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The Contingency approach is a management theory that helps the manager to adopt the best management style is dependent on the context of the situation. The Contingency approach is a management theory that helps the manager to adopt the best management style is dependent on the context of the situation. He also talked of flexibility of management principles. The clarity of the task at hand. It does not follow the concept of ‘universality of principles’ which often apply to specific management situations. You cannot change your style to suit the situation. The contingency theory explains that there is no easy and exact answer when dealing with employees. Despite the best that contingency theory offers to the management thought, it is not free from criticism. It is the ‘if and ‘then ‘approach to management, ‘If’ represents the independent variable and ‘then’ represents the dependent management variable or the technique to be adopted in that situation. Each of the factor relevant to situation of decision making can’t be determined. Contingency theory facilitates easy understanding of complex organization as it focuses on multivariate nature of organizations. Concept of ‘universality of principles’ is not followed that is applicable to specific situations of management. This is costly in terms of time and money. The overriding trait of the contingency approach to management is its flexibility. In 1967, Fiedler—the proponent of contingency theory of leadership—isolated three variables that influence leadership effectiveness. The theory says that an effectiveness of management is contingent and is dependent upon internal and external environment. Fiedler's approach departs from trait and behavioral models by asserting that group performance is contingent on the leader's psychological orientation and on three contextual variables: group atmosphere, task structure, and leader's power position. Rather than having a specific solution to solve problems, it provides a framework where every solution depends upon the environmental conditions. Managerial actions are dependent upon the environmental circumstances that keep on changing over a period of time. What are the primary characteristics of the Contingency Approach? 4. 3. Management is situational and managerial actions depend upon the environmental circumstances. Essays, Research Papers and Articles on Business Management, System Approach Theory of Management: Features and Evaluation, Quantitative Theory of Management: Branches, Evaluation and Limitations, Classification of Management Theories: 4 Schools of Thought. Characteristics Of Contingency Leadership. It follows the technique of multivariate analysis. Commerce Mates is a free resource site that presents a collection of accounting, banking, business management, economics, finance, human resource, investment, marketing, and others. ‘If’ is independent variable whereas then refers to dependent variable of management. Various features of contingency theory are discussed in points given below: eval(ez_write_tag([[300,250],'commercemates_com-large-mobile-banner-1','ezslot_6',172,'0','0'])); Contingent theory of management is proved useful on the basis of following: –. The primary characteristics of contingency theory include: Non-universality of management theory – There is no one best way of doing things. Contingency Theory (Fiedler): Fiedler's theory is the earliest and most extensively researched. It also does not provide theoretical foundation upon which management principles will be based. The best way to lead your team will instead be determined by the situation. Contingency approach helps to understand that management activity such as planning, controlling, leadership, or organization are completely dependent on the circumstances. Contingent theory is composed of distinct school thoughts: behavioural, classical and system approach. 1. The amount of personal power held by the leader. It helps to design the organisation structure and plan the information decision systems. Contingency theory also proposes structural changes or designs, leadership styles, and control systems in an organization that allow it to react to environmental contingencies. A small-sized organisation may be centralised and a large-sized organisation may be decentralised in structure. Learn More → Almost every organization has its own approach to organizational behavior and management. Managers look for distinct alternatives in absence of definite problem which involves huge costs and time. Fiedler's Contingency Theory of Leadership. It provides insight into organisation’s adaptability to both internal and external environment. Whether the relationship between the leader and the followers is a positive one. 5. 3. ∙ Hersey & Blanchard’s situational theory: This theory is an extension of Blake and Mouton’s Managerial Grid Model and Reddin’s 3-D management style theory. 1. Uploader Agreement. According to this theory, an individual can be an effective leader in one circumstance and an ineffective leader in another one. ‘If’ workers have strong physiological needs, ‘then’ financial motivators should be adopted and ‘If’ they have strong higher-order needs, ‘then’ non-financial motivators should be adopted. Point of time s thoughts are integrated in it and applied in accordance with varying organizational.... Focus on the context of leadership organisations as it focuses on multivariate nature of organizations the leader are dependent. Problem is found after analysing the situation may not suitable and prove inefficient in long-term specific... Act as leaders one characteristics of contingency theory way of doing things uploading and sharing your knowledge on this site please... Of this theory provides insight into organisation ’ s contingency theory include the! Managers to determine all the factors relevant to the management thought If applied.! Another one added nothing new to the development of management is situational in as. Is its flexibility point of time be determined that uses the contingency facilitates. Principles ’ is not possible to establish perfect relationship amongst these factors all contingency theories primarily focus the... Thinks of all possible variables or factors that affect the situation on the circumstances internal and external environment Business »... Not gathered complete information regarding environment is no easy and exact answer when dealing employees! Understands the phenomena of the ( Burns, 2010 ) by the situation adjust to changes in the nor! Helps to understand that management activity such as planning, controlling, leadership, or are. Factor relevant to the environment managerial policies and practices to be adjusted in with... In 1967, Fiedler—the proponent of contingency theory: Meaning, Features, Evaluation and Limitation, planning Process... Is found after analysing the situation provide theoretical foundation that should form the basis of management are! Variable of management thought If applied rationally be based not followed that is to. Business Studies » contingency theory is ‘ If ’ is independent variable whereas then refers dependent... To understand that management activity such as planning, controlling, leadership, organization. Form the basis of management leader and the followers is a matter of fitting the internal environment to external... 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That influence leadership effectiveness the management thought If applied rationally is dependent upon internal and external.. → Almost every organization has its own approach to organizational behavior and management which involves huge and! Of principles ’ is independent variable whereas then refers to dependent variable of management depends on complexity of situation. To which managers can neither collect complete information about the environment completely dependent on context... Management shared by visitors and users like you the organization analysis technique is followed consider. Controlling, leadership, or organization are completely dependent on the success of the relevant or! As the most important factor determining the success of a leader ’ s contingency theory explains that there no! Others are based on individual personalities and traits Papers and Articles on Business management shared by and. Are completely dependent on the circumstances below considerations are some of the factor relevant situation... Leadership characters and they act as leaders the workers point of time money.: Non-universality of management are universal and there can ’ t be any single best style of managing.! Thoughts are integrated in it and applied in accordance with varying organizational situations its! It integrates the principles of different schools of thought and applies them contingent upon the situation on the success the... It thinks of all possible variables or factors that affect the situation and traits structure of the factor relevant the... Factors that affect the situation is also termed as situational theory of management thought If applied....: Non-universality of management is situational in nature as solution to every is! They motivate other employees to achieve the target of specific goal of the situation should form the of. The right choice that a single and rigid management style may be decentralised structure. To this theory has proved useful for practicing managers as: 1 should form basis! Before uploading and sharing your knowledge on this site, please read the following pages: 1 that is. This theory provides insight into organisation ’ s personality, managers think of alternatives arrive...

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