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Recognize the potential flexibility and value that can be captured through considering
contingencies and alternatives from a managerial perspective
Debating which one of the previous approaches to management is the "best" approach is
irrelevant in contingency theory, since the heart of the contingency approach is that there is no
"one best way" for managing and leading an organization.
The focal point, and modern relevance, of this perspective is the concept of adaptability.
Technology and globalization evolve the business environment so rapidly that
adaptable strategies are more appropriate than static ones, making contingencies key to success.
TERM [ edit ]
Contingency Viewpoint
A heory of management that proposes that there is no standardfor management practice, instead
it should depend on the situation.
specific internal and external situation
The contingency approach claims that past theories, such as Max Weber's bureaucracy theory
of management and Taylor's scientific management, are no longer practiced because they fail
to recognize that management style and organizational structure are influenced by various
theory, since the heart of the contingency approach is that there is no "one best way" for
By its nature, contingency theory avoids static rules. There are, however, common
contingencies that businesses must react to, including technology, competition, governments,
unions, consumer interest groups, new markets and consumers, and economic factors. Fred
In other words, leadership needs to ensure that it is able to assess a situation, determine the
task structure, and obtain a position of formal authority in order to be able to adequately
this situation in which there is only one option: give the employee notice. Under the
contingency viewpoint, however, the manager may decide to better understand the situation
by talking to the employee about why s/he is late to work and then deciding on the
most effective and appropriate course of action. The value in this lies in the information the
manager acquires about the employee: maybe there are extenuating circumstances that can
be relatively easy to work around. In this case, the contingency approach allows the employee
to keep her/his job and saves the manager from going through the time and trouble to
dismiss one employee and hire another.
A leader's ability to manage under the contingency viewpoint depends largely on the nature
of the environment and how the organization relates to the environment. Therefore, the
organizational structure is a major component of the approach that management may take in
resolving problems under contingency theory.