do in a given situation. 3. 1. Instead, a proactive strategy is needed where managers would be able to steer the organisation through complex environments with their creative and innovative efforts. We have failed to recognise that many costs, e.g., pollution, employee dissatisfaction, consumer disappointment, social frustrations, are social costs which are not accounted in our balance sheet and profit-and-loss accounts. (2) Takes a general view of organizational variables (technical, social, personal, structural, external). Contingency approach is less prevalent than change management approaches: Contingency approaches have remained less prevalent than change management approaches. The contingency approach to management finds its foundation in the contingency theory of leadership effectiveness developed by management psychologist Fred Fielder. Contingency School began in 1960s. The appropriate management actions and approaches depend on the situation. They will need reorientation in the light of ‘local circumstances and peculiar local factors. A.K. The contingency school of management is based on the idea that there is no one best way to manage and that to be effective, planning, organising, leading, and controlling must be tailored to the particular circumstances faced by an organisation. Merits 6.  2003 Fall Q.No. Contingency School of Management made a significant contribution to modern day management, and these early results provide a blueprint for the current leadership paradigms in organisations. The contingency school of management can be summarized as an ‘it all depends’ approach. In 1970s, it is recognized as a key to effective management. Contributions and Limitations of Contingency Theory Contingency theory offers a fluid approach to management that is more realistic in the modern world where organisations must constantly adapt to their external environments (Donaldson 2006). The … It emphasizes the need of analysing situation. It helps the managers to broad-base their approach in solving day-to-day management problems. Systems approach recognises close interrelations between man, his organisation and his environment. At present contingency theory is considered to be the practical approach of management. (v) Heuristic decision-making processes are utilised and coordination and control occur through reciprocal adjustments. A business organisation is now regarded as an open and adaptive system which alone can cope with the increasing complexity and changing environmental influences. Should we have a mechanistic or an organic structure? 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