Contingency theory of management

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CONTINGENCY APPROACH , A VERY STRONG AND VALID APPROACH IN MANAGEMENT .....

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Contingency theory of management

  1. 1. CONTINGENCY THEORY ARUN NAIK IST YR MBA
  2. 2.  “no one best way to do things”
  3. 3.  (Fiedler, 1964). there is no one best way of organizing / leading and that an organizational / leadership style that is effective in some situations may not be successful in others. The optimal organization / leadership style is contingent upon various internal and external constraints.
  4. 4. William Richard Scott"The best way to organize depends on thenature of the environment to which theorganization must relate".
  5. 5. important ideas ofContingency Theory
  6. 6.  There is no universal or one best way to manage Wide range of external and internal factors must be considered and the focus should be on the action that best fits the given situation
  7. 7.  Effective organizations not only have a proper fit with the environment but also between its subsystems
  8. 8.  The needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group. Each managers situation must be viewed separately
  9. 9.  Managers need to be developed in skills that are most useful in identifying the important situational factors.
  10. 10. PROPERTIES
  11. 11.  Theory is practical and it is equally important for every organization Theory doesnt believe in one best way so many methods and principles may be used in Every situation is unique so manager HAS TO be able to analyze each and every situation INDIVIDUALLY.
  12. 12.  “an authoritarian leadership style may be more appropriate than a leadership style that tries to get workers internally motivated.”
  13. 13.  Applied in activities of motivating, leading and structuring the organisation. The other potentials of application are;A. employee development and trainingB. Decision of decentralizationC. Establishment of communication and control systemsD. Planning info decision systems
  14. 14. CRITICISMS…
  15. 15.  the logical extension of the contingency approach is that all situations are unique. If this is true, then management can be practiced only by intuition and judgment, thereby negating the value of prior knowledge and wisdom.
  16. 16.  On research level, contingency theory has been criticized for being atheoretical
  17. 17. EFFECT ON A MANAGER
  18. 18.  By applying contingency theory to the study of management, you will be able to identify and to solve problems under different situations. You will recognize that the successful application of a technique in one situation does not guarantee success in another. Rather, you will be able to examine each situation in terms of how it is affected by the contextual, organizational, and human dimensions. As a result, your overall ability to correct problems and to become more effective as a manager will increase.
  19. 19. STORY OF A SHOE MAKER
  20. 20.  . A shoe manufacturer is faced with decreasing profits As a manager - time study from the belief that the decline in profits is due to lower productivity on the part of the workers(classical management theory).
  21. 21.  may attempt to involve workers more fully in decisions concerning the methods to use in producing the shoes based on the premise that this will motivate workers to produce more( Behavioural management theory) .
  22. 22.  may establish a committee of sales and production personnel to coordinate the production and distribution of goods under the assumption that large inventories are responsible for the decline in profits (systems theory).
  23. 23.  Application of a contingency perspective will enable the manager to examine the situation and to determine the cause of decreased profits before a new procedure or program is implemented.
  24. 24.  Contingency theory is designed to provide the manager with the capabilities to examine numerous possible solutions to a problem
  25. 25. Thank you

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