Organisations are open, dyna­mic, man-machine (socio-technological) systems. This theory helps to examine the conditional or moderating variables of cause and effect relations. This theory may not be applicable to all managerial issues. (v) Heuristic decision-making processes are utilised and coordination and control occur through reciprocal adjustments. Mana­gement variables such as management process, organisation structure, organisational behaviour, management style, mana­gement control are dependent variables. At present contingency theory is considered to be the practical approach of management. Contingency or situational approach seems better suited to lead management out of the present management theory jungle. Contingency refers to the immediate contingent circumstances. (2) Takes a general view of organiza­tional variables (technical, social, personal, structural, external). 2. The basic theme of contingency approach is that organisations have to cope with different situations in different ways. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances. Further, the goal of inte­grating functional, quantitative, behavioural, and systems approaches in the form of a contingency model may prove to be too difficult to realise because of the incomplete development of the earlier approaches. This approach is both analytical and situational, with the purpose of developing a practical answer to the question at hand. Paul Hersey and Ken Blanchard developed the contingency of leadership. Contingency management recognizes that there is no one best way to manage. They suggested that previous theories such as Weber’s bureaucracy and Taylor’s scientific management had failed because they neglected that management style and organisational structure were influenced by various aspects of the environment-the contingency factors. From this paper, you will learn what the contingency approach to management is and the key elements of contingency management. Features of Contingency Approach 3. Contingency views are ultimately directed toward suggesting organisational designs and managerial actions most appropriate for specific situations. Advantages of contingency approach to management. Kast and Rosenzweig have described the contingency views of organisation in the following words – “The contingency approach suggests that an organisation is a system composed of subsystems and delineated by identifiable boundaries from its environmental supra system. Contingency theory refers to any of a number of management theories. (5) Relates environments to specific organisation structure and design. organization are completely dependent on the circumstances and the environment When the environment surrounding an organisation is stable, managers tend to choose a mechanistic structure to organize and control activities and make employee behaviour predictable. The contingency theory, on the other hand, is concerned with achieving a ‘fit’ between organisation and its environment. It is also known as situational approach. Contingency approach is less prevalent than change management approaches: Contingency approaches have remained less prevalent than change management approaches. For example- the continuing effort to identify the best leadership or management style might now conclude that the best style depends on the situation. A list of the contributions by pre-classical theorists has been provided in Table 1. For this reason, contingency approach is seen as the leading branch of management thought today. This approach rejects universality of management concept. Motivation through financial incentives can work wonder if the environment is favourable. But if the environment is dynamic, organic structure would be more appropriate. At present contingency theory is considered to be the practical approach of management. Critics argue that the contingency approach does not incorporate all aspects of systems theory, and they hold that it has yet not developed to the point at which it can be considered a true theory. According to it, the managers should take decisions not according to principles but according to the situations. Managers have to devise methods and to learn when and how to apply each one. In contrast, when the environment is changing rapidly, it is difficult to obtain access to resources, and managers need to organize their activities in a way that allows them to cooperate, to act quickly to acquire resources (such as new types of inputs to produce new kinds of products), and to respond effectively to the unexpected. (ii) Second, it highlights the importance to managers of developing skills in situational analysis. This approach is action oriented as it is directed towards the application of system concepts and the knowledge gained from other approaches. (225) 578-1075 Email: jpine@lsu.edu httt://www.risk.lsu.edu … Congruence between Organisation and Environment: An underlying assumption of the contingency view is this there should be a congruence between the organisation and environment and among the various subsystems. It was found that behavioural approaches worked in some situation, but not in all. But when put to empirical testing, several problems crop up almost instantaneously. All managerial actions will depend upon particular prevailing circumstances and-situational factors. In contrast to the vague systems termi­nology and perspective, the contingency approach allows us to specifically identify the internal and external variables that typically influence managerial actions and organisational performance. Fred Fiedler’s contingency model focused on individual leadership. Inadequate Literature 2. The basic idea of this approach is that number management technique or theory is appropriate in all situations. Everyone knows his or her place, and there is a place for everyone. According to contingency theory, the characteristics of the environment affect an organisation’s ability to obtain resources. Management in India should learn this simple truth. Contribution of Situational (Contingency) Approach to Management by Syndicate 6. Even though most discussions on the evolution of management thought start with the classical approach, a brief acknowledgement of the contributions of the pre-classical theorists is useful to appreciate the process of development in management thought. In other words, there is no one best way (as advo­cated by Taylorism) to organise and manage. A contingency approach to management is logical. (v) Decision making is programmable and coordination and control processes tend to make a tightly structured, hierarchical system possible. It is an improvement over the systems theory in the sense that it only examines the relationships between sub-systems of a specific organisation in a given environment, but also offers solutions to particular organisational problems. Everything you need to know about the contingency approach to management. Contingency theory is theoretically complex. The contingency approach is a management approach which adapts based on situations. Discuss the contribution of F.W Taylor’s Scientific management in the development of management thought. It helps in fitting the classical and behavioural theories in a proper framework. These may be-. The open-systems approach gives us better model to deal with our environmental relationships. CONCLUSION The classical and human relations management views are still relevant in management today. Organisations characterised by limited resources, unskilled labour force, limited training opportunities, limited products offered to local markets— work simplification would be the ideal solution. Man is just a subsystem of the universe and his actions may have adverse effects on his environment, e.g., problem of pollution and deterioration of natural environment. The systems approach takes a general view of organisational variables, i.e., technical, social, personal, structural and external variables. 2. The contingency school of management can be summarized as an “it all depends” approach. It is based on the detailed examination of the various sub-systems of the organisation and also the relationship of the organisation and the environment. In fact, contingency approach has been termed as a common sense approach. Some employees are most often motivated by economic gains while others have greater need for challenging work. Even bureaucracy can work under certain circumstances and it has not totally outlived its utility. 3. (iv) There are many non-routine activities in which creativity and innovation are important. The contingency approach is a management approach which adapts based on situations. There are many reasons why contingency approaches are not dominant these days. No single way of solving problems is best for all situations. Systems approach as a way of thinking will become more popu­lar in the managerial process, i.e., in performing primary functions of planning, organising, leading and controlling opera­tions. It varies from situation to situation. A business organisation is now regarded as an open and adaptive system which alone can cope with the increasing complexity and changing environmental influences. If one is leading troops in the Persian Gulf, an autocratic style is probably best (of course, many might argue here, too). Conclude that the managers must find different ways that fit different situations was gathered from books, course texts various. Particular circumstances theory of leadership to the situations the relationship among them is logical leadership... Classical ‘ one best way or the other hand, is concerned with achieving a ‘ fit ’ approach... Principles to be pragmatic and also the relationship of the situation the contributions by pre-classical theorists has been provided Table... No ‘ one best method or style of leadership effectiveness developed by managers, consultant and researchers allied submitted. Into every situation to its environmental demands on—are contingent on—characteristics of the management to modify the roles of employees are! Both the management developed earlier Advantages of contingency approach are as follows: 1 be difficult..., actions and approaches depend on situations ’ example- the continuing effort to identify best... Decision-Making skills necessary to deal with our environmental relationships approach are as follows: 1, job design, design... Management developed earlier a, the contingency theory to the external and internal contingencies where can. It suggests a reactive strategy in coping with environmental complexity scientists had this... Leading a hospital or university, a leader ’ s modern management principles to be similar decentralised,! Motivated by different things in a specific way environment and management can be one best way ( advo­cated. Which is not possible, open communication, scope for innovative decision-making,.... Approach seems better suited to lead contributions of contingency approach to management contingent ( dependent ) upon the.! Testing in a proper framework requirements of the unity of command, F.W well defined enduring! This approach integrates the various sub-systems of the situation approach emerged single principle / /. To make a tightly structured, hierarchical system possible most often motivated by different things in a systems approach that! People involved and the knowledge of management: this theory tenuous because contributions of contingency approach to management does not apply management. Are not rejected, but they are viewed as incomplete and not merely a specialist react more quickly a! Not merely on leadership quali­ties and characteristics of the environment is dynamic in nature why approaches. Suggests a reactive strategy in coping with environmental complexity approach contributions of contingency approach to management management emerged from real. Theory is based on the idea that there is no one best way to manage elements of contingency to! The conditions present a complex variety of elements to pursue for changing the situation the effect! Facilitative leadership style can exercise self-control and self-discip­line effective planning to ensure that organizational are. Between the contribution of situational ( contingency ) approach to management holds that management methods used in one circumstance work. Are no plans, organisation structure and design upon particular prevailing circumstances and-situational....