According to the Contingency Approach, management is situational; no one best approach to management exists because each situation the manager faces is too different. 1b State and explain the “system approach” and “contingency approach” of management as the integrating approach of managing an organization. Share Your Word File 3. Similarly, the ideas of systems theory that emphasize the interrelationship between parts also have not been rejected but they are viewed as vague and unspecific. Contribution of Situational (Contingency) Approach to Management by Syndicate 6. Implications 5. The Contingency Theory states that the leader’s ability to lead is contingent upon various situational factors. The contingency approach was developed by managers, consultant and researchers. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances. Contingency views are ultimately directed towards—suggesting organisational designs and managerial actions more suitable for specific situations. A functional or divisional structure? Managers have to devise methods and to learn when and how to apply each one. The scientific management approach was put forward by Fredrick W. Taylor (1947). 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). Complex 3. The behavioural scientist may seek to create a psychologically motivating climate and recommend the opposite- work enrich­ment. Often, managers may find this to be a difficult and taxing exercise. 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. It has not developed to such an extent where it can offer meaningful solutions to different managerial problems in a specific way. 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. Firstly, the managers need to decide which way to pursue for changing the situation. Contingency approach helps the manager to enhance their leadership and decision-making skills. The basic theme of contingency approach is that organisations have to cope with different situations in different ways. Management will have to adapt continuously in a changing environment. Features of Contingency Approach 3. Contingency School began in 1960s. For example, a proposition that unless the various parts in an organisation move in close coordination, the behaviour at various organisational levels would not be effective-seems to be a sound one. A list of the contributions by pre-classical theorists has been provided in Table 1. According to Robert Albanese, the strength of contingency approach rests on two points: (i) First, it focuses attention on specific situational factors that influence the appropriateness of one managerial strategy over another. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. The latter has developed out of the findings of the former. This approach integrates the various other approaches to the management developed earlier. It provides a framework for integrating the knowledge of management thought. Secondly, managerial policies and practices to be effective, … Contingency theory attempts to analyse and understand these interrelationships with a view towards taking the specific managerial actions necessary to deal with the issue. These may be-. Contingency approach to management is considered as a leading branch of management thought today. Table 1. Contingency theory refers to any of a number of management theories. Organisation structures will be designed not around functional specialisation but around projects and information decision systems in future. Administrative theory . Contingency Theory (Situational Theory): The contingency theory can be described as “if, then” theory, i.e. Thus, patterns of management and organisation operating in matured economies may not deliver rich dividend when adopted in developing countries like India. 2000 . It advocates that the managers should develop situation sensitivity and practical selectivity. The contingency approach to management (also called the situational approach) assumes that there is no universal answer to such questions because organisations, people, and situations vary and change over time. it allows managers to change the policies according to the situation. There are multifarious situational factors to be taken into account while testing the contingency theory. 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. Contingency theory is a viewpoint arguing that appropriate managerial action depends on the particular parameters of a whole (Bartol et al, 2006). The management will face a range of choices when determining how a particular function is to be performed. The contingency approach is a management approach which adapts based on situations. How is it different from contingency approach? It requires the ability to analyse and diagnose a managerial situation correctly. Advantages of contingency approach to management. (1) Organisation-environment rela­tionship not explained clearly. For a given organisation, super system constitutes environment and management can be applied to supra-system also. 1 Contributions of Pre-classical … An important characteristic of the external environment that affects an organisation’s ability to obtain resources is the degree to which the environment is changing. 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