Contingency Approach to Management | Management Theory | Mero Solution

 

Contingency Approach to Management:

Contingency theory studies the situational nature of management. It views the organization as interrelationship with its environment. This theory states that there is no "one best way" to manage and organize, because circumstances can be achieved in several ways. The best way depends on the specific circumstances. The concepts tools and techniques which are highly effective in one situation are not all effective in another situation. This theory is the most recent developed approach. Contingency theory emerged from the experiences of many managers an practitioners. They found that the management concepts do not produce the same results across situations.

The application of this theory in this modern time utmost important managers formulate plan or make decisions. Since every situation is unique, managers need to study the specific circumstances and make plans, organize things, lead people, control accordingly. Therefore, understanding contingencies helps a manager know which sets of circumstances order which management actions.

Therefore, understanding contingencies helps a manager know which sets of circumstances order which management actions. Thus from the above explanation, the following key feature and useful contributions can be drawn as:

Key Concepts:

a) Situational contingencies influence the strategies, structures, and processes that result in high performance.
b) There is more than one way to reach a goal.
c) Managers may adapt their organizations to the situation.

Contributions:

a) Identified major constancies
b) Represents an important turn in modern management theory.
c) Argued against universal principles of management.
d) Widely adopted in planning, organizing, leading and motivating functions of management.