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. Secondly, contingency approach focuses … Should we be centralized or decentralized? System approach theory consists of general principles for understanding the physical, mechanical, biological and social entities and the relationship among them. Organisations characterised by limited resources, unskilled labour force, limited training opportunities, limited products offered to local markets— work simplification would be the ideal solution. Elements of Contingency Approach 2. Contingency School began in 1960s. (ii) Second, it highlights the importance to managers of developing skills in situational analysis. 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. Contingency views are ultimately directed toward suggesting organisational designs and managerial actions most appropriate for specific situations. Firstly, the stable-mechanistic structure is more appropriate when the following conditions are fulfilled: (i) The environment is relatively stable and certain. Contingency theory refers to any of a number of management theories. Parents find this out quickly when they realise that spanking one child may yield good re­sults while spanking another can be emotionally disturbing and disastrous. This approach originated in around 1970. Thus, the contingency approach falls somewhere between simplistic, specific principles (classical theory) and complex, vague notions (systems theory). Several contingency approaches were developed concurrently in the late 1960s. McDonald’s restaurants operate with a mechanistic structure. Implications 5. This approach actually guides the managers to be adaptive to the particular situations or environment variables. 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. 1b State and explain the “system approach” and “contingency approach” of management as the integrating approach of managing an organization. 2000 . 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. One Size Does Not Fit All—A Contingency Approach to Data Governance KRISTIN WEBER, BORIS OTTO, and HUBERT OSTERLE¨ University of St. Gallen Enterprizes need Data Quality Management (DQM) to respond to strategic and operational challenges demanding high-quality corporate data. Decentralisation as well as centralisation can work under a given set of situa­tions. 1940 1950 1960 1970 1980 1990 . The contingency approach to management finds its foundation in the contingency theory of leadership effectiveness developed by management psychologist Fred Fielder. For example- where workers need to be encouraged to increase productivity, the classical theorist may prescribe a new work simplification scheme. 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. 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. Secondly, the adaptive-organic structure is more appropriate when the following conditions are fulfilled: (i) The environment is relatively uncertain and turbulent. Managerial task will be to integrate diverse specia­lists, professionals, and scientists into an effective organisation. The contingency approach assumes that managerial behaviour is dependent on a wide variety of elements. Motivation through financial incentives can work wonder if the environment is favourable. Some of the major limitations of contingency approach are as follows: 1. Limitations of Contingency Theory: However, if the condition is B, then Action Y should be used. Because tasks and people in organisations differ, the contingency theorists (Selznik, Burns and Stalker, Woodward, Lawrence and Lorsch, James Thompson and others) argue that the method of managing them must also differ. Contingency refers to the immediate contingent circumstances. Socio-technical approach 3. Some employees are most often motivated by economic gains while others have greater need for challenging work. Management of each organisation will be somewhat unique. 1. 2. 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. 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. In-spite of the various contributions, contingency approach has not been acknowledged as a unified theory of management because it suffers from some limitations. It states that organizations and even the units within the same organization are diverse –in size, goals, work activities, etc. It is small wonder, contingency theory is welcomed as a refreshing breeze in management literature that clears away the humanistic and general systems ‘fog’. Applying a contingency/situational approach requires that managers diagnose a given situation and adapt to meet the conditions present. This approach originated in around 1970. In any situation, the principles and practices of management should be rather contingent upon the existing circumstances or the situations. A mechanistic structure provides the most efficient way to operate in a stable environment because it allows managers to obtain inputs at the lowest cost, giving an organisation the most control over its conversion processes and enabling the most efficient production of goods and services with the smallest expenditure of resources. The contingency school of management can be summarized as an ‘it all depends’ approach. [8] 2003 Fall Q.No. The contingency theory, on the other hand, is concerned with achieving a ‘fit’ between organisation and its environment. According to contingency theory, effective management varies with the organisa­tion and its environment. But when put to empirical testing, several problems crop up almost instantaneously. In the mid-1960s, the contingency view of management or situational approach emerged. Max Weber . The contingency approach has great significance. Should we use task or people oriented leadership styles? In 1970s, it is recognized as a key to effective management. Information in depth was gathered from books, course texts and various reviews and articles. National social indicators and a pro­gramme of social accounting and auditing will be developed. Wholesale import of Western philosophy and practice of management is not welcome. 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. Hence, we cannot have universal principles of organisation and management appropriate to all situations-and in all envi­ronments. It emphasises the multivariate nature of organisations and attempts to understand how organisations operate under varying conditions and in specific circumstances. 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. No single way of solving problems is best for all situations. A mechanistic structure typically rests on Theory X assumptions, and an organic structure typically rests on Theory Y assumptions. Managers are, therefore, required to be pragmatic and also open-minded or adaptive. 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. For example- the continuing effort to identify the best leadership or management style might now conclude that the best style depends on the situation. 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.”. Managers who use the contingency approach must study all three thought schools in order to effectively use elements of … Organisation structures will be designed not around functional specialisation but around projects and information decision systems in future. The contribution and role of systems theory and contingency theory to the emergency management process is stressed. Privacy Policy3. Contingency theory may also produce more well-rounded leaders who are able to develop their skills in multiple areas. 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. 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. Contingency or Situational approach These contributions are at times referred to as theoretical schools (laegaard, J. and Bindslev, M. 2006). In fact, contingency approach has been termed as a common sense approach. CONCLUSION The classical and human relations management views are still relevant in management today. Tasks and roles are clearly specified, subordinates are closely supervised, and the emphasis is on strict discipline and order. Systems approach emphasizes that all subsystems of an organisation along with the suprasystem of environment are interconnected and interrelated. A systems approach highlights the complexity of the interdependent components of organisations within equally complex environments. The appropriate fit between the organisation and its environment and the appropriate internal organisational design will lead to greater effectiveness, efficiency, and participant satisfaction. 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. Hitherto, companies have mostly assigned ac-countabilities for DQM to Information Technology (IT) … This theory helps to improve the caliber of the managers. He will be a problem-solver and not merely a specialist. If nearly suggests what managers can do in a given situation. Thus contingency ap­proach enables us to evolve practical answers to the problems demanding solutions. Other, more recent movements in management may also be … Discuss the contribution of F.W Taylor’s Scientific management in the development of management thought. Scientific management was based on the idea of planning, systemization of work to achieve efficiency. Everything you need to know about the contingency approach to management. 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. The classical ideas and behavioural modifications are not rejected, but they are viewed as incomplete and not suited for all organisations. A functional or divisional structure? The contingency approach builds upon this perspective by following in detail on the nature of relationships existing between these parts. The latter has developed out of the findings of the former. In addition, as a sort of refinement, it seeks to identify the exact nature of interrelationships and interactions. Systems approach recognises close interrelations between man, his organisation and his environ­ment. The contingency approach is a management approach which adapts based on situations. We used to think in terms of closed and static systems. A major empirical test was furnished by Johannes M. Pennings who examined the interaction between environmental uncertainty, organisation structure and various aspects of performance. Leadership style to be adopted always depends on the situation and not merely on leadership quali­ties and characteristics of the followers. 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. Research Methodology This study is based on a qualitative approach and it is analysed using a narrative method that will lean more towards the interpretivist approach … The contingency approach to management is based on the idea that there is no single best way to manage. This would help the classicals view lack of judgment and use of universal solutions. The contribution of these two pioneers in the field of science of management has been reviewed as “The work of Taylor & Fayol was, of course, especially complementary. Management is situation, and managers should explain objectives, design organisations and prepare strategies, policies and plans according to prevailing circumstances. In other words, managers should identify the conditions of a task, the requirements of … Contin­gency approach analyses and understands these interrelation­ships so that managerial actions can be adjusted to demands of specific situations or circumstances. Contingency approach states that there is “no one best way” to manage an organisation. Contingency theory is a viewpoint arguing that appropriate managerial action depends on the particular parameters of a whole (Bartol et al, 2006). In short, ‘it all depends’ on a number of interrelated inter­nal and external variable factors. The contingency view of management lead to – (1) Recognition of situational nature of management (2) Response to particular characteristics of situation. Open and adaptable systems approach is called Con­tingency Approach. According to it, the major premise is that there is no one best way to handle any of the management problems. The crucial message of contingency theory is that there is no one best way to organize. It also allows the management to modify the roles of employees who are already working on the project to ensure success. The Contributions of Management Theory and Practice to Emergency Management John C. Pine is the Director of the Disaster Science and Management, Professor-Research with the Department of Environmental Studies and Interim Chair of the Department of Geography and Anthropology at Louisiana State University in Baton Rouge, LA. It also allows the management to modify the roles of employees who are already working on the project to ensure success. Mainly concerned with structural adap­tations of organisation to its task environment. Thus, management depends upon the situation and should act according to the situation. Features of Contingency Approach: Firstly, the contingency approach does not accept the universality of management theory. It emphasizes the need of analysing situation. 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