contingencyapproachofmanagement-

8/13/2019 contingencyapproachofmanagement-

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ChaitanyaKumar

AMA PGDBF

CONTINGENCYAPPROACH


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(Fiedler, 1964). there is no one best

way of organizing / leading and that an

organizational / leadership style that is

effective in some situations may not besuccessful in others.

The optimal organization / leadership

style is contingent upon various internaland external constraints.


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William Richard Scott

"The best way to organize depends

on the nature of the environment to

which the organization must relate".


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Important ideas ofContingency Approach


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There is no universal or one best

way to manage

Wide range of external andinternal factors must be

considered and the focus should

be on the action that best fits the

given situation


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Effective organizations not only

have a proper 'fit' with the

environment but also betweenits subsystems


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The needs of an organization are better

satisfied when it is properly designed

and the management style is

appropriate both to the tasksundertaken and the nature of the work

group.

Each managers situation must be

viewed separately


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Managers need to be developed in

skills that are most useful in identifying

the important situational factors.


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Contingency Variables


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Organization size: As size increases, so

do the problems of coordination

Routines of Task Technology: To achieve

its purpose an organization uses

technology

Environmental Uncertainty: The degree of

uncertainty created by environmental

changes influence the management


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Individual Differences: Individuals differ

in their desire for growth, autonomy,

tolerance of ambiguity and expectations


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EFFECT ON A MANAGER


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By applying contingency theory to thestudy of management, you will be able to

identify and to solve problems underdifferent situations.

You will recognize that the successfulapplication of a technique in one situation

does not guarantee success in another. Rather, you will be able to examine each

situation in terms of how it is affected bythe contextual, organizational, and human

dimensions. As a result, your overall ability to correct

problems and to become more effective as

a manager will increase.


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STORY OF A SHOE MAKER


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. A shoe manufacturer is faced with

decreasing profits

As a manager - time study from the

belief that the decline in profits is due tolower productivity on the part of the

workers

(classical management

theory).


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may attempt to involve workers more

fully in decisions concerning the

methods to use in producing the shoes

based on the premise that this will

motivate workers to produce more

( Behavioural managementtheory) .


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may establish a committee of sales and

production personnel to coordinate the

production and distribution of goods

under the assumption that large

inventories are responsible for the

decline in profits

(systems theory).


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Application of a

contingency perspective

will enable the manager toexamine the situation and to determine

the cause of decreased profits before a

new procedure or program is

implemented.


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Contingency theory is designed to

provide the manager with the

capabilities to examine numerous

possible solutions to a problem


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Thank you

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