The systems theory takes a gen­eral view of organisation variables, i.e., technical, social, personal, structural and external variables. Undertaking 1Measure the parts, strengths and failings of the following three major schools of idea in direction and organisational theories: ( E1 – PC 1.1 )Answer:Classical direction theory:The classical direction theory is a school of idea which direction theoreticians delved into how to happen the best possible manner for employees to execute their responsibilities. Managerial action, thus, depends upon circumstances within a given situation. Privacy Policy3. Some of the major limitations of contingency approach are as follows: 1. Features of Contingency Approach: Firstly, the contingency approach does not accept the universality of management theory. 4. [8] 2003 Fall Q.No. A functional or divisional structure? Contingency Theory: An Overview of Its Use in Management Contingency theory is one of the many theories that help to shape managerial practice, define the way that managers make decisions, and form solutions to problems. 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. It states that organizations and even the units within the same organization are diverse –in size, goals, work activities, etc. It emphasizes the need of analysing situation. But when put to empirical testing, several problems crop up almost instantaneously. For example, the approach used to manage a group of teenagers working in a fast‐food restaurant would be very different from the approach used to manage a medical … Contingency Management: The contingency approach believes that it is impossible to select one way of managing that works best in all situations. Job enrichment programme would work better if the organisation employs skilled labour force. Advantages of contingency approach to management. Tall or flat organisational structures? (ii) Second, it highlights the importance to managers of developing skills in situational analysis. Contingency approach to management is an important modem approach. Scientific Management and . Contingency refers to the immediate contingent circumstances. For example, they point out that even classical theorists like Fayol cautioned that management principles require flexible application. Contingency approach states that there is “no one best way” to manage an organisation. Even a simple problem involves analysing a number of organisational components, each of which have innumerable dimensions. Thus, management depends upon the situation and should act according to the situation. It was found that behavioural approaches worked in some situation, but not in all. (1) Spells out the relationship of organisation to its environment clearly. The contingency approach to management emerged from the real life experience of managers who found that no single approach worked consistently in every situation. Since organizations are diverse – in size, objectives, tasks being done and the like- it would be surprising to find universally applicable principles that would work in all situations. Features of Contingency Approach: Firstly, the contingency approach does not accept the universality of management theory. Kast and Rosenzweig have, therefore, rightly pointed out that the contingency theory ‘falls somewhere between simplistic, specific principles and complex, vague notions’. 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. The performance of each managerial functions is closely connected to an analysis of the total situation. At present contingency theory is considered to be the practical approach of management. management approach, the transferability and usage of these western-developed management approaches in Nigerian organisations, the relevance and limitation of each approach in Nigerian organisations and challenges thereof. 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. The contingency view seeks to understand the interrelationship within and among subsystems as well as between the organisation and its environment and to define patterns of relationships or configurations of variable.”. it allows managers to change the policies according to the situation. Managers must find different ways that fit different situations. (1) Organisation-environment rela­tionship not explained clearly. Since organizations are diverse – in size, objectives, tasks being done and the like- it would be surprising to find universally applicable principles that would work in all situations. The contingency approach was developed by managers, consultant and researchers. CONCLUSION The classical and human relations management views are still relevant in management today. Share Your Word File It emphasises the multivariate nature of organisations and attempts to understand how organisations operate under varying conditions and in specific circumstances. Theory of Bureaucracy . According to contingency theory, effective management varies with the organisa­tion and its environment. (6) Tries to identify nature of inter-de­pendencies between various parts of an organisation, and their im­pact on various other things. According to contingency theory, the characteristics of the environment affect an organisation’s ability to obtain resources. In addition, as a sort of refinement, it seeks to identify the exact nature of interrelationships and interactions. Contingency School of Management made a significant contribution to modern day management, and these early results provide a blueprint for the current leadership paradigms in organisations. Basically, it’s the approach that “it depends.” First there would be a need to identify the situational factors, and then the appropriate management principle would be applied. Should we have a mechanistic or an organic structure? The major implications of contingency theory may be summarized thus: management is entirely situational; managerial actions are contingent on internal and external factors; managerial actions must be consistent with the requirements of internal as well as external factors. This approach actually guides the managers to be adaptive to the particular situations or environment variables. The primary managerial role is to maximize this congruence. If an organisation is operating in a stable environment, it can have a mechanistic structure characterised by high degree of differentiation, centralisation of authority, rigid hierarchical relationships, rules and regulations, etc. Contingency refers to the immediate contingent circumstances. So functional, behavioural, quantitative (management science) and also systems’ approach should all be applied together. Advantages of Contingency Approach to Management Contingency approach is dynamic in nature. It helps the managers to broad-base their approach in solving day-to-day management problems. Contingency theory is a viewpoint arguing that appropriate managerial action depends on the particular parameters of a whole (Bartol et al, 2006). Systems approach recognises close interrelations between man, his organisation and his environ­ment. The contingency approach is a management approach which adapts based on situations. In an organic structure, authority is decentralized to middle and first-line managers to encourage them to take responsibility and act quickly to pursue scarce resources. The contribution and role of systems theory and contingency theory to the emergency management process is stressed. 3. It states that organizations and even the units within the same organization are diverse –in size, goals, work activities, etc. Contributions: A contingency approach to management is logical. Should we be centralized or decentralized? Practising managers, however, seem to find this theory tenuous because it does not provide any specific set of principles to use. If nearly suggests what managers can do in a given situation. 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. Adoption of this approach can be useful in the formulation of strategies, design of effective organisations, planning information systems, establishing communication and control systems, shaping motivational and leadership approaches, resolving conflicts, managing change, etc. Managers with a contingency view use a flexible approach, draw on a variety of theories and experiences, and evaluate many options as they solve problems. The contingency approach. Important Elements of Contingency Theory: Contingency Approach to Management – Explained! Even bureaucracy can work under certain circumstances and it has not totally outlived its utility. (ii) Contingency theory attempts to determine the predictable relationships between situations, actions and outcomes. Table 1. Lars Groth 8 . This approach is the long-sought synthesis that brings together the best of all segments of what Harold Koontz has called the “management theory jungle.”. Contingency approach is an extension of the systems approach. From this paper, you will learn what the contingency approach to management is and the key elements of contingency management. What are. Contingency approach to management is an important modem approach. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances. It stresses that there is no one best way of doing things. The contingency approach to management holds that management techniques should be dependent upon the circumstances. Their structural contingency theory was the dominant paradigm of organisational structural theories for most of the 1970s. Contingency approach integrates the various other approaches to the management developed earlier. The contingency approach to management emerged from the real life experience of managers who found that no single approach worked consistently in every situation. The systems approach takes a general view of organisational variables, i.e., technical, social, personal, structural and external variables. If one is leading a hospital or university, a more participative and facilitative leadership style is probably best. According to it, the managers should take decisions not according to principles but according to the situations. The crucial message of contingency theory is that there is no one best way to organize. According to the contingency approach, there are no plans, organisation struc­tures, leadership styles, or controls that will fit all situations. There is no single best way of managing applicable to all situations. This is also called the “Situational” approach. Some employees are most often motivated by economic gains while others have greater need for challenging work. Contingency refers to the immediate contingent circumstances. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Pough, Robert Katz, Kahn have made significant contributions to the development of the systems approach. (225) 578-1075 Email: jpine@lsu.edu httt://www.risk.lsu.edu … 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. The contingency approach is a useful instructional device in the sense that it compels us to be aware of the complexity in every situation and forces us to take an active and dynamic role in trying to determine that would work best in each case. The latter has developed out of the findings of the former. This theory may not be applicable to all managerial issues. 1b State and explain the “system approach” and “contingency approach” of management as the integrating approach of managing an organization. Instead, every management situation must be approached with the ‘it all depends’ attitude. At present contingency theory is considered to be the practical approach of management. Another management approach is style-based app Contingency theory is beneficial to organisations because of the potential for learning from specific situations and using these lessons to influence future management of the same or similar situations. Share Your PPT File, Contingency Approach to Management – With Contributions of Contingency Approach, Congruence between Organisation and Environment, Contingency Approach to Management – With Features and Merits, Contingency Approach to Management – Important Elements, Implications and System Theory Vs Contingency Theory. 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. Contingency managers pay attention to both of the situations that they create own styles and management approach. CONTINGENCY APPRAOACH OF MANAGEMENT G.KRISHNA VAMSY 2. We will have a flexible managerial system to meet easily chan­ges in environment. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation. For example, the approach used to manage a group of teenagers working in a fast-food restaurant would be very different from the approach used to manage a medical research team trying to find a cure for a disease. (v) Heuristic decision-making processes are utilised and coordination and control occur through reciprocal adjustments. 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