The contingency management approach emphasizes that there is no single best way to manage a business, as effective leadership varies based on internal and external conditions. Managers must be adaptable and consider various factors when making decisions, recognizing that techniques successful in one context may fail in another. This theory enhances a manager's problem-solving skills by encouraging them to analyze situations individually and apply appropriate solutions.

1. CONTINGENCY
MANAGEMENT
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2.  “NO, ONE BEST WAY TO DO THINGS”

3. THE CONTINGENCY APPROACH
Third style of Management Theory
After Classical and Behavioural
Very different from previous two
More of recognition that business is constantly
changes

4. WHAT IS A CONTINGENCY ?
•A contingency is an event that might happen
•It’s not certain that it will happen, but there is
a possibility that it might
•Good managers need to consider
contingencies when making a plans

5. •(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.

6. WILLIAM RICHARD SCOTT
• "The best way to organize
depends on the nature of the
environment to which the
organization must relate".

7. SO THE CONTINGENCY MANAGEMENT
APPROACH
• The contingency approach to management says there is no
single good way of managing a business
• Instead, a manager must be ready to change, to fit in with
what’s best with the environment.
• In other words, the organisational structure and the
management style should depend on the type tasks that are
done in the business
• Wide range of external and internal factors must be considered
and the focus should be on the action that best fits the given
situation

8. PROPERTIES

9. • Theory is practical and it is equally important for every
organization
• Theory doesn't 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
analyse each and every situation INDIVIDUALLY.

10. • Applied in activities of motivating, leading and structuring the
organization.
• The other potentials of application are;
A. employee development and training
B. Decision of decentralization
C. Establishment of communication and control systems
D. Planning info decision systems

11. EFFECT ON A MANAGER

12. • 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.

13. •Contingency theory is designed to
provide the manager with the
capabilities to examine numerous
possible solutions to a problem

14. THANK YOU