Management has many other functions than decision-making. In-spite of the various contributions, contingency approach has not been acknowledged as a unified theory of management because it suffers from some limitations. The contingency theorists accept open adaptive nature of the organisation and the interdependency between various sub-systems of the organisation. The theory argues that a manager's effectiveness is based upon the interplay of task, or relation, motivation and the circumstance. Kast and Rosenzweig give a broader view of the contingency approach. There are six major recognized leadership styles used in business. Taylor, however, emphasized the importance of choosing the general type of management best suited to a particular case.
For example, the world can be considered to be a system in which various national economies are sub-systems. You can divide these eight situations into three broad categories: favorable situations, intermediate situations and unfavorable situations. This approach calls for an identification of the internal and external variables that critically influence managerial revolution and organisational performance. Contingency Approach to Management The contingency approach to management is based on the idea that there is no single best way to manage. Moreover, mathematics quantitative techniques provide tools for analysis but they cannot be treated an independent system of management thought. In the 1920s, Mary Parker Follett related individual experience to general principles.
Project managers are required to analyze the problems in the workplace and solve them by matching the problems with employees who possess relevant skills. Determination of situation in which managerial action is to be taken involves analysis of a large number of variables with multifarious dimensions. These conditions vary according to the environment or context that companies chose as their field of operations. The managers choose a Framework for finding solutions to a problem rather than sticking to a particular strategy for solving the problems. Because of the profitable features that this theory proposes it has been of great use to the managers. Contingency approaches are positioned within management as mid-range theories between the two extreme views which state ei±er that universal principles of organisation and management exist or that each organisation is unique and each situation must be analysed separately. It has given exactness to the management discipline.
There is no single optimal solution to a problem which means that managers can iterate as much as they want in search of solutions. He also talked of flexibility of management principles. Some of the basic techniques of the classical scientific theory include creating standardized methods for a task and dividing work between employees equally. These surveys and studies were contingent on the extent that sought to understand and explain the way in which companies operated in different conditions. The contingency theory takes a broader view that includes contingent factors about leader capability and also includes other variables within the situation. This means that they can consider every factor variable and circumstances that may affect their solutions in the present and the future as well. Change may cover such diverse problems as for example strategic direction or personal development programs for staffs.
Contingency theorists argue that an organization that adapts to its environment will perform better than an organization that does not Donaldson, 1996 and that mismatched characteristics within organizational configurations will prevent an organization from achieving natural harmony with its environment that will lead to better performance Mitzberg, 1981. Many times students are given assignments, case studies and projects related to the contingency approach to management. It does not presume a pre-designed structure of the organisation but adopts a structure that helps the organisation adapt to the environment. Limitations : There is no doubt that this approach helps in defining and solving complex problems resulting in orderly thinking. The performance of the organization depends on the degree to which these role definitions enable members to cope with the requirements resulting from the context of the organization.
. Let's say you are hired as an outside consultant for a motorcycle company to assess management effectiveness. It is important for a manager to adapt his leadership style to match the culture of a business and the needs of its employees. Effects of lower-cost incentives on stimulant abstinence in methadone maintenance treatment: A National Drug Abuse Treatment Clinical Trials Network study. The appropriate form depends on the kind of task or environment one is dealing with. Factors that influence the contingency theory are numerous.
Each set is defined on an eight-point scale. Substitute: a situational variable that makes leadership unnecessary or redundant Neutralizer: a situational characteristic that counteracts the leadership style and prevents the leader from displaying certain behaviours. Evaluation of System Approach : The systems approach assists in studying the functions of complex organisations and has been utilised as the base for the new kinds of organisations like project management organisation. Managers can benefit from learning and implementing best practices or studied and tested approaches to running an organization. Paul Lawrence and Jay Lorsch suggest that organizations have developed separate departments to confront differing environmental segments.
It is pragmatic in nature as solution to every problem is found after analysing the situation. However, the classicists came under fire in the 1950s and 1960s from management thinkers who believed that their approach was inflexible and did not consider environmental contingencies. Different situations can have different solutions. One of its most important characteristic is that it is composed of hierarchy of sub-systems. Contingency theory attempts to analyse and understand these interrelationships with a view towards taking the specific managerial actions necessary to deal with the issue. What is A Contingency Approach to Management? A manager goes through the sets for each subordinate and rates it. Hence in case of stringent time limits managers may not be able to dig deeper into the situation and they might take superficial decisions.
Contingency approach to management is considered as a leading branch of management thought today. This allows an organization to work under differentiable environmental conditions and circumstances. The general systems approach to management is mainly concerned with formal organizations and the concepts are relating to technique of sociology, psychology and philosophy. It believes that effective leadership depends on the specific situation. Lawrence, who were critical of other approaches presupposing one best way to manage. Six Basic Leadership Styles The six basic leadership styles are directive, visionary, affiliative, participative, pacesetting and coaching.
A system is simply an assemblage or combination of things or parts forming a complex whole. According to the contingency approach, the managers generally pay attention to the current situations and then make strategies based on their own knowledge and experience. According to this, internal and external environment of the organisation is made up of the organisational sub-systems. Thus, the systems approach may succeed where the process approach has failed to lead management out of the theory of jungle. Contingency management for treatment of substance use disorders: A meta-analysis.